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