BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 435
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 435 (De La Torre)
          As Amended  April 14, 2009
          Majority vote 

           UTILITIES AND COMMERCE          15-0                 
          APPROPRIATIONS      17-0        
           
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          |Ayes:|Fuentes, Duvall, Tom      |Ayes:|De Leon, Nielsen,         |
          |     |Berryhill, Blakeslee,     |     |Ammiano,                  |
          |     |Buchanan, 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 study the efficacy of conducting concurrent  
          environmental review of proposed transmission facilities by  
          federal and state agencies.     

           FISCAL EFFECT  :  Minor absorbable costs to the PUC for the  
          required assessment.

           COMMENTS  :  It's about a 10-year process to site and construct a  
          transmission line, depending on the distance and complexity of  
          the geography.  The California Independent System Operator  
          (CAISO) performs much of the transmission planning.  The  
          responsibility for actually building the transmission lines lies  
          with the transmission-owning utilities.  Most of these utilities  
          need to obtain approval from PUC before they can construct new  
          transmission lines.  PUC conducts a public hearing process and  
          issues a CPCN if it deems the project is warranted.  The  
          utilities must then initiate a filing at the Federal Energy  
          Regulatory Commission (FERC) to request cost-recovery for both  
          inter- and intra-state transmission lines.

          The utilities are frequently delayed with construction because  








                                                                  AB 435
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          the federal government owns much of the land that transmission  
          lines must cross.  Of the federal government agencies required  
          to provide approval, the Bureau of Land Management (BLM) is  
          involved the most.  The transmission-owning utilities are  
          concerned that BLM process is too slow, there's not enough  
          staff, and the existing staff are spread too thin among the 50  
          states.  The state imposes additional delays depending on  
          whether the transmission line traverses a state park, or whether  
          there's an endangered species in the proposed corridor.  


           Analysis Prepared by  :    Gina Adams / U. & C. / (916) 319-2083 



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