BILL NUMBER: AB 922 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 24, 2013
AMENDED IN ASSEMBLY APRIL 16, 2013
INTRODUCED BY Assembly Member Patterson
FEBRUARY 22, 2013
An act to amend Section 739.1 of, and to add Section
739.11 to , the Public Utilities Code, relating to public
utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 922, as amended, Patterson. Public utilities: rates: CARE
program: eligibility.
(1) Under
Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical and
gas corporations, as defined. The Public Utilities Act authorizes
the commission to fix the rates and charges for every public utility,
and requires that those rates and charges be just and reasonable.
Existing law requires the commission to designate a baseline quantity
of electricity and gas necessary for a significant portion of the
reasonable energy needs of the average residential customer, and
requires that electrical and gas corporations file rates and charges,
to be approved by the commission, providing baseline rates, and
requires the commission, in establishing baseline rates, to avoid
excessive rate increases for residential customers. The act requires
the commission to establish a program of assistance to low-income
electric and gas customers, referred to as the California Alternate
Rates for Energy or CARE program. A violation of the act is
a crime. Existing law requires the commission to work
with electrical and gas corporations to establish penetration goals
for the CARE program.
This bill would require the CARE application process to require an
applicant to submit proof of income when applying for enrollment.
The bill would require the applicant to submit the information under
the penalty of perjury. Because the bill would create a new crime,
the bill would impose a state-mandated local program. The bill would
require an electrical or gas corporation to conduct a random audit to
participants in the CARE program to ensure continued eligibility of
the participants. The bill would require the removal of participants
found to be ineligible and would require the electrical or gas
corporation to establish a procedure by which a participant may
challenge the finding of ineligibility. The bill would specify the
manner in which the monetary penalty is to be used.
Because a violation of the above provision would be a crime, the
bill would impose a state-mandated local program.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
This bill would instead prohibit the commission from establishing
penetration goals for the CARE program. The bill would require the
commission to authorize an electrical or gas corporation to verify,
by the submission of proof of income, the continuing eligibility of
participants in the CARE program regardless of the manner in which
the participant was first enrolled into the program.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 739.1 of the Public
Utilities Code is amended to read:
739.1. (a) As used in this section, the following terms have the
following meanings:
(1) "Baseline quantity" has the same meaning as defined in Section
739.
(2) "California Solar Initiative" means the program providing
ratepayer funded incentives for eligible solar energy systems adopted
by the commission in Decision 05-12-044 and Decision 06-01-024, as
modified by Article 1 (commencing with Section 2851) of Chapter 9 of
Part 2 and Chapter 8.8 (commencing with Section 25780) of Division 15
of the Public Resources Code.
(3) "CalWORKs program" means the program established pursuant to
the California Work Opportunity and Responsibility to Kids Act
(Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of
the Welfare and Institutions Code).
(4) "Public goods charge" means the nonbypassable separate rate
component imposed pursuant to Article 7 (commencing with Section 381)
of Chapter 2.3 and the nonbypassable system benefits charge imposed
pursuant to the Reliable Electric Service Investments Act (Article 15
(commencing with Section 399) of Chapter 2.3).
(b) (1) The commission shall establish a program of assistance to
low-income electric and gas customers with annual household incomes
that are no greater than 200 percent of the federal poverty guideline
levels, the cost of which shall not be borne solely by any single
class of customer. The program shall be referred to as the California
Alternate Rates for Energy or CARE program. The commission shall
ensure that the level of discount for low-income electric and gas
customers correctly reflects the level of need.
(2) The commission may, subject to the limitation in paragraph
(4), increase the rates in effect for CARE program participants for
electricity usage up to 130 percent of baseline quantities by the
annual percentage increase in benefits under the CalWORKs program as
authorized by the Legislature for the fiscal year in which the rate
increase would take effect, but not to exceed 3 percent per year.
(3) Beginning January 1, 2019, the commission may, subject to the
limitation in paragraph (4), establish rates for CARE program
participants pursuant to this section and Sections 739 and 739.9,
subject to both of the following:
(A) The requirements of subdivision (b) of Section 382 that the
commission ensure that low-income ratepayers are not jeopardized or
overburdened by monthly energy expenditures.
(B) The requirement that the level of the discount for low-income
electricity and gas ratepayers correctly reflects the level of need
as determined by the needs assessment conducted pursuant to
subdivision (d) of Section 382.
(4) Tier 1, tier 2, and tier 3 CARE rates shall not exceed 80
percent of the corresponding tier 1, tier 2, and tier 3 rates charged
to residential customers not participating in the CARE program,
excluding any Department of Water Resources bond charge imposed
pursuant to Division 27 (commencing with Section 80000) of the Water
Code, the CARE surcharge portion of the public goods charge, any
charge imposed pursuant to the California Solar Initiative, and any
charge imposed to fund any other program that exempts CARE
participants from paying the charge.
(5) Rates charged to CARE program participants shall not have more
than three tiers. An electrical corporation that does not have a
tier 3 CARE rate may introduce a tier 3 CARE rate that, in order to
moderate the impact on program participants whose usage exceeds 130
percent of baseline quantities, shall be phased in to 80 percent of
the corresponding rates charged to residential customers not
participating in the CARE program, excluding any Department of Water
Resources bond charge imposed pursuant to Division 27 (commencing
with Section 80000) of the Water Code, the CARE surcharge portion of
the public goods charge, any charge imposed pursuant to the
California Solar Initiative, and any other charge imposed to fund a
program that exempts CARE participants from paying the charge. For an
electrical corporation that does not have a tier 3 CARE rate that
introduces a tier 3 CARE rate, the initial rate shall be no more than
150 percent of the CARE baseline rate. Any additional revenues
collected by an electrical corporation resulting from the adoption of
a tier 3 CARE rate shall, until the utility's next periodic general
rate case review of cost allocation and rate design, be credited to
reduce rates of residential ratepayers not participating in the CARE
program with usage above 130 percent of baseline quantities.
(c) The commission shall work with electrical and gas
corporations to not establish penetration goals.
The commission shall authorize recovery of all administrative costs
associated with the implementation of the CARE program that the
commission determines to be reasonable, through a balancing account
mechanism. Administrative costs shall include, but are not limited
to, outreach, marketing, regulatory compliance, certification and
verification, billing, measurement and evaluation, and capital
improvements and upgrades to communications and processing equipment.
(d) The commission shall examine methods to improve CARE
enrollment and participation. This examination shall include, but
need not be limited to, comparing information from CARE and the
Universal Lifeline Telephone Service (ULTS) to determine the most
effective means of utilizing that information to increase CARE
enrollment, automatic enrollment of ULTS customers who are eligible
for the CARE program, customer privacy issues, and alternative
mechanisms for outreach to potential enrollees. The commission shall
ensure that a customer consents prior to enrollment. The commission
shall consult with interested parties, including ULTS providers, to
develop the best methods of informing ULTS customers about other
available low-income programs, as well as the best mechanism for
telephone providers to recover reasonable costs incurred pursuant to
this section.
(e) (1) The commission shall improve the CARE application process
by cooperating with other entities and representatives of California
government, including the California Health and Human Services Agency
and the Secretary of California Health and Human Services, to ensure
that all gas and electric customers eligible for public assistance
programs in California that reside within the service territory of an
electrical corporation or gas corporation, are enrolled in the CARE
program. To the extent practicable, the commission shall develop a
CARE application process using the existing ULTS application process
as a model. The commission shall work with public utility electrical
and gas corporations and the Low-Income Oversight Board established
in Section 382.1 to meet the low-income objectives in this section.
(2) The commission shall ensure that an electrical corporation or
gas corporation with a commission-approved program to provide
discounts based upon economic need in addition to the CARE program,
including a Family Electric Rate Assistance program, utilize a single
application form, to enable an applicant to alternatively apply for
any assistance program for which the applicant may be eligible. It is
the intent of the Legislature to allow applicants under one program,
that may not be eligible under that program, but that may be
eligible under an alternative assistance program based upon economic
need, to complete a single application for any commission-approved
assistance program offered by the public utility.
(f) The commission's program of assistance to low-income electric
and gas customers shall, as soon as practicable, include nonprofit
group living facilities specified by the commission, if the
commission finds that the residents in these facilities substantially
meet the commission's low-income eligibility requirements and there
is a feasible process for certifying that the assistance shall be
used for the direct benefit, such as improved quality of care or
improved food service, of the low-income residents in the facilities.
The commission shall authorize utilities to offer discounts to
eligible facilities licensed or permitted by appropriate state or
local agencies, and to facilities, including women's shelters,
hospices, and homeless shelters, that may not have a license or
permit but provide other proof satisfactory to the utility that they
are eligible to participate in the program.
(g) It is the intent of the Legislature that the commission ensure
CARE program participants are afforded the lowest possible electric
and gas rates and, to the extent possible, are exempt from additional
surcharges attributable to the energy crisis of 2000-01.
(h) (1) In addition to existing assessments of eligibility, an
electrical corporation may require proof of income eligibility for
those CARE program participants whose electricity usage, in any
monthly or other billing period, exceeds 400 percent of baseline
usage. The authority of an electrical corporation to require proof of
income eligibility is not limited by the means by which the CARE
program participant enrolled in the program, including if the
participant was automatically enrolled in the CARE program because of
participation in a governmental assistance program. If a CARE
program participant's electricity usage exceeds 400 percent of
baseline usage, the electrical corporation may require the CARE
program participant to participate in the Energy Savings Assistance
Program (ESAP), which includes a residential energy assessment, in
order to provide the CARE program participant with information and
assistance in reducing his or her energy usage. Continued
participation in the CARE program may be conditioned upon the CARE
program participant agreeing to participate in ESAP within 45 days of
notice being given by the electrical corporation pursuant to this
paragraph. The electrical corporation may require the CARE program
participant to notify the utility of whether the residence is rented,
and if so, a means by which to contact the landlord, and the
electrical corporation may share any evaluation and recommendation
relative to the residential structure that is made as part of an
energy assessment, with the landlord of the CARE program participant.
Requirements imposed pursuant to this paragraph shall be consistent
with procedures adopted by the commission.
(2) If a CARE program participant's electricity usage exceeds 600
percent of baseline usage, the electrical corporation shall require
the CARE program participant to participate in ESAP, which includes a
residential energy assessment, in order to provide the CARE program
participant with information and assistance in reducing his or her
energy usage. Continued participation in the CARE program shall be
conditioned upon the CARE program participant agreeing to participate
in ESAP within 45 days of a notice made by the electrical
corporation pursuant to this paragraph. The electrical corporation
may require the CARE program participant to notify the utility of
whether the residence is rented, and if so, a means by which to
contact the landlord, and the electrical corporation may share any
evaluation and recommendation relative to the residential structure
that is made as part of an energy assessment, with the landlord of
the CARE program participant. Following the completion of the energy
assessment, if the CARE program participant's electricity usage
continues to exceed 600 percent of baseline usage, the electrical
corporation may remove the CARE program participant from the program
if the removal is consistent with procedures adopted by the
commission. Nothing in this paragraph shall prevent a CARE program
participant with electricity usage exceeding 600 percent of baseline
usage from participating in an appeals process with the electrical
corporation to determine whether the participant's usage levels are
legitimate.
(3) A CARE program participant in a rental residence shall not be
removed from the program in situations where the landlord is
nonresponsive when contacted by the electrical corporation or does
not provide for ESAP participation.
SEC. 2. Section 739.11 is added to the
Public Utilities Code , to read:
739.11. The commission shall authorize an electrical or gas
corporation to verify, by the submission of proof of income, the
continuing eligibility of a participant in the CARE program
regardless of the means by which the participant was first enrolled
into the CARE program.
SECTION 1. Section 739.11 is added to the
Public Utilities Code, to read:
739.11. (a) The CARE application process developed pursuant to
paragraph (1) of subdivision (e) of Section 739.1 shall require both
of the following:
(1) The submission of proof of income by the applicant when
applying for enrollment.
(2) The information submitted with the application is submitted by
the applicant under the penalty of perjury.
(b) An electrical or gas corporation shall perform a random audit
of participants in the CARE program to ensure continued eligibility
of the participants.
(c) (1) Upon a finding of ineligibility pursuant to subdivision
(b), the electrical or gas corporation shall remove the ineligible
participant from the CARE program.
(2) The electrical or gas corporation shall establish a procedure
by which a participant may challenge the finding of ineligibility.
(3) Additional revenue collected by an electrical or gas
corporation resulting from the assessment of a penalty pursuant to
subparagraph (B) of paragraph (1) shall be used for both of the
following purposes:
(A) To reimburse the corporation for the costs of administering
this section.
(B) Until the corporation's next periodic general rate case review
of cost allocation and rate design, to be a credit toward reducing
the rates of residential ratepayers not participating in the CARE
program.
SEC. 2. No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.