PUBLIC INTEREST ORGANIZATION ACTION

Each regulatory agency of California focus of the organization's research and sultant has been hired to direct the government hears from those trades or educational activities. AJF is funded by signature drive. industries it respectively affects. Usually grants and individual memberships. organized through various trade associa- MAJOR PROJECTS: tions, professional lobbyists regularly AMERICAN LUNG formulate positions, draft legislation On November 19, AJF launched its ASSOCIATION OF and proposed rules, and provide infor- ballot initiative campaign to cut insur- mation as part of an ongoing agency ance costs and reform the industry. CALIFORNIA relationship. These groups usually focus Under AJF's "Insurance Rate Reduction P.O. Box 7000-866 on the particular agency overseeing a and Reform Act," auto and business Redondo Beach, CA 90277 major aspect of their business. The cur- liability insurance rates would be rolled (213) 378-3950 back and cut by 15% the day after the rent activities of these groups are re- The American Lung Association of November 1988 election. Any additional viewed as a part of the summary discus- California (ALAC) emphasizes the pre- increases must be approved by an elect- sion of each agency, infra. vention and control of lung disease and ed state Insurance Commissioner. Auto There are, in addition, a number of the associated effects of air pollution. rates would be based on an insured's organizations which do not represent a Any respiratory care legislative bill is of driving record, rather than the arbitrary profit-stake interest in regulatory poli- major concern. Similarly, the Associa- zip code method currently used by in- cies. These organizations advocate more tion is concerned with the actions of the surers. A 20% discount for good drivers diffuse interests-the taxpayer, small Air Resources Board and therefore mon- would be required. business owner, consumer, environment, itors and testifies before that Board. AJF claims Californians will save future. The growth of regulatory govern- The Association has extended the scope ment has led some of these latter groups hundreds of dollars per year under the proposed initiative, and that it will mean of its concerns to encompass a wider to become advocates before the regula- range of issues pertaining to public lower insurance costs and a stronger tory agencies of California, often before health and environmental toxics generally. more than one agency and usually on a state economy. The initiative would sporadic basis. strike down the insurance industry's MAJOR PROJECTS: Public interest organizations vary in exemption from antitrust laws, which On December 16, the Coalition for a ideology from the Pacific Legal Founda- prevent other industries from sharing Healthy California began gathering sig- tion to Campaign California. What fol- price-setting information and from mak- natures for a 25-cents-per-pack cigarette lows are brief descriptions of the current ing business decisions collectively. The tax increase initiative. (See CRLR Vol. projects of these separate and diverse initiative would create an intervenor 7, No. 4 (Fall 1987) p. 13 for back- groups. The staff of the Center for funding mechanism to encourage indi- ground information.) ALAC is a leading Public Interest Law has surveyed ap- viduals and nonprofit organizations to group in the coalition backing the meas- proximately 200 such groups in Cali- participate in insurance rate-setting pro- ure, which will appear on the November fornia, directly contacting most of them. ceedings. Administrative costs would be 1988 ballot if 595,485 valid signatures of The following brief descriptions are only paid through a schedule of surcharges California voters are obtained within intended to summarize their activities paid by insurers which conduct business 150 days. The Coalition held eight news and plans with respect to the various in the state. conferences around the state to kick off regulatory agencies in California. In mid-December, AJF attacked a its campaign and announced that it ballot initiative unveiled by the insur- hopes to raise about $2 million. The 35 ance industry, contending that any pro- statewide health and environmental posal which does not reform the current groups sponsoring the initiative include ACCESS TO JUSTICE system of high rates, anticompetitive the American Cancer Society, American FOUNDATION practices, and inadequate state regula- Heart Association, California Medical P.O. Box 1736 tion does nothing to protect consumers. Association, and Campaign California. Santa Monica, CA 90406 AJF charged that the industry's proposal If approved by voters, the initiative was written to undercut true reform would raise about $650 million per year, (213) 395-7622 efforts currently being attempted by con- which would be used for tobacco-related Access to Justice Foundation (AJF) sumer groups, because if the industry's health education, anti-smoking cam- is a nonprofit, nonpartisan citizen advo- initiative is passed with more votes, it paigns, and research programs. Spokes- cacy organization established to inform would cancel any other reform measure. people for the campaign called it their the public about the operation of the Citing the fact that several insurance- "Tobacco Rebellion," and said they legal system; provide independent, ob- related initiatives have been filed, AJF expect the tobacco industry to spend up jective research on the protection accord- recently published an "initiative score- to $16 million to defeat the initiative. ed citizens by laws; and guarantee citi- card" which it hopes will help the public ALAC representatives predicted that zens of California access to a fair and keep track of the players. about 100,000 young people in Califor- efficient system of justice. The Insurance Rate Reduction and nia would be discouraged from smoking AJF pu blishes a bimonthly report, Reform Act campaign has opened offices as a result of the proposed user tax Citizens Alliance, on citizens' rights in Los Angeles, San Diego, and San increase, because smoking levels are tied issues and actions at the local, state, and Francisco, with over twenty full-time to price increases. federal levels. Legislative, judicial, and staff and volunteers on its team. The ALAC and other environmental administrative activities which impact campaign will gather signatures through groups have endorsed Los Angeles City on the public justice system and the direct mail, door-to-door canvassing, Councilor Marvin Braude for appoint- exercise of citizens' rights are a major and volunteers. A veteran campaign con- ment to the reorganized board of the

The California Regulatory Law Reporter Vol. 8, No. I (Winter 1988) IPUBLIC INTEREST ORGANIZATION ACTION

South Coast Air Quality Management stantially decrease air pollution in the gation. This has meant a loss in diversity District (SCAQMD). Councilor Braude Los Angeles air basin. of plant life necessary for the health of has served on the air quality board since waterfowl. Surviving wetlands in state it was formed ten years ago. Under the and federal wildlife refuges are provided reorganization plan required by state water by the federal Bureau of Reclama- legislation (SB 151 Presley) signed into NATIONAL AUDUBON tion on an "if-and-when-available" basis law last fall, the size of the board will be SOCIETY only. The refuges have no legal rights to reduced from fourteen to eleven members. 555 Audubon Place the water and the Bureau will not bind Under the legislation, new powers Sacramento, CA 95825 itself to contracts for delivery. NAS are granted to the board to bring the (916) 481-5332 claims that the Bureau of Reclamation country's smoggiest air basin into com- does not recognize wildlife as a bene- The National Audubon Society pliance with national clean air stand- ficial use of its water, and could at any (NAS) has two priorities: the conserva- ards. Critics of SCAQMD advocated time begin awarding to farmers water tion of wildlife, including endangered the reorganization bill after negative which it has provided to the refuges in species, and the conservation and wise reviews of the board's performance by the past. use of water. The society works to the Environmental Protection Agency Further endangering birds and wet- establish and protect wildlife refuges, and the state Air Resources Board. The lands is the build-up of toxic materials- wilderness areas, and wild and scenic reorganization law grants the Governor, such as selenium, arsenic, boron, pesti- rivers. To achieve these goals, the society the Senate Rules Committee, and the cides, and chemical fertilizer runoff-in supports measures for the abatement Assembly Speaker one appointment available water. The much-publicized and prevention of all forms of environ- each. The boards of supervisors in the selenium accumulation in agricultural mental pollution. four counties covered by the air quality drainwater dumped at Kesterson Wild- district each have an appointment. MAJOR PROJECTS: life Refuge caused extraordinary destruc- Another four board members will be The November Audubon magazine tion and deformation of birds beginning selected to represent cities in each of the focuses attention on a critical decline in in 1983. The State of California subse- four counties. The new SCAQMD board wetlands habitat and, consequently, quently declared Kesterson a toxic pit. took office on January 8. waterfowl populations in California. Even though many waterfowl species ALAC is monitoring state and fed- NAS says that at one time there were winter in coastal marshlands exclusively, eral legislation which will establish new five million acres of wetlands in the many north-coast bays and estuaries are or improved air quality standards. The state, 92% of which are now gone. In silted in by logging operations and con- clean air group is awaiting introduction the Central Valley, 96% of the wetlands struction upstream. Orange and Los of a bill by state Senator Dan McCorquo- habitat has been converted to agricul- Angeles Counties have filled in 90% of dale, which will require the state Air tural and other uses. The critical supply their marshes for housing, industrial Resources Board to set an ambient air of water to the wetlands has been divert- parks, and airports. San Diego County quality standard for atmospheric acidity ed to crop production or urban popula- once enjoyed 32,000 acres of wetlands by March 1990. New concern has recent- tions. Only 80,000 acres of waterfowl and now has only 3,000 acres. Seventy ly arisen regarding increased health habitat in California are protected by five percent of San Francisco Bay's threats from interactions between vari- state and federal agencies, according to original wetlands have been claimed for ous components of photochemical smog, NAS. Three hundred thousand acres of human purposes. such as ozone and oxides of nitrogen. wetlands are privately owned, and used NAS believes that a citizens' initia- Testimony by medical researchers before mostly for rice production and leased to tive on the June 1988 ballot known as the Senate Natural Resources and Wild- duck hunting clubs in the fallow season. the Wildlife, Coastal and Parkland Con- life Committee revealed that interactions California winters 60% of the geese and servation Bond Act will help acquire between ozone and acid fog/rain can ducks using the "Pacific Flyway" migra- some of the critically needed wetlands. increase adverse health impacts by as tory bird route, which represents one- The measure would authorize nearly much as six times, based on laboratory fifth of the entire continent's water-fowl. $800 million in bonds for the acquisition animal studies. Audubon reports that California's win- of, inter alia, wetlands and other wild- ALAC is also watching federal legis- tering duck population has plummeted life habitat throughout the state. lation which would require major re- from seven million in 1980 to two mil- Audubon is one of many environ- visions in the federal Clean Air Act. lion in 1985. mental groups advocating federal legisla- Both houses of Congress are now consid- Audubon notes that the loss of wet- tion known as the Timber Reform Act ering an extension of the December 31 lands has seriously impacted the health of 1987, introduced by Representative deadline for reduction in ozone and car- of the Sacramento-San Joaquin Delta' Robert Mrazek (D-New York). The bill bon monoxide levels in at least 70 urban and San Francisco Bay, resulting in de- would repeal previous legislative pro- areas which cannot comply with the clines in salmon, perch, shad, striped visions which give special treatment to deadline. Congress is also considering bass, and sturgeon fisheries, and related U.S. Forest Service budget allocations legislation requiring government agen- economies. These species are dependent for the Tongass National Forest in the cies to purchase vehicles capable of on wetlands for feeding and spawning Alaskan panhandle. Under the bill, the burning alternative air pollution-re- activities. Most of the Delta area fish annual budget of the Tongass would be ducing fuels such as ethanol and meth- canneries are now gone, and striped bass subject to annual review like all other anol beginning in 1990. Proponents of populations in San Francisco Bay are national forests. Environmentalists insist the legislation believe it will stimulate 10% what they were in 1970. that the Forest Service has used millions wider commercial production of clean No natural wetlands remain in the in annual federal taxes to subsidize two fuel-burning vehicles. Alternative fuels San Joaquin Valley, and all existing major Alaskan lumber companies in the have been advocated as a way to sub- ponds and marshes must be fed by irri- unprecedented destruction of the na-

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tion's rarest and largest old-growth, provides funding to public interest law that children of single-parent house- temperate zone rain forest. projects. BLF is an "attempt to institu- holds receive the basic necessities of To promote lumbering, the Forest tionalize financial, moral and directional life-are contingent upon the parent's Service has been building roads in the support for public interest work within compliance with the GAIN program. A most remote parts of the Tongass at a the legal profession, thereby avoiding $20,000 BLF grant was awarded to en- cost of $150,000 per mile at a rate of dependence on outside foundations or able the grantee to conduct workshops fifty or more miles yearly. The Tongass governmental largesse." for AFDC parents to explain their legal old-growth rain forest is home to the BLF is a nonprofit corporation gov- rights and responsibilities under the nation's largest populations of bald erned by a seventeen-member Board of GAIN program. eagles, grizzly bears, and salmon runs. Directors elected directly by the mem- The GAIN/AFDC project will pro- Diverse old-growth forests such as bership. The Board includes attorneys duce multi-lingual written materials Tongass are complete ecosystems con- in both public and private practice, about the government program, and taining thousands of organisms which community representatives and law educate the public about GAIN through have evolved together over millions of school faculty members, as well as mem- a speaking program and media outreach. years. The natural process, according to bers of the Foundation. Volunteer attorneys, paralegals, and law NAS and biologists, has assembled opti- Foundation grants are designed to students will be recruited to provide mum populations of plants and animals provide subsistence support and start- legal advice and representation to GAIN into vigorous, complex wild communities. up funding for recently-trained attor- participants. Impact litigation will be In order to support the economy of neys committed to public interest work. initiated if necessary. The project will Alaska and increase settlement of the BLF also provides a summer grants pro- recommend improvements regarding state, the U.S. Forest Service in 1936 gram to help law students undertake GAIN program implementation prob- convinced Louisiana Pacific Corporation summer projects under the auspices of a lems at local and state hearings, and and the Japanese-owned Alaska Pulp sponsoring public interest organization. offer suggestions for legislative and Corporation to build large lumber mills regulatory solutions. in the Tongass. According to Audubon MAJOR PROJECTS: Elderly Preventive Legal Services. magazine, the companies were guaran- Twenty-five public interest project BLF awarded a $10,000 grant to the teed timber for fifty years at federally grant applications were submitted to Community Advocacy Center (CAC) of subsidized, sacrificial prices. In 1980, BLF for consideration in 1987. From a New York City. The funding will allow Alaska Senator Ted Stevens added field of six finalists, the BLF Board CAC to continue and expand its pro- amendments to the Alaska National selected the following projects for gram to assist the unprecedented num- Interest Lands Conservation Act, includ- funding: ber of evicted senior citizens living in ing section 705(a) which annually (and Immigration Amnesty. This proposal the borough of Queens, which has re- indefinitely) gave the Forest Service $40 focuses on the legal needs of immigrants cently risen by more than 60%. CAC million to help the Alaska timber indus- seeking amnesty under the 1986 Immi- uses personal counseling and legal aware- try harvest Tongass lumber at staggering gration Reform and Control Act. The ness clinics at senior centers to educate losses. Senator Stevens insisted that the amnesty application process is complex the low-income elderly regarding their amendments allow Tongass administra- and requires documentation which is legal rights. tors to be excused from the annual often difficult for an immigrant to pro- The CAC project plans to develop budget review process. duce. The grant applicant designed a and lobby state legislation to address Audubon claims that federal docu- program to aid San Mateo County the problem of rising rents. It will pro- ments show that for every dollar in- amnesty applicants by informing them vide seniors with information about vested in selling Tongass timber in 1983, about the provisions and requirements their rights to benefits and services. the return was only nine cents. In 1984, of the Act, and assisting them in com- With help from the BLF grant, CAC the total loss was at least $261 million. pleting their applications. The grantee believes it can prove the viability of its For the five years beginning in 1982, will recruit and train attorneys and program to state agencies and thereby when the federal subsidies totaling $234 community volunteers to help screen qualify for future state funding. million began rolling into Alaska, NAS applicants and prosecute appeals for The "In Defense of Sacred Lands" says there was a shortfall of at least those denied legalization. Educational project funded by BLF in 1986 continues $203 million. Audubon hopes this scan- outreach on the amnesty process and to challenge the forced relocation of dalous federal subsidy and the devasta- the new law's regulations will be ex- Navajo Indians in Arizona. The grantee tion of the Tongass will finally end with tended to employers and county agen- believes that a statute passed by Con- the passage of the Timber Reform Act cies. Constitutional issues are being gress in 1974 was intended to displace of 1987. identified for potential impact litigation. thousands of Navajos in order to de- BLF awarded the project $20,000. The velop their land for its energy and San Mateo County Legal Aid Society mineral resources (coal, uranium, oil, provided more than $24,000 in in-kind gas, and copper). The project has coun- BERKELEY LAW FOUNDATION contributions to the project. seled and represented individuals and Boalt Hall School of Law, Rm. IE GAIN/AFDC Advocacy. The state families allegedly defrauded and mis- University of California has created a required job training and treated in the course of relocation. as Greater Many Navajos have chosen to resist re- Berkeley, CA 94720 counseling program (known Avenues to Independence-GAIN) for location, and have faced arrest and (415) 642-1738 all women with children over six years impoundment of their livestock. The Berkeley Law Foundation (BLF) of age who receive Aid to Families with Working with the Big Mountain is an income-sharing organization of Dependent Children (AFDC). Continued Legal Defense/Offense Committees in Boalt law students and faculty which AFDC payments-designed to ensure Flagstaff, Arizona, the grantee has also

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filed lawsuits challenging relocation on tion Advisory Council hearing in San insurance rates which revealed-from broad legal grounds. The major effort is Francisco on November 13, CCAA Pres- responses received from half of the a First Amendment lawsuit which argues ident Jody Anne Becker testified that twenty companies surveyed-rate quote that because the Navajo religion is close- most lawyers and mediators agree that variances of 25% or more. Calcitizen ly tied to the traditional lands, reloca- the least intrusive methods of dispute says this variance translates into differ- tion of the Navajos interferes with the resolution are best, and that the media- ences in policy quotes from $240 to over free exercise of their religion. Navajo tion process should continue to be vol- $1,400. Many of CalPIRG's requests for community activists are working with untary. Other CCAA member agencies information from insurance companies attorneys to document the effects of re- giving presentations at the meeting in- were either refused or ignored. Only location on Navajo religious practices cluded the Los Angeles County Depart- seven of the twenty companies surveyed which involve ceremonies and prayer ment of Consumer Affairs and Santa actually provided price data. Most com- offerings at sacred sites on the lands the Clara County Department of Consumer panies surveyed provided rate informa- families are being forced to leave. Affairs. tion which varied depending on the The new Alternative Dispute Resolu- agent who gave the quote. Different tion Advisory Council (ADR) was cre- agents quoted consistent prices at only ated by 1986 legislation (SB 2064, two of the companies surveyed. CALIFORNIA CONSUMER Garamendi). The Council is composed CaIPIRG believes a major drawback AFFAIRS ASSOCIATION of seven members, five of whom are of California's auto insurance industry c/o Jody Anne Becker, President appointed by the Governor, and one is the "open rating system," which relies Room 423 each by the President pro Tempore of on the free market rather than state the Marin County Civic Center Senate and the Assembly Speaker. regulation to keep insurance premiums ADR promulgates rules and guidelines fair. According to CalPIRG, the current San Rafael, CA 94903 for dispute resolution and mediation system makes it essential that consumers (415) 499-6190 agencies which receive funding from have understandable and accurate com- California Consumer Affairs Associ- county boards of supervisors as stipu- parative price information in order to ation (CCAA) is a statewide affiliation lated by the Garamendi legislation. The stimulate competition between insurers. of local consumer protection agencies. bill authorized counties to generate fund- CalPIRG suggested a solution to the The Association was founded in 1974 to ing for alternative dispute resolution state Department of Insurance which establish and facilitate an avenue of programs by raising municipal and could be implemented through regula- communication among agencies con- superior court filing fees from $1 to $3. tion or legislation. Under the proposal, cerned with the protection of consumers. Counties may grant funds to one or insurance companies-rather than con- CCAA actively represents the interests more existing or newly-created public or sumers-would be forced to bear the of California consumers in legislative private nonprofit dispute resolution burden of inaccurate quotes by their and regulatory arenas. It serves its mem- agencies. agents. The CalPIRG survey found that bers and the public by providing work- The recent ADR hearings held in the Automobile Club of Southern Cali- shops, training sessions, and forums, northern and southern California for fornia (AAA) already employs such a and by preparing and publishing educa- review of temporary dispute resolution "live by the quote" system. The study tional materials and legislative summar- agency guidelines were required by urgen- also showed that AAA has a relatively ies. Member groups provide their con- cy legislation (SB 123, Garamendi). The low incidence of misquoting. CaIPIRG's stituencies with counseling, information, urgency bill requires that temporary study, entitled "Pick a Price, Any Price," and informal mediation services when guidelines be adopted by ADR by Janu- is available through CaiPIRG's Los marketplace transactions result in dis- ary 29, 1988, so that counties can begin Angeles office for a charge of $3 for putes. Some member agencies act as to fund dispute resolution programs. members and $5 for nonmembers. small claims court advisors. CaIPIRG claims that lobbying by its Membership in CCAA is open to national network of affiliated PIRG federal, state, and local agencies which groups helped keep strong provisions in are primarily funded by the government, the House of Representatives' version of PUBLIC with a mandate of consumer protection CALIFORNIA H.R. 27, the "National Checkhold Bill," and/or assistance. Nonprofit organiza- INTEREST RESEARCH GROUP which was passed and signed August 10, tions devoted to consumerism may also 1147 S. Robertson Blvd., Suite 203 1987. The bill, which takes effect in be eligible for membership. In addition, Los Angeles, CA 90035 September 1988, sets limits on "bank CCAA membership includes representa- (213) 278-9244 float" periods for state and federally- chartered banks. In California, CalPIRG tives of federal, state, and local law CalPIRG is a nonprofit statewide claims, some customers have been forced enforcement entities. Association struc- organization founded and primarily to wait up to three weeks before receiv- ture is divided into northern and south- staffed by students from several Califor- ing credit on their deposited checks. ern California divisions. CCAA convenes nia universities. It is the largest student- Reportedly, some legislators have called annually to involve members in setting funded organization of its kind in the the practice of holding checks for leng- goals and policies and to elect new state. There are CaIPIRG chapters on officers. thy periods one of the "worst consumer An executive committee com- four campuses of the University of Cali- posed of a vice president from each fornia and at the private University of scams in America." A national PIRG division and other CCAA officers en- Santa Clara. report entitled "Still Held Up at the sures coordination. Bank" found that checkclearing delays MAJOR PROJECTS: earn banks at least $100 million in inter- MAJOR PROJECTS: In its fall newsletter Calcitizen, est annually. At an Alternative Dispute Resolu- CalPIRG published a survey on auto Under the new law, banks will be

The California Regulatory Law Reporter Vol. 8, No. 1 (Winter 1988) PUBLIC INTEREST ORGANIZATION ACTION

required to provide consumers access to rain-causing emissions in all fifty states. MAJOR PROJECTS: their funds withing two intervening days At this writing, S. 1894 is waiting assign- According to CAW, pollution of all for in-state checks and within six days ment for action on the Senate floor. types is caused by a central failure of for all other checks. The law also grants CalPIRG and its national PIRG of- our economy: waste. CAW believes that the Federal Reserve Board the power to fice are waging a major campaign to future generations will face a horribly reduce checkhold periods in regions add teeth to the Federal Insecticide, polluted environment with extremely where even faster access is possible. Fungicide, and Rodenticide Act limited natural resources and energy. After being in effect two years, check- (FIFRA). CalPIRG believes that FIFRA Garbage is the most visible symptom of hold periods will be further reduced to is the weakest of the federal environ- this failure of our system, and CAW one intervening day for in-state checks, mental laws. The current effort would insists that waste reduction and re- and four days for other checks. The prevent attempts by the chemical indus- cycling are among the most important National Checkhold Bill also requires try to preempt states' rights to allow solutions to the problem. CAW's 1988 banks to provide written notice of their weaker federal pesticide regulations to legislative agenda includes a compre- checkhold policies to all new and exist- supercede all state authority. The cam- hensive package of bills to make re- ing customers. At this writing, the Fed- paign includes efforts to establish strin- cycling and waste reduction the state's eral Reserve Board has issued proposed gent standards on allowable pesticide top-priority answers to the solid waste regulations to implement the act, and levels in food and water supplies; full crisis. the public comment period was to end testing of all pesticides for health effects CAW envisions a state law that in February. before marketing; increased health and would: CalPIRG is working with its national safety protections for farm workers; and -Reduce energy consumption in Cali- PIRG office in support of S. 2 (Byrd, a ban on the export of pesticides which fornia by at least 30,000 barrels of oil Boren), the Senatorial Election Cam- are banned in the United States. per day; paign Act, which would restrict the total According to Calcitizen, research -Prevent complete logging (clearcut- amount of political action committee has found that pesticides have contamin- ting) of 16,500 acres of forest annually; (PAC) money any Senate candidate ated over 3,000 water wells in the state -Save over 1.5 million tons of alumin- could accept; place limits on total cam- and the groundwater in 28 counties. It um, steel, and other metals each year; paign spending; and establish a system claims that although 2.6 billion pounds -Save billions of gallons of fresh of public financing. Representative Tony of pesticides are used each year through- water, and reduce water pollution sub- Coelho (D-California) is sponsoring a out the nation, less than 1% of the stantially; and similar bill in the House. PIRG is con- chemicals actually end up where intend- -Create thousands of jobs, while sav- cerned about the alarming 584% in- ed and the remainder shows up in the ing taxpayers millions of dollars. crease in spending for Congressional air, water supplies, and non-targeted land. The proposed legislation is known as office during the period 1974-86. Accord- the Recycling Opportunities Act, and ing to PIRG, candidates are increasingly was scheduled for a January presenta- turning to PACs for easier access to CALIFORNIANS AGAINST tion to the legislature. The law already abundant cash for campaigns. In turn, WASTE exists in Oregon, New Jersey, and sev- PACs are using their resulting financial 909 12th St., Suite 201 eral local communities, according to clout to buy access to Congress and CAW's Fall 1987 newsletter. CAW be- influence votes. PIRG says a recent Sacramento, CA 95814 (916) 443-5422 lieves this proposal is the next logical study by the National Campaign Against step following passage of the AB 2020 Toxic Hazards documented that only In 1977, Californians Against Waste "bottle bill." 8% of Congressmembers who received (CAW) was formed to advocate for a Under the new act, communities more than $30,000 from chemical indus- recycling bill in the legislature which around the state would be required to try PACs voted in favor of a strong would require a minimum refundable reduce waste by 35% by 1990, and 50% federal Superfund for cleaning up toxic deposit of five cents on beer and soft by 2000. Local governments would have dumpsites in 1986. CalPIRG also con- drink containers. After being repeatedly flexibility in choosing the most cost- tinues to support major campaign thwarted legislatively by well-financed effective means of reaching the goal. finance reform measures in California. industry opponents, CAW sponsored CAW says alternatives could include PIRG has endorsed a package of and organized a coalition for a state- convenient curbside recycling programs, strengthening amendments to the federal wide citizen initiative which appeared energy conservation efforts, or increased Clean Air Act (S. 1894, Mitchell). The on the ballot in 1982 as Proposition 11. use of recycled paper and other products amendments include provisions requir- That measure failed after can and bottle in packaging. More recycled paper could ing use of state-of-the-art technologies manufacturers and their allies raised be used by businesses, schools, and gov- to control harmful air emissions; an and spent $6 million to defeat it. CAW ernment agencies. CAW believes a huge urban air quality package; provisions worked for passage in 1986 of AB 2020 new recycling economy could be created addressing significant ground sources of (Margolin), the "bottle bill" which in its and paid for by the value stored in what ozone and mandating improved tailpipe final compromise form establishes a we now throw away. emissions standards, increased inspec- redemption value of one cent per con- CAW has sponsored three important tion and maintenance programs, strict tainer with the amount increasing to bills which are currently pending as two- traffic control measures, and the use of three cents if specified recycling goals year measures: alternative fuels for fleet vehicles; an are not achieved. The bill, which has -AB 612 (Sher), which would include upper ozone protection measure to dram- been signed by the Governor, requires wine cooler containers in the bottle bill atically reduce the production and im- recycling centers to be located within recycling program, is currently stalled in portation of chlorofluorocarbons; and one-half mile of supermarkets with over the Assembly Ways and Means Com- an acid rain program to reduce acid- $2 million in annual sales. mittee.

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-SB 188 (Alquist), which would pro- garding issues; facilitating fundraising gotiated, including the amount of a car- vide tax credits for companies which use and signature collection drives; and re- cinogenic chemical considered to be a "significant recycled rather than virgin materials, is sulting in registration of new voters. risk," the exact language pending in the Senate Appropriations Campaign California supports efforts and extent of the public warnings, and Committee. to frame workable, progressive solutions how the warning information will reach -SB 52 (Torres), which would require to problems in the areas of child care, consumers. Representatives of the food, recycling before solid wastes may be education, environment, transportation, paint, electronics, aircraft, medical, and burned in incineration plants, passed the personal safety, insurance, and health several other industries are lobbying the Senate and is pending in the Assembly care. It targets the private entrepreneur state for exemptions and changes in the Natural Resources Committee. as a source of economic growth, jobs, initiative's requirements. Campaign Cali- CAW will also seek a state law in and innovation. fornia and other Proposition 65 backers 1988 to ban styrofoam packaging materi- are calling for tougher rules, including als. An extensive background report on MAJOR PROJECTS: one that would require alcohol manu- the environmental consequences of plas- Campaign California is one of 35 facturers to post warning labels on all tics and styrofoam, which will serve as statewide organizations supporting a containers stating that alcohol use dur- the basis for draft legislation, has been cigarette tax increase initiative for in- ing pregnancy may cause birth defects. prepared by CAW. Copies of the report clusion on the November 1988 ballot. In mid-December, Proposition 65 are available through CAW. CAW re- (See CRLR Vol. 7, No. 4 (Fall 1987) supporters were angered by a state scien- ports that McDonald's restaurant chain p. 16 for background information.) The tific advisory panel's recommendations announced last summer that it will campaign, known as the Coalition for a that food, drug, and cosmetic products abandon use of styrofoam containers, Healthy California, must collect 595,485 governed by state and federal regula- shortly after Carl's Jr., another major valid voter signatures within five months. tions should be exempted from the toxic- fast food chain, took that action. The initiative would raise the tax on a warning requirements of the initiative. At press time, CAW is preparing for pack of cigarettes by 25 cents, as well as Initiative sponsors called the panel's state regulatory hearings on a vital sec- the user tax on other tobacco products action illegal and threatened more law- tion of AB 2020. CAW contends that such as chewing tobacco and snuff. suits if the Governor accepts the recom- container companies are attempting to Twenty percent of the tax funds raised mendations. The panel, appointed by gut the "regulatory fee" provision of the by the measure would be allocated to the Governor, believes the exemptions bill. Under the provision, the state is school and community health education are in order until it can define the permitted to assess a fee on every con- programs to discourage smoking among amount of the problem chemicals which tainer covered by AB 2020, which re- young people; 35% would pay for hospi- constitutes a significant risk. Initiative flects the difference between the actual tal care for low-income patients with supporters fear the recommendation market value of the materials in a con- smoking-related diseases; 10% is ear- could indefinitely delay determination tainer versus the handling and proces- marked for physicians who treat indi- of various chemicals' "significant risk" sing costs associated with it. This means gent patients; 5% would go for research factors. that containers such as glass bottles and into tobacco-related diseases; 5% would The panel also added 39 more chemi- plastic soda containers could have an be used for environmental programs; cals to the list of potentially dangerous additional fee assessed and may soon be and 25% would be distributed among substances regulated by Proposition 65; worth as much as three to five cents the programs at the discretion of the the list now totals 177. Initiative backers each, rather than the current refund of legislature. The initiative is aimed at believe the list should include at least only one cent. CAW claims the industry reducing the nearly 40,000 annual Cali- 225 potentially hazardous chemicals. is opposed to the provision, and seeks fornia deaths related to tobacco use. lobbying and financial support from its The Coalition says about 2.6 billion members to counter the industry's at- packs of cigarettes are sold in the state tempts to have the regulatory fee pro- each year. CENTER FOR LAW IN THE vision eliminated. In early December, Campaign Cali- fornia and other proponents (Environ- PUBLIC INTEREST mental Defense Fund, Sierra Club, and 10951 W. Pico Blvd., Third Floor Natural Resources Defense Council) of Los Angeles, CA 90064-2166 CAMPAIGN CALIFORNIA the Safe Drinking Water and Toxic En- (213) 470-3000 1337 Santa Monica Mall, Suite 301 forcement Act of 1986 initiative (Propo- The Center for Law in the Public sition 65) reached an agreement with Santa Monica, CA 90401 Interest (CLIPI), a public interest law business groups on several key proposed (213) 393-3701 firm founded in 1971, employs nine at- regulations under the law. If the state torneys in its California office. The In July 1986, the Campaign for Health and Welfare Department adopts Center's major focus is litigation in the Economic Democracy (founded in 1977) the compromise recommendations, busi- areas of environmental protection, civil became Campaign California. The nesses would be protected from frivo- rights and liberties, corporate reform, 25,000-member organization, with offices lous lawsuits resulting from normal use arms control, communications and land in Sacramento, San Jose, and San Fran- of air and tap water. The Act takes use planning. cisco and headquarters in Santa Monica, effect on February 27, 1988, when warn- continues as the largest progressive citi- ings must be provided to the public by MAJOR PROJECTS: zens action group in the state. Each businesses which release chemicals iden- CLIPI's False Claims Project contin- office of the organization operates a tified by the state as cancer-causing. ues (see CRLR Vol. 7, No. 4 (Fall 1987) door-to-door and telephone canvass, Environmentalists point out that sev- p. 16 and Vol. 7, No. 3 (Summer 1987) providing direct contact with voters re- eral regulatory issues remain to be ne- p. 37 for background information). In

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October, a television crew from CBS' higher premiums than men for health CENTER FOR PUBLIC "60 Minutes" visited CLIPI's offices to insurance policies constitutes sex dis- INTEREST LAW profile an ophthalmologist's False crimination and violates California's University of San Diego School Claims Act lawsuit against Scripps Unruh Civil Rights Act, especially when of Law Clinic and Research Foundation in La such policies do not cover pregnancy. Alcala Park Jolla. Scripps ophthalmologist and The state Department of Insurance San Diego, CA 92110 CLIPI client Dr. Paul E. Michelson has issued a finding agreeing with (619) 260-4806 became outraged when he realized a CLIPI's clients, Kirsh and NOW. CLIPI fellow physician was apparently per- believes the case is important because, if The Center for Public Interest Law forming unnecessary or improper sur- successful, it could require more equit- (CPIL) was formed in 1980 after approv- gery on elderly patients and then able pricing policies for women and al by the faculty of the University of charging Medicare for the procedures. could also apply to other types of insur- San Diego School of Law. The faculty In another CLIPI case, Rockwell In- ance (such as auto insurance rates). selected Robert C. Fellmeth, a law facul- ternational tool and die worker J. David CLIPI has amended its lawsuit on ty professor, as the Center's director. Navarette worked on federal Defense behalf of Friends of Ballona Wetlands CPIL is funded by the University and and Energy Department contracts and to include the City of Los Angeles as a private foundation grants. supervised a high-security shop which defendant, along with the County of The Center is run by six staff mem- was supposed to build scale models of Los Angeles, the Summa Corporation, bers, including an attorney in San Fran- top-secret military weapons. Instead, and the California Coastal Commission, cisco, and approximately forty law the shop used used much of its resources after the city annexed 803 acres of Sum- students. Students in the Center attend manufacturing commemorative plaques, ma property adjacent to the Ballona courses in regulated industries, adminis- paperweights, jewelry, a wine press, and Wetlands. In dispute is a marshy area trative law, environmental law, and con- even a spiral staircase. south of Ballona Creek and the amount sumer law, and attend meetings and Through newspaper accounts, Michel- of the parcel which constitutes actual monitor activities of assigned agencies. "wetlands" son and Navarette learned they could as defined by the California Each student also contributes quarterly sue government contractors who will- Coastal Act. Summa claims that about agency updates to the California Regula- fully overcharge for services or engage 215 acres passes for wetlands, while tory Law Reporter. After several in fraudulent activities, and that CLIPI and its clients argue the area months, the students choose clinic pro- "whistleblowers" could win treble includes at least 325 acres of wetlands. jects involving active participation in damages on behalf of the American tax- Summa plans to build a hotel/retail rulemaking, litigation, or writing. payer and personally obtain a percent- complex on the eastern portion of the The Center is attempting to make age of the recovered funds through the existing wetlands, along with a huge the regulatory functions of state govern- federal False Claims Act. Both men residential and commercial development ment more efficient and more visible by called CLIPI seeking representation on open space land near the wetlands serving as a public monitor of state after they learned about its False Claims and Marina del Rey. CLIPI and its regulatory agencies. The Center studies Act Project. clients contend that the Ballona marsh approximately sixty agencies, including Dr. Michelson said that when he is a critical stopover for several en- most boards, commissions and depart- attempted to bring the Medicare abuses dangered bird species which use the ments with entry control, rate regula- to the attention of his superiors, "no Pacific Flyway, the migratory route tion, or related regulatory powers over action was taken." When he filed his from the Arctic. businesses, trades, and professions. lawsuit under the False Claims Act to CLIPI is moving toward trial against protect patients at the clinic and as a the Orange County Board of Super- MAJOR PROJECTS: matter of conscience, he was fired by visors and its Housing Authority to On November 2, Professor Fellmeth Scripps. CLIPI believes that informa- force adoption of improved affordable and the Center released the First Prog- tion regarding the False Claims Act housing programs. Last spring, negotia- ress Report of the State Bar Discipline which reaches the public through news tions failed when the Board vetoed a Monitor. The Progress Report identified and television has significant value. proposed settlement that had been de- several areas in which the Bar has made Stories like the upcoming "60 Minutes" veloped for more than a year by CLIPI significant progress since the Monitor's segment could lead directly to an in- attorneys and county officials. CLIPI June 1987 Initial Report, including an crease in false claims suits, according to believes there is a tremendous shortage increase in salary for State Bar prosecu- CLIPI's co-director John Phillips. of state-required inexpensive housing in tors and an aggressive public outreach CLIPI is involved in a National affluent Orange County. The county has proposal. (See CRLR Vol. 7, No. 3 Organization for Women (NOW) sex been attracting new industry but has not (Summer 1987) p. 1 for condensed ver- discrimination suit against State Farm provided sufficient housing for workers sion of the June 1987 Initial Report.) Insurance Company to halt what it calls in the new jobs. However, the Progress Report criti- an arbitrary and illegal practice of charg- cized the Bar for its failure to request an ing women about 65% more for health increase in State Bar dues from the legis- insurance than men of the same age. lature during the last legislative session, (See CRLR Vol. 7, No. 3 (Summer which funding would be necessary to 1987) p. 36 for details.) Freelance cine- implement any of the Bar Monitor's matographer Estelle Kirsh, who joined other proposals or to finance State Bar NOW in the suit, was also not covered staff requests until 1989. The Report under her policy for expenses associated also discussed the Bar's failure to con- with childbirth. The lawsuit alleges that sider and/or implement several major State Farm's practice of charging women structural reforms advocated by the

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Monitor in his Initial Report-including current exemption from antitrust laws. -Ban off-year fundraising by legisla- replacement of the Bar's 450 volunteer On October 19, Center intern Mary tive candidates; and hearing referees with a panel of profes- Livingston testified before the Assembly -Provide limited matching public sional, independent, administrative law Committee on Governmental Efficiency funds (raised by a tax form check-off judges, and replacement of the Bar's and Consumer Protection on the regula- system) to legislative candidates who eighteen-member Review Department tion of accountants by the State Board agree to accept spending limitations. with a panel of three appellate judges. of Accountancy. Livingston argued that Common Cause and other initiative Finally, the Progress Report included proposed regulatory/ licensing systems supporters believe state legislative cam- drafts of approximately ten statutory must be scrutinized to ensure that they paign spending is out of control. In and rule changes which would imple- target an identified market flaw and 1984, the average amount spent by state ment reforms proposed in the June protect consumers who actually need Assembly candidates was $254,000; can- Report in areas such as confidentiality protection. On November 17, Center didates for state Senate spent nearly of pending investigations, and proactive staff attorney Jim Wheaton testified be- $543,000. These expenditures do not in- monitoring by the Bar of contempt fore the same Assembly Committee on clude funds spent in the primary elec- orders issued against attorneys, legal the ineffective performance of the De- tions. Common Cause reports that over malpractice filings, and arrests of partment of Consumer Affairs' forty 70% of funds raised in past campaigns attorneys. boards, agencies, and commissions in was donated by special interests with a On November 19-22, the Bar's Board the area of licensee discipline and re- stake in pending or prospective legis- of Governors met for its annual retreat sponsiveness to consumer complaints. lation. in Santa Barbara. Professor Fellmeth In the past, similar reform proposals and Center staff attorneys Jim Wheaton have been rejected by the legislature and and Julie D'Angelo attended the first voters largely due to heavy spending by day of the retreat, which was devoted to COMMON CAUSE opposing groups. The opposition criti- a presentation by Fellmeth and discus- 636 S. Hobart Blvd., Suite 226 cizes the public financing provisions; in sion by the Board of the remaining disci- Los Angeles, CA 90005 1986, Governor Deukmejian vetoed a pline issues. Because the retreat was not (213) 387-2017 bill calling for public campaign financ- a properly-noticed meeting, no official ing. Common Cause responds that U.S. action could be taken. However, the California Common Cause (CC) is a Supreme Court rulings declare that cam- Board voted overwhelmingly, in a straw public affairs lobbying organization paign expenditure limits are constitu- poll of sentiment, to approve most of dedicated to obtaining a "more open, tional only when a candidate is accepting the remaining reforms suggested in both accountable and responsive government" some public funds. Proponents also note the June and November Reports. Subse- and "decreasing the power of special that a tax form check-off for presiden- quently, at its December meeting, the interests to affect the legislature." tial campaign public financing exists at Board formally approved in concept the MAJOR PROJECTS: the national level. Monitor's structural reform proposals On October 23, California Secretary In November, Common Cause and (see infra agency report on STATE BAR). of State March Fong Eu announced the Insurance Consumer Action Net- On November 17, Public Utilities that CC's far-reaching campaign finance work (ICAN) announced they had reach- Commission Administrative Law Judge reform initiative will appear on the June ed an agreement with the insurance Lynn Carew issued a proposed opinion 1988 ballot. (For background informa- industry on legislation that would open in the Modernization, Productivity, and tion, see CRLR Vol. 7, No. 4 (Fall the rate regulation process to the public. Utilization phase of the ongoing Pacific 1987) p. 18 and Vol. 7, No. I (Winter The bill, AB 2297 (Connelly), would Bell General Rate Case. On the critical 1987) pp. 10-11.) Backers of the meas- require insurance companies to file rate modernization issue, in which Professor ure, known as "Californians to Limit information annually with the state De- Fellmeth has long advocated the imposi- Campaign Spending," immediately partment of Insurance, and mandate tion of a requirement on PacBell to launched their drive to win voter ap- prior approval of statewide rate in- submit an "economic impact statement" proval of the initiative, announcing creases above 15% for auto and home prior to entering into a competitive their intention to raise at least $1 million insurance, and 25% for commercial poli- venture (see supra FEATURE ARTI- and as much as $3 million for the cam- cies. Public hearings would be held for CLE), Judge Carew announced she will paign. Endorsers of the campaign finance proposed rate hikes which exceed the issue a separate opinion in several weeks. reform effort include the California limits. On December 15, the Center joined League of Women Voters, California A memorandum of understanding sign- with Consumers Union in announcing Newspaper Publishers Association, Cali- ed between the two consumer groups the filing of a proposed initiative to fornia Chamber of Commerce, Califor- and the industry included a promise by establish a new state agency, the Cali- nia Business Roundtable, Metropolitan insurers to negotiate an accord regarding fornia Auto Accident Reimbursement Life Insurance Corporation, and many the industry's exemption from antitrust Bureau, to sell state-mandated minimum others. laws. Signatories agreed to work to- liability auto insurance to drivers The initiative will: gether for increased state funding for through the annual automobile registra- -Place limits on total expenditures the Department of Insurance so that it tion process. The base premium would by legislative candidates in primary and can improve its performance in manag- be approximately $300, and the Bureau general election campaigns; ing rate regulation. The memorandum would reimburse auto accident victims -Limit the size of contributions which also provides for consumer group input for economic losses on a no-fault basis. individuals and groups may give to state in an auto insurance study to be funded The initiative would also require state legislative campaigns; by the trial lawyers group and the in- regulation of car insurance rates and -Ban transfers from one legislative surance industry. would repeal the insurance industry's candidate to another; Two other consumer groups, Con-

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sumers Union and Access to Justice CA urges consumers to "fight and killed in the House in October; a similar Foundation, dropped out of the negoti- switch" by applying for low interest rate rate cap proposal was defeated by the ations with the industry, calling the accounts and destroying the high-rate California legislature in 1987. proposed legislation weak and arguing cards. The CA survey includes a list of CA warns consumers to beware of that the bill does not adequately deal California and out-of-state cards with companies offering to "repair" bad with auto insurance reform. Those combined interest rates and cash ad- credit ratings, and suggests that the do- groups have filed their own insurance vance charges of 16% and less. The sur- it-yourself method of credit rating repair reform initiatives (see agency reports on vey revealed that consumers can use the is cheaper and more effective. A CA CONSUMERS UNION and ACCESS lower rate card accounts to save money survey found that most credit repair TO JUSTICE FOUNDATION). by consolidating credit card debts. firms used high-pressure sales tactics and In California, ten of 34 banks and made dubious claims. One company told savings and loans and seven of eight a CA researcher that customers were CONSUMER ACTION credit unions have rates of 16% or less required to relinquish power of attorney 693 Mission St., Rm. 403 on unsecured credit cards. The lowest for the service. A majority of the com- San Francisco, CA 94105 rate in the survey was 12% at Sacra- panies claimed they could erase bank- (415) 777-9648 mento Savings and Loan, but it is avail- ruptcy from a customer's credit record, able only to those who live in the San Francisco Consumer Action even though the Federal Trade Commis- company's (CA) is a nonprofit consumer advocacy service area: Napa, Placer, sion says that it is impossible to remove Sacramento, Shasta, and education organization formed in Solano, and Son- a bankruptcy filing from one's credit oma counties. The second record, unless the filing is over ten years 1971. Most of its 2,300 members are in lowest interest northern California but significant rate on a fixed-rate card is 14% at the old. CA suggests that consumers with Bank of Canton. credit record growth has taken place in southern Cali- The state's largest problems contact the Fed- fornia over the past year. CA is a multi- banks (Bank of America, First Inter- eral Trade Commission or CA for infor- state, Security Pacific, and Wells issue group which since 1984 has focused Fargo) mation on how to improve or repair all offer fixed its work in the banking and telecom- rates at the same level their records. they charged in August 1986-an aver- munications industries. In November, CA filed a complaint age of 20.3%. CA has filed petitions with and ap- CA says that the current with the state Attorney General charg- interest range reflects the fact that larger peared before the California Public Utili- ing misleading and deceptive advertising banks are unwilling ties Commission (PUC) in the field of to follow the lead of by U.S. Sprint, the nation's third largest smaller financial institutions in lowering long distance telephone telephone rates. Statewide pricing sur- company. CA veys are published periodically compar- rates. alleged that two Sprint October mailings Another CA ing the rates of equal-access long November survey found were deceptive because they implied that that many banks do not comply with distance companies and the prices of AT&T customers who switched to Sprint state credit information disclosure would save up services offered by financial institutions. laws. to 50% on many or most The purpose of the pricing surveys, Current California law (AB 3333 (Areias- long distance calls. A recent CA survey Robbins), effective which are released to the public, are to October 1, 1987) found that AT&T is only 1-3% more requires that encourage consumers to comparison all mailed applications for expensive than Sprint for all of the 24 bank and retail sample calls analyzed. shop, to stimulate competition in the credit cards include in- (See CRLR Vol. marketplace, and to compile data for formation on the annual percentage rate, 7, No. 4 (Fall 1987) p. 19.) CA called on whether the use in advocating reforms. In 1986, rate is variable, the method Sprint to cease its claims, send letters of more than 18,000 consumers requested used to determine the rate, the annual- clarification to all who received its mail- ized survey information. membership fee, any transaction ings, and reimburse the phone company fees, whether there is a grace period, long distance Once each year, CA publishes con- connection charge to cus- and how it is calculated. The CA study sumer service guides for the San Fran- tomers who have complained that they showed that only 16 of 26 responding cisco Bay area and the Los Angeles area switched to Sprint after receiving the which list agencies and groups offering California institutions included all the allegedly misleading promotional mailing. required disclosures, and only 6 of 19 services to consumers and assisting with out-of-state complaints. A free consumer complaint/ company applications con- tained the required facts. CA concludes CONSUMERS UNION information switchboard is provided by that consumers 1535 Mission St. CA, and the group publishes a regular are not receiving pre- credit approval facts they need in order San Francisco, CA 94103 newsletter which includes the pricing surveys. to compare credit card rates. (415) 431-6747 It may be difficult to enforce the Consumers MAJOR PROJECTS: state law for out-of-state companies until Union (CU), the largest consumer On November 17, CA released its a federal disclosure law is passed. CA organization in the nation, is annual California Credit Card Rate and its national affiliate group, Con- a consumer advocate on a wide range of issues in both survey, which showed that some credit sumer Federation of America, believe federal and state forums. card rates are as low as 12%, but that there is a good chance that Congress At the national level, Consumers Union eighteen state financial institutions still will pass a law requiring all credit cards publishes Consumer Reports. Historical- charge interest rates of 18% and higher. issuers to provide uniform information ly, Consumers Union has been very The eight-page CA survey is available at in applications. The House of Repre- active in California consumer issues. no charge to consumers who send a sentatives passed a disclosure bill in MAJOR PROJECTS: stamped, self-addressed business-sized October, but the Senate has not yet In mid-December, CU filed a pro- envelope (39 cents postage) to CA's San considered the bill. A proposal to set an posed insurance initiative that would Francisco office. upper limit on credit card rates was create a state-operated auto insurance

The California Regulatory Law Reporter Vol. 8, No. I (Winter 1988) IPUBLIC INTEREST ORGANIZATION ACTION

system. The initiative would establish ENVIRONMENTAL for background information.) Officials the California Auto Accident Reim- DEFENSE FUND of two international banks which loan bursement Bureau, which would sell Rockridge Market Hall money for projects in developing nations minimum liability auto insurance at a 5655 College Ave. have announced endorsement of envi- $300 annual premium when motorists Oakland, CA 94618 ronmental reforms advocated by EDF register their vehicles. Drivers would pay and other environmental groups. (415) 658-8008 an extra fee into a state fund to pay for The World Bank has announced accident damages. Maximum amounts The Environmental Defense Fund plans to institute a comprehensive new paid would be $15,000 per person; (EDF) was formed in 1967 by a group protective program which will include $30,000 per accident to cover bodily of Long Island scientists and naturalists the creation of a new environmental injury; and property damage of $5,000. concerned that DDT was poisoning the department with expanded staff to en- Under the proposal, no reimbursement environment. EDF was a major force sure that environmental concerns are for non-economic losses (such as pain behind the 1972 federal ban of DDT. integrated into all Bank policies and and suffering) would be allowed. The Staffed by scientists, economists, and lending activities. The plan includes proposal would remove the exemption attorneys, EDF is now a national organi- increased financing of environmentally- from antitrust laws now enjoyed by the zation working to protect the environ- beneficial projects, including one to insurance industry, and regulate all ment and the public health. Through conserve tropical rain forests. EDF has premium rates through a flex-rating extensive scientific and economic re- urged sustained vigilance, because it system in which any annual rate increase search, EDF identifies and develops believes the World Bank continues to of more than 7% for personal and 15% solutions to environmental problems. fund many environmentally-unsound for commercial insurance must be state- EDF currently concentrates on four projects, such as the rain forest coloni- approved. areas of concern: energy, toxics, water zation program in Indonesia known as CU representatives said the initiative resources and wildlife. "Transmigration." would help eliminate uninsured drivers Management of both the World Bank from state highways and would dramatic- MAJOR PROJECTS: and the Inter-American Development ally reduce the cost of auto insurance EDF's Kesterson Wildlife Refuge Bank (IDB) have endorsed an EDF for all California motorists. In explain- selenium reduction project has drawn proposal to set aside large areas in the ing the initiative, CU said that the "no- national attention to the broader prob- Amazon rain forest in Brazil as "ex- fault" aspect of the measure means that lem of irrigation wastewater disposal. tractive reserves," where rubber tappers costs associated with non-permanent in- (See CRLR Vol. 7, No. 3 (Summer and local populations may harvest rain juries are minimized, thus lowering the 1987) pp. 40-41 for background informa- forest products. EDF's efforts to inform total cost of bodily injury coverage. The tion.) In its November newsletter, EDF Congress of the destruction of rain proposal is endorsed by the Center for cites another example of the problem: in forest resources paid off when two key Public Interest Law, the League of California's San Joaquin Valley, seven senators pressured IDB on the issue. United Latin American Citizens, the times the amount of the agricultural IDB responded by threatening to hold Urban League, and Public Advocates. wastewater as was drained into Kester- up $40 million in loan disbursements to At this writing, a total of seven com- son is dumped into central Valley rivers Brazil for construction of a highway peting insurance initiatives are being and wetlands. The polluted water threat- which EDF claimed was destroying too circulated. ens fish, wildlife, waterfowl, and Valley much forest, threatening the health In November, CU and a coalition of residents, according to EDF. of indigenous people, and driving them health and consumer groups issued an The state Water Resources Control from their ancestral lands. IDB demand- appeal to Governor Deukmejian for a Board recently adopted an EDF-recom- ed that Brazil comply with environment- requirement under Proposition 65 that mended strategy to deal with the San al safeguards which EDF had suggested alcoholic beverage containers carry Joaquin drainage problem. EDF sug- be included in the loan agreement. warning labels to pregnant women. The gested an innovative plan using im- In August, EDF sued the federal coalition of over one dozen organiza- proved irrigation efficiency to reduce government to force compliance with a tions filed a petition with the state the amount of wastewater produced. decade-old statute requiring federal Health and Welfare Agency, calling on The environmental group believes the agencies to use products containing re- the administration to withdraw a new plan offers the highest benefits at the cycled materials. EDF has long argued regulation that would allow a weaker least cost (less than $20 per acre). EDF that the best permanent solution to the rule requiring warning signs in stores, claims the strategy will reduce selenium solid waste problem is to reduce the restaurants, and bars. levels in the San Joaquin River to two- amount of waste through measures such The coalition cites scientific studies thirds the current level and result in as aggressive recycling. EDF's suit seeks which show that drinking alcohol during future reductions to non-toxic levels; to overcome the major barrier to large- pregnancy can cause birth defects, lower levels of pollutants in the waste- scale recycling-the absence of markets mental retardation, and low birth weight. water, including mercury, cadmium, for recycled materials. Government pref- Even though alcohol is on the list of nickel, and pesticides; and use less water erence in the purchase of such products toxics regulated by Proposition 65, the overall, reducing demand for fresh water would be a powerful tool in developing liquor industry is strongly opposed to from San Francisco's fragile Bay-Delta the needed markets, according to EDF. the placement of warning labels on con- system. Congress recognized the importance of tainers. The consumer/health groups EDF reports major progress in its federal buying power for recycled insist that container labels are mandated campaign to protect tropical rain forests materials when it passed the Resource by the initiative and are the most effect- and indigenous peoples threatened by Conservation and Recovery Act (RCRA) ive means of informing the public of the destructive development projects. (See in 1976. RCRA required the Environ- danger. CRLR Vol. 7, No. 4 (Fall 1987) p. 21 mental Protection Agency (EPA) to

The California Regulatory Law Reporter Vol. 8, No. 1 (Winter 1988) PUBLIC INTEREST ORGANIZATION ACTION I

issue guidelines for federal agencies to cancer in laboratory animals. lished the "Voting Record of the stimulate the "highest percentage of California State Legislature: 1987." The recovered materials practicable." report may be obtained by writing or According to EDF, five years passed FUND FOR ANIMALS calling PAW PAC at P.O. Box 2354, with no action by EPA. Congress amend- Fort Mason Center, Bldg. C San Francisco 94126 or (415) 885-2679. ed the law in 1980, imposing explicit San Francisco, CA 94123 The voting record lists all state senators' deadlines. In its legal action, EDF con- (415) 474-4020 and assemblymembers' votes on sixteen tends that EPA has ignored the statutory bills considered key to animal rights Founded in 1967, the Fund works issues. mandate even after further amendments for wildlife conservation and to combat in 1984 requiring issuance of final guide- Fund for Animals has established an cruelty to animals locally, nationally, Animal Trust Sanctuary and Wildlife lines. EPA has yet to comply with the and internationally. Its motto is "we law, and until the EPA guidelines are Rehabilitation Center in Ramona (north- speak for those who can't." The Fund's east of San Diego). Many injured and issued, no federal agency is under obliga- activities include legislation, litigation, tion to purchase recycled products, ac- baby wild animals are cared for at the education, and confrontation. Its New Center until they can again be released cording to EDF's attorney in the case. York founder, Cleveland Amory, still In its October newsletter, EDF re- to the wild. Dogs and cats are available serves without salary as president and for adoption at the Center, and animals ports that its legal action has expedited chief executive officer. federal protection for at least ten critical- which must permanently live at the ly endangered species which have now MAJOR PROJECTS: Ramona Center and two other locations been added to the federal threatened Fund for Animals encourages its may be assisted with tax-deductible con- and endangered species list. No federal members to write to the Governor and tributions. protection is available for endangered legislature in support of the following Fund for Animals in Los Angeles animal and plant life without formal bills, which have been held over from has prepared a special exhibit on animal listing under the Endangered Species Act. the 1987 session: rights which began touring southern Early last summer, EDF warned U.S. -SB 4 (Presley) would provide for an California libraries in September. Other Secretary of the Interior Donald Hodel $85 million bond issue for the acquisi- animal protection organizations have that he had failed to meet the Act's tion and protection of rare natural areas contributed to the exhibit. For informa- deadlines for adding 22 species to the and wildlife habitat. If the legislature tion on the project, call Jerye Mooney list, and served notice that it would sue passes the bill, it would be submitted to at (213) 830-7400. to compel action. Within weeks, Secre- voters in the June 1988 election. tary Hodel added ten of the 22 species -ACA 44 (Campbell) would specify to the list. EDF believes he will include qualifications for the members of the the remainder soon. The protected list Fish and Game Commission, which the ICAN (INSURANCE CONSUMER includes five rare wildflowers, a squirrel Fund believes is now dominated by found only in Arizona, an Alabama tur- hunters. As a constitutional amendment, ACTION NETWORK) tle, California and Florida birds, and an the bill must be placed on the ballot 3580 Wilshire Blvd., Suite 1740 Appalachian fish. after passage by the legislature. Los Angeles, CA 90010 EDF reports that a just-released -AJR 44 (Hauser and Farr) would (213) 387-2515 request federal legislation banning im- study regarding fly ash produced by The Insurance Consumer Action Net- portation of fish products from countries municipal incinerators supports its con- work (ICAN), organized in January tention that the ash should be regulated which continue commercial whaling. 1986, is a coalition of individuals and -AB 396 (Mojonnier) would require as hazardous waste. EDF contends that organizations committed to providing a most of the Ill operating municipal felony penalties against the owner or person having custody of any vicious consumer perspective to balance insur- incinerators are not performing current- ance industry lobbying, and to being animal, if that person willfully or negli- ly-required toxicity testing of fly ash. involved in the process which shapes EPA officials have recently announced gently allows the animal to kill or sub- and protects insurance consumers' rights plans to exempt the ash from classifica- stantially injure a human being. and interests at state and national levels. tion as hazardous waste and remove the -AB 2507 (Speier) would allow stu- Presently based in Los Angeles, ICAN testing requirement. dents through high school to refuse to affiliates include Common Cause, Con- The new private study-performed dissect or otherwise harm animals in the classroom "if the teacher believes that sumers Union and Public Advocates; it by Versar, Inc., for EPA-found that is working to establish a presence in dioxin compounds in fly ash at four an adequate alternative education project is possible." other states. ICAN! Legislate, a network incinerators were as high as 780 parts of state legislators who are members of billion. The federal Centers for Dis- -AB 2518 (Campbell) would allow per policy committees which consider insur- the Department of Fish and Game to ease Control has specified that dioxin in ance issues, is intended to offset the require an agency to comply fully with soil is a health concern at levels above influence of a similar industry group one part per billion. The report found all mitigation agreements on prior projects before planning a new project. and will develop public policy, conduct that all samples of fly ash exceeded research, and draft model legislation in -AB 2653 (Bates) would ban any en- EPA's toxicity threshold for cadmium, the interests of the insurance consumer. and 83% exceeded the threshold for lead. closure for veal calves which does not EDF cites scientific evidence which indi- allow the calf to stand up, sit down, and MAJOR PROJECTS: cates that inhalation of lead can cause turn around. Presently, the calves are In December, ICAN announced the brain damage in children; cadmium in- chained at the neck in narrow crates. filing of an initiative proposal to reduce take can cause cancer and liver damage; The California Political Action Com- insurance premiums and grant more rate and dioxin has been shown to cause mittee for Animals has recently pub- regulation authority for the state Depart-

The California Regulatory Law Reporter Vol. 8, No. 1 (Winter 1988) IPUBLIC INTEREST ORGANIZATION ACTION

ment of Insurance (DOI). Currently, would be composed of a majority of Continental Shelf (OCS) oil lease sales. seven competing insurance initiatives consumer representatives and that mem- Lease Sale #91, encompassing the Mendi- are being circulated. Among other bers would be appointed in January. cino County coast and much of the things, ICAN's initiative would provide Humboldt County coast, is scheduled for the regulation of auto, home, and for February 1989. LCP hopes that Con- commercial insurance rates; allow con- gress or the new White House adminis- LEAGUE sumers to challenge proposed rate in- FOR COASTAL tration will halt this sale in order to creases; establish an insurance consumer PROTECTION preserve what LCP calls some of Ameri- advocate's office in state government; P.O. Box 421698 ca's most spectacular coastline. The pre- require a discount for good drivers; and San Francisco, CA 94142-1698 lease planning process for Lease Sale repeal existing provisions which prohibit (415) 777-0220 #95 has begun, which includes likely oil banks from selling insurance. drilling targets in nearshore waters off Created in 1981, the League for To avoid resorting to the initiative La Jolla, Oceanside, Coastal Protection (LCP) is a coalition Laguna Beach, process, ICAN and Common Cause had Newport Beach, Palos Verdes, of citizen organizations and individuals Santa earlier attempted to reach a compromise Monica, and southern Big Sur. working to preserve California's coast. with the insurance industry, trial law- Coastlines reports that major victor- It is the only statewide organization yers, and key legislators on a proposed ies for the coast have often occurred concentrating all its efforts on protect- bill to deal with the insurance crisis. during presidential election years. LCP ing the coast. The League maintains a Access to Justice Foundation and Con- believes that the next federal adminis- constant presence in Sacramento and sumers Union withdrew from those dis- tration represents the determining factor monitors Coastal Commission hearings. cussions, contending that the industry for the California coast because of the was not serious about seeking meaning- MAJOR PROJECTS: broad authority granted to the Secretary ful auto insurance reform. On December LCP's January/February Coastlines of the Interior under the Outer Contin- 15, the insurance industry announced newsletter reports that the California ental Shelf Lands Act. In November, a the filing of its own initiative; the trial Coastal Commission may have recently conference entitled "Troubled Waters: lawyers group followed shortly there- won the first round in its fight against The Future of the Coast" was convened after with the filing of its measure on the threat of decertification by the U.S. in Santa Monica where Democratic presi- December 16. The various players have Department of Commerce. (See CRLR dential candidates Richard Gephardt, not ruled out the possibility of negoti- Vol. 7, No. 4 (Fall 1987) p. 23 for Michael Dukakis, Paul Simon, Jesse ated compromise legislation to take the background information.) The author Jackson, Albert Gore, and Bruce Babbitt place of the initiatives. of a Commerce Department attack on presented their views on California off- The compromise legislation agreed the Commission was removed from his shore oil drilling via video interviews. to by ICAN and the insurance industry duties on the California case by the Most of the candidates endorsed either would require insurers to file annual acting director of National Oceanic and the Boxer-Levine or Cranston versions rate plans with the DOI. Statewide rate Atmospheric Administration. Decertifi- of the California Ocean Sanctuary legis- increases which exceed 15% for auto cation would mean a loss to the Com- lation, or stated that they would review and home insurance and 25% for com- mission of approximately $2 million or withdraw Secretary Hodel's five-year mercial policies must receive prior ap- annually, and loss of ability to influence drilling program and replace it with a proval from the Insurance Commissioner. energy development in offshore areas proposal which respects environmental Individual consumers could be reim- regulated by the federal government. values. Republican party candidates were bursed for expenses of hiring expert Last May, Department of the Interior also invited to voice their views on coast- witnesses. The draft legislation would Secretary Donald Hodel demanded that al issues at the conference, but declined. require insurance companies to annually Commerce require policy changes by the LCP says that the number of electoral reveal data showing the amount collect- Coastal Commission when he charged votes in the state and the large potential ed in premiums and paid in claims by that it had been "usurping" federal for fundraising make it difficult for can- zip code areas. A memorandum signed authority. As CRLR went to press, fed- didates to ignore coastal issues. A state- by the parties would allow consumer eral officials were still pushing for wide "Campaign for the Coast" day is group participation in a study funded changes and settlement of outstanding planned for May when volunteers will by trial lawyers and insurers which differences in the Coastal Commission's engage in precinct work. would identify the causes of the auto program for regulation and approval of The LCP/Sierra Club litigation to insurance crisis and suggested solutions. offshore oil projects. The 1972 Coastal protect endangered bird species in south- In December, state Insurance Com- Zone Management Act grants states cer- ern California continues to progress (see missioner Roxani Gillespie abolished tain rights of approval over such projects. CRLR Vol. 7, No. 4 (Fall 1987) p. 23 DOI's Consumer Advocacy Board and LCP believes that 1988 will bring and Vol. 7, No. 2 (Spring 1987) p. 25 established a new seven-member con- serious challenges and unique opportuni- for background information). In late sumer advisory panel within the Depart- ties for the California coastline. Critical December, the U.S. Fish and Wildlife ment. The new group will meet quarterly decisions regarding new offshore drilling Service (USFWS) issued a draft biologi- to advise the DOI. The Commissioner will be in the hands of the next Presi- cal study on development of forty acres decided not to reappoint ICAN Execu- dent. Environmentalists fear that Gover- of City of Chula Vista land on San tive Steve Miller, who had served on the nor Deukmejian will continue his efforts Diego Bay. The draft report concluded earlier panel, because she believes he is to kill the Coastal Commission with that development should not be allowed a "lobbyist." Miller responded that he is severe budget cuts. in the area of Chula Vista's Gunpowder not required to register as a lobbyist LCP predicts that the new year will Point. Chula Vista plans to build a $500 and that he is not a lobbyist. The Com- also bring more controversy over critical million, 400-room hotel and marina at missioner's office said the new panel state coastal areas targeted for Outer the site. The California Coastal Commis-

The California Regulatory Law Reporter Vol. 8, No. 1 (Winter 1988) PUBLIC INTEREST ORGANIZATION ACTION

sion approved the project in 1984, in nia, NRDC appears frequently before No. 1 (Winter 1987) p. 23 for back- spite of a 1980 USFWS environmental the Coastal Commission, Energy Com- ground information.) A formal agree- impact statement which recommended mission, and Public Utilities Commis- ment between NRDC and the Soviet passive recreation only for the Gun- sion. NRDC also maintains offices in Academy of Sciences was signed in May powder Point area. The December New York and Washington, D.C. 1986, with the aim of demonstrating to USFWS report said the land should be the governments of both counties that conveyed to the federal agency as a MAJOR PROJECTS: even very small explosions can be detect- refuge for endangered species, such as NRDC believes that its involvement- ed over distances of hundreds of miles the California least tern and the light- along with that of other environmental by sensitive equipment buried in the footed clapper rail. groups and a watchful media-resulted ground. If the United States and Soviet The USFWS study was ordered by a in preventing the U.S. Administration Union sign a nuclear test ban treaty, federal judge last July after the Sierra from capitulating during negotiations such monitoring capability would be the Club and LCP won a ruling to tempor- on an agreement to limit production of means of policing the agreement. A test arily halt development of a nearby flood chlorofluorocarbons (CFCs) reached at ban treaty would slow down the escalat- control and freeway project, until the an international meeting in Montreal ing nuclear arms race since the develop- environmental impacts of the flood con- last September. Scientists have discov- ment of new weapons and space-based trol and bayfront developments were ered that CFCs cause deterioration in weapons depends upon underground thoroughly examined. the earth's ozone layer, which pro- testing. tects all life from excessive ultraviolet In September, the U.S.-Soviet team radiation. As ozone deteriorates, a cor- set off three ten-ton TNT explosions 82 responding increase in skin cancers, cat- feet deep in the remote Asian Soviet NATURAL RESOURCES Kazakh Republic, which is 270 miles DEFENSE COUNCIL aracts, and other environmental degrada- the Montreal conference, west of the main Soviet nuclear weapons 90 New Montgomery St., Suite 620 tion occurs. At 24 nations signed a pact to reduce con- test site. Shortly before the third TNT San Francisco, CA 94105 sumption of CFCs in the industrial world test, the seismic equipment registered an (415) 777-0220 by 50% by the end of the century. (See earthquake centered in the western Pacif- the The Natural Resources Defense Coun- CRLR Vol. 7, No. 4 (Fall 1987) p. 21 ic Ocean. The event demonstrated character- cil (NRDC) is a nonprofit environmental (report on ENVIRONMENTAL DE- clearly distinguishable seismic and an earth- advocacy organization with a nation- FENSE FUND) for background infor- istics between an explosion believes the advantageous wide membership of more than 70,000 mation.) quake. NRDC occurring individuals, more than 13,000 of whom According to NRDC, the CFC agree- coincidence of the earthquake reside in California. Since 1972, NRDC's ment and a related decision to freeze less than two minutes before the TNT lay to rest the concern western office in San Francisco has been (and not reduce) other ozone depleters explosion should active on a wide range of California, known as halons mean that the net of some arms negotiators that a country western, and national environmental global reduction in all damaging chemi- might cheat on a test ban by camouflag- nuclear tests during earth- issues. Most of that work is now group- cals will be only 35-40%. CFCs remain ing small ed under five subject-matter headings: in the stratosphere for over 100 years; quakes. agreement signed public lands, coastal resources, pesti- and scientists widely agree that only a Under the extended and the Soviet cides, energy, and water supply. In these complete phase-out of the chemicals will last June between NRDC three existing areas, NRDC lawyers and scientists stop ozone depletion, and that at least Academy of Sciences, the ad- work on behalf of underrepresented en- an 85% cut in emissions is required to seismic monitoring stations, plus an vironmental quality interests before simply stabilize CFC levels. ditional five new stations, will be allowed numerous state and federal forums. In 1986, the Environmental Protec- to operate during actual Soviet weapons has granted the Public health concerns are increasingly tion Agency (EPA) opened the Montreal tests. The Soviet Union a priority, in addition to conservation of international negotiations by proposing American scientific team unlimited visas nonrenewable resources and ecosystem a 95% phase-out of the key ozone-deplet- to operate the monitoring stations. The preservation. ing chemicals over a tento fourteen-year U.S. Administration, however, has re- NRDC has been active in developing period. On December 1, however, EPA fused to allow Soviet scientists to visit energy conservation alternatives to new released its proposed new restrictions the seismic stations located near the power plants and offshore oil drilling, on CFCs and halons, which would cut Nevada nuclear weapons test site, accord- ing to NRDC. and resource-conserving land use poli- production of CFCs to 50% of 1986 cies in California's coastal counties and levels by 1998, and freeze halon levels at federally-managed lands. Notable recent 1986 levels by 1994. NRDC and other achievements claimed by NRDC include environmentalists criticized the EPA for leadership of coalitions which have de- not going far enough and because the NETWORK PROJECT veloped broadly-supported federal legis- proposed restrictions are contingent on P.O. Box 1736 lative initiatives on pesticide regulation ratification by the governments of the Santa Monica, CA 90406 and efficiency standards for household 24 nations which signed the September (213) 395-7622 appliances. agreement to reduce ozone-depleting Agricultural water supply and drainage chemicals. The Network Project is a nonprofit, issues are taking on growing importance NRDC and Soviet scientists continue tax-deductible consumer research organi- with NRDC, including the widely-publi- their joint nuclear weapons testing moni- zation established in 1985 to monitor cized contamination of the Kesterson toring and verification project known as the impact of new technologies on con- Wildlife Refuge and the broader policy the U.S.-U.S.S.R. Nuclear Test Ban sumers and the exercise of consumer issues underlying that crisis. In Califor- Verification Team. (See CRLR Vol. 7, rights in the marketplace. The project

The California Regulatory Law Reporter Vol. 8, No. 1 (Winter 1988) I d PUBLIC INTEREST ORGANIZATION ACTION I

will focus on how high technology can with the U.S. Supreme Court in Com- association in its effort to stop the be used to both protect consumers and munications Workers of America v. county from collecting money in excess enhance citizen participation in demo- Beck, urging protection from what PLF of the Gann initiative limits. The county cratic institutions. The bimonthly news- believes are compelled political dona- had refused to include contributions to letter Network provides subscribers with tions. In the action, PLF represents itself employee retirement systems in the spend- information on consumer issues, includ- and an association known as the Screen ing limit formula. ing articles on state and federal con- Actors Guild Leaders for Labor Justice, In Common Cause v. County of Los sumer-related activities. The Consumer which includes twelve current and former Angeles, PLF supports the county in its Alert bulletin is published periodically officials of the Screen Actors Guild. fight against a proposed requirement to inform members of critical develop- Under the National Labor Relations that its employees serve as deputy voter ments on consumer issues. Act, employees of a particular company registrars in county buildings. The Cali- or bargaining unit may choose an organi- fornia Supreme Court recently agreed MAJOR PROJECTS: Publication of the joint report by the zation to serve as its exclusive bargain- to hear the issues in the case. ing agent. The Act authorizes the agent Network Project and the Center for the to negotiate for the inclusion of an Study of Responsive Law on consumer "agency shop fee" clause in the collective billing complaints and problems has bargaining agreement. Agency shop re- been delayed. The report is now expect- PLANNING AND quires all employees to join the organi- ed to be available by March 1988 (see CONSERVATION LEAGUE zation serving as agent, or to pay the CRLR Vol. 7, No. 4 (Fall 1987) p. 24 909 12th St., Suite 203 agent a fee equal to membership dues. for details on the report). Sacramento, CA 95814 PLF contends that while most employees According to Network Project, in- do not oppose paying their fair share of (916) 444-8726 decipherable or erroneous computerized the cost of collective bargaining, they do The Planning and Conservation bills from utilities and corporations are object to the use of compelled fees to commonplace and cost consumers bil- League (PCL) is a nonprofit statewide finance political activities with which lions of dollars every year. Consumers alliance of several thousand citizens and they disagree. can help correct errors and eliminate more than 120 conservation organiza- PLF and its clients insist that many tions devoted to promoting sound fraudulent practices by paying attention en- employee associations typically devote a vironmental legislation in California. to billing statements they receive. Net- work Project urges consumers to make significant percentage of dues and fees Located in Sacramento, PCL actively to lobbying Congress and campaigning lobbies for legislation to preserve Cali- phone calls and write letters of inquiry for congressional and presidential candi- and complaint when they believe their fornia's coast; to prevent dumping of dates, in areas which are often at odds toxic wastes into air, water, and land; to bills are in error. Honest and reputable with the beliefs of some members or fee companies are interested in hearing from preserve wild and scenic rivers; and to payers. PLF hopes the Court will issue customers and want to keep their busi- protect open space and agricultural land. PCL is the oldest environmental lob- ness and earn their satisfaction. a decision giving employees a choice whether to support a labor organiza- For a list of common billing prob- bying group in the state. Founded in lems and guidelines on how to correct tion's political activities. 1965 by a group of citizens concerned billing mistakes, request the Buyer's On November 21, PLF participated about uncontrolled development through- Market newsletter from the Center for with twelve other organizations in a live out the state, PCL has fought for two the Study of Responsive Law, P.O. Box satellite-relayed televideo conference decades to develop a body of resource- beamed to California State University protective environmental law which 19367, Washington D.C. 20036; or call will campuses and other sites. The teleconfer- Network Project. For additional assist- keep the state beautiful and productive. ence was known as "The World After PCL's promotional literature states ance, NP suggests the free 90-page Con- Recent U.S. Supreme Court Decisions." sumer's Resource Handbook from the that it has been active in every major PLF was involved in four of the major federal Consumer Information Center, environmental effort in California and a cases discussed at the teleconference, Pueblo, CO 91009. participant in the passage of several including Keystone Bituminous Coal pieces of significant legislation, includ- Ass'n v. DeBenedictis (Pennsylvania); ing the California Environmental Quali- First English Evangelical Lutheran ty Act, the Coastal Protection Law, the Church of Glendale v. County of Los act creating the Bay Conservation and PACIFIC LEGAL FOUNDATION Angeles; Nollan v. California Coastal Development Commission, the Lake 555 Capitol Mall, Suite 350 Commission; and Pennel v. San Jose. Tahoe Compact Act, the Energy Com- Sacramento, CA 95814 As a result of a PLF legal victory in mission Act, the Wild and Scenic Rivers (916) 444-0154 Santa Barbara Taxpayers Ass'n v. Act, and laws which enhance the quality County of Santa Barbara,many counties of urban environments. The Pacific Legal Foundation (PLF) and municipalities in California may be PCL is supported by individual and is a public interest law firm which sup- required to rebate excess taxes to local group membership fees, with a current ports free enterprise, private property taxpayers. (See CRLR Vol. 7, No. 4 membership of more than 7,000 individ- rights, and individual freedom. PLF (Fall 1987) p. 24 for background infor- uals. PCL established its nonprofit, tax- devotes most of its resources to litiga- mation.) In a recent decision, the Cali- deductible PCL Foundation in 1971, tion, presently participating in more fornia Supreme Court let stand an which is supported by than 100 cases in state and federal donations from appellate court ruling which upheld individuals, other foundations, and gov- courts. voter-imposed limits on local govern- ernment grants. The Foundation special- MAJOR PROJECTS: ment spending under the Gann Amend- izes in research and public education In early October, PLF filed a brief ment. PLF represented the taxpayers programs on a variety of natural re-

The California Regulatory Law Reporter Vol. 8, No. 1 (Winter 1988) I PUBLIC INTEREST ORGANIZATION ACTION

source issues. It has undertaken several cratic candidates for the 1988 U.S. one-time charge of $2 for residential major projects, including studies of the Senate race. At this writing, Senator customers and $5 for business customers. California coast, water quality, river Pete Wilson has been invited to speak Universal Lifeline customers will receive recreation industries, energy pricing, as well, but has not yet confirmed. The the service without charge, if requested. land use, the state's environmental bud- symposium features workshops on toxics, Those who sign up for the service are get, and implementation of environment- air quality, wildlife, growth control and advised that the blocking technology is al policies. local planning, water development, and not selective at this time, and will elim- the use of the initiative process at the inate the use of all 976 prefix telephone MAJOR PROJECTS: local and state levels. calls. According to PacBell representa- On December 18, the California Sec- tives, selective blocking of specific 976 retary of State announced that the calls may be available later in the year. PCL-sponsored Wildlife, Coastal and The service will not block calls made to Parkland Conservation Bond Act has PUBLIC ADVOCATES 976 prefixes in other states. qualified for the June 1988 ballot. In 1535 Mission St. Customers without access to block- November, PCL and a large coalition of San Francisco, CA 94103 ing due to a lack of new equipment in environmental groups submitted 736,260 (415) 431-7430 all areas will be offered two additional signatures-600,000 of which were refunds for 976 calls made without the col- Public Advocates (PA) is a nonprofit customer's authorization. Complaints lected by volunteers, and the remainder public interest law firm concentrating and lawsuits by PA and other groups by paid signature gatherers. Secretary of on the areas of education, employment, led to an earlier PUC order requiring State March Fong Eu's office said a health, housing, and consumer affairs. phone companies to allow a one-time random sample validation count from PA is committed to providing legal rep- the state's 58 counties indicated that refund to customers who claimed the resentation to the poor, racial minori- calls were made without their permis- 570,832 signatures were valid. The initia- ties, the elderly, women, and other tive needed 372,178 registered voter sig- sion, or who said they were not aware legally underrepresented groups. Since natures to appear on the ballot. The of the fees. its founding in 1971, PA claims it has measure is the first initiative bond act to PA asserts that the recent King v. filed over 100 class action suits and Meese decision by the state qualify for an election since 1914. represented more than 70 organizations, Supreme If passed by voters, the bond act will Court requiring all motorists to carry including the NAACP, the League of authorize the state to sell $776 million proof of auto liability insurance in the United Latin American Citizens, the in general obligation bonds to be repaid vehicle has now thrust the issue of auto National Organization for Women and over a number of decades by tax rev- insurance to the top of the legislative the Gray Panthers. enues. The state parks system would agenda. PA believes the result of the receive $153 million for land acquisition; MAJOR PROJECTS: court decision is essentially "drive a regional and local parks would receive Two years ago, Public Advocates car-go to jail," and that it adversely $336 million to purchase new parklands; sued companies offering "976" telephone affects low-income people who cannot wildlife habitat protection would receive prefix services, claiming deceptive mar- afford to buy auto insurance. The de- $129 million; coastal protection would keting of "Dial-a-Santa" and other ser- cision prompted PA to join Consumers get $85 million; $15 million would be vices aimed at children. (See CRLR Union, the Center for Public Interest used for trails, urban streams, and for- Vol. 5, No. 4 (Fall 1985) for background Law, and other groups in the filing and estry; $17 million for trout and salmon information.) PA also sued Pacific Bell circulation of an auto insurance reform protection; $30 million for land acquisi- and General Telephone, alleging that initiative (see supra report on CON- tion in the Santa Monica Mountains; 976 services have a negative impact on SUMERS UNION). and $11 million for historic preservation. low-income families. Recently, PA and Public Advocates completed a year- The bond act has been endorsed by its clients were influential in the drafting long study of Bay area homeless people over 150 conservation, civic, and busi- of 1986 state legislation (AB 2550-Peace) and published the results in a report ness organizations, U.S. Senators Alan requiring telephone companies to allow entitled "Avenues Out of Despair." The Cranston and Pete Wilson, Lt. Governor consumers to block 976 calls dialed from report documents the current "band-aid" Leo McCarthy, Attorney General John their home or business. A mid-1987 approach to the growing homelessness Van de Kamp, Controller Gray Davis, study by Public Advocates found that problem and urges government leaders thirty cities and counties, and 42 mem- over 1.1 million telephone customers to establish regional support centers bers of the state legislature. Newspaper desire the 976 blocking capability. and programs which will provide the editorial support has been published in After hearings and technical analysis homeless with the services and assist- the San FranciscoChronicle, Los Angel- of the current blocking capability of ance required to break the cruel cycle. es Times, San Diego Tribune, and the telephone company equipment, the Pub- The report is available through the PA Marin Independent Journal. lic Utilities Commission on December office for $20, which covers postage and PCL's annual Environmental Sym- II ordered California telephone com- handling. posium is scheduled for January 30-31 panies to allow customers to block all in Sacramento. On this occasion each 976 services, including "dial-a-porn." year, conservationists meet to plan legis- Companies providing the taped messages lative strategy, listen to state political will pay most of the costs of the block- leadership, and socialize. This year's ing services. By February 1988, the featured speakers are Lt. Governor blocking capability will be available to McCarthy and television commentator about 88% of California telephone cus- Bill Press (executive director of PCL tomers served by phone company offices from 1973-75), both of whom are Demo- with blocking-capable equipment for a

The California Regulatory Law Reporter Vol. 8, No. 1 (Winter 1988) I J PUBLIC INTEREST ORGANIZATION ACTION J

PUBLIC INTEREST lishes the Directory of Bay Area Public SIERRA CLUB CLEARINGHOUSE Interest Organizations,which lists over Legislative Office 200 McAllister St. 600 groups and information on their 1228 N St., Suite 31 San Francisco, CA 94102-4978 services and fees. Sacramento, CA 95814 PIC also publishes the Public Interest (916) 444-6906 (415) 565-4695 Advocate, a newsletter of its Public In- The Public Interest Clearinghouse terest Law Program. The newsletter The Sierra Club has 155,000 mem- (PIC) is a resource and coordination prints information on part-time and bers in California and over 400,000 mem- center for public interest law and state- summer positions available to law stu- bers nationally, and works actively on wide legal services. PIC is partially spon- dents. It is published August through environmental and natural resource pro- sored by three San Francisco Bay area May for law students in northern Cali- tection issues. The Club is directed by law schools: Hastings School of Law, fornia. Listings are free and must be volunteer activists. University of Santa Clara School of received by the 10th of the month. In California, Sierra Club has 13 Law, and Golden Gate Law School. chapters, some with staffed offices. Through the Legal Services Coordina- MAJOR PROJECTS: Sierra Club maintains a legislative office tion Project, PIC serves as a general PIC's Board of Directors meets quar- in Sacramento to lobby on numerous resource center for all legal services terly to advise and approve the staff's state issues, including toxics and pesti- programs in California and other states performance in providing information cides, air and water quality, parks, for- in the Pacific region. Services include and training to legal services programs, ests, land use, energy, coastal protection, information on funding sources and pro bono attorneys, law students, and water development, and wildlife. In ad- regulations, administrative materials, other public interest personnel through- dition to lobbying the state legislature, and coordination of training programs. out the western states. PIC bylaws pro- the Club monitors the activities of sev- The Public Interest Users Group vide for the election to its Board of eral state agencies: the Air Resources (PUG) addresses the needs of computer one student representative chosen on a Board, Coastal Commission, Depart- users in the public interest legal com- rotating basis from law schools partici- ment of Health Services, Parks Depart- munity. Members include legal services pating in PIC programs. In 1988, law ment, and Resources Agency. The programs in the western region of the students from Golden Gate School of Sacramento office publishes three news- United States, State Bar Trust Fund Law will elect a student to serve on the letters: Legislative Agenda (25 times per recipients, and other professionals in PIC Board. year); and Toxics Insider and Coastal various stages of computerization. PUG Service on the Board provides the Insider (each about four times per year). coordinates training events and user student with valuable experience and The Sierra Club Committee on Political group meetings, and serves as a clear- contacts, and the opportunity to work Education (SCCOPE) is the Club's politi- inghouse for information shared by with leading members of the public inter- cal action committee, which endorses public interest attorneys. est community. Student candidates for candidates and organizes volunteer sup- PIC's bi-weekly "Public Interest Em- the Board must be a current member of port in election campaigns. ployment Service" lists positions for a PIC's Public Interest Law Program and The Sierra Club maintains national variety of national, state, and local must have a strong commitment to pub- headquarters in San Francisco, and public interest organizations, including lic interest law. The elected student operates a legislative office in Washing- openings for attorneys, administrators, Board member is expected to attend all ton, D.C., and regional offices in several paralegals, and fundraisers. Board meetings, serve on Board commit- cities including Oakland and Los Angeles. PIC's public interest law program at tees, and serve as liaison between the the three sponsoring law schools helps Board and the school. MAJOR PROJECTS: prepare students to be effective advo- PIC's Computer Users Group (PUG) Sierra Club's November Legislative cates for the poor and other disadvant- advises public interest law and non- Agenda newsletter reports that 1987 aged members of society. A project profit groups that a bulletin board ser- ended fairly happily in terms of its legis- known as "PALS"--the Public Interest vice (BBS) is available which links lative priorities. Five bills supported by Attorney-Law Student Liaison Program- computer experts with nonprofit organi- the Club passed the legislature and were matches interested law students with zations in need of technical assistance. signed into law (see CRLR Vol. 7, No. 4 practitioners in the field for informal The WELL (Whole Earth 'Lectronic (Fall 1987) p. 27). The Club reports that discussions about the practice of law. Link) project is a northern California a major disappointment was the failure PIC's Academic Project promotes BBS and sponsors a broad range of con- of a Senate committee to pass an innova- and facilitates the interaction of law ferences, including one specifically de- tive plan to promote the use of cleaner- school faculty and legal services attor- signed to help nonprofits solve technical burning fuels in motor vehicles. Bills neys in furtherance of law in the public problems with the help of computer buffs. authorizing the development of major interest. Faculty members assist practi- Many problems can be solved by a simple new water transfer facilities from north- cing attorneys with legal services cases, on-line exchange of messages, according to ern to southern California, which en- and staff attorneys help faculty with PUG. WELL experts have performed on- vironmentalists consider misguided, research and course materials. site nonprofit technical rescues, debugged were headed off by a split within the The Clearinghouse's quarterly news- software, connected hardware, and helped usually monolithic southern state legis- letter, Impact: A California Digest of establish communications connections. lative caucus, combined with an all-out Public Interest Practice, keeps the pub- It has saved financially and technically effort to block the bill by Bay area lic interest community up-to-date on deficient organizations many hours and legislators and local grassroots pressure. developments in litigation and legisla- a great deal of money in consulting Despite a strong public outpouring tion, and reports on activities of other costs. WELL membership information of support for coastal protection pro- public interest advocates. PIC also pub- is available by calling (415) 332-4335. grams and legislation, the Club believes

The California Regulatory Law Reporter Vol. 8, No. 1 (Winter 1988) PUBLIC INTEREST ORGANIZATION ACTION

that Governor Deukmejian has under- 264-foot high Pamo Dam would flood ness case which will analyze the Diablo mined the state Coastal Commission by 1800 acres of the Santa Ysabel Valley Canyon nuclear plant costs. slashing its budget and attempting to in central San Diego County, which TURN intervened in Southern Cali- close the central coast Commission of- environmentalists consider destructive fornia Edison Company's (SCE) applica- fices. According to the Club, the Senate to archaeological resources and import- tion for creation of a holding company, Rules Committee finally responded to a ant wildlife habitat critical to an en- the first step in diversifying its opera- tremendous grassroots lobbying effort dangered bird species, the least Bell's tions to include non-utility companies. by replacing two Coastal Commission vireo. The final decision on the dam Last fall, the administrative law judge in appointees viewed by environmentalists rests with EPA's assistant administrator the case recommended approval of SCE's as having "disastrous" environmental for water in Washington, D.C. request. The Commission was scheduled voting records. The two new Commis- Sierra Club urges its members to act to discuss the case at its January 8 sioners appear to be more supportive of during EPA's public comment period by meeting. TURN's attorney and expert environmental and coastal protection. writing to the San Francisco regional witnesses in the case proposed a number The Club believes the change creates a administrator expressing support for her of conditions, including the payment of to generally even split on the Commission decision to reject the Pamo Dam permit. royalties from non-utility subsidiaries between environmental and anti-environ- SCE ratepayers for "intangible" benefits mental members. resulting from SCE's association with The Club also reports that 1987 im- the utility. In its intervention in SCE's General provements in the Department of Health TURN (TOWARD UTILITY to toxics issues were Rate Case, TURN argued against the Services' approach RATE NORMALIZATION) unfortunately overshadowed by the Gov- imposition of a $4.56-per-month service ernor's mishandling of the implementa- 693 Mission St., 2nd Floor charge, contending that there is no justi- tion of Proposition 65, and by his veto San Francisco, CA 94105 fication for the new charge, which would of important water quality legislation. (415) 543-1576 have an impact on 74% of SCE custom- ers. SCE had originally sought an over- Sierra Club believes Californians were Normalization Toward Utility Rate all rate increase of $301 million, which shocked by the Governor's elimination (TURN) is a nonprofit advocacy group of Cal-OSHA, which administered one was later reduced by the company to with about 40,000 members throughout $79 million after the PUC's Public Staff of the most important state toxics regu- California. About one-third of its mem- latory programs. Division recommended an overall de- bership resides in southern California. crease in the General Rate Case of $22 Wildlife protection efforts, including com- TURN represents its members, million. In late December, the PUC re- the passage of gill net restrictions vital residential and small business prised of jected the monthly customer service to the protection of marine mammals gas, and consumers, in electrical, natural charge and granted SCE ratepayers a and birds along the coast, were among telephone utility rate proceedings before the Club's most successful efforts. Sea collective decrease of $32.7 million in the Public Utilities Commission (PUC), 1988. The collective reduction ordered otters were reintroduced to San Nicolas the courts, and federal regulatory and Island after a long absence. The en- by the PUC reflects a variety of rate and administrative agencies. The group's cost adjustments and refunds. dangered species tax form check-off pro- to staff also provides technical advice The proceedings in Phase 3 of the gram and the state's Tule elk population com- individual legislators and legislative Pacific Bell General Rate Case were were saved from potentially damaging mittees, occasionally taking positions on closed in December and a decision is bills. A legislative attempt to begin sport legislation. TURN has intervened in expected later this spring. In Phase 3, trophy hunting of mountain lions was proceedings since its founding about 200 TURN recommended reduced rates for derailed by court action. in 1973. The 12,000 member San Diego Coun- residential customers, reductions in the ty chapter of the Sierra Club has waged MAJOR PROJECTS: zoned measured usage charges, and elim- a struggle for over four years to halt In October, TURN celebrated its four- ination of the monthly fee for touch- approval of a major new water project- teenth year of "effective legal defense of tone service. TURN also argued for the Pamo Dam. In late December, San small utility customers" with a fundrais- a reduction in coin-operated phone Diego Democratic Representative Jim ing party. charges to ten cents per call and called Bates bolstered the group's cause by TURN is awaiting a state Supreme on the PUC to eliminate the monthly declaring his firm opposition to the Court decision on its appeal for review insurance charge for inside wire repair, project. The other four San Diego of a Pacific Gas & Electric Company urging the Commission to take jurisdic- County representatives-all Republi- (PG&E) rate increase for Diablo Canyon tion over inside wire issues. cans-support construction of Pamo nuclear power plant costs. Last June In the Southern California Gas Com- Dam, the projected cost of which is the court rejected PG&E's request for pany (SoCal) rate restructuring case, the $107-160 million. dismissal of the case. Recently, the Cali- PUC agreed with TURN on an 11% The Environmental Protection Agen- fornia League of Food Processors, repre- (rather than 22%) gas rate increase for cy's (EPA) regional office in San senting large energy users, joined the residential customers. TURN will soon Francisco has opposed the project, con- case as amicus curiae, arguing that the be cross-examined in Federal Energy tending that less costly and environ- PUC's decision to permit a rate increase Regulatory Commission proceedings on mentally-damaging alternatives are could allow PG&E to unlawfully raise the proposed connection of interstate available. In late November, EPA made rates retroactively. TURN and the food gas pipelines to California, which are a significant move toward rejecting the processors have asked the court to nulli- intended to serve oil refineries in Kern dam by announcing its intention to fy the rate decision and refund $338 County. In a rare instance, TURN has begin the review process, leading to a million to ratepayers. TURN is also been joined in its opposition to the pipe- final decision within ninety days. The preparing for the major PUC reasonable- line connection by PG&E and SoCal,

The California Regulatory Law Reporter Vol. 8, No. 1 (Winter 1988) Jd PUBLIC INTEREST ORGANIZATION ACTION

currently the only two natural gas pro- aware of and contact organizations The consulting firms were not able viders in the state. TURN believes the which represent their interests in utility to gain access to SDG&E records until fixed costs of the pipeline will fall on rate proceedings. UCAN requested that 1988, so they spent six months during California residential ratepayers. SDG&E and other PUC-regulated utili- 1987 comparing SDG&E costs to those After lengthy negotiations with ties be required to include notices in of other utilities around the state and TURN and other consumer groups, the billing envelopes regarding consumer nation. Without being able to use com- PUC last fall ordered utility companies groups which intervene in PUC rate pro- pany records, the consultants estimated to insert announcements in utility bill- ceedings. The notices will be inserted that rates should be lowered in 1988 by ings stating that consumers may obtain four times by each utility between Sep- at least $100 million. As a result of the a list of groups which intervene in rate tember 1987 and December 1988, and UCAN/Energy Alliance "white paper" cases on behalf of ratepayers. Consum- will explain that a list of consumer on SDG&E, a PUC administrative law ers may obtain the list by contacting the group intervenors is available by con- judge recently ordered the company to PUC's Public Advisor, 505 Van Ness tacting the PUC's Public Advisor at present a full justification of its costs Avenue, San Francisco, CA 94102. (415) 557-0890. SDG&E will mail the during the General Rate Case. Pacific Bell initiated the bill inserts in first notice during its February billing In December, the PUC ordered September, followed by PG&E in Octo- cycle. SDG&E to cut its electric rates by ber. Utilities must include the notices Toward the end of 1988, the Public $141.2 million (10.2%) because of sav- four times per year. At the end of the Advisor's office will issue a report on ings in the cost of fuel. This type of trial program, the PUC will evaluate the the effectiveness of the program, follow- proceeding is known as an ECAC, or results and determine, with the input of ing an assessment of its own record of "Energy Cost Adjustment Clause" case, intervenors, whether the program is requests for information and a survey which periodically examines energy costs effective and worth continuing, and ways of intervenor groups. UCAN and other and inflation in an attempt to make in which it may be improved. groups hope that the bill inserts will appropriate adjustments to the utility's mean not only more help for consumers income and the customers' rates. UCAN with questions and problems, but that was a party in the ECAC proceeding, ratepayers will be inclined to donate which will result in a 5% decrease in the money to intervenors with proven rec- cost of electricity for the average resi- UCAN (UTILITY CONSUMERS' ords of success in representing the public. dential customer. Commercial and in- ACTION NETWORK) UCAN believes the upcoming 1988 dustrial customers received the best 4901 Morena Blvd., Suite 128 SDG&E General Rate Case proceeding reduction and will pay approximately San Diego, CA 92117 will be the public's only chance until 15-19% less. (619) 696-7510 1991 to scrutinize the management and UCAN contended that the reduction operations of SDG&E. The major rate should have been increased by an addi- Utility Consumers' Action Network case is extremely complex and may take tional $44 million, because the utility (UCAN) is a nonprofit advocacy group up to ten months of hearings. According had overcollected that amount. UCAN supported by 65,000 San Diego Gas and to UCAN's Executive Director charged that SDG&E lobbied the Com- Electric Company (SDG&E) residential Michael Shames, the outcome of the hearing missioners heavily for a ruling which and small business ratepayers. UCAN may mean a difference of hundreds of would allow it to keep the extra $44 focuses upon intervention before the dollars per year for the average residen- million in reserve-essentially as an California Public Utilities Commission tial ratepayer, and thousands to hun- interest-free loan from ratepayers-so (PUC) on issues which directly impact dreds of thousands of dollars to small that it can improve its image by asking San Diego ratepayers. business owners. for that reduction in 1988. UCAN was founded in 1983 after The last SDG&E General Rate case receiving permission from the Public UCAN was angered by the PUC's was conducted in 1985, when the December 22 decision to levy a $4.80- Utilities Commission to place inserts in utility requested an annual revenue increase of per-month service charge on residential SDG&E billing packets. These inserts $120 million, but later reduced its re- customers' bills whether any energy is permitted UCAN to attract a large mem- quest to $72 million. UCAN fought used or not. SDG&E argued for the fee bership within one year. The insert priv- the increase by analyzing company cover its administrative and fixed ilege has been suspended as a result of a data, to cross-examining SDG&E witnesses, and costs. The Commission said the fee United States Supreme Court decision by bringing its own experts would not increase the average bill be- limiting the content of such inserts. to the hear- ings. UCAN testified part of the UCAN began its advocacy in 1984. that rates should cause it was included as be lowered overall reduction. But UCAN said that It has intervened in SDG&E's 1985 Gen- by over $100 million. In the end, the PUC ordered a $123 about 20% of ratepayers who use only eral Rate Case; 1984, 1985, and 1986 million of energy would probably Energy Cost Adjustment Clause pro- decrease in rates. small amounts In the current proceeding, SDG&E experience an increase as a result of ceedings; the San Onofre cost overrun has opened the proceeding hearings; and SDG&E's holding com- by asking for the fee. a $5 million rate decrease. UCAN be- pany application. UCAN also assists in- lieves a much greater decrease is war- dividual ratepayers with complaints ranted, and recently joined with a against SDG&E and offers its informa- coalition of businesses (San Diego tional resources to San Diegans. Energy Alliance) to commission a study MAJOR PROJECTS: of why SDG&E rates are the highest in A September decision by the PUC, the state and among the highest in the which UCAN considers a victory, will nation (see CRLR Vol. 7, No. 4 (Fall make it easier for consumers to become 1987) p. 28 for details).

The California Regulatory Law Reporter Vol. 8, No. 1 (Winter 1988)