BILL ANALYSIS �
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 2218|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: AB 2218
Author: Bradford (D)
Amended: 8/21/14 in Senate
Vote: 21
SENATE ENERGY, UTIL. & COMMUN. COMM. : 9-1, 6/23/14
AYES: Padilla, Cannella, Corbett, De Le�n, DeSaulnier, Hill,
Knight, Pavley, Wolk
NOES: Fuller
NO VOTE RECORDED: Block
SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/14/14
AYES: De Le�n, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
ASSEMBLY FLOOR : 66-1, 5/29/14 - See last page for vote
SUBJECT : Electricity and natural gas rates
SOURCE : Author
DIGEST : This bill 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 Public
Utilities Commission (PUC).
Senate Floor Amendments of 8/21/14 add intent language to
encourage publicly-owned utilities (POUs) to develop the same
policy required of investor-owned utilities.
CONTINUED
AB 2218
Page
2
ANALYSIS : Existing federal law creates the Emergency Food
Assistance Program (EFAP), administered by the United States
Department of Agriculture (USDA), and, at the state level, by
the Department of Social Services (DSS), to provide low-income
individuals and households with surplus commodities donated by
USDA.
Existing law requires the PUC to establish the California
Alternate Rates for Energy (CARE) program to discount rates for
low-income gas and electric customers whom are defined as those
with incomes no greater than 200% of the federal poverty level.
The average effective CARE discount is limited to a range of 30%
to 35% of the revenues that will have been produced for the same
billed usage by non-CARE customers.
This bill:
1. Requires the electrical and gas corporations to provide rate
assistance to eligible food banks at a fixed percentage
subject to direction and supervision by the PUC.
2. Provides that the fixed percentage will be determined by the
PUC.
3. Provides that the PUC may adjust the fixed percentage as
appropriate.
4. Defines "Eligible food bank" to mean a qualified eligible
recipient agency that has executed an agreement with the DSS
in order to participate in the EFAP administered by the Food
and Nutrition Service of the USDA.
5. Provides that the legislature encourages the governing board
of each local POU to develop and implement a program of rate
assistance to eligible food banks at a fixed percentage, to
be determined by the governing board, but consistent with
that fixed by the PUC for electrical corporations.
Comments
According to the author's office, electricity costs to house
perishables such as fruits, vegetables, and dairy products is a
common concern for food banks across the state. More so now as
a number of food banks are anticipating an increase in
CONTINUED
AB 2218
Page
3
assistance due to the impact our water crisis will have on the
farming community.
Ultimately, energy costs will limit a food banks ability to
provide fresh and healthy food to our struggling California
families.
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. In recent years, food banks have steadily seen an
increase in families seeking out assistance due to the economic
crisis and the subsequent home foreclosure. California's
drought crisis, with no end in sight, will only further strain
existing resources. Smaller operations such as Trinity County
Food Assistance Program, average an annual energy bill of
approximately $18,000; while the San Francisco Food Bank
averages around $144,000 per year.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Onetime costs of $150,000 for one year from the Public
Utilities Reimbursement Account (special) for the creation of
a rate assistance program.
Potential and unknown costs, but likely minor, to the General
Fund and various special funds to the state as an electricity
and gas ratepayer.
SUPPORT : (Verified 8/22/14)
California Association of Food Banks
Food Bank of El Dorado County
Food Share of Ventura
FoodLink for Tulare County
Independent Energy Producers Association
Los Angeles Regional Food Bank
SF-Marin Food Bank
CONTINUED
AB 2218
Page
4
ASSEMBLY FLOOR : 66-1, 5/29/14
AYES: Achadjian, Alejo, Ammiano, Bloom, Bocanegra, Bonilla,
Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,
Ch�vez, Chesbro, Cooley, Dababneh, Daly, Dickinson, Eggman,
Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez,
Gonzalez, Gordon, Gorell, Gray, Grove, Hagman, Hall, Roger
Hern�ndez, Holden, Jones-Sawyer, Levine, Linder, Logue,
Lowenthal, Maienschein, Medina, Mullin, Muratsuchi, Nazarian,
Nestande, Pan, Patterson, Perea, John A. P�rez, V. Manuel
P�rez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez,
Salas, Skinner, Stone, Ting, Weber, Wieckowski, Williams,
Yamada, Atkins
NOES: Jones
NO VOTE RECORDED: Allen, Bigelow, Conway, Dahle, Donnelly,
Harkey, Mansoor, Melendez, Olsen, Wagner, Waldron, Wilk,
Vacancy
JG:d 8/22/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED