BILL ANALYSIS                                                                                                                                                                                                              1
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                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                 ALEX PADILLA, CHAIR
          

          SB 1435 -  Padilla                                Hearing Date:   
          April 20, 2010             S
          As Amended:         April 5, 2010            FISCAL       B

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                                      DESCRIPTION
           
           Current law  establishes the California Energy Commission (CEC)  
          with five appointed members, one of whom serves as the chairman  
          of the body.

           Current law  requires the President of the California Public  
          Utilities Commission to appear before the appropriate policy  
          committees of the Legislature each year to report on the  
          activities of the Commission.

           This bill  requires the chair of the CEC to also appear before  
          the appropriate policy committees to report on the activities of  
          the CEC.

           This bill  strikes a technical and unnecessary heading from the  
          Public Resources Code.


                                      BACKGROUND
           
          The CEC is an energy policy and planning agency created by the  
          Legislature in 1974.  The CEC responsibilities include: 

                 Forecasting future energy needs and keeping historical  
               energy data; 
                 Licensing thermal power plants 50 megawatts or larger;
                 Promoting energy efficiency by setting the state's  
               appliance and building efficiency standards and working  
               with local government to enforce those standards;
                 Supporting public interest energy research that advances  











               energy science and technology through research,  
               development, and demonstration programs;
                 Supporting renewable energy by providing market support  
               to existing, new, and emerging renewable technologies;  
               providing incentives for small wind and fuel cell  
               electricity systems; and providing incentives for solar  
               electricity systems in new home construction;
                 Implementing the state's Alternative and Renewable Fuel  
               and Vehicle Technology Program; and
                 Planning for and directing state response to energy  
               emergencies. 

          The Governor nominates and the Senate approves five people to  
          act as full-time energy commissioners. They are appointed to  
          staggered five-year terms of office.  From the five members, the  
          Governor also picks a Chairman and Vice Chair for two-year  
          terms.  Each of the appointees comes from a specific background:  
          the law, economics, environmental studies or sciences,  
          engineering or science, and the public at large. 

          The basic programs of the CEC and most of its staff are funded  
          through a surcharge on electricity consumption.  State law  
          directs electric utility companies to gather a state energy  
          surcharge. As of January 1, 2005, this is set at two-tenths of  
          one mil ($0.00022) per kilowatt/hour (kWh) of electricity  
          consumed by all electrical customers.  These funds are  
          segregated in the state treasury as the Energy Resources Program  
          Account (ERPA).  For a home that consumes 600 kWh of electricity  
          in a month, the contribution to ERPA is 13.2 cents per month or  
          $1.58 per year. Additionally, the CEC manages public goods  
          charge monies collected by the investor-owned utilities for  
          renewable energy, research, research and development, and other  
          federal and state funds for specific programs. 


                                       COMMENTS
           
           Author's Purpose  .  The author intends to improve communication  
          between the CEC and the Legislature and facilitate oversight of  
          the CEC's programs.


                                       POSITIONS
           










           Sponsor:
           
          Author

          Support:
           
          None on file.

           Oppose:
           
          None on file.


          Kellie Smith 
          SB 1435 Analysis
          Hearing Date:  April 20, 2010