BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1222


                                                                    Page  1





          (Without Reference to File)





          SENATE THIRD READING


          SB  
          1222 (Hertzberg)


          As Amended  August 30, 2016


          Majority vote


          SENATE VOTE:  39-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Utilities &     |15-0 |Gatto, Patterson,     |                    |
          |Commerce        |     |Burke, Chávez, Dahle, |                    |
          |                |     |Eggman, Cristina      |                    |
          |                |     |Garcia,               |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |Hadley,               |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Roger Hernández,      |                    |








                                                                    SB 1222


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          |                |     |Obernolte, Quirk,     |                    |
          |                |     |Santiago, Ting,       |                    |
          |                |     |Williams              |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood,  |                    |
          |                |     |Chau                  |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Utilities &     |14-0 |Gatto, Patterson,     |                    |
          |Commerce        |     |Burke, Chávez, Dahle, |                    |
          |                |     |Eggman, Cristina      |                    |
          |                |     |Garcia,               |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |Hadley, Holden,       |                    |
          |                |     |Obernolte, Quirk,     |                    |
          |                |     |Santiago, Ting        |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Makes various changes to the authorities of the  
          California Public Utilities Commission (CPUC) and the reports  
          required to be provided to the Legislature.  Specifically, this  
          bill:










                                                                    SB 1222


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          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.


          FISCAL EFFECT: According to the Assembly Appropriations  
          Committee: 


          1)Increases California Energy Commission (CEC) costs of  
            approximately $136,000 (1 personnel year) to compile  
            information, conduct analysis, and prepare formal comments  
            regarding energy efficient programs (Energy Resources Program  
            Account or other special fund.)


          2)No additional CPUC costs, potential minor savings.


          COMMENTS:


          1)Purpose and Background:  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  








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            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.




          Analysis Prepared by:                                             
                          Sue Kateley / U. & C. / (916) 319-2083  FN:  
          0004998