BILL ANALYSIS
AB 40
Page 1
ASSEMBLY THIRD READING
AB 40 (Fuentes)
As Introduced December 1, 2008
Majority vote
UTILITIES AND COMMERCE 15-0
APPROPRIATIONS 17-0
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|Ayes:|Fuentes, Duvall, Tom |Ayes:|De Leon, Nielsen, Ammiano, |
| |Berryhill, Blakeslee, De | | |
| |La Torre, Carter, Fong, | |Charles Calderon, Davis, |
| |Fuller, Furutani, | |Duvall, Fuentes, Hall, |
| |Huffman, Krekorian, | |Harkey, Miller, |
| |Skinner, Smyth, Swanson, | |John A. Perez, Price, |
| |Torrico | |Skinner, Solorio, Audra |
| | | |Strickland, Torlakson, |
| | | |Krekorian |
|-----+--------------------------+-----+---------------------------|
| | | | |
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SUMMARY : Requires the California Public Utilities Commission
(PUC) to review certain guidelines pertaining to real property
located within a designated transmission corridor zone.
EXISTING LAW :
1)Authorizes CEC to designate of a transmission corridor zones
to identify feasible corridors where one or more future
high-voltage electric transmission lines can be built that are
consistent with the state's needs and objectives.
2)PUC guidelines limit the maximum time a transmission line and
substation that is not related to a new power plant can be
held for future use to no more than five years.
FISCAL EFFECT : If PUC determines a proceeding is necessary, it
will incur one-time special fund costs of about $250,000 for two
positions for one year to conduct the proceeding [Public
Utilities Reimbursement Account]. On an ongoing basis, there
will be additional staff work to review proposed utility
acquisition of transmission corridors. Conversely, fostering
more proactive acquisition of such land could help expedite
future transmission permitting proceedings.
AB 40
Page 2
COMMENTS : According to the author, the purpose of this bill is
to ensure that the Legislature's intent is being realized in the
transmission corridor zone designation process. Due to a
current regulatory restriction utilities are only allowed to
rate-base property purchased in transmission corridor zones for
five years. This restriction has since become problematic
because transmission planning horizons are generally 10-15
years. This bill corrects this discrepancy by requiring PUC to
re-evaluate these guidelines in light of the passage of the
transmission corridor designation process.
Analysis Prepared by : Nina Kapoor / U. & C. / (916) 319-2083
FN: 0001214