BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  SB 1435|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  SB 1435
          Author:   Padilla (D)
          Amended:  04/05/10
          Vote:     21

           
           SENATE ENERGY, U.&C. COMMITTEE  :  10-0, 4/20/10
          AYES:  Padilla, Dutton, Corbett, Florez, Kehoe, Lowenthal,  
            Oropeza, Simitian, Strickland, Wright
          NO VOTE RECORDED:  Cox

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT :    Energy Commission:  chair duties 

           SOURCE  :     Author


           DIGEST  :    This bill requires the chair of the California  
          Energy Commission (CEC) to appear annually before the  
          appropriate policy committee to report on the activities of  
          the CEC, and strikes technical and unnecessary heading from  
          the Public Resource Code.

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

          1. Forecasting future energy needs and keeping historical  
             energy data.

          2. Licensing thermal power plants 50 megawatts or larger.
                                                           CONTINUED





                                                               SB 1435
                                                                Page  
          2


          3. Promoting energy efficiency by setting the state's  
             appliance and building efficiency standards and working  
             with local government to enforce those standards.

          4. Supporting public interest energy research that advances  
             energy science and technology through research,  
             development, and demonstration programs.

          5. 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.

          6. Implementing the state's Alternative and Renewable Fuel  
             and Vehicle Technology Program.

          7. 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. 







                                                              SB 1435
                                                                Page  
          3


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

          Existing law also 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          DLW:do  5/4/10   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

                                ****  END  ****