BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2672|
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THIRD READING
Bill No: AB 2672
Author: Perea (D)
Amended: 6/30/14 in Senate
Vote: 21
SENATE ENERGY, UTILITIES & COMMUNICATIONS COMM : 8-2, 6/23/14
AYES: Padilla, Cannella, Corbett, De Le�n, DeSaulnier, Hill,
Pavley, Wolk
NOES: Fuller, Knight
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 : 61-7, 5/29/14 - See last page for vote
SUBJECT : Access to energy: disadvantaged communities: San
Joaquin Valley
SOURCE : Leadership Counsel for Justice and Accountability
Self-Help Enterprises
DIGEST : This bill requires the Public Utilities Commission
(PUC) to conduct a feasibility study to analyze options for
providing affordable energy service in low income regions within
the San Joaquin Valley, and identify appropriate actions and
funding sources.
ANALYSIS : Existing law:
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1.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 would have been produced for the
same billed usage by non-CARE customers.
2.Requires the PUC to make specific written findings if it
considers the extension of gas service to new or existing
customers.
Current orders of the PUC require that the costs of gas main or
pipeline extensions to serve new or existing customers be borne
by the customer or project developer.
This bill:
1.Requires gas utilities in the San Joaquin Valley to identify
disadvantaged communities that do not have natural gas
service.
2.Requires the PUC to initiate a new proceeding by March 31,
2015, to conduct a feasibility study on the economics of
expending natural gas service to these communities,
identifying alternatives.
3.Directs the PUC, if it determines that any of the options
achieves the intent of the bill, to take appropriate action
and determine appropriate funding sources.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Annual costs of at least $300,000 from the Public Utilities
Reimbursement Account (special) for two years to the PUC for
the cost of a proceeding and the workload associated with
conducting the required feasibility study.
One-time contract costs of $500,000 from the Public Utilities
Reimbursement Account (special) to the PUC for contract costs
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related to the feasibility study.
Unknown costs, possibly in hundreds of thousands, to the
General Fund and various special funds to the state as a
ratepayer for the state's cost share of subsidies or necessary
infrastructure to provide access to affordable energy in the
San Joaquin Valley.
SUPPORT : (Verified 8/14/14)
Leadership Counsel for Justice and Accountability (co-source)
Self-Help Enterprises (co-source)
Allensworth Community Services District
Allensworth Elementary School District
California State Association of Electrical Workers
California State Pipe Trades Council
Center on Race, Poverty & the Environment
City of Mendota
Fairmead Community & Friends
Monterey Park Tract Community Services District
West Goshen Mutual Water Company
Western State Council of Sheet Metal Workers
ARGUMENTS IN SUPPORT : According to the author, this bill
requires a gas corporation that provides natural gas in the
Valley to identify communities without gas service by January
31, 2015. It requires the PUC to initiate a new proceeding to
conduct an affordable energy feasibility study by March 31, 2015
for the identified communities without gas service and it would
require the PUC to determine if any options in the study would
increase access to affordable energy.
Many disadvantaged communities in the San Joaquin Valley do not
enjoy the benefits of an affordable energy service such as
natural gas. Gas lines simply do not extend into their
communities and they must choose among more costly, less
convenient and more potentially hazardous fuels to heat their
homes, their water, and their food. Other fuels such as
propane, wood and electricity are more costly and less
environmentally friendly and leave residents more prone to
health and safety issues.
Communities that wish to transition to a more affordable energy
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source often times don't have the resources to pay for projects
without financing the project over time. Currently, there is no
program within the PUC to enable communities to understand the
costs associated with transitioning to an affordable energy
source. There is also no program to help identify potential
funding sources available to assist with affordable energy
projects.
ASSEMBLY FLOOR : 61-7, 5/29/14
AYES: Alejo, Ammiano, Bigelow, Bloom, Bocanegra, Bonilla, Bonta,
Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Ch�vez,
Chesbro, Cooley, Dababneh, Daly, Dickinson, Eggman, Fong, Fox,
Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Grove,
Hall, Roger Hern�ndez, Holden, Jones-Sawyer, Levine,
Lowenthal, Maienschein, Medina, Mullin, Muratsuchi, Nazarian,
Nestande, Olsen, Pan, 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: Allen, Donnelly, Hagman, Jones, Linder, Mansoor, Waldron
NO VOTE RECORDED: Achadjian, Conway, Dahle, Beth Gaines, Gorell,
Harkey, Logue, Melendez, Patterson, Wagner, Wilk, Vacancy
JG:nl 8/15/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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