BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1222|
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UNFINISHED BUSINESS
Bill No: SB 1222
Author: Hertzberg (D)
Amended: 8/30/16
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
SENATE FLOOR: 39-0, 6/2/16
AYES: Allen, Anderson, Bates, Beall, Berryhill, Block,
Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall,
Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson,
Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning,
Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Stone,
Vidak, Wieckowski, Wolk
NO VOTE RECORDED: Runner
ASSEMBLY FLOOR: Not available
SUBJECT: Public Utilities Commission: reports: financing
orders
SOURCE: California Public Utilities Commission
DIGEST: This bill makes various changes to the authorities of
the California Public Utilities Commission (CPUC) and the
reports required to be provided to the Legislature.
Assembly Amendments extend the CPUC's authority to issue
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financing orders from December 31, 2016, to June 30, 2022 and
eliminate and move CPUC reports.
ANALYSIS:
Existing law:
1) Establishes the CPUC consisting 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.) Requires the California Energy
Commission (CEC) to submit to the CPUC and to publicly owned
electric utilities (POUs), 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 POUs to consider such recommendations within six
months after the date it receives them. (Public Resources
Code §25403)
2) Establishes an "Electric Program Investment Charge" to
collect funds for renewable energy programs and research,
development, and demonstration programs. (Public Resources
Code §25710)
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
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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" Decision 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) Establishes a Consumption Surcharge Fund to receive funds
for public interest research and development, as specified.
(Public Utilities Code §895)
10)Requires the CPUC to report to the Legislature regarding
specified activities of the California Public Utilities
Foundation. (Public Utilities Code §910.5)
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11)Requires the CPUC to annually review the e-complaints
program to ensure continued effectiveness. (Public Utilities
Code §910.6)
12)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)
13)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)
14)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)
15)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)
16)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, and California Alternative Energy and Advanced
Transportation Financing Authority in its annual report
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required in Section 913. (Public Utilities Code §913.9)
17)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.
2) Changes and adds to the required contents of specified CPUC
reports.
3) Repeals requirements for the CPUC to submit specified
reports.
4) Extends CPUC's authority to issue financing orders from
December 31, 2016, to June 30, 2022.
5) Limits CPUC's authority to serve warrants and make arrests
to investigators.
6) Adds a January 1, 2023 sunset date to a specified reporting
statute. This statute mandates electrical or gas corporations
using ratepayer money to fund research and development
projects report the findings of those projects to the
Legislature.
Background
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1) Purpose. According to the author, this bill clarifies CPUC
reporting obligations. According to the CPUC, there are
several dozen reports required by the Legislature. Many of
these report requirements have been scattered throughout the
Public Utilities Code. Several are now outdated, with
deadlines that have long passed.
CPUC sponsored legislation last year, SB 697 (Hertzberg,
Chapter 612, Statutes of 2015), shifted many reporting
requirements to one location within the code in an effort to
better organize the Public Utilities Code. This bill builds
off efforts from last year.
This bill also extends the sunset date on the CPUC's
authority to refinance the costs of electric deregulation.
In 1995, the state issued 20-year bonds to cover certain
costs associated with that transition that are paid back by
utility ratepayers. In recent years, interest rates have
declined substantially and the short term finance rates are
near zero percent. According to the CPUC, having refinancing
authority saves ratepayers money. This bill extends that
authority to June 30, 2022.
2) Report on Research and Development Projects. This bill was
amended to require the CPUC to require each participating
electrical corporation to jointly prepare and submit report
on research and development projects, as specified. The
report is to specifically provide information on the outcome
of whether a project "resulted in any technological
advancements or breakthroughs in promoting cyber security and
grid integration." Following acceptance of a sufficient
report by the CPUC, the report is to be submitted to the
Legislature. This report appears to be the report specified
in Public Utilities Code Section 740.5 (e)(2) that is
required for research activities specified in Public
Utilities Code Section 740.5 (a). A sunset date of January
1, 2023, is also included, similar to the sunset specified in
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Public Utilities Code Section 740.5(e)(3).
As written, the new section proposed in this bill appears as
a stand-alone report. The striking of the reporting language
in the existing code further delinks the relationship between
this reporting requirement and the research and development
activities specified in the current code. Without the
reference to the research and development specified in Public
Utilities Code Section 740.5, this bill could be referring to
the cybersecurity and renewable integration research and
development activities funded pursuant to Public Resources
Code Section 25710, Public Utilities Code Section 895,
shareholder-funded funded research and development activities
related to cybersecurity and renewable integration, or all of
the above.
Related/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, extended the sunset date by on year on
the CPUC's authority to issue financing orders, allowed for the
electronic filing of legislative reports, and made additional
codifying and technical changes to the Public Utilities Code
related to reports.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Assembly Appropriations Committee:
Increases CEC costs of approximately $136,000 (one personnel
year) to compile information, conduct analysis, and prepare
formal comments regarding energy efficient programs (Energy
Resources Program Account or other special fund.)
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No additional CPUC costs, potential minor savings.
SUPPORT: (Verified8/31/16)
California Public Utilities Commission (source)
OPPOSITION: (Verified8/31/16)
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.
Prepared by:Nidia Bautista / E., U., & C. / (916) 651-4107
8/31/16 20:49:20
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