The state may be able to rescind utility executive income, if AB 861 passes. In a June 19 Senate Energy, Utilities, & Communications Committee hearing, the state would reverse the usual direction of funding--from ratepayers to utilities--if utilities were found responsible for a safety violation. \u201cCutting corners kills people,\u201d said Assemblymember Jerry Hill (D-San Mateo), author of the bill. He\u2019s attempting to reform utility management after the fatal 2010 natural gas pipeline explosion in San Bruno. Several lawmakers agreed with Hill\u2019s sentiment--that utilities are responsible for public safety and that their executives should not be able to abscond with impunity. The bill allows the state to \u201cclaw back\u201d utility executives\u2019 income. The details are sketchy--and as several witnesses stated, would get mired in legal glitches--but the state seems intent on sending a message to utility management. Beware of \u201cunintended consequences,\u201d said Kent Kauss, Pacific Gas & Electric lobbyist. He, and other utility witnesses, noted that such a claws clause jeopardizes attracting responsible executive management. While most of the politicians spoke in favor of AB 861, committee chair Sen. Alex Padilla (D-Van Nuys) sided with utilities. He noted that if passed, financial institutions are lining up to charge utilities and ratepayers for hedging policies against such state actions. \u201cThere\u2019s a letter from the Cayman Islands\u201d inquiring into such underwriting, noted Padilla. The bill passed 12-0. In other moves, the panel acted on: AB 1186 by Assemblymember Nancy Skinner (D-Oakland), which takes on mom, apple pie, and schools v. greenhouse gas credit auction proceeds. It intends to lower school electricity use through efficiency--although where the money is to originate is under question. The legislation initially intended to grasp the unknown amount of revenue from the state\u2019s greenhouse gas credit auction, but Skinner said that she\u2019s \u201cmuch more attached to the concept\u201d than the source of funds. Utilities oppose the measure. A San Diego Gas & Electric lobbyist called it \u201cpremature.\u201d Sen. Fran Pavley (D-Agoura Hills) sided against the measure as written because she doesn\u2019t want the California Public Utilities Commission to determine use of greenhouse gas auction money. The measure passed 8-3. AB 2409 by Assemblymember Mike Allen (D-Santa Rosa), which intends to \u201cmonetize\u201d energy savings, according to its author, in an effort to attract businesses to the state. The California Energy Commission would be required to consider the economic advantages of its decisions on granting funds--with economic growth for the state at the forefront. It passed 12-0.