BILL ANALYSIS �
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 2661|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: AB 2661
Author: Bradford (D)
Amended: 4/30/14 in Assembly
Vote: 27
SENATE ELECTIONS & CONST. AMEND. COMM. : 4-0, 6/17/14
AYES: Padilla, Hancock, Jackson, Pavley
NO VOTE RECORDED: Anderson
SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/14/14
AYES: De Le�n, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
ASSEMBLY FLOOR : 78-0, 5/15/14 (Consent) - See last page for
vote
SUBJECT : Political Reform Act of 1974: conflicts of
interest: Energy Commission
SOURCE : Author
DIGEST : This bill moves the conflict of interest provisions
related to the California Energy Commission (CEC), from the
Public Resources Code (PRC) into the Political Reform Act (PRA).
This bill also revises the limitations on appointments to the
CEC if the appointee received income from a load serving entity
in the two years prior to his/her appointment.
ANALYSIS :
CONTINUED
AB 2661
Page
2
Existing law:
1.Establishes the CEC and prescribes certain qualifications for
its members, including a prohibition against receiving a
substantial portion of income from specified energy-related
entities in the two years preceding appointment to the CEC.
2.Prohibits members of the CEC from being employed by an
electric utility or applicant or, within two years after the
member ceases to be a member of the CEC, a person who engages
in the sale or manufacture of a major component of a facility.
3.Prohibits a member of the CEC from holding any other elected
or appointed public office or position, except as specified.
4.Prohibits persons with specified relationships to a member or
employee of the CEC from appearing in proceedings and other
matters in which the CEC is a party or has a direct and
substantial interest.
This bill:
1.Moves the conflict of interest provisions related to the CEC
from the PRC into the PRA. This bill also revises the
limitations on appointments to the CEC if the appointee
received income from a load serving entity in the two years
prior to his/her appointment.
2.Moves the following conflict of interest provisions that are
applicable to the CEC from the PRC to the PRA, and gives the
Fair Political Practices Commission (FPPC), instead of the
Attorney General, the authority to waive these provisions if
the interest is not sufficiently substantial to affect the
integrity of services that the state may expect:
A. Prohibits a person from being a member of the CEC if,
during the two years prior to appointment to the CEC, the
person received any substantial portion of his/her income
directly or indirectly from any electric utility or engages
in the sale or manufacture of any major component of any
facility;
B. Prohibits members of the CEC from holding any other
CONTINUED
AB 2661
Page
3
elected or appointed public office or position; and
C. Prohibits members and employees of the CEC from
maintaining specified relationships with any person who
acts as an attorney, agent, or employee for a person, other
than the state, in connection with a matter in which the
CEC is a party or has a direct and substantial interest.
1.Expands the prohibition described in (1)(A) above, by
additionally prohibiting the appointment of an individual who
received a substantial portion of his/her income directly or
indirectly from any load serving entity, as defined, or from
any person who has received a substantial portion of his/her
income, directly or indirectly, from either generating,
transmitting, or distributing electricity in the state, or the
sale or manufacture of any major component of a facility
located in the state.
2.Repeals the prohibition on a member or employee participating
personally and substantially in his/her official capacity in a
proceeding in which any of the following has a direct or
indirect financial interest:
A. The member or employee;
B. The member or employee's spouse or minor child;
C. The member or employee's partner; or
D. An organization for which the following are true:
(1) The organization is not a governmental organization
or an educational or research institution that qualifies
as a nonprofit organization; and
(2) The member or employee is serving or has served as
an officer, director, trustee, partner, or employee while
serving as a member or employee of the CEC or, for
members of the CEC, during the two year period prior to
the member's appointment.
1.Defines the following terms:
A. "Facility" as the structure or equipment necessary for
CONTINUED
AB 2661
Page
4
generating, transmitting, or distributing electricity,
including electric transmission lines and thermal, wind,
hydroelectric, and photovoltaic plants;
B. "Load serving entity" means an electrical corporation,
electric service provider, community choice aggregator, or
a person who has received a substantial portion of his or
her income, directly or indirectly, from selling or
providing electricity to end users located in the state;
and
C. "Major component" to mean any product or equipment
integral to facility construction or operation or to
electrical generation, transmission, or distribution.
1.Provides that the term "income," for the purposes of the
conflict of interest provisions that are specific to the CEC,
includes the following payments that are not otherwise
considered income for the purposes of the PRA: salary and
reimbursement for expenses or per diem; social security,
disability, or other similar benefit payments received from a
state, local, or federal government agency; and, reimbursement
for travel expenses and per diem received from a nonprofit
entity exempt from taxation, as specified.
Background
The CEC . The CEC was created by the Legislature in 1974 as the
state's primary energy policy and planning agency. The CEC's
responsibilities include: forecasting future energy needs;
setting appliance and building efficiency standards; supporting
energy research; developing renewable energy resources and
alternative renewable energy technologies for buildings,
industry and transportation; licensing thermal power plants 50
megawatts or larger; and planning for and directing state
response to energy emergencies. The CEC, collaboratively with
the PUC, is also tasked with implementing the state's Renewables
Portfolio Standard, which requires investor-owned utilities and
retail sellers of electricity, as specified, to achieve a 33%
renewable energy portfolio by 2020 and establishes a detailed
process and standards for renewable energy procurement.
When the CEC was created with specific conflict of interest
requirements, the FPPC did not yet exist, and the state did not
CONTINUED
AB 2661
Page
5
have the conflict of interest rules that were enacted in the
PRA. The PRC was voted into law through Proposition 9 in June
1974, just weeks after the CEC was created. In addition to its
own conflict of interest rules, the conflict of interest
provisions in the PRA apply generally to all public officials
and public agencies, including the CEC.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
One-time costs of approximately $57,000 to the FPPC (General
Fund).
The FPPC indicates the need for Attorney I position to
promulgate regulations at a cost of $57,189.
ASSEMBLY FLOOR : 78-0, 5/15/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,
Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian,
Nestande, Olsen, Pan, Patterson, Perea, John A. P�rez, V.
Manuel P�rez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,
Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron,
Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Mansoor, Vacancy
RM:e 8/15/14 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
**** END ****
CONTINUED