BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 2903|
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                                   THIRD READING 


          Bill No:  AB 2903
          Author:   Committee on Utilities and Commerce   
          Introduced:3/3/16  
          Vote:     21 

           SENATE ENERGY, U. & C. COMMITTEE:  11-0, 6/13/16
           AYES:  Hueso, Morrell, Cannella, Gaines, Hertzberg, Hill, Lara,  
            Leyva, McGuire, Pavley, Wolk

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  79-0, 5/5/16 (Consent) - See last page for  
            vote

           SUBJECT:   Wharfingers:  warehouseman:  California Consumer  
                     Power and Conservation Financing Authority:  energy  
                     crisis litigation


          SOURCE:    Author


          DIGEST:  This bill makes several technical, noncontroversial  
          changes to statute, including deletion of reference to a state  
          agency that no longer exists; explicitly directs the Attorney  
          General (AG) to succeed the no-longer-existing agency; and  
          deletes obsolete references to the authority of a wharfinger and  
          a warehouseman to condemn property.

          ANALYSIS:  

          Existing law:









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          1)Applies rights and obligations with respect to eminent domain  
            only to a corporation or a person that is a public utility.   
            (Public Utilities Code §§610 through 626).


          2)Authorizes a wharfinger to condemn any property necessary for  
            the construction and maintenance of facilities for the receipt  
            or discharge of freight or passengers.  (Public Utilities Code  
            §619)


          3)Authorizes a warehouseman to condemn any property necessary  
            for the construction and maintenance of its facilities for  
            storing property.  (Public Utilities Code §623) 


          4)Requires the AG to represent the Department of Finance to  
            succeed to, and may exercise, all rights, claims, powers, and  
            entitlements of the Electricity Oversight Board in any  
            litigation or settlement related to the 2000-02 energy crisis,  
            as specified.  (Public Utilities Code §343)


          5)Establishes the California Consumer Power and Conservation  
            Financing Authority (CPA) to provide the state with reliable,  
            affordable electrical power, to ensure sufficient power  
            reserves, to assure stability and rationality in California's  
            electricity market, to encourage energy efficiency and  
            conservation as well as the use of renewable energy resources,  
            and to protect the public health, welfare, and safety.   
            (Public Utilities Code §3300 et seq.)


          6)Sunsets the CPA's authority to finance or approve any new  
            program, enterprise, or project on January 1, 2007.


          This bill:


          1)Repeals the California Consumer Power and Conservation  
            Financing Authority Act.








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          2)Requires the AG to represent the Department of Finance 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)Deletes the authority for a warehouseman to condemn property  
            necessary for the construction and maintenance of facilities  
            for storing property. 


          4)Deletes the authority for a wharfinger to condemn property  
            necessary for the construction and maintenance of facilities  
            for the receipt or discharge of freight or passengers. 


          Background


          CPA.  The CPA was established in 2001 under SBX1 6 (Burton,  
          Chapter 10, Statutes of 2001-02 First Extraordinary Session).   
          The CPA was created to ensure the state had reliable, affordable  
          electrical power, establish sufficient power reserves, assure  
          stability and rationality in the state's electricity market,  
          encourage energy efficiency and conservation as well as the use  
          of renewable energy resources, and protect the public health,  
          welfare, and safety.  The CPA was authorized to issue up to $5  
          billion in revenue bonds to finance such activities.  The CPA's  
          authority to finance or approve any new program, enterprise, or  
          project sunset on January 1, 2007.

          This bill repeals the CPA and its authorities from statute.   
          This bill also requires the AG to succeed to the CPA and  
          authorizes the AG to exercise all rights, claims, powers and  
          entitlements of the CPA.  This requirement and authority mirrors  
          statutory requirements and authorities made of and given to the  
          AG in relation to the Energy Oversight Board, another defunct  
          state agency.

          Word of the day:  wharfinger.  Once upon a time, state law  
          classified a warehouseman - the operator of a warehouse - and a  
          wharfinger - the operator of a wharf - as a public utility,  
          thus, each subject California Public Utilities Commission  







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          regulation.  Alas, woe the warehouseman!  Woe the wharfinger!   
          In the 1980s, the Legislature twice amended statute so that,  
          first the warehouseman, then the wharfinger, was no longer a  
          public utility.  However, the Legislature left intact sections  
          of the Public Utilities Code granting warehousemen and  
          wharfingers the power to condemn property for purposes of  
          eminent domain.  This bill deletes those obsolete statutory  
          references. 


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          SUPPORT:   (Verified6/29/16)


          None received


          OPPOSITION:   (Verified6/29/16)


          None received




          ASSEMBLY FLOOR:  79-0, 5/5/16
          AYES:  Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,  
            Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier,  
            Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,  
            Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger  
            Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,  
            Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes,  
            McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,  
            O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
          NO VOTE RECORDED:  Beth Gaines

          Prepared by:Jay Dickenson / E., U., & C. / (916) 651-4107







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