BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 340
                                                                  Page  1

          Date of Hearing:   May 15, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 340 (Bradford) - As Amended:  April 25, 2013 

          Policy Committee:                              Utilities and  
          Commerce     Vote:                            10-4

          Urgency:     No                   State Mandated Local Program:   
          No     Reimbursable:              

           SUMMARY  

          This bill requires the California Public Utilities Commission  
          (PUC) to require all grants, contracts, subsidies, financing,  
          and activities administered through the Electric Program  
          Investment Charge (EPIC) to comply with General Order 156 of the  
          PUC.

           FISCAL EFFECT  

          Minor, absorbable costs to the PUC.

           COMMENTS  

           1)Background.   General Order (GO 156) requires  PUC-regulated  
            electrical, gas, and telephone corporations with gross annual  
            revenues exceeding $25 million to submit annual detailed and  
            verifiable plans that include short- and long-term  goals and  
            timetables for increasing procurement from woman and  
            minority-owned business enterprises ( W/MBE) and disabled  
            veteran-owned business enterprises (DVBE)  in all  procurement  
            categories.  

            GO 156 includes rules and regulations for the utilities'   
            compliance with the W/MBE program, and requires participating   
            utilities to inform, recruit, and obtain at least 20% of   
            their products and services purchased within a five-year  
            period  from W/MBEs (15 percent from minority-owned businesses  
            and 5% from women-owned businesses).

            The EPIC program was created to fund research, development and  
            a demonstration program through a public goods charge on rate  








                                                                  AB 340
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            payers served by electrical corporations.
           
           2)Rationale.   According to the author, the state has provided  
            millions of dollars to job training programs in energy  
            efficiency and renewable energy technologies. After the  
            training is complete the state needs to make sure jobs are  
            available for these graduates.  Moreover, these jobs should  
            not be limited to construction - they need to include all of  
            the types of jobs common in the energy industry, such as  
            technical support, administration, legal, finance,  
            engineering, economics, management, and entrepreneur.  
            Currently ratepayer funded energy research programs do not  
            have to report on their programs and progress toward including  
            women, minorities, and disabled veterans.

            This bill is intended to ensure EPIC program administrators  
            have such programs and report on their progress. 
           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081