BILL ANALYSIS Ó
AB 1303
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Date of Hearing: May 2, 2011
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
AB 1303 (Williams) - As Amended: April 25, 2011
SUBJECT : Energy programs
SUMMARY : Extends for eight years, from January 1, 2012 to
January 1, 2020, authorization for the California Energy
Commission (CEC) to spend funds collected for energy research,
development and demonstration (RD&D) pursuant to its Public
Interest Energy Research Program (PIER) and renewable energy
pursuant to its Renewable Energy Program (REP).
EXISTING LAW :
1)Requires electric utilities to collect until January 1, 2012 a
"nonbypassable" surcharge on bills based on electricity usage
to fund energy efficiency, renewable energy, and energy
research, development and demonstration (RD&D).
2)Establishes specific minimum annual collection amounts for the
three largest investor-owned utilities (Pacific Gas and
Electric, Southern California Edison and San Diego Gas and
Electric) and provides for adjustment according to the lesser
of sales growth or inflation:
a) $228 million for energy efficiency.
b) $65.5 million for renewable energy.
c) $62.5 million for RD&D.
3)Provides the CEC at least $65.5 million per year to administer
the REP and at least $62.5 million per year to administer
PIER. Funds are allocated by the CEC according general
statutory guidelines and more specific CEC-developed
investment plans. REP funds support emerging and existing
renewable energy projects. PIER funds support investments in
RD&D for energy technologies that provide tangible benefits to
the utility customers who fund the program. Collection of
ratepayer funds for these and other purposes, and the CEC's
authority to spend the funds it administers, is authorized
until 2012.
FISCAL EFFECT : Unknown
AB 1303
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COMMENTS :
1)Background. As part of California's experiment with electric
deregulation, AB 1890 (Brulte), Chapter 854, Statutes of 1996,
required ratepayers to fund a variety of system reliability,
in-state benefit and low-income customer programs at specified
levels from 1998 through 2001. This funding was intended to
ensure that these "public goods" programs continued (at least
in the short term) in the restructured electric industry.
Among the public goods programs established by AB 1890 were
in-state operation and development of existing, new, and
emerging renewable energy sources and public interest energy
RD&D. Prior to awarding any of the money collected from
ratepayers, the CEC was required to submit reports to the
Legislature describing the programs it would support and the
levels of support those programs would receive. This original
CEC investment plans were adopted in 1997 and have been
extended twice since.
SB 1194 (Sher), Chapter 1050, Statutes of 2000, extended the
collection of a public goods charge from ratepayers until
2012 and again required the CEC to develop investment plans
for renewable energy and public interest RD&D.
2)Bill extends programs with no funding and conflicts with AB
723. This bill provides the CEC authority to administer the
REP and PIER until 2020, but provides no funding for the
programs. AB 723 (Bradford), also pending in this committee,
provides the funding by extending the public goods charge, but
only until 2016. AB 723 also extends the REP until 2016, the
same program this bill would extend until 2020.
3)Related legislation. In addition to AB 723, SB 35 (Padilla)
and SB 410 (Wright), pending in the Senate Energy, Utilities
and Communications Committee, conflict with this bill. SB 35
would repeal the public goods charge, as well as the REP and
PIER programs, and create a new program. SB 410 would extend
the public goods charge, as well as the PIER program, until
2022.
4)Double referral. This bill passed out of the Assembly
Utilities and Commerce Committee on April 11, 2011 with a vote
of 10-0.
AB 1303
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REGISTERED SUPPORT / OPPOSITION :
Support
Apollo Alliance
California Biomass Energy Alliance
California League of Conservation Voters
Clean Power Campaign
Environmental Defense Fund
Natural Resources Defense Council
Nature Conservancy
Union of Concerned Scientists
Opposition
California Manufacturers and Technology Association
Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916)
319-2092