Winter 2013

 

State Transfer Of Gas Public Purpose Program Funds Overturned

Senate Bill (SB) 87 was enacted during the 2011-2012 fiscal year budget process that authorized the transfer of "up to $155,000,000 from the Gas Consumption Surcharge Fund" (Fund) to the State's General Fund. (see the Fall 2011 Issue of CURRENTS)

On July 20, 2011, the Natural Resources Defense Council (NRDC) filed a Petition for Alternate Writ of Mandate, Writ of Mandate, Order to Show Cause, or other appropriate relief and Complaint for Declaratory and Injunctive Relief (Petition) in the Superior Court for the State of California. NRDC’s Petition alleged that SB 87’s transfer provisions violated “the surcharge statute and Constitutional prohibitions on the substantive amendment of existing laws through budget legislation and the diversion of special taxes to general revenue purposes” and undermined programs the State is relying on to provide its citizens with affordable, reliable energy to meet its legal mandates to conserve energy and curb pollution.

Prior to any funds being transferred under SB 87, the Superior Court of the State of California determined that the transfers provided for in SB 87 were an invalid attempt to amend the substance of the Surcharge Fund in violation of Article 4, Section 9 of the California Constitution. On October 21, 2011, the California Superior Court granted NRDC’s request for a Petition for Writ of Mandate barring the implementation of SB 87. No notice of appeal was filed within the time allowed by statute and the decision of the California Superior Court became final.