BILL NUMBER: SB 106 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY SEPTEMBER 4, 2015
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 9, 2015
An act relating to the Budget Act of 2015.
An act to add Section 12803.2.5 to the Government Code, and to amend
S ection 309.5 of, and to add Sections 326.6, 326.7, and
327.5 to, the Public Utilities Code, relating to the Public Utilities
Commission, and making an appropriation therefor, to take effect
immediately, bill related to the budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 106, as amended, Committee on Budget and Fiscal Review.
Budget Act of 2015. Public Utilities
Commission.
The California Constitution establishes the Public Utilities
Commission with jurisdiction over all public utilities, authorizes
the commission to establish its own procedures, subject to statutory
limitations or directions and constitutional requirements of due
process, and authorizes the commission to fix the rates and establish
rules for public utilities, subject to control by the Legislature.
The Public Utilities Act establishes an independent Office of
Ratepayer Advocates within the Public Utilities Commission, to
represent the interests of public utility customers and subscribers,
with the goal of obtaining the lowest possible rate for service
consistent with reliable and safe service levels. Existing law
requires the director of the office to develop a budget for the
office that is submitted to the Department of Finance for final
approval. Existing law authorizes the director of the office to
appoint a lead attorney to represent the office and requires the lead
attorney to obtain adequate legal personnel for the work to be
conducted by the office from the Public Utilities Commission's
attorney and requires the Public Utilities Commission's attorney to
timely and appropriately fulfill all requests for legal personnel
made by the lead attorney for the office, provided the office has
sufficient moneys and positions in its budget for the services
requested. Existing law requires the commission to develop
appropriate procedures to ensure that the existence of the office
does not create a conflict of roles for any employee.
This bill would delete the requirement that the lead attorney
obtain adequate legal personnel for the work to be conducted by the
office from the Public Utilities Commission's attorney and the
requirement that the Public Utilities Commission's attorney timely
and appropriately fulfill all requests for legal personnel made by
the lead attorney for the office. The bill would require the
commission to coordinate with the office in developing appropriate
procedures to ensure that the existence of the office does not create
a conflict of roles for any employee.
The California Constitution provides that the Legislature has
plenary power, unlimited by the other provisions of the constitution,
to confer additional authority and jurisdiction upon the commission
that is cognate and germane to the regulation of public utilities.
The Public Utilities Act authorizes the commission to supervise and
regulate every public utility and to do all things that are necessary
and convenient in the exercise of its power and jurisdiction whether
specifically designated in the act or in addition thereto.
This bill would prohibit the commission from funding any program
by a state entity using charges collected from public utility
ratepayers unless expressly authorized to do so by statute enacted by
the Legislature, including the annual Budget Act.
Existing law requires the commission to submit to the Joint
Legislative Budget Committee reports on all sources and amount of
funding and actual and proposed expenditures for various activities.
This bill would require the commission, on a semiannual basis, to
provide the Joint Legislative Budget Commission a written
notification of any redirection of funds and positions, including
loaning staff to other state agencies or departments. The bill would
require the California Research Bureau to conduct a review of the
organization of the commission to ensure that the commission is the
best governmental entity to direct, regulate, and oversee specified
public utility sectors.
Existing decisions of the commission establish the California Hub
for Energy Efficiency Financing, or CHEEF, program, a 2-year pilot
program administered by the California Alternative Energy and
Advanced Transportation Financing Authority and funded through
charges collected by specified electrical corporations and gas
corporations from their ratepayers.
The bill would require the commission to report to the relevant
policy and fiscal committees of the Legislature on the outcomes of
the CHEEF program and would prohibit the commission from approving
any extension of the program sooner than 30 days after making its
report.
Existing law establishes the Government Operations Agency
consisting of certain state entities, including the Department of
Human Resources, which is governed by the Secretary of Government
Operations.
The bill would require the Secretary of Government Operations to
contract with an independent, 3rd-party consulting firm to assess the
degree to which each activity and position related to the energy
responsibilities of the commission supports the core mission of the
commission. The bill would require the secretary, by April 1, 2016,
to submit a report to the Legislature on the assessment.
The bill would appropriate $5,000,000 to the commission for the
support of the commission.
This bill would declare that it is to take effect immediately as a
bill providing for appropriations related to the Budget Bill.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2015.
Vote: majority. Appropriation: no yes
. Fiscal committee: no yes .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 12803.2.5 is added to the
Government Code , to read:
12803.2.5. (a) The Secretary of Government Operations shall
contract with an independent, third-party consulting firm to assess
the degree to which each activity and position related to the energy
responsibilities of the Public Utilities Commission, as identified in
the commission's zero-based budget conducted pursuant to Section 318
of the Public Utilities Code, supports the core mission of the
commission and to make recommendations as to how resources might be
better allocated to achieve the core mission objectives of the
commission.
(b) The contracted consulting firm shall provide to the Joint
Legislative Budget Committee and the Department of Finance monthly
updates on the progress of the assessment.
(c) (1) By April 1, 2016, the Secretary of Government Operations
shall, pursuant to Section 9795, submit to the Legislature a report
on the assessment.
(2) Pursuant to Section 10231.5, this subdivision is inoperative
on April 1, 2020.
(d) The Public Utilities Commission shall reimburse the Government
Operations Agency for the costs incurred pursuant to this section
upon request by the agency and appropriation by the Legislature.
SEC. 2. Section 309.5 of the Public
Utilities Code is amended to read:
309.5. (a) There is within the commission an independent Office
of Ratepayer Advocates to represent and advocate on behalf of the
interests of public utility customers and subscribers within the
jurisdiction of the commission. The goal of the office shall be to
obtain the lowest possible rate for service consistent with reliable
and safe service levels. For revenue allocation and rate design
matters, the office shall primarily consider the interests of
residential and small commercial customers.
(b) (1) The director of the office shall be
appointed by, and serve at the pleasure of, the Governor, subject to
confirmation by the Senate.
(2) The director shall annually appear
before the appropriate policy committees of the Assembly and the
Senate to report on the activities of the office.
(c) The director shall develop a budget for the office that shall
be subject to final approval of the Department of Finance. As
authorized in the approved budget, the office shall employ personnel
and resources, including attorneys and other legal support staff, at
a level sufficient to ensure that customer and subscriber interests
are effectively represented in all significant proceedings. The
office may employ experts necessary to carry out its functions. The
director may appoint a lead attorney who shall represent the office,
and shall report to and serve at the pleasure of the director.
The lead attorney for the office shall obtain adequate legal
personnel for the work to be conducted by the office from the
commission's attorney appointed pursuant to Section 307. The
commission's attorney shall timely and appropriately fulfill all
requests for legal personnel made by the lead attorney for the
office, provided the office has sufficient moneys and positions in
its budget for the services requested.
(d) The commission shall coordinate with the office to
develop appropriate procedures to ensure that the existence of the
office does not create a conflict of roles for any employee. The
procedures shall include, but shall not be limited to, the
development of a code of conduct and procedures for ensuring that
advocates and their representatives on a particular case or
proceeding are not advising decisionmakers on the same case or
proceeding.
(e) The office may compel the production or disclosure of any
information it deems necessary to perform its duties from any entity
regulated by the commission, provided that any objections to any
request for information shall be decided in writing by the assigned
commissioner or by the president of the commission, if there is no
assigned commissioner.
(f) There is hereby created the Public Utilities Commission
Ratepayer Advocate Account in the General Fund. Moneys from the
Public Utilities Commission Utilities Reimbursement Account in the
General Fund shall be transferred in the annual Budget Act to the
Public Utilities Commission Ratepayer Advocate Account. The funds in
the Public Utilities Commission Ratepayer Advocate Account shall be a
budgetary program fund administered and utilized exclusively by the
office in the performance of its duties as determined by the
director. The director shall annually submit a staffing report
containing a comparison of the staffing levels for each five-year
period.
(g) On or before January 10 of each year, the office shall provide
to the chairperson of the fiscal committee of each house of the
Legislature and to the Joint Legislative Budget Committee all of the
following information:
(1) The number of personnel years utilized during the prior year
by the Office of Ratepayer Advocates.
(2) The total dollars expended by the Office of Ratepayer
Advocates in the prior year, the estimated total dollars expended in
the current year, and the total dollars proposed for appropriation in
the following budget year.
(3) Workload standards and measures for the Office of Ratepayer
Advocates.
(h) The office shall meet and confer in an informal setting with a
regulated entity prior to issuing a report or pleading to the
commission regarding alleged misconduct, or a violation of a law or a
commission rule or order, raised by the office in a complaint. The
meet and confer process shall be utilized in good faith to reach
agreement on issues raised by the office regarding any regulated
entity in the complaint proceeding.
SEC. 3. Section 326.6 is added to the
Public Utilities Code , to read:
326.6. The commission shall not fund any program by a state
entity using charges collected from ratepayers unless expressly
authorized to do so by statute enacted by the Legislature, including
the annual Budget Act.
SEC. 4. Section 326.7 is added to the
Public Utilities Code , to read:
326.7. The commission, on a semiannual basis, shall provide to
the Joint Legislative Budget Committee a written notification of any
redirection of funds and positions, including loaning staff to other
state agencies or departments.
SEC. 5. Section 327.5 is added to the
Public Utilities Code , to read:
327.5. (a) The California Research Bureau shall conduct a review
of the organization of the commission to ensure that the commission
is the best governmental entity to continue to direct, regulate, and
oversee activities under the commission's jurisdiction, including
safety enforcement, in energy, communications, transportation, and
water sectors, to determine whether other governmental entities are
duplicating the activities of the commission, and to determine
whether other governmental entities are better situated to regulate
and oversee those activities.
(b) In conducting the review, the California Research Bureau, in
consultation with appropriate state entities, shall do all of the
following:
(1) Make recommendations as to which state or local agencies are
best suited to regulate and oversee those activities specified in
subdivision (a).
(2) Make recommendations for improving oversight, regulation, and
efficiency to best serve California's ratepayers, businesses, and
utilities.
(3) Estimate the costs associated with the implementation of its
recommendations.
SEC. 6. The Public Utilities Commission shall
report to the relevant policy and fiscal committees of the
Legislature on the outcomes of the California Hub for Energy
Efficiency Financing, or CHEEF, program. The commission shall not
approve any extension of the CHEEF program sooner than 30 days after
making its report pursuant to this section.
SEC. 7. The sum of five million dollars
($5,000,000) is hereby appropriated from the Public Utilities
Commission Utilities Reimbursement Account to the Public Utilities
Commission for the support of the commission.
SEC. 8. This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.
SECTION 1. It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2015.