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 --