BILL ANALYSIS Ó
AB 1303
Page 1
ASSEMBLY THIRD READING
AB 1303 (Williams)
As Amended April 25, 2011
2/3 vote
UTILITIES & COMMERCE 10-0 NATURAL
RESOURCES 6-3
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|Ayes:|Bradford, Buchanan, Fong, |Ayes:|Chesbro, Brownley, |
| |Fuentes, Furutani, Roger | |Dickinson, Huffman, |
| |Hernández, Huffman, Ma, | |Monning, Skinner |
| |Skinner, Swanson | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Knight, Grove, Halderman |
| | | | |
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APPROPRIATIONS 12-5
--------------------------------
|Ayes:|Fuentes, Blumenfield, |
| |Bradford, Charles |
| |Calderon, Campos, Davis, |
| |Gatto, Hall, Hill, Lara, |
| |Mitchell, Solorio |
| | |
|-----+--------------------------|
|Nays:|Harkey, Donnelly, |
| |Nielsen, Norby, Wagner |
| | |
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SUMMARY : Extends the sunset date from 2012 to 2020 on the
Public Goods Charge (PGC) for public interest energy activities
and the programs funded by the Renewable Resources Trust Fund
(RRTF).
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill authorizes the California Energy Commission
(CEC) to spend funds for certain programs, but it does not
extend the public goods charge that, currently, provides funding
for those programs. Therefore, the fiscal effect of this bill
is unknown. Were CEC to continue to fund its Public Interest
Energy Research Program (PIER) and Renewable Energy Program
AB 1303
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(REP) at current levels, it would spend at least $62.5 million a
year on REP and $65.5 million a year on PIER.
COMMENTS : When California partially deregulated its energy
market in 1996, many assumed the state's for-profit
investor-owned utilities (IOUs), seeking to reduce costs, would
cut research and other efforts that provide public benefits. To
ensure continuation of energy research and other efforts that
benefitted the public, statute directed the IOUs to levy a
public goods charge on electricity bills to annually fund three
programs:
1) Energy efficiency ($228 million).
2) Renewable energy ($65.5 million).
3) Energy research, development and demonstration ($62.5
million).
The public goods charge will expire at the beginning of 2012
unless extended. Statute also directs the state's municipally
owned utilities to charge their customers a public goods charge
for the same purposes and in an amount proportional to revenues.
This bill extends, until January 2020, that portion of the
Public Goods Charge related to renewable energy and energy
research, development and demonstration.
The author states that it is important to continue funding the
state's programs for energy research and renewable energy. The
programs funded by the Renewable Resources Trust Fund (RRTF) and
Public Interest Energy Research (PIER) are key to meeting our
state's energy goals and needs. However, the author states that
PIER and RRTF need to be reevaluated. "We must ensure that those
who benefit from the funds are actually helping pay into the
fund, place increased emphasis in deployment of ready
technologies that can also increase jobs, while remaining a
leader in environmental policy and ensuring ratepayer funds are
being maximized."
Related legislation .
1)AB 723 (Bradford) extends, from January 1, 2012, to January 1,
2016, charges to electricity customers, known collectively as
the public goods charge, to fund Public Goods Charge programs
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energy efficiency and renewable energy.
2)SB 35 (Padilla) repeals the public goods charge and the
renewable energy and research programs, replacing them with a
new program.
3)SB 410 (Wright) extends the sunset on the public goods charge
and research program for 10 years, to 2022.
Analysis Prepared by : Susan Kateley/ U. & C. / (916) 319-2083
FN: 0001089