Bill 1166

                    Current Status

Bill Number:               1166
Ratification Number:       541
Act Number:                552
Introducing Body:          Senate
Subject:                   Relating to the handling of certain oil
                           overcharge refund monies

(A552, R541, S1166)

A JOINT RESOLUTION TO PROVIDE FOR THE HANDLING OF CERTAIN OIL OVERCHARGE REFUND MONIES, INCLUDING THE IMPOSITION OF DUTIES AND RESPONSIBILITIES UPON THE JOINT LEGISLATIVE COMMITTEE ON ENERGY; TO REQUIRE THAT ANY STATE AGENCY, BOARD, COMMISSION, INSTITUTION, OR OTHER ENTITY FUNDED FROM THE GENERAL FUND OF THE STATE WHICH RECEIVES A FINANCIAL GAIN AS A RESULT OF ENERGY EFFICIENCY IMPROVEMENTS UNDERTAKEN AS A RESULT OF THE STATE'S ENERGY PROGRAMS MUST BE EVALUATED AS TO THE ACTUAL ANNUAL DOLLAR SAVINGS ATTAINED; TO PROVIDE FOR THE REPORTING OF THE COST SAVINGS; TO PROVIDE FOR THE DEPOSIT OF OIL OVERCHARGE FUNDS IN INTEREST-BEARING ACCOUNTS AND FOR THE EARMARKING OF INTEREST EARNED; AND TO PROVIDE, AMONG OTHER THINGS, THAT THE STATE AUDITOR SHALL CONDUCT AN ANNUAL FINANCIAL COMPLIANCE AUDIT AND BUDGET ADEQUATE FUNDS TO COVER ITS COST.

Whereas, the State of South Carolina will be a recipient state of substantial oil overcharge funds resulting from the United States Supreme Court settlement of the two billion dollars final judgment against the Exxon Oil Company; and

Whereas, the State of South Carolina is expected to receive in excess of twenty-three million dollars as its pro rata share of the settlement based upon national market shares during the overcharge period; and

Whereas, the Department of Energy requires states to deposit all oil overcharge refunds in separate interest-bearing accounts with the accrued interest to be used for the same energy conservation measures as the refunds themselves; and

Whereas, the receipt, administration, and use of these oil overcharge funds will be restricted by the court settlement and Department of Energy rules and regulations on utilizing the funds to benefit directly those consumers injured through the overcharges; and

Whereas, it is imperative that this State take appropriate action to assure the court, the public, and the Department of Energy that the oil overcharge funds received through the Exxon settlement, as well as any other oil overcharge funds, will be utilized in accordance with Department of Energy rules and regulations to benefit directly those consumers injured through the overcharges by adopting cost-effective energy conservation policies and programs directly beneficial to the injured consumers. Now, therefore,

Be it enacted by the General Assembly of the State of South Carolina:

Committee to review and make recommendations

SECTION 1. Prior to authorization of the expenditure of any oil overcharge refund monies by the Governor and the Joint Appropriations Review Committee, pursuant to the provisions of Act 651 of 1978, the Joint Legislative Committee on Energy shall review and make a recommendation as to the approval and adoption of this State's energy policy and the specific uses for proposed energy conservation programs. Consideration for funding any energy program or activity by the Joint Legislative Committee on Energy must be based primarily on the potential for reducing the costs of energy consumption, and such potential cost savings must be estimated and documented for future analysis.

Funds to be within restrictions

SECTION 2. The Joint Legislative Committee on Energy, in making its review, shall ensure that the proposed use of such funds for program administrative costs, if any, is within any restriction imposed by the courts and Department of Energy rules and regulations applicable to the use of any oil overcharge refunds and that any administrative cost is absolutely justified.

Committee to have continuous energy program oversight

SECTION 3. The Joint Legislative Committee on Energy has the authority and responsibility of continuous energy program oversight on the actual expenditure and use of the oil overcharge funds, including, but not limited to, the receipt and review of all reports, contracts, and subcontracts issued and any other information considered necessary to assure that such funds are being utilized in accordance with the energy policy and energy program plans approved as stated in this act.

Evaluation

SECTION 4. Any state agency, board, commission, institution, or other entity funded from the general fund of the State which receives a financial gain as a result of energy efficiency improvements undertaken as a result of the State's energy programs must be evaluated as to the actual annual dollar savings attained. The cost savings must be reported to the Joint Legislative Committee on Energy by the entity administering the state energy program. The Joint Legislative Committee on Energy shall review the report of cost savings to ensure that the dollar amounts saved are accurate, and the Committee shall report its findings to the Senate Finance Committee and to the House Ways and Means Committee annually, not later than January first. The entity administering the state energy program shall cooperate fully with the Joint Legislative Committee on Energy to ensure that the annual reporting requirement is met.

Oil overcharge funds

SECTION 5. Oil overcharge funds must be deposited by the State Treasurer in interest-bearing accounts of the State, with interest earned to be earmarked for the same purposes as the oil overcharge monies. The administering entity shall ensure that funds are drawn down and disbursed in a manner which ensures the maximum interest accruing to the State Treasurer's oil overcharge funds account. The State Auditor shall conduct an annual financial compliance audit and budget adequate funds to cover its cost.

Expiration of provisions

SECTION 6. The provisions of this act expire June 30, 1988.

Time effective

SECTION 7. This act shall take effect upon approval by the Governor.