BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2529|
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THIRD READING
Bill No: AB 2529
Author: Wieckowski (D) and Beall (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:
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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
SUPPORT : (Verified 8/27/12)
7-Eleven, Inc.
Alliance for Retail Energy Markets
American Chemistry Council Industrial - Gases Panel
Association of California Healthcare Districts
California Association of Sanitation Agencies
California Business Properties Association
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California Chamber of Commerce
California Farm Bureau Federation
California Grocers Association
California Hospital Association
California Large Energy Consumers Association
California League of Food Processors
California Lutheran University
California Manufacturers & Technology Association
California Metals Coalition
California Retailers Association
California Small Business Association
California Small Business Roundtable
California Special Districts Association
California State Association of Counties
California State University
California Taxpayers Association
California Transit Association
Chemical Industry Council of California
Conejo Recreation and Park District
Direct Access Customer Coalition
Energy Users Forum
Fremont Unified School District
Fullerton Chamber of Commerce
Glass Packaging Institute
HCA Holdings, Inc., dba Hospital Corporation of America
Hilton Worldwide, Inc.
League of California Cities
Long Beach Chamber of Commerce
Marin Energy Authority
Office Depot
OfficeMax
Oxnard Chamber of Commerce
Pacific Gas & Electric Company
PacifiCorp
Palm Desert Chamber of Commerce
PetSmart
Plastikon Manufacturing
Qualcomm
Redondo Beach Chamber of Commerce
Regional Council of Rural Counties
Safeway Inc.
San Francisco Bay Area Rapid Transit District
San Francisco Municipal Transportation Agency
Santa Clara Valley Transportation Authority
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School Project for Utility Rate Reduction
Sempra Energy
Silicon Valley Leadership Group
Sonoma County
Southern California Edison
Southwest California Legislative Council
Stanford University
Staples
UHS of Delaware, Inc.
University of California
Urban Counties Caucus
Wal-Mart Stores, Inc.
Welcome Market Inc
William S. Hart Union High School District
RM:n 8/28/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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