BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
AB 521 - De La Torre Hearing Date:
July 7, 2009 A
As Amended: June 8, 2009 Non-FISCAL
B
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DESCRIPTION
Current law prohibits public utilities from selling, leasing, or
otherwise disposing of any property without approval of the
California Public Utilities Commission (CPUC).
This bill authorizes public utilities to lease land acquired for
obtaining a right-of-way to governmental agencies to be used as
a public park. In determining whether the lease is for fair
value the CPUC shall consider the community benefits of the park
as a value to utility customers.
BACKGROUND
The CPUC must review and approve any utility proposal to lease
its property for two reasons. First, the CPUC must ensure that
the proposed usage is consistent with safe and reliable
operation of the electric system. Secondly, the CPUC must
ensure that the utility is being fairly compensated for the use
of the property. Less than fair market compensation implies
that utility customers are subsidizing the lease. (Under
current CPUC rules for energy utilities, extra revenue earned
from these leases is split between the utility shareholders and
customers.)
COMMENTS
1. Author Statement - The author believes that this bill
will facilitate the development of much-needed parks and
open spaces in dense urban areas.
2. Not Just Money - This bill requires the CPUC to consider
the community benefits of the park as a value to utility
customers. The consequence is that the utility, and
therefore its customers, may receive less monetary
compensation for the use of the utility property. However,
in exchange the utility customers in the vicinity of the
park will have access to new open space and recreational
opportunities.
3. Codifying Current Practice - Earlier this year the CPUC
considered a proposal for Southern California Edison to
lease property within its transmission line right-of-way to
the City of Bellflower to develop a park. The CPUC decided
that the proposed lease, for less than fair market value,
was reasonable because of the associated public benefits of
the park (D.09-03-037).
ASSEMBLY VOTES
Assembly Floor (67-12)
Assembly Utilities and Commerce Committee
(12-2)
POSITIONS
Sponsor:
City of Bellflower
The Trust for Public Land
Support:
Ballona Network
California Council of Land Trusts
California League of Conservation Voters
California Park & Recreation Society
City of Cerritos
City of Downey
City of Lakewood
From Lots to Spots
Heal the Bay
LA Community Garden Council
LA Conservation Corps.
Los Angeles County Board of Supervisors
People for Parks
Sierra Club California
Southern California Edison
The River Project
Urban & Environmental Policy Institute
Verde Coalition
Oppose:
None on file
Randy Chinn
AB 521 Analysis
Hearing Date: July 7, 2009