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Renewable-Energy Bill Passed by Assembly

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TIMES STAFF WRITERS

California’s appetite for wind, solar and geothermal electricity would gradually expand over the next 15 years under a bill passed by the Assembly on Tuesday and probably headed for the law books.

The Assembly also approved sweeping legislation that would give millions of workers the right to take paid time off from work to care for sick parents or bond with new children.

It also passed a measure requiring executives to report potential fraud within their firm or face penalties, one of a series of corporate accountability measures inspired by recent debacles.

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And the Senate approved a measure to protect the estimated 9 million Californians who are members of homeowner associations from foreclosures, as lawmakers continued debating bills before the end of the legislative session Saturday.

The energy bill, by Sen. Byron Sher (D-Stanford), requires utilities to increase the share of electricity they sell that comes from renewable sources to at least 20% by 2017. Consumer advocates say such a standard would help buffer the state from natural gas price spikes and restore its reputation as a clean energy leader.

Southern California Edison gets 15% of its electricity from renewable sources, and Pacific Gas & Electric’s portfolio of power supplies is 12% renewable. Both utilities support the measure, SB 1078. San Diego Gas & Electric, which gets 1% of its power from renewable sources, first opposed the bill then took a neutral stance.

The legislation was scheduled to return to the Senate for final approval. But the Assembly late Tuesday night voted to keep it on the floor, where it may be amended before it moves on. Gov. Gray Davis strongly endorses it, said spokesman Steven Maviglio.

Opposition from utilities had hung up the bill in the Assembly’s energy committee. It finally cleared the committee a week ago with an amendment that requires a 1%-a-year increase in renewable energy production.

The 49-13 vote in the Assembly came after some Republicans argued that the bill would boost electricity prices. Assemblyman Bill Leonard (R-San Bernardino) called it welfare for wind-farm and solar-panel owners.

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“How can you ever have price stability when you have mandated that 20% of your product must come from specific suppliers?” Leonard asked. “For renewables to work, it should be the choice of me and you and other consumers.”

The bill’s 20% renewable requirement would not apply to publicly owned utilities such as the Los Angeles Department of Water and Power, which would be directed instead to set and meet their own standard.

The 20% standard would apply, however, to new contracts between private energy companies and electricity consumers.

The paid-leave measure, by Sen. Sheila Kuehl (D-Santa Monica), would create a new mandatory state insurance program in which workers would have to pay a fee of less than 1% from their paychecks every month so they could take paid time off during family emergencies. If a worker took time off because a spouse or parent fell ill, or because the family was bringing a new child into the home, the employee would receive as much as 55% of his or her salary from the state-run fund for up to six weeks.

Democrats strongly supported the legislation, SB 1661, noting that Kuehl had made changes that no longer would require employers to share the cost with workers.

“I am amazed by people who claim that the most important institution in America is the family, but then don’t want to do anything to support family,” said Assemblywoman Jackie Goldberg (D-Los Angeles), chiding her GOP colleagues.

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But Republicans argued just as vehemently that the bill would hurt business and take money out of workers’ pockets for a program they might not want.

“This is a tax on workers so that someday some of them will be able to take some time off,” said Assemblyman George Runner (R-Lancaster). “We’ve decided that everyone cannot be responsible, and we need to take the money from them so they can take care of themselves.”

The bill passed the Assembly on a 45-28 vote. It now awaits final action in the Senate.

The whistle-blower bill, SB 783 by Sen. Martha Escutia (D-Whittier), would make officers or directors of a corporation liable for civil penalties of up to $100,000 if they fail to notify the attorney general or some other government agency of fraudulent activity within their firm. The measure provides other employees with a whistle-blower hotline run by the attorney general, and protects those workers from retaliation.

Some Republicans and Democrats opposed the measure, arguing that though it means well, its descriptions of improper corporate activity are vague and would open the door for unhappy workers to wreak havoc.

“This is a measure that would send the message once again that California is a hostile place to do business,” said Assemblywoman Charlene Zettel (R-Poway).

Nonetheless, the bill passed 43 to 20. It now goes to the Senate.

The homeowner association bill, AB 2289 by Assemblywoman Christine Kehoe (D-San Diego), seeks to protect residents from hasty foreclosures brought on by a failure to pay monthly dues.

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It would require homeowner associations to warn members that failure to pay the dues could result in foreclosure, and to send warning letters 30 days before filing a lien.

The bill’s sponsor, the Congress of California Seniors, argues that many homeowners associations are too quick to initiate foreclosure proceedings on residents, and that the foreclosures take place without court action according to written association agreements few homeowners carefully scrutinize.

Opponents, mainly homeowner associations, argue that the 30-day warning would put them at a disadvantage, because other creditors do not face such rules when trying to recoup payments.

The measure passed the Senate on a 31-2 vote. It goes to the Assembly for final consideration.

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