BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1222|
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THIRD READING
Bill No: SB 1222
Author: Hertzberg (D)
Amended: 5/31/16
Vote: 21
SENATE ENERGY, U. & C. COMMITTEE: 11-0, 4/19/16
AYES: Hueso, Morrell, Cannella, Gaines, Hertzberg, Hill, Lara,
Leyva, McGuire, Pavley, Wolk
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/27/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
SUBJECT: Public Utilities Commission: reports
SOURCE: California Public Utilities Commission
DIGEST: This bill makes several changes to reports required of
the California Public Utilities Commission (CPUC) to be provided
to the Legislature, including: (1) changes the date by which the
CPUC must submit specified reports, (2) changes the contents of
specified reports, (3) repeals provisions requiring the CPUC to
submit specified reports, and (4) directs the California Energy
Commission (CEC) to provide a report on energy efficiency
programs.
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
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Page 2
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 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
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
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Page 3
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
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
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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 January 10 to February 1 the annual report
to the Legislature regarding all sources, funding 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 Section 913.2.
c) Makes the quarterly report required in Public
Utilities Code Section 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 Section 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.
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b) Requires the CEC, rather than the CPUC, to annually
report on recommendations to the CPUC regarding
ratepayer-funded energy efficiency programs that are
similar to those administered by the CPUC, CEC, the ARB,
CAETFA, the California Infrastructure and Economic
Development Bank, the Department of Community Services and
Development Agency.
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
six months of FERC that includes specified information.
d) Section 353.13 (b) of the Public Utilities Code 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
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2003.
f) Public Utilities Code Section 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 Section 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 Section 910.5 requires the CPUC
to report to the Legislature regarding specified
activities of the California Public Utilities Foundation.
i) Public Utilities Code Section 913.3 requires specified
information related to implementing the RPS, including
information related to workforce training/recruitment.
j) Public Utilities Code Section 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 RPS.
aa) Public Utilities Code Section 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 Section 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 Section 913.11 requires the CPUC
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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 the state's progress in meeting the RPS.
Unfortunately, many of these report requirements have been
scattered throughout the Public Utilities 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, Chapter 612, Statutes of 2015), to shift many of
these requirements to one location within the code, in the 910s
area. This bill builds off the efforts from last year's 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.
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Prior 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
related to reports.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee:
Unknown, likely under $100,000 (Energy Resources Programs
Account), in costs for the CEC to develop and submit energy
efficiency report.
Unknown, likely under $100,000 (Public Utilities Commission
Utilities Reimbursement Account), reduction in costs to the
CPUC resulting from the transition of the report to the CEC.
SUPPORT: (Verified 5/31/16)
California Public Utilities Commission (source)
OPPOSITION: (Verified5/31/16)
None received
ARGUMENTS IN SUPPORT: The CPUC states that they issues dozens
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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.
Prepared by:Nidia Bautista / E., U., & C. / (916) 651-4107
5/31/16 21:42:44
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