BILL ANALYSIS
AB 1316
Page 1
ASSEMBLY THIRD READING
AB 1316 (Ma)
As Amended June 1, 2009
Majority vote
UTILITES AND COMMERCE 9-5
APPROPRIATIONS 12-5
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|Ayes:|Fuentes, Carter, Fong, |Ayes:|De Leon, Ammiano, Charles |
| |Furutani, Huffman, | |Calderon, Davis, Fuentes, |
| |Krekorian, Skinner, | |Hall, John A. Perez, |
| |Swanson, Torrico | |Price, Skinner, Solorio, |
| | | |Torlakson, Krekorian |
| | | | |
|-----+--------------------------+-----+---------------------------|
|Nays:|Duvall, Tom Berryhill, |Nays:|Nielsen, Duvall, Harkey, |
| |Blakeslee, Fuller, Smyth | |Miller, |
| | | |Audra Strickland |
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SUMMARY : Expands the size and responsibilities of the
Low-Income Oversight Board (LIOB) within the Public Utilities
Commission (PUC). Specifically, this bill:
1)Requires the President of PUC to appear annually before the
Legislature to report on the status of low-income programs.
2)Increases the number of members of LIOB to 12 by adding one
member selected by the State Air Resources Board.
3)Directs LIOB to solicit public input and recommendations from
underserved communities through community outreach activities
such as town hall meetings and forums to the extent possible.
4)Removes the authorization to create a technical advisory
committee. Requires LIOB to establish an advisory committee
consisting of at least one employee of DRA. Authorizes the
committee to request assistance from PUC staff, utility
representatives, low-income service providers and consumer
organizations.
EXISTING LAW :
1)Establishes a low-income energy assistance program for
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electric and natural gas service customers of investor-owned
utilities (IOUs) funded by a surcharge on energy bills.
2)Requires that the Department of Community Services and
Development receive and administer the federal Low-Income Home
Energy Assistance Program Block Grant, provided for pursuant
to the Low-Income Home Energy Assistance Act of 1981.
3)Establishes a Low-Income Oversight Board to advise PUC on
low-income electric, gas, and water customer issues and to
serve as a liaison for the commission to low-income ratepayers
and representatives.
4)Requires LIOB to monitor and evaluate implementation of all
programs provided to low-income electricity, gas, and water
customers.
5)Proscribes the makeup of the Low-Income Oversight Board as
being comprised of 11 members.
6)Authorizes LIOB to establish a technical advisory committee
consisting of low-income service providers, utility
representatives, consumer organizations, and PUC staff, to
assist the board.
7)Provides that all reasonable costs incurred by the board in
carrying out its duties will be reimbursed.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, ongoing special fund costs [Public Utilities
Reimbursement Account] of about $140,000 to PUC for 1.5
positions to support the oversight board's additional functions.
COMMENTS : LIOB was established by SB 2 X2 (Alarc?n), Chapter
11, 2nd Extraordinary Session, Statutes 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. It was the
intent of SB 2 X2 to ensure that low-income needs and interests
would be well represented in PUC's decision-making process. The
current role of LIOB is to monitor the implementation of
low-income programs.
Current federal and state law provides for a number of
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low-income energy assistance programs. State law and federal law
each a program that provides a financial subsidy for energy
bills and a program that provides weatherization services.
Weatherization decreases the heating and cooling costs for
low-income families by improving the energy efficiency of their
homes. The current makeup of LIOB is reflective of the various
perspectives needed to ensure adequate oversight of these
low-income programs.
The current economic downturn may increase the need to ensure
that low-income needs and interests are being represented in
policy discussions at PUC and in the Legislature. To address
this potential concern, this bill requires the President of PUC
to appear annually before the Legislature to report on the
status of low-income programs.
This bill also adds a 12th member to LIOB. During a joint
hearing of the Assembly Natural Resources committee and the
Senate Committee on Energy, Utilities and Communications
regarding the implementation of AB 32, The Global Warming
Solutions Act of 2006 (Nunez), Chapter 488, Statutes of 2006,
community-based organizations testified that the implementation
process lacked adequate representation for low-income
communities. Additionally, the Air Resource Board's (ARB)
decisions regarding the implementation of AB 32 with respect to
the electricity sector have been, and will be, done in
consultation with PUC. Therefore, adding a seat for the ARB on
LIOB may help to bring low-income issues a stronger presence
during the implementation of AB 32 directly and indirectly.
Analysis Prepared by : Nina Kapoor / U. & C. / (916) 319-2083
FN: 0001270