BILL ANALYSIS Ó
AB 2903
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Date of Hearing: April 27, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2903 (Committee on Utilities and Commerce) - As Introduced March
3, 2016
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|Policy |Utilities and Commerce |Vote:|15 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This committee bill deletes obsolete language in the Public
Utilities Code related to wharfingers and warehousemen and the
California Consumer Power and Conservation Financing Authority
(CPA). Specifically, this bill:
1)Deletes the authority for warehousemen and wharfingers to
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condemn property.
2)Requires the Attorney General (AG) to represent the Department
of Finance (DOF) and to succeed all rights, claims, powers,
and entitlements of the CPA in any litigation or settlement
relating to the 2000-02 energy crisis.
3)Repeals the California Consumer Power and Conservation
Financing Authority Act.
FISCAL EFFECT:
Minor, if any, additional state costs.
COMMENTS:
1)Purpose. This committee bill deletes obsolete provisions and
updates the code regarding CPA succession.
2)Background. Prior to the eighties, warehousemen and
wharfingers were considered public utilities and as such had
the authority to condemn property. When the Legislature
removed warehousemen and wharfingers as utilities, the
authority to condemn property remained in code. This bill
deletes that authority.
The CPA was created during the height of the energy crisis in
2001 to ensure the state had reliable, affordable electrical
power. The CPA was authorized to issue up to $5 billion in
revenue bonds to finance various activities.
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CPA duties diminished as California recovered from the 2000-02
energy crisis and other state energy agencies and private
entities were performing similar activities. The CPA's
authority to finance or approve any new program, enterprise,
or project sunset on January 1, 2007. This bill deletes the
CPA and its authorities from statute.
The US Supreme Court recently ruled that energy companies can
be sued under state antitrust laws for illegally manipulating
natural gas prices during the 2000-02 energy crisis. As a
result, there are likely additional claims related to the
energy crisis ahead.
This bill requires the AG to represent DOF and to succeed all
rights, claims, powers and entitlements of the CPA in any
litigation or settlement relating to the 2000-02 energy
crisis.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081
AB 2903
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