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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             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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             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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