BILL ANALYSIS Ó
AB 2271
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Date of Hearing: May 18, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2271 (Quirk) - As Amended March 17, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the California Public Utilities Commission
(PUC) to establish a procedure for the independent peer review
of research programs proposed by an electrical corporation.
Specifically, this bill:
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1)Requires the PUC to establish a procedure for independent peer
review of research programs proposed by an electrical
corporation to be conducted upon the PUC's receipt of a
proposed research program.
2)Requires the PUC to make the results of the review, upon
approval of the research program, available to the public on
its website.
3)Specifies research programs do not include programs funded
pursuant to the Public Interest Energy Research,
Demonstration, and Development Program (PIER) or the Electric
Program Investment Charge program (EPIC).
FISCAL EFFECT:
The PUC will require additional permanent staff, at the cost of
about $390,000 per year, to identify proposals, administer
contracts with independent research entities, and ensure
researchers do not have conflicts of interest. Additionally,
the PUC estimates expert review contract costs to be $250,000
per year for five years.
CEC and ARB costs are minor and absorbable.
COMMENTS:
1)Purpose. According to the author, it is essential to have the
proper evaluation of the scientific and technical merits of
the research the PUC approves. This bill will require an
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independent peer review to be conducted once the PUC receives
a proposed program. This bill will also require the results of
the review to be posted on the PUC 's website.
Research proposals likely subject to this requirement are
those conducted pursuant to many proceedings, including those
addressing electric vehicles, demand response, distribution
resource planning, and long term procurement planning.
2)Background. PUC-regulated electrical corporations conduct and
administer research. These research programs are often
included in PUC rate cases to recover costs through rates. The
PUC may allow electrical corporations to use ratepayer funds
if it determines investments made with those funds will be in
the public interest and are just and reasonable. Between 2009
and 2014, the PUC approved about $400 million in ratepayer
funds for research and development. The majority of these
funds were approved without review by experts in the field of
research being funded, because the PUC does not have such a
process in place. Some funds have been awarded to sole-source
projects.
By requiring an independent third-party review, this bill will
increase the quality of research performed, and provide
additional credibility to the research and funding process.
Further transparency will be added by publishing the results
of the review.
AB 2271
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Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081