BILL ANALYSIS �
AB 2218
Page 1
ASSEMBLY THIRD READING
AB 2218 (Bradford)
As Amended April 24, 2014
Majority vote
UTILITIES & COMMERCE 10-0
APPROPRIATIONS 13-0
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|Ayes:|Bradford, Patterson, |Ayes:|Gatto, Bocanegra, |
| |Buchanan, Ch�vez, Fong, | |Bradford, |
| |Garcia, | |Ian Calderon, Campos, |
| |Roger Hern�ndez, Mullin, | |Eggman, Gomez, Holden, |
| |Rendon, Skinner | |Linder, Pan, Quirk, |
| | | |Ridley-Thomas, Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Requires electrical and gas corporations to develop
and implement a program of rate assistance to eligible food
banks, subject to discretion and supervision by the California
Public Utilities Commission (PUC).
FISCAL EFFECT : According to the Assembly Appropriations
Committee, increased costs for the PUC to direct and oversee the
program in the $250,000 range. Minor cost shifts and the
resulting rate increases for all other ratepayers to provide
federally registered food banks (currently 48 statewide) with
energy discounts.
COMMENTS : According to the author, "California's food banks
stabilize our most underserved and economically challenged
families from all across the state. However, many find it
costly to maintain their refrigeration units to house
perishables such as fruits, vegetables, and dairy products.
Electricity costs are a common concern for food banks across the
state. Currently, the Fresno Community Food Bank, which serves
four counties, sees a summer cost of approximately $9,000 to
$11,000 per month and a winter cost of approximately
$5,000-$6,000 per month to provide assistance to the most in
need in the Central Valley."
1)Background: The Department of Social Services operates the
Emergency Food Assistance Program that contracts with 48 food
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banks servicing 58 counties in California. Each contracted
food bank distributes commodities received from United States
Department of Agriculture (USDA). These food banks must follow
federal guidelines.
2)California ratepayer assistance programs: For decades, the
state and federal governments have overseen low income
programs to provide low income customers discounts on their
utility bills to the extent the customer meets the program
eligibility requirements. The following is a breakdown of
select programs:
a) The California Alternative Rates for Energy (CARE)
Program offers eligible customers a 20% discount on their
electricity and natural gas bill.
b) The Family Electric Rate Assistance Families offers
assistance to families whose household income slightly
exceeds the low-income energy program allowances by billing
some of their electricity usage at a lower rate.
c) The Energy Savings Assistance Program provides no-cost
weatherization services to low-income households who meet
the CARE income guidelines. Services provided include
attic insulation, energy efficient refrigerators, energy
efficient furnaces, weather stripping, caulking, low-flow
showerheads, water heater blankets, and door and building
envelope repairs which reduce air infiltration.
d) The Department of Community Services and Development
administers federal low-income home energy assistance,
energy crisis intervention, and low-income weatherization
programs to help low income households pay their energy
bills. These programs are funded by federal grants.
3)Funding: Currently most, if not all, of California's
ratepayer assistance programs are included in the rate base of
the regulated utility companies. It is the author's intention
to allow the PUC to determine how this program will be funded.
Analysis Prepared by : DaVina Flemings / U. & C. / (916)
319-2083
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FN: 0003695