BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2529|
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THIRD READING
Bill No: AB 2529
Author: Wieckowski (D)
Amended: 8/24/12 in Senate
Vote: 21
PRIOR VOTES NOT RELEVANT
SUBJECT : California Global Warming Solutions Act of
2006: electrical
corporations
SOURCE : Author
DIGEST : This bill revises the SB 1018 (Resources Budget
Trailer bill) procedures to require the Public Utilities
Commission (PUC) to require all revenue received by electric
utilities resulting from freely allocated allowances to be
returned to all retail customers in proportion to the increase
in electricity cost those customers incur as a result of a
market-based compliance mechanism adopted pursuant to the
California Global Warming Solutions Act of 2006 (CGWSA).
Senate Floor Amendments of 8/24/12 delete the prior version
of the bill relating to drinking water and replace with the
above language relating to new requirements for crediting
of revenue derived from allowances allocated to electric
utilities under a cap-and-trade program.
ANALYSIS : Existing law:
CONTINUED
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1.Under the CGWSA:
A. Requires the Air Resources Board (ARB) to determine
the 1990 statewide greenhouse gas (GHG) emissions
level and approve a statewide GHG emissions 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 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 requires the PUC to credit directly, in
proportion to the increase in electricity cost, to all
retail delivery customers of an electrical corporation all
revenues, as specified, the electrical corporation receives
as a direct result of the direct allocation of greenhouse
gas allowances in proportion to the increase in electricity
costs those customers incur as a result of the state board
adopting a market-based compliance mechanism.
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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