BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 870
                                                                  Page 1


          SENATE THIRD READING
          SB 870 (Padilla)
          As Amended  July 12, 2011
          Majority vote 

           SENATE VOTE  :39-0  
           
           NATURAL RESOURCES   9-0         UTILITIES & COMMERCE         
          13-0                
           
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          |Ayes:|Chesbro, Knight,          |Ayes:|Bradford, Fletcher,       |
          |     |Brownley, Dickinson,      |     |Buchanan, Fong, Fuentes,  |
          |     |Grove, Halderman, Hill,   |     |Furutani, Beth Gaines,    |
          |     |Monning, Skinner          |     |Roger Hernández, Huffman, |
          |     |                          |     |Knight, Nestande,         |
          |     |                          |     |Skinner, Valadao          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      17-0                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fuentes, Harkey,          |     |                          |
          |     |Blumenfield, Bradford,    |     |                          |
          |     |Charles Calderon, Campos, |     |                          |
          |     |Davis, Donnelly, Gatto,   |     |                          |
          |     |Hall, Hill, Lara,         |     |                          |
          |     |Mitchell, Nielsen, Norby, |     |                          |
          |     |Solorio, Wagner           |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires the Chair of the California Energy Commission 
          (CEC) to annually appear before the appropriate policy 
          committees of the Senate and the Assembly to report on the CEC's 
          activities.   
           
           EXISTING LAW  :

          1)Establishes the CEC, provides for appointment of the Chair and 
            four other commissioners by the Governor, subject to Senate 
            confirmation, and requires the Chair to direct the adviser, 
            the executive director, and other staff in the performance of 








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            their duties in conformance with the policies and guidelines 
            established by the CEC.

          2)Requires the President of the Public Utilities Commission 
            (PUC) to annually appear before the appropriate policy 
            committees of the Senate and Assembly to report on two 
            specified annual reports required by statute.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, minor, absorbable annual costs to the CEC.

           COMMENTS  :  In 2003, AB 1735 (Utilities and Commerce Committee), 
          Chapter 452, Statutes of 2003, enacted a requirement for the 
          President of the PUC to annually appear before the "appropriate 
          policy committees" to report on two specific items - the PUC's 
          annual workplan and the "SB 960 report" on resolution of cases 
          and commissioner attendance at hearings.  This bill applies a 
          similar appearance requirement to the Chair of the CEC, though 
          the scope of the report is broader, applying to "the activities 
          of the commission."  According to the author, this bill is "part 
          of a multi-pronged effort to improve communication between the 
          CEC and the Legislature in an attempt to focus and revitalize 
          its programs and priorities."

          Notwithstanding the stated intent to improve communication, the 
          scope and purpose of this bill appear vague, and its necessity 
          unclear.  There are a couple differences between the CEC and PUC 
          that may be relevant to this bill.  First, the CEC already has 
          annual general policy reporting obligations to the Legislature 
          and Governor via the Integrated Energy Policy Report.  Second, 
          the CEC is three blocks, rather than 90 miles, from the Capitol, 
          making in-person communication easier.

          Last year, Governor Schwarzenegger vetoed SB 1467 (Padilla), 
          which contained a similar provision to this bill.  In his veto 
          message, the Governor stated:

               In addition to making several non-substantive 
               changes to the Public Utilities Code and the Public 
               Resources Code, this bill requires the Chairperson 
               of the State Energy Resources Conservation and 
               Development Commission (Commission) to appear 
               annually before the Senate Committee on Energy, 
               Utilities and Communications and the Assembly 








                                                                  SB 870
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               Committee on Utilities and Commerce to report on 
               the activities of the Commission.

               This bill is unnecessary.  During my 
               Administration, the Chairperson of the Commission 
               has always been accessible to the Legislature and, 
               in fact, has appeared on several occasions this 
               year before both committees to report on Energy 
               Commission activities.

               If the Legislature would like to invite the 
               Chairperson to appear before their committees, they 
               simply need to call.  In this bill's absence, I am 
               ordering DGS to check all phone lines between the 
               Legislature and the Chairperson's office to make 
               sure they are in good working order.


           Analysis Prepared by  :    Lawrence Lingbloom / NAT. RES. / (916) 
          319-2092 


                                                                FN: 0002140