BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1316
                                                                  Page  1

          Date of Hearing:   May 20, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                      AB 1316 (Ma) - As Amended:  May 13, 2009 

          Policy Committee:                              UtilitiesVote:9-5

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill expands the size and responsibilities of the Low  
          Income Oversight Board (LIOB) within the Public Utilities  
          Commission (PUC).  Specifically, this bill:

          1)Requires the LIOB to report biannually to the Legislature on  
            the status of low-income utility assistance programs.

          2)Requires the board to advise the PUC on  all  proceedings  
            impacting low-income utility customers, review and make  
            recommendations regarding the low-income program proposed  
            budgets, provide recommendations to the Legislature on  
            relevant proposed policy or legislation, and solicit public  
            input through town hall meetings targeting underserved areas.

          3)Expands LIOB membership from 11 to 12 by adding a member  
            selected by the Air Resources Board.

          4)Requires the board to establish an advisory committee rather  
            than authorizing the board to establish a technical advisory  
            committee, and authorizes the board to request assistance from  
            PUC staff, utility representatives, low-income service  
            providers, and consumer organizations.

           FISCAL EFFECT  

          Ongoing special fund costs [Public Utilities Reimbursement  
          Account] of about $700,000 to the PUC for the following:

          1)Four regulatory analyst positions ($410,000) to support the  
            additional responsibilities of the LIOB in monitoring and  
            evaluating all proceedings impacting gas, electricity, and  








                                                                  AB 1316
                                                                  Page  2

            water customers, reviewing proposed budgets, making  
            recommendations to the Legislature, and attending board  
            meetings and town hall meetings.

          2)Two staff services positions ($130,000) to organize and  
            facilitate board meetings and town hall meetings, plus the  
            direct costs for these additional meetings ($160,000).

           


          COMMENTS  

           1)Background  .  The LIOB was established by SB 2xx  
            (Alarc?n)/Chapter 11, 2nd Extraordinary Session of 2001, for  
            the purpose of enhancing the effectiveness of various energy  
            assistance programs in order to mitigate the  
            disproportionately high impact of the energy crisis on  
            low-income individuals. Prior to the creation of the LIOB the  
            PUC had created, through regulation, a Low-Income Advisory  
            Board (LIAB) to make recommendations about low-income energy  
            assistance programs and to be a liaison to the low-income  
            community. The LIAB was essentially inactive at the time the  
            LIOB was established.  

           2)Purpose  :  This bill, sponsored by the Latino Issues Forum,  
            creates an expanded role for the LIOB by requiring that it  
            monitor and evaluate all proceedings before the commission  
            that affect low-income individuals. The current role of the  
            LIOB is to monitor the implementation of low-income programs.  
            In very much the same way that the energy crisis motivated the  
            legislature to create this board, the sponsor believes that  
            the current economic downturn increases the need to ensure  
            that low-income needs and interests are being represented in  
            PUC proceedings.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081