BILL NUMBER: SB 668 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 1, 2013
INTRODUCED BY Senator Fuller
( Coauthors: Assembly Members
Conway and Hall )
FEBRUARY 22, 2013
An act to amend Section 739.1 of the Public Utilities
Code, relating to electricity. An act to add Section
12012.60 to the Government Code, relating to tribal gaming.
LEGISLATIVE COUNSEL'S DIGEST
SB 668, as amended, Fuller. Electrical rates: California
Alternate Rates for Energy. Tribal gaming: compact
ratification.
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.
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.
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.
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.
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.
This bill would make technical, nonsubstantive changes to the CARE
program.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 12012.60 is added to the
Government Code , to read:
12012.60. (a) The tribal-state gaming compact entered into in
accordance with the federal Indian Gaming Regulatory Act of 1988 (18
U.S.C. Secs. 1166 to 1168, inclusive, and 25 U.S.C. Sec. 2701 et
seq.) between the State of California and the Fort Independence
Indian Community of Paiute Indians, executed February 28, 2013, is
hereby ratified.
(b) (1) In deference to tribal sovereignty, none of the following
shall be deemed a project for purposes of the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code):
(A) The execution of an amendment to the tribal-state gaming
compact ratified by this section.
(B) The execution of the tribal-state gaming compact ratified by
this section.
(C) The execution of an intergovernmental agreement between a
tribe and a county or city government negotiated pursuant to the
express authority of, or as expressly referenced in, the tribal-state
gaming compact ratified by this section.
(D) The execution of an intergovernmental agreement between a
tribe and the Department of Transportation negotiated pursuant to the
express authority of, or as expressly referenced in, the
tribal-state gaming compact ratified by this section.
(E) The on-reservation impacts of compliance with the terms of the
tribal-state gaming compact ratified by this section.
(F) The sale of compact assets, as defined in subdivision (a) of
Section 63048.6, or the creation of the special purpose trust
established pursuant to Section 63048.65.
(2) Except as expressly provided herein, this subdivision does not
exempt a city, county, or city and county, or the Department of
Transportation, from the requirements of the California Environmental
Quality Act.
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 a 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 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
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. This paragraph does not 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.