Amended in Senate April 1, 2013

Senate BillNo. 668


Introduced by Senator Fuller

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(Coauthors: Assembly Members Conway and Hall)

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February 22, 2013


begin delete An act to amend Section 739.1 of the Public Utilities Code, relating to electricity. end deletebegin insertAn act to add Section 12012.60 to the Government Code, relating to tribal gaming. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 668, as amended, Fuller. begin deleteElectrical rates: California Alternate Rates for Energy.end deletebegin insertTribal gaming: compact ratification.end insert

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Existing federal law, the Indian Gaming Regulatory Act of 1988, provides for the negotiation and execution of tribal-state gaming compacts for the purpose of authorizing certain types of gaming on Indian lands within a state. The California Constitution authorizes the Governor to negotiate and conclude compacts, subject to ratification by the Legislature. Existing law expressly ratifies a number of tribal-state gaming compacts, and amendments of tribal-state gaming compacts, between the State of California and specified Indian tribes.

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The California Environmental Quality Act (CEQA) requires a lead agency to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project, as defined, that it proposes to carry out or approve that may have a significant effect on the environment, as defined, or to adopt a negative declaration if it finds that the project will not have that effect.

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This bill would ratify the tribal-state gaming compact entered into between the State of California and the Fort Independence Indian Community of Paiute Indians, executed February 28, 2013. The bill would provide that, in deference to tribal sovereignty, certain actions are not projects for purposes of CEQA.

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Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical and gas corporations, as defined. Existing law 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.

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Existing law 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.

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This bill would make technical, nonsubstantive changes to the CARE program.

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Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

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begin insertSection 12012.60 is added to the end insertbegin insertGovernment
2Code
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3

begin insert12012.60.end insert  

(a) The tribal-state gaming compact entered into
4in accordance with the federal Indian Gaming Regulatory Act of
51988 (18 U.S.C. Secs. 1166 to 1168, inclusive, and 25 U.S.C. Sec.
62701 et seq.) between the State of California and the Fort
7Independence Indian Community of Paiute Indians, executed
8February 28, 2013, is hereby ratified.

9(b) (1)   In deference to tribal sovereignty, none of the following
10shall be deemed a project for purposes of the California
11Environmental Quality Act (Division 13 (commencing with Section
1221000) of the Public Resources Code):

13(A) The execution of an amendment to the tribal-state gaming
14compact ratified by this section.

15(B) The execution of the tribal-state gaming compact ratified
16by this section.

P3    1(C) The execution of an intergovernmental agreement between
2a tribe and a county or city government negotiated pursuant to
3the express authority of, or as expressly referenced in, the
4tribal-state gaming compact ratified by this section.

5(D) The execution of an intergovernmental agreement between
6a tribe and the Department of Transportation negotiated pursuant
7to the express authority of, or as expressly referenced in, the
8tribal-state gaming compact ratified by this section.

9(E) The on-reservation impacts of compliance with the terms
10of the tribal-state gaming compact ratified by this section.

11(F) The sale of compact assets, as defined in subdivision (a) of
12Section 63048.6, or the creation of the special purpose trust
13established pursuant to Section 63048.65.

14(2) Except as expressly provided herein, this subdivision does
15not exempt a city, county, or city and county, or the Department
16of Transportation, from the requirements of the California
17Environmental Quality Act.

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18

SECTION 1.  

Section 739.1 of the Public Utilities Code is
19amended to read:

20

739.1.  

(a) As used in this section, the following terms have
21the following meanings:

22(1) “Baseline quantity” has the same meaning as defined in
23Section 739.

24(2) “California Solar Initiative” means the program providing
25ratepayer funded incentives for eligible solar energy systems
26adopted by the commission in Decision 05-12-044 and Decision
2706-01-024, as modified by Article 1 (commencing with Section
282851) of Chapter 9 of Part 2 and Chapter 8.8 (commencing with
29Section 25780) of Division 15 of the Public Resources Code.

30(3) “CalWORKs program” means the program established
31pursuant to the California Work Opportunity and Responsibility
32to Kids Act (Chapter 2 (commencing with Section 11200) of Part
333 of Division 9 of the Welfare and Institutions Code).

34(4) “Public goods charge” means the nonbypassable separate
35rate component imposed pursuant to Article 7 (commencing with
36Section 381) of Chapter 2.3 and the nonbypassable system benefits
37charge imposed pursuant to the Reliable Electric Service
38Investments Act (Article 15 (commencing with Section 399) of
39Chapter 2.3).

P4    1(b) (1) The commission shall establish a program of assistance
2to low-income electric and gas customers with annual household
3incomes that are no greater than 200 percent of the federal poverty
4guideline levels, the cost of which shall not be borne solely by any
5single class of customer. The program shall be referred to as the
6California Alternate Rates for Energy or CARE program. The
7commission shall ensure that the level of discount for low-income
8electric and gas customers correctly reflects the level of need.

9(2) The commission may, subject to the limitation in paragraph
10(4), increase the rates in effect for CARE program participants for
11electricity usage up to 130 percent of baseline quantities by the
12annual percentage increase in benefits under the CalWORKs
13program as authorized by the Legislature for the fiscal year in
14which the rate increase would take effect, but not to exceed 3
15percent per year.

16(3) Beginning January 1, 2019, the commission may, subject
17to the limitation in paragraph (4), establish rates for CARE program
18participants pursuant to this section and Sections 739 and 739.9,
19subject to both of the following:

20(A) The requirements of subdivision (b) of Section 382 that the
21commission ensure that low-income ratepayers are not jeopardized
22or overburdened by monthly energy expenditures.

23(B) The requirement that the level of the discount for
24low-income electricity and gas ratepayers correctly reflects the
25level of need as determined by the needs assessment conducted
26pursuant to subdivision (d) of Section 382.

27(4) Tier 1, tier 2, and tier 3 CARE rates shall not exceed 80
28percent of the corresponding tier 1, tier 2, and tier 3 rates charged
29to residential customers not participating in the CARE program,
30excluding any Department of Water Resources bond charge
31imposed pursuant to Division 27 (commencing with Section 80000)
32of the Water Code, the CARE surcharge portion of the public
33goods charge, any charge imposed pursuant to the California Solar
34Initiative, and any charge imposed to fund a program that exempts
35CARE participants from paying the charge.

36(5) Rates charged to CARE program participants shall not have
37more than three tiers. An electrical corporation that does not have
38a tier 3 CARE rate may introduce a tier 3 CARE rate that, in order
39to moderate the impact on program participants whose usage
40exceeds 130 percent of baseline quantities, shall be phased in to
P5    180 percent of the corresponding rates charged to residential
2customers not participating in the CARE program, excluding any
3Department of Water Resources bond charge imposed pursuant to
4Division 27 (commencing with Section 80000) of the Water Code,
5the CARE surcharge portion of the public goods charge, any charge
6imposed pursuant to the California Solar Initiative, and any other
7charge imposed to fund a program that exempts CARE participants
8from paying the charge. For an electrical corporation that does not
9have a tier 3 CARE rate that introduces a tier 3 CARE rate, the
10initial rate shall be no more than 150 percent of the CARE baseline
11rate. Any additional revenues collected by an electrical corporation
12resulting from the adoption of a tier 3 CARE rate shall, until the
13utility’s next periodic general rate case review of cost allocation
14and rate design, be credited to reduce rates of residential ratepayers
15not participating in the CARE program with usage above 130
16percent of baseline quantities.

17(c) The commission shall work with electrical and gas
18corporations to establish penetration goals. The commission shall
19authorize recovery of all administrative costs associated with the
20implementation of the CARE program that the commission
21determines to be reasonable, through a balancing account
22mechanism. Administrative costs shall include, but are not limited
23to, outreach, marketing, regulatory compliance, certification and
24verification, billing, measurement and evaluation, and capital
25improvements and upgrades to communications and processing
26equipment.

27(d) The commission shall examine methods to improve CARE
28enrollment and participation. This examination shall include, but
29need not be limited to, comparing information from CARE and
30the Universal Lifeline Telephone Service (ULTS) to determine
31the most effective means of utilizing that information to increase
32CARE enrollment, automatic enrollment of ULTS customers who
33are eligible for the CARE program, customer privacy issues, and
34alternative mechanisms for outreach to potential enrollees. The
35commission shall ensure that a customer consents prior to
36enrollment. The commission shall consult with interested parties,
37including ULTS providers, to develop the best methods of
38informing ULTS customers about other available low-income
39programs, as well as the best mechanism for telephone providers
40to recover reasonable costs incurred pursuant to this section.

P6    1(e) (1) The commission shall improve the CARE application
2process by cooperating with other entities and representatives of
3California government, including the California Health and Human
4Services Agency and the Secretary of California Health and Human
5Services, to ensure that all gas and electric customers eligible for
6public assistance programs in California that reside within the
7service territory of an electrical corporation or gas corporation,
8are enrolled in the CARE program. To the extent practicable, the
9commission shall develop a CARE application process using the
10existing ULTS application process as a model. The commission
11shall work with public utility electrical and gas corporations and
12the Low-Income Oversight Board established in Section 382.1 to
13meet the low-income objectives in this section.

14(2) The commission shall ensure that an electrical corporation
15or gas corporation with a commission-approved program to provide
16discounts based upon economic need in addition to the CARE
17program, including a Family Electric Rate Assistance program,
18utilize a single application form, to enable an applicant to
19alternatively apply for assistance program for which the applicant
20may be eligible. It is the intent of the Legislature to allow
21applicants under one program, that may not be eligible under that
22program, but that may be eligible under an alternative assistance
23program based upon economic need, to complete a single
24application for any commission-approved assistance program
25offered by the public utility.

26(f) The commission’s program of assistance to low-income
27electric and gas customers shall, as soon as practicable, include
28nonprofit group living facilities specified by the commission, if
29the commission finds that the residents in these facilities
30substantially meet the commission’s low-income eligibility
31requirements and there is a feasible process for certifying that the
32assistance shall be used for the direct benefit, such as improved
33quality of care or improved food service, of the low-income
34residents in the facilities. The commission shall authorize utilities
35to offer discounts to eligible facilities licensed or permitted by
36appropriate state or local agencies, and to facilities, including
37women’s shelters, hospices, and homeless shelters, that may not
38have a license or permit but provide other proof satisfactory to the
39utility that they are eligible to participate in the program.

P7    1(g) It is the intent of the Legislature that the commission ensure
2CARE program participants are afforded the lowest possible
3electric and gas rates and, to the extent possible, are exempt from
4additional surcharges attributable to the energy crisis of 2000-01.

5(h) (1) In addition to existing assessments of eligibility, an
6electrical corporation may require proof of income eligibility for
7those CARE program participants whose electricity usage, in any
8monthly or other billing period, exceeds 400 percent of baseline
9usage. The authority of an electrical corporation to require proof
10of income eligibility is not limited by the means by which the
11CARE program participant enrolled in the program, including if
12the participant was automatically enrolled in the CARE program
13because of participation in a governmental assistance program. If
14a CARE program participant’s electricity usage exceeds 400
15percent of baseline usage, the electrical corporation may require
16the CARE program participant to participate in the Energy Savings
17Assistance Program (ESAP), which includes a residential energy
18assessment, in order to provide the CARE program participant
19with information and assistance in reducing his or her energy usage.
20Continued participation in the CARE program may be conditioned
21upon the CARE program participant agreeing to participate in
22ESAP within 45 days of notice being given by the electrical
23corporation pursuant to this paragraph. The electrical corporation
24may require the CARE program participant to notify the utility of
25whether the residence is rented, and if so, a means by which to
26contact the landlord, and the electrical corporation may share any
27evaluation and recommendation relative to the residential structure
28that is made as part of an energy assessment, with the landlord of
29the CARE program participant. Requirements imposed pursuant
30to this paragraph shall be consistent with procedures adopted by
31the commission.

32(2) If a CARE program participant’s electricity usage exceeds
33600 percent of baseline usage, the electrical corporation shall
34require the CARE program participant to participate in ESAP,
35which includes a residential energy assessment, in order to provide
36the CARE program participant with information and assistance in
37reducing his or her energy usage. Continued participation in the
38CARE program shall be conditioned upon the CARE program
39participant agreeing to participate in ESAP within 45 days of a
40notice made by the electrical corporation pursuant to this paragraph.
P8    1The electrical corporation may require the CARE program
2participant to notify the utility of whether the residence is rented,
3and if so, a means by which to contact the landlord, and the
4electrical corporation may share any evaluation and
5recommendation relative to the residential structure that is made
6as part of an energy assessment, with the landlord of the CARE
7program participant. Following the completion of the energy
8assessment, if the CARE program participant’s electricity usage
9continues to exceed 600 percent of baseline usage, the electrical
10corporation may remove the CARE program participant from the
11program if the removal is consistent with procedures adopted by
12the commission. This paragraph does not prevent a CARE program
13participant with electricity usage exceeding 600 percent of baseline
14usage from participating in an appeals process with the electrical
15corporation to determine whether the participant’s usage levels
16are legitimate.

17(3) A CARE program participant in a rental residence shall not
18be removed from the program in situations where the landlord is
19nonresponsive when contacted by the electrical corporation or
20does not provide for ESAP participation.

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