BILL ANALYSIS Ó
AB 2271
Page 1
ASSEMBLY THIRD READING
AB
2271 (Quirk)
As Amended March 17, 2016
Majority vote
------------------------------------------------------------------
|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Utilities |14-0 |Gatto, Patterson, | |
| | |Burke, Chávez, Dahle, | |
| | |Eggman, Cristina | |
| | |Garcia, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Hadley, | |
| | | | |
| | | | |
| | |Roger Hernández, | |
| | |Obernolte, Quirk, | |
| | |Santiago, Williams | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |20-0 |Gonzalez, Bigelow, | |
| | |Bloom, Bonilla, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, Eggman, | |
| | |Gallagher, Eduardo | |
AB 2271
Page 2
| | |Garcia, Roger | |
| | |Hernández, Holden, | |
| | |Jones, Obernolte, | |
| | |Quirk, Santiago, | |
| | |Wagner, Weber, Wood | |
| | | | |
| | | | |
------------------------------------------------------------------
SUMMARY: Requires the California Public Utilities Commission
(CPUC) to establish a procedure for the independent peer review
of research programs proposed by an electrical corporation.
Specifically, this bill:
1)Requires the CPUC to establish a procedure for independent
peer review of research programs proposed by an electrical
corporation to be conducted upon the CPUC's receipt of a
proposed research program.
2)Requires the CPUC 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 or the Electric Program
Investment Charge program.
FISCAL EFFECT: According to the Assembly Appropriations
Committee:
1)The CPUC will require additional permanent staff, at the cost
of about $390,000 per year, to identify proposals, administer
AB 2271
Page 3
contracts with independent research entities, and ensure
researchers do not have conflicts of interest. Additionally,
the CPUC estimates expert review contract costs to be $250,000
per year for five years.
2)California Energy Commission and the Air Resources Board 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 CPUC approves. This bill will require an
independent peer review to be conducted once the CPUC receives
a proposed program. This bill will also require the results of
the review to be posted on the CPUC's Web site.
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: CPUC-regulated electrical corporations conduct
and administer research. These research programs are often
included in CPUC rate cases to recover costs through rates.
The CPUC 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 CPUC 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 CPUC 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
AB 2271
Page 4
additional credibility to the research and funding process.
Further transparency will be added by publishing the results
of the review.
Analysis Prepared by:
Darion Johnston / U. & C. / (916) 319-2083FN:
0003221