2. Background
The funding provisions of the system benefits charge (commonly known as the public goods charge or PGC) under Pub. Util. Code § 399.81 sunset by law on January 1, 2012.2 Several proposals were considered by the Legislature in 2011 to extend funding collections and make various modifications to the program oversight structure. However, by the end of the legislative session on September 9, 2011, no new law was passed to renew collection and disbursement of the system benefits charges for energy efficiency, renewables, or research development, and demonstration (RD&D) under § 399.8.
On September 23, 2011, Governor Jerry Brown sent a letter to Commission President Michael Peevey requesting that we "take action under the Commission's authority to ensure that programs like those supported by the Public Goods Charge are instituted - and hopefully at their current levels. As the Commission goes forward, please take into account the constructive ideas for program reform that were identified during the legislative process as well as ways to create jobs swiftly through investment in energy savings retrofits. We cannot afford to let any of these job-creating programs lapse."
In response, the Commission opened this Rulemaking on October 6, 2011, to determine whether and how the Commission should act to preserve funding for the public and ratepayer benefits associated with renewables and RD&D activities provided by the electric PGC that expired on January 1, 2012.
A Scoping Memo was issued by the assigned Commissioner on November 8, 2011. The Scoping Memo determined that Phase 1 of this proceeding would address the Commission's authority for the continued collection of system benefits charges for the renewables and RD&D purposes, and provide limited guidance as to programmatic objectives and details about how the funds should be used. Decision (D.) 11-12-035 addressing these issues and continuing funding through the end of 2012, pending addressing more detailed program and governance issues in Phase 2, was adopted by the Commission on December 15, 2011. D.11-12-035 adopted the new Electric Program Investment Charge (EPIC).
Rulemaking (R.) 11-10-003 posited a number of questions to parties regarding funding levels, programmatic issues and governance structures for renewables and RD&D programs previously funded by the PGC. The Scoping Memo assigned these issues to be handled in Phase 2. On February 10, 2012, a Phase 2 Scoping Memo was issued by the assigned Commissioner, along with a staff proposal outlining a potential approach to EPIC governance and programmatic activities. Comments and reply comments from parties were requested on any and all elements of the staff proposal.
1 All references to Code are to the Public Utilities Code unless otherwise noted.
2 While authorization in § 399.8 to collect the PGC ended on January 1, 2012, the statute did not sunset, and all of its provisions remain law.
