BILL ANALYSIS �
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 1391|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 1391
Author: Bradford (D), et al.
Amended: 9/9/11 in Senate
Vote: 21
PRIOR VOTES NOT RELEVANT
SENATE ENERGY, UTIL. & COMMUNICATIONS COMM. : 6-4, 9/7/11
(pursuant to Senate Rule 29.10)
AYES: Padilla, Berryhill, De Le�n, DeSaulnier, Pavley,
Rubio
NOES: Fuller, Corbett, Simitian, Strickland
NO VOTE RECORDED: Wright
SUBJECT : Energy Commission: penalties
SOURCE : Author
DIGEST : This bill transfers fining authority for the
failure of a local municipally owned utility to meet the
Renewables Portfolio Standard from the Air Resources Board
to the California Energy Commission.
Senate Floor Amendments of 9/9/11revise double-jointing
amendments with SB 23 (Simitian).
Senate Floor Amendments of 9/2/11 delete the prior version
of the bill dealing with net energy metering and insert the
provisions above.
CONTINUED
AB 1391
Page
2
ANALYSIS :
Existing law:
1. Creates the California renewables portfolio standard
program (RPS program) and the Renewable Energy Resources
Program to increase the amount of electricity generated
per year from eligible renewable resources, as defined.
2. Requires the Energy Commission to refer a local publicly
owned electric utility to the Air Resources Board (ARB)
if the utility fails to comply with these programs and
authorizes the state board to impose penalties.
3. Requires the ARB to deposit any penalties it collects to
enforce these programs into the Air Pollution Control
Fund.
This bill authorizes the California Energy Commission to
impose civil penalties on local publicly owned utilities.
Background
SB 2X1 (Simitian) advanced the state's renewable energy
target from 20 percent to 33 percent. Among its
provisions, this bill requires the California Energy
Commission to develop enforcement guidelines for
non-compliance of RPS by the publicly owned utilities but
gives penalty authority to the ARB. This bifurcated
enforcement process is not necessary and adds complexity to
an already complex enforcement process.
This bill places enforcement and penalty authority over the
local municipally owned utilities for RPS non-compliance
with the California Energy Commission.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 9/9/11)
Burbank Water & Power
Los Angeles Department of Water & Power
Pasadena Water & Power
CONTINUED
AB 1391
Page
3
OPPOSITION : (Verified 9/9/11)
Modesto Irrigation District
M-S-R-Public Power Agency
Northern California Power Agency
ARGUMENTS IN SUPPORT : Pasadena Water & Power writes:
" The new statewide RPS program requires both Investor
Owned Utilities (IOUs) and Publicly Owned Utilities
(POUs) meet specific renewable energy targets. Under
this law, new enforcement provisions applicable to POUs
were created wherein the California Energy Commission
(CEC) is tasked with adopting and enforcing RPS
regulations for POUs. If the CEC finds a violation of
its regulations, it is required to turn the case over to
a separate state agency, the Air Resources Board (ARB),
so that the ARB can determine an appropriate penalty. In
our view, this bifurcated RPS enforcement process in
unnecessary and adds complexity to an already complex
enforcement process. AB 1391 remedies this by providing
that the RPS enforcement process for POUs would fail
under the sole jurisdiction of the CEC. The result of
this amendment is that notices of violation are
administered by the same agency responsible for setting
the penalties. This mirrors the enforcement provisions
for IOUs under SBX1 2 wherein a single agency, the Public
Utilities Commission, is responsible �for] RPS compliance
and potential penalties.
"The stated objectives set forth in AB 1391 are
consistent with California's longstanding goals of
reducing greenhouse gas emissions and advancing the
development of sustainable and environmentally friendly
energy resources to meet the State's future electricity
needs. AB 1391 helps meet these goals in an efficient
and effective manner."
RM:mw 9/9/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
CONTINUED
AB 1391
Page
4
**** END ****
CONTINUED