AB 2334,
as amended, Gray. begin deletePublic and privately owned utilities. end deletebegin insertElectricity rates: economic development pilot program: former military bases.end insert
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the commission to authorize public utilities to engage in programs to encourage economic development, including rate discounts to industries or business entities whose facilities are, or will be located, within the boundaries of enterprise zones, economic incentive areas, or recycling market development zones.
end insertbegin insertThis bill would require the commission to direct and supervise the implementation and administration, by electrical corporations, of an economic development pilot program to encourage new business activity at 3 former military bases. The bill would require an electrical corporation to administer the pilot program for 7 years following its implementation at each former base and would require that the pilot program provide rates for new business activity that are discounted by 40% from the otherwise applicable tariff of the electrical corporation for the service territory in which the former military base is located. The bill would require an electrical corporation to annually report specified information relative to each pilot program site to the commission and require the commission to compile the information and report the results to the Legislature. These provisions would be repealed on January 1, 2024.
end insertbegin insertUnder existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
end insertbegin insertBecause the provisions of this bill are within the act and require action by the commission to implement its requirements, a violation of these provisions would impose a state-mandated local program by creating a new crime.
end insertbegin insertThe California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
end insertbegin insertThis bill would provide that no reimbursement is required by this act for a specified reason.
end insertExisting law provides that the Public Utilities Commission has regulatory authority over public utilities. Under existing law, various provisions are applicable to both privately owned and publicly owned utilities.
end deleteThis bill would state the intent of the Legislature to enact legislation relating to privately owned and publicly owned public utilities.
end deleteVote: majority.
Appropriation: no.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: begin deleteno end deletebegin insertyesend insert.
The people of the State of California do enact as follows:
begin insertSection 740.45 is added to the end insertbegin insertPublic Utilities
2Codeend insertbegin insert, end insertbegin insertimmediately following Section 740.4, to read:end insert
(a) The commission shall direct and supervise the
4implementation and administration, by electrical corporations, of
5an economic development pilot program to encourage new business
6activity at three former military bases closed as a result of the
7base realignment and closure process.
P3 1(b) The pilot program shall be administered by an electrical
2corporation for seven years following its implementation at the
3former military base.
4(c) The pilot program shall include one former military base in
5northern California, one former military base in central California,
6and one former military base in southern California. The bases
7shall be selected for participation in the pilot program
based on
8local economic need, including, but not limited to, higher
9unemployment rates than the state average and median income
10that is lower than the state average.
11(d) The discount provided pursuant to the pilot program shall
12be 40 percent of the otherwise applicable tariff of the electrical
13corporation for the service territory in which the former military
14base is located.
15(e) Each electrical corporation shall annually report to the
16commission all of the following:
17(1) The total amount of the annual discounts given at each pilot
18program site.
19(2) The number and types of businesses created as a result of
20the pilot program during the prior year at each site.
21(3) The total number of jobs
created as a result of the pilot
22program during the prior year at each site.
23(4) The average salary and benefits of the jobs created as a
24result of the pilot program during the prior year at each site.
25(f) The commission shall annually compile the information and
26report the results of the pilot program to the Legislature. The
27report shall be submitted in compliance with Section 9795 of the
28Government Code.
29(g) This section shall remain in effect only until January 1, 2024,
30and as of that date is repealed, unless a later enacted statute, that
31is enacted before January 1, 2024, deletes or extends that date.
No reimbursement is required by this act pursuant to
33Section 6 of Article XIII B of the California Constitution because
34the only costs that may be incurred by a local agency or school
35district will be incurred because this act creates a new crime or
36infraction, eliminates a crime or infraction, or changes the penalty
37for a crime or infraction, within the meaning of Section 17556 of
38the Government Code, or changes the definition of a crime within
39the meaning of Section 6 of Article XIII B of the California
40Constitution.
It is the intent of the Legislature to enact legislation
2relating to privately owned and publicly owned utilities.
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