BILL ANALYSIS                                                                                                                                                                                                    



          SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
                              Senator Ben Hueso, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 2903           Hearing Date:    6/13/2016
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          |Author:    |Committee on Utilities and Commerce                  |
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          |Version:   |3/3/2016    As Introduced                            |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Jay Dickenson                                        |
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          SUBJECT: Wharfingers:  warehouseman:  California Consumer Power  
          and Conservation Financing Authority:  energy crisis litigation

            DIGEST:    This bill makes several technical, noncontroversial  
          changes to statute, including deletion of reference to a state  
          agency that no longer exists; explicitly directs the Attorney  
          General (AG) to succeed the no-longer-existing agency; and  
          deletes obsolete references to the authority of a wharfinger and  
          a warehouseman to condemn property.

          ANALYSIS:
          
          Existing law:
          
          1)Applies rights and obligations with respect to eminent domain  
            only to a corporation or a person that is a public utility.  
            (Public Utilities Code 610 through 626).


          2)Authorizes a wharfinger to condemn any property necessary for  
            the construction and maintenance of facilities for the receipt  
            or discharge of freight or passengers.  (Public Utilities Code  
            619)


          3)Authorizes a warehouseman to condemn any property necessary  
            for the construction and maintenance of its facilities for  
            storing property.  (Public Utilities Code 623) 


          4)Requires the AG to represent the Department of Finance to  







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            succeed to, and may exercise, all rights, claims, powers, and  
            entitlements of the Electricity Oversight Board in any  
            litigation or settlement related to the 2000-02 energy crisis,  
            as specified. (Public Utilities Code 343)


          5)Establishes the California Consumer Power and Conservation  
            Financing Authority (CPA) to provide the state with reliable,  
            affordable electrical power, to ensure sufficient power  
            reserves, to assure stability and rationality in California's  
            electricity market, to encourage energy efficiency and  
            conservation as well as the use of renewable energy resources,  
            and to protect the public health, welfare, and safety.   
            (Public Utilities Code 3300 et seq.)


          6)Sunsets the CPA's authority to finance or approve any new  
            program, enterprise, or project on January 1, 2007.


          This bill:

          1)Repeals the California Consumer Power and Conservation  
            Financing Authority Act.


          2)Requires the AG to represent the Department of Finance and to  
            succeed all rights, claims, powers, and entitlements of the  
            CPA in any litigation or settlement relating to the 2000-02  
            energy crisis. 


          3)Deletes the authority for a warehouseman to condemn property  
            necessary for the construction and maintenance of facilities  
            for storing property. 


          4)Deletes the authority for a wharfinger to condemn property  
            necessary for the construction and maintenance of facilities  
            for the receipt or discharge of freight or passengers. 


          Background

          California Consumer Power and Conservation Financing Authority.  








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          The CPA was established in 2001 under SB 6 X1 (Burton), Chapter  
          10, Statutes of 2001-02 First Extraordinary Session.  The CPA  
          was created to ensure the state had reliable, affordable  
          electrical power, establish sufficient power reserves, assure  
          stability and rationality in the state's electricity market,  
          encourage energy efficiency and conservation as well as the use  
          of renewable energy resources, and protect the public health,  
          welfare, and safety.  The CPA was authorized to issue up to $5  
          billion in revenue bonds to finance such activities. The CPA's  
          authority to finance or approve any new program, enterprise, or  
          project sunset on January 1, 2007.

          This bill repeals the CPA and its authorities from statute. This  
          bill also requires the AG to succeed to the CPA and authorizes  
          the AG to exercise all rights, claims, powers and entitlements  
          of the CPA.  This requirement and authority mirrors statutory  
          requirements and authorities made of and given to the AG in  
          relation to the Energy Oversight Board, another defunct state  
          agency.

          Word of the day:  wharfinger.  Once upon a time, state law  
          classified a warehouseman - the operator of a warehouse - and a  
          wharfinger - the operator of a wharf - as a public utility,  
          thus, each subject CPUC regulation.  Alas, woe the warehouseman!  
           Woe the wharfinger!  In the 1980s, the Legislature twice  
          amended statute so that, first the warehouseman, then the  
          wharfinger, was no longer a public utility.  However, the  
          Legislature left intact sections of the Public Resources Code  
          granting warehousemen and wharfingers the power to condemn  
          property for purposes of eminent domain.  This bill deletes  
          those obsolete statutory references. 

          FISCAL EFFECT:                 Appropriation:  No    Fiscal  
          Com.:             Yes          Local:          No


            SUPPORT:  

          None received

          OPPOSITION:

          None received

          ARGUMENTS IN SUPPORT:    This is a code clean-up bill.








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