BILL ANALYSIS Ó SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS Senator Ben Hueso, Chair 2015 - 2016 Regular Bill No: SB 1222 Hearing Date: 4/19/2016 ----------------------------------------------------------------- |Author: |Hertzberg | |-----------+-----------------------------------------------------| |Version: |4/12/2016 As Amended | ----------------------------------------------------------------- ------------------------------------------------------------------ |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Nidia Bautista | | | | ----------------------------------------------------------------- SUBJECT: Public Utilities Commission: reports DIGEST: This bill would change the date by which the California Public Utilities Commission (CPUC) must submit specified reports, change the contents of specified reports, and repeal provisions requiring the CPUC to submit specified reports. ANALYSIS: Existing law: 1)Establishes the CPUC consists of five members appointed by the governor and approved by the senate and that the Legislature has plenary power, unlimited by the other provisions of the constitution but consistent with this article, to confer additional authority and jurisdiction upon the CPUC, to establish the manner and scope of review of CPUC action in a court of record. (California Constitution, Article XII, §1 et seq.) 2)Requires the California Energy Commission (CEC) to submit to the CPUC and to publicly owned electric utilities, recommendations designed to reduce wasteful, unnecessary, or uneconomic energy consumption resulting from rate structures, cost of service allocations, the disallowance of business expense and others. Requires the CPUC and publicly owned electric utilities to consider such recommendations within six months after the date it receive them. (Public Resources Code §25403) 3)Requires the CPUC to conduct a zero-based budget for all of SB 1222 (Hertzberg) Page 2 of ? its programs by January 10, 2015. (Public Utilities Code §318) 4)Requires the California Independent Systems Operator (CAISO), in consultation with the CEC, CPUC, Western Electricity Coordinating Council (WECC), and concerned agencies in the western states to provide a report to the Legislature and the Oversight Board within six months of the Federal Energy Regulatory Commission (FERC) that includes specified information. (Public Utilities Code §350) 5)Requires the CPUC to prepare and submit a report to the Legislature, on or before, June 1, 2002, describing its proposed methodology for determining the new electric rates required by January 1, 2003. (Public Utilities Code §353.13(b)) 6)Requires the CPUC, in consultation with the California Air Resources Board (ARB) or appropriate local air quality management district, and CEC, to evaluate the efficiency, emissions, and reliability of distributed energy resources with a capacity greater than 10 kilowatts and submit a report to the Legislature by 2003. (Public Utilities Code §353.15 (c)) 7)Requires each electrical corporation participating in the "21st Century Energy System Decision" D. 12-12-031 to submit a report to the CPUC by December 1, 2013. (Public Utilities Code §740.5) 8)Requires the CPUC to review its policies concerning pricing of utility service and assess whether the pricing promotes energy efficiency by customers and report to the Legislature as soon as practicable. (Public Utilities Code §747.5) 9)Requires the CPUC to report to the Legislature regarding specified activities of the California Public Utilities Foundation. (Public Utilities Code §910.5) 10)Requires the CPUC to annually review the e-complaints program to ensure continued effectiveness. (Public Utilities Code §910.6) 11)Requires specified reporting by the CPUC, by each May 1, to the Legislature related to implementing the renewable SB 1222 (Hertzberg) Page 3 of ? portfolio standard (RPS) including information related to costs, revenues, workforce training/recruitment and others. (Public Utilities Code §913.3) 12)Requires the CPUC to provide a quarterly report of the progress of each electrical corporation in meeting the RPS and other specified information. (Public Utilities Code §913.5) 13)Requires the CPUC, in consultation with the CEC, to report to the Legislature every January 1 of every even numbered year on the progress and status of procurement, permitting and siting, transmission facilities and other specified information related to the RPS. (Public Utilities Code §913.6) 14)Requires the CPUC to provide a report every three years to the Legislature on the energy efficiency and conservation programs it oversees, including authorized utility budgets. The report shall include information regarding each electrical corporation's and each gas corporation's implementation of energy efficiency for residential buildings. (Public Utilities Code §§913.7 and 913.8) 15)Requires the CPUC to annually report to the Legislature on its efforts to identify ratepayer funded energy efficiency programs that are similar to those administered by the CEC, ARB, California Advanced Energy and Transportation Fund Authority (CAETFA) in its annual report required in Section 913. (Public Utilities Code §913.9) 16)Requires the CPUC to provide a progress report to the Legislature of each odd-numbered year concerning policies on rates, equipment, and infrastructure implemented by the CPUC and other state agencies, to facilitate the use of electricity to power and natural gas to fuel low-emission vehicles. (Public Utilities Code §913.11) This bill: 1)Changes dates by which the CPUC must submit specified reports, including: a. Moves from Janaury 10 to February 1 the annual report to the Legislature regarding all sources, funding SB 1222 (Hertzberg) Page 4 of ? amounts and expenditures related to specified CPUC-initiated nonprofits in Section 910.4 of the Public Utilities Code. b. Moves from January 1 to February 1 of each year the CPUC report to the Governor and Legislature on the CPUC's recommendations for a smart grid and related specified information noted in Public Utilities Code §913.2. c. Makes the quarterly report required in Public Utilities Code §913.5 an annual report on the progress each electrical corporation is making to meet the RPS. d. Moves the date from January 1 to February 1 for the biennial report to the Legislature required in Public Utilities Code §913.10 and repeals the mention of the net-energy meeting pilot program. 2)Changes the contents of specified reports, including: a. Combining requirements from Sections 913.3, 913.4, and 913.6, in order to streamline and eliminate duplicative reports. 3)Repeals provisions requiring the CPUC to submit specified reports, including: a. Section 25403 of the Public Resources Code requires the CEC to submit the CPUC and to publicly owned electric utilities, recommendations designed to reduce wasteful, unnecessary, or uneconomic energy consumption resulting from rate structures, cost of service allocations, the disallowance of business expense and others. Requires the CPUC and publicly owned electric utilities to consider such recommendations within six months after the date it receive them. b. Section 318 of the Public Utilities Code requires the CPUC to conduct a zero-based budget by January 2015 for the entire agency. c. Section 350 of the Public Utilities Code required CAISO, in consultation with the CEC, CPUC, WECC, and concerned agencies in the western states to provide a report to the Legislature and the Oversight Board within SB 1222 (Hertzberg) Page 5 of ? six months of FERC that includes specified information. d. Section 353.13 (b) that requires the CPUC to prepare and submit a report to the Legislature, on or before, June 1, 2002, describing its proposed methodology for determining the new electric rates required by January 1, 2003. e. Section 353.15 of the Public Utilities Code requires the CPUC, in consultation with the ARB or appropriate local air quality management district, and CEC, to evaluate the efficiency, emissions, and reliability of distributed energy resources with a capacity greater than 10 kilowatts and submit a report to the Legislature by 2003. f. Public Utilities Code §740.5 requires each electrical corporation participating in the "21st Century Energy System Decision" D. 12-12-031 to submit a report to the CPUC by December 1, 2013. g. Public Utilities Code §747.5 requires the CPUC to review its policies concerning pricing of utility service and assess whether the pricing promotes energy efficiency by customers and report to the Legislature as soon as practicable. h. Public Utilities Code §910.5 requires the CPUC to report to the Legislature regarding specified activities of the California Public Utilities Foundation. i. Public Utilities Code §913.3 requires specified information related to implementing the RPS, including information related to workforce training/recruitment. j. Public Utilities Code §913.6 requires an biennial report from the CPUC, in consultation with the CEC, to the Legislature on activities related to procurement, siting, permitting, transmission and other specified information, of the renewable portfolio standard. SB 1222 (Hertzberg) Page 6 of ? aa. Public Utilities Code §913.8 requires the CPUC to include information in the triennial report required in Section 913.7 related to how each electrical and gas corporation is implementing residential energy efficiency program in Public Resources Code §95943. bb. Public Utilities Code 913.9 to annually report to the Legislature on its efforts to identify ratepayer funded energy efficiency programs that are similar to those administered by the CEC, ARB, CAETFA in its annual report required in Section 913. cc. Public Utilities Code §913.11 requires the CPUC to provide a progress report to the Legislature of each odd-numbered year concerning policies on rates, equipment, and infrastructure implemented by the CPUC and other state agencies, to facilitate the use of electricity to power and natural gas to fuel low-emission vehicles. 4)Makes technical changes to clarify the Public Utilities Code, including: a. In several areas, replaces references to the former Consumer Services Division of the CPUC which used to house investigators, who are now housed in other divisions, and replaces with more appropriate personnel references, including "railroad investigators" or "persons employed as investigators by the CPUC." Background There are several dozen reports required of the CPUC by the Legislature ranging from an annual work plan report, to triennial reports on energy efficiency programs, to quarterly reports related to progress meeting the RPS. Unfortunately, many of these report requirements have been scattered throughout the code and several are now outdated, with deadlines that have long passed. In an effort to better organize the Public Utilities Code and to have all required reports of the CPUC to the Legislature located in one area, last year, the CPUC sponsored legislation, SB 697 (Hertzberg, 2015), to shift many of these requirements to one location within the code, in the 910s area. This bill builds SB 1222 (Hertzberg) Page 7 of ? off the efforts from last year's bill, in what likely should be a committee or chair authored bill. SB 1222 repeals many of the reports whose deadline has passed, in many instances by over 10 years. However, this bill also includes some recent additions, such as the 2013 budget statute requiring the CPUC to conduct a zero-based budget for all its programs by January 10, 2015. Although that exercise resulted in mixed results, there does not seem to be much appetite from the Senate Budget Committee to require another zero-based budget from the CPUC. Other report requirements are no longer applicable, such as the report regarding expenditures of the California Public Utilities Commission Foundation. While there is value in terms of understanding the legacy of activities to have the code continue to reference outdated reports, there is a greater value to simplify and streamline the code as needed. However, there are some provisions in the bill that merit clarification: Section 17 - Section 913.3 (a) (8) of the Public Utilities Code requiring reports related to workforce/training to assess how the RPS is providing in state job creation. Section 22 - Section 913.9 of the Public Utilities Code requires an annual report on efforts to identify overlapping efforts between CEC, ARB, CAETFA, and CPUC on energy efficiency programs. Section 23 - Section 913.10 of the Public Utilities Code to require net-energy metering efforts are included in the report regarding the impacts of distributed energy resources on the state's distribution and transmission grid. The author and committee may wish to amend this bill to ensure the areas above are covered within the report requirements maintained in the statutes. Prior/Related Legislation SB 697 (Hertzberg, Chapter 612, Statutes of 2015) repealed the requirement of the CPUC to issue a decal to charter-party carriers of passengers, extends the sunset date by on year on the CPUC's authority to issue financing orders, allows for the electronic filing of legislative reports, and makes additional codifying and technical changes to the Public Utilities Code SB 1222 (Hertzberg) Page 8 of ? related to reports. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No SUPPORT: California Public Utilities Commission (Source) OPPOSITION: None received ARGUMENTS IN SUPPORT: The CPUC issues dozens reports each year covering safety, rail, transportation, energy, water, and telecommunications issues, as well as general operations of the agency. Current California law makes it difficult to identify reporting requirements currently scattered across the Public Utilities Code, thus making it harder for the CPUC to comply with all of its reporting obligations. Additionally, some reports on customer data are due at a time when no such data is available. -- END --