BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                   SB 870|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                   CONSENT   


          Bill No:  SB 870
          Author:   Padilla (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE ENERGY, UTIL. & COMM. COMMITTEE  :  11-0, 5/3/11
          AYES:  Padilla, Fuller, Berryhill, Corbett, De León, 
            DeSaulnier, Pavley, Rubio, Simitian, Strickland, Wright

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Energy: State Energy Resources Conservation and 
          Development

          SOURCE  :     Author


           DIGEST  :    This bill requires the chair of the California 
          Energy Commission (CEC) to appear before the appropriate 
          policy committees to report on the activities of the CEC. 

           ANALYSIS  :    

           Existing law  

          1.  Establishes the CEC with five appointed members, one of 
          whom serves 
               as the chairman of the body. 

          2.  Requires the President of the California Public 
          Utilities Commission to 
                                                           CONTINUED





                                                                SB 870
                                                                Page 
          2

               appear before the appropriate policy committees of the 
          Legislature each   
               year to report on the activities of the commission. 
           Background

           The CEC is an energy policy and planning agency created by 
          the Legislature in 1974.  The CEC responsibilities include: 


          1.  Forecasting future energy needs and keeping historical 
          energy data;

          2.  Licensing thermal power plants 50 megawatts or larger;

          3.  Promoting energy efficiency by setting the state's 
          appliance and building 
               efficiency standards and working with local government 
          to enforce those 
               standards;

          4.  Supporting public interest energy research that 
          advances energy science 
               and technology through research, development, and 
          demonstration 
               programs;

          5.  Supporting renewable energy by providing market support 
          to existing, 
               new, and emerging renewable technologies; providing 
          incentives for 
               small wind and fuel cell electricity systems; and 
          providing incentives for 
               solar electricity systems in new home construction;

          6.  Implementing the state's Alternative and Renewable Fuel 
          and Vehicle 
               Technology Program; and

          7.  Planning for and directing state response to energy 
          emergencies. 

          The Governor nominates and the Senate approves five people 
          to act as full-time energy commissioners. They are 
          appointed to staggered five-year terms of office.  From the 

                                                           CONTINUED





                                                                SB 870
                                                                Page 
          3

          five members, the Governor also picks a Chairman and Vice 
          Chair for two-year terms.  Each of the appointees comes 
          from a specific background: the law, economics, 
          environmental studies or sciences, engineering or science, 
          and the public at large. 

          The basic programs of the CEC and most of its staff are 
          funded through a surcharge on electricity consumption.  As 
          of November 8, 2010, this is set at two-and-nine-tenths of 
          one mil ($0.00029) per kilowatt/hour (kWh) of electricity 
          consumed by all electrical customers. If an average 
          residential customer uses 600 kWh of electricity per month, 
          they would pay 17.4 cents per month toward CEC operations. 
          Federal money for specific energy efficiency programs 
          supplements the CEC budget.  These funds are segregated in 
          the state treasury as the Energy Resources Program Account. 
           Additionally, the CEC manages public goods charge monies 
          collected by the investor-owned utilities for renewable 
          energy, research, research and development, and other 
          federal and state funds for specific programs. 
           
          Prior Legislation  

           SB 1467 (Padilla), 2009-10 Session  .  Vetoed.  Governor's 
          Veto Message:

          "I am returning Senate Bill 1467 without my signature. 

          In addition to making several non-substantive changes to 
          the Public Utilities Code and the Public Resources Code, 
          this bill requires the Chairperson of the State Energy 
          Resources Conservation and Development Commission 
          (Commission) to appear annually before the Senate Committee 
          on Energy, Utilities and Communications and the Assembly 
          Committee on Utilities and Commerce to report on the 
          activities of the Commission. 

          This bill is unnecessary.  During my Administration, the 
          Chairperson of the Commission has always been accessible to 
          the Legislature and, in fact, has appeared on several 
          occasions this year before both committees to report on 
          Energy Commission activities. 

          If the Legislature would like to invite the Chairperson to 

                                                           CONTINUED





                                                                SB 870
                                                                Page 
          4

          appear before their committees, they simply need to call.  
          In this bill's absence, I am ordering DGS to check all 
          phone lines between the Legislature and the Chairperson's 
          office to make sure they are in good working order."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          the author intends to improve communication between the CEC 
          and the Legislature and facilitate oversight of the CEC's 
          programs.

          RM:rm  5/16/11   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

                                ****  END  ****
          


























                                                           CONTINUED