BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2218
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2218 (Bradford)
          As Amended  August 21, 2014
          Majority vote
           
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          |ASSEMBLY:  |66-1 |(May 29, 2014)  |SENATE: |29-7 |(August 27,    |
          |           |     |                |        |     |2014)          |
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           Original Committee Reference:    U. & C.  

           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.  

           The Senate amendments  :  
           
          1)Clarify the definition of an eligible food bank.

          2)Encourage the governing board of each local publicly owned  
            electric utility to develop and implement a program of rate  
            assistance to eligible food banks at a fixed percentage  
            consistent with the investor-owned utilities.

          3)Make non-substantive amendments.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee,
           
          1)Onetime costs of $150,000 for one year from the Public  
            Utilities Reimbursement Account (special) for the creation of  
            a rate assistance program.

          2)Potential and unknown costs, but likely minor, to the General  
            Fund and various special funds to the state as an electricity  
            and gas ratepayer.

           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  








                                                                  AB 2218
                                                                  Page  2

          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 to  
          $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  
            banks servicing 58 counties in California.  Each contracted  
            food bank distributes commodities received from United States  
            Department of Agriculture. 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. 

           Analysis Prepared by  :    DaVina Flemings / U. & C. / (916)  
          319-2083                                               FN:  
          0005393