BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 485|
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                                 THIRD READING


          Bill No:  AB 485
          Author:   Ma (D), et al.
          Amended:  8/24/12 in Senate
          Vote:     21

           
          ALL PRIOR VOTES NOT RELEVANT


           SUBJECT  :    Greenhouse gases

           SOURCE  :     Author


           DIGEST  :    This bill allows local officials to divert 
          property tax increment revenues to pay for public 
          facilities and amenities within transit village development 
          districts.

           Senate Floor Amendments  of 8/24/12 delete the previous 
          version of the bill relating to infrastructure refinancing 
          and replace the contents of the bill with new requirements 
          for crediting of revenue derived from allowances allocated 
          to electric utilities under a cap-and-trade program.

           ANALYSIS  :    Existing law:

          1.Under the California Global Warming Solutions Act of 2006 
            (CGWSA):

             A.   Requires the California Air Resources Board (ARB) 
               to determine the 1990 statewide greenhouse gas (GHG) 
               emissions level and approve a statewide GHG emissions 
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               limit that is equivalent to that level, to be achieved 
               by 2020; and

             B.   Authorizes ARB to include the use of market-based 
               mechanisms to comply with these requirements.

          1.Under Public Utilities Act provisions added by SB 1018, 
            the natural resources trailer bill:

             A.   Requires the Public Utilities Commission (PUC) to 
               require revenue received by electric utilities 
               resulting from freely allocated allowances pursuant to 
               a market-based mechanism to be credited directly to 
               specified retail customers; and

             B.   Authorizes the PUC to allocate up to 15% of those 
               revenues for clean energy and energy efficiency 
               projects.

          This bill:

          1.Requires the PUC to require revenues, including any 
            accrued interest, received by an electrical corporation 
            as a result of the direct allocation of greenhouse gas 
            allowances to electric utilities to be credited directly 
            to the residential, small business, public transportation 
            agency, and emissions-intensive trade-exposed retail 
            customers of the electrical corporation. 

          2.Requires the PUC, not later than January 1, 2013, to 
            require the adoption and implementation of a customer 
            outreach plan for each electrical corporation, including, 
            but not limited to, such measures as notices in bills and 
            through media outlets, for purposes of obtaining the 
            maximum feasible public awareness of the crediting of 
            greenhouse gas allowance revenues. 

          3.Allows the PUC to allocate up to 15 percent of the 
            revenues, including any accrued interest, received by an 
            electrical corporation as a result of the direct 
            allocation of greenhouse gas allowances to electrical 
            distribution utilities, for clean energy and energy 
            efficiency projects established pursuant to statute that 
            are administered by the electrical corporation and that 

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            are not otherwise funded by another funding source.

          4.Defines "public transportation agency" to mean a public 
            agency that provides public transportation.

          5.Requires revenues, in addition to existing law, which 
            requires the PUC, except as provided, to require 
            revenues, including any accrued interest, received by an 
            electrical corporation as a result of the direct 
            allocation of greenhouse gas allowances to electric 
            utilities to be credited directly to the residential, 
            small business, public transportation agency, and 
            emissions-intensive trade-exposed retail customers of the 
            electrical corporation, to be credited to public 
            transportation agency customers. 

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


          RM:n   8/27/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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