BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2561
                                                                  Page  1

          Date of Hearing:  April 19, 2010

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                   AB 2561 (Villines) - As Amended:  April 13, 2010
           
          SUBJECT  :  Energy:  commission and department

           SUMMARY  :  Creates a Secretary of Energy, renames the California  
          Energy Commission (CEC) the Department of Energy (DOE),  
          consolidates various existing state and local energy-related  
          duties within the DOE, and provides that the DOE generally is  
          governed by the Secretary, except for specified decisions made  
          by a board consisting of the Secretary and four public members  
          appointed by the Governor.

          Specifically, this bill  :

          1)Creates a DOE headed by a Cabinet-level Energy Secretary,  
            charged with planning, developing, and implementing all major  
            aspects of state energy policy.

          2)Places the existing functions of the CEC, and creates the  
            California Energy Board (CEB), within the DOE. 

          3)Consolidates various existing minor state agency energy  
            functions into the DOE, including the Electricity Oversight  
            Board, the Energy Extension Service in the Office of Planning  
            and Research, and the Energy Assessment and Energy Services  
            Programs in the Department of General Services.

          4)Repeals several obsolete energy-related state agencies and  
            programs.

          5)Transfers administration of low-income energy assistance and  
            weatherization assistance programs from the Department of  
            Community Services and Development (CSD) to the DOE on or  
            after January 1, 2013.

          6)Provides for appointment of a Secretary of Energy and  
            Assistant Secretary of Energy, subject to Senate confirmation  
            and serving at the pleasure of the Governor.

          7)Reconfigures the CEC as the CEB consisting of the Energy  
            Secretary as chair plus four "public" members to be appointed  








                                                                  AB 2561
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            to four-year terms with qualifications consistent with those  
            currently applicable to CEC Commissioners (i.e. attorney,  
            economist, engineer/scientist, and environmentalist).

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

           Previous energy reorganization proposals.   This bill's basic DOE  
          structure is similar to Governor's Reorganization Plan 3,  
          proposed by Governor Schwarzenegger in 2005, and previous  
          legislation, including ABX3 33 (Villines) from 2009.  GRP 3 was  
          rejected by the Senate before it took effect.  ABX3 33 was  
          approved by the Assembly last year, but was held in the Senate  
          with no action.

           Does this bill give California a new energy policy?   The  
          presentation of this bill suggests that current law hinders the  
          Governor's ability to articulate an energy policy.  In fact,  
          current law provides a formal avenue for the Governor to report  
          to the Legislature his official statement of energy policy.   
          Under SB 1389 (Bowen), Chapter 568, Statutes of 2002, the  
          Governor is required to review the CEC's Integrated Energy  
          Policy Report (IEPR) and report his agreement or disagreement  
          with its policy recommendations to the Legislature within 90  
          days.  The Governor's report is his official statement of energy  
          policy.  The bill doesn't modify the Governor's IEPR obligations  
          under current law, but assigns the Energy Secretary the  
          responsibility to plan, develop, and implement all major aspects  
          of an unspecified energy policy.
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Building Owners & Managers Association of California
          California Apartment Association
          California Building Industry Association
          California Business Properties Association
          California Chamber of Commerce
          California Forestry Association
          International Council of Shopping Centers
          National Association of Industrial & Office Properties,  
          California Council
          Pacific Gas and Electric








                                                                  AB 2561
                                                                  Page  3

          San Diego Gas & Electric
          Southern California Edison
          Southern California Gas

           Opposition 
           
          None on file

           
          Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092