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 
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          |Author:    |Hertzberg                                            |
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          |Version:   |4/12/2016    As Amended                              |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Nidia Bautista                                       |
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          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  







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            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  








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            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  








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                 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  








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                 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. 










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               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  








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          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  








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          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.


          

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