BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 698
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   AB 698 (Skinner) - As Amended:  April 21, 2009 

          Policy Committee:                               
          UtilitiesVote:13-0 (Consent)
                        Natural Resources                       9-0  
          (Consent)

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill:

          1)Authorizes a staff director of the Public Utilities Commission  
            (PUC) to approve the disposition of a utility's property when  
            the transaction is valued under $5 million and the utility's  
            application is not contested by any party.

          2)Provides that an advice letter may be used to approve a  
            transaction subject to the California Environmental Quality  
            Act (CEQA) if the PUC is not the lead agency for CEQA purposes  
            and the lead agency has completed the appropriate CEQA review.  
             In this case, the advice letter must be approved by a vote of  
            the commissioners, rather than by staff.

           FISCAL EFFECT  

          Minor administrative cost savings to the PUC from streamlining  
          the property disposition approval process.

           COMMENTS  

           Purpose  .  The sponsor of this bill, PG&E, will be submitting a  
          large number (potentially hundreds) of applications for  
          conservation easements on its watershed lands to fulfill its  
          bankruptcy settlement.  PG&E is concerned that these  
          applications, which it expects to be non-controversial, will  
          suffer significant delays if a vote of the PUC is required for  
          each one.  This bill allows the PUC greater flexibility to grant  








                                                                  AB 698
                                                                  Page  2

          streamlined approvals resulting in more timely approvals,  
          potential cost reductions and administrative efficiency.  The  
          bill also permits the advice letter process, but not staff  
          approval, for transactions subject to CEQA, provided any  
          necessary CEQA review has been completed by the appropriate  
          agency.  The advice letter process allows for approval in less  
          than 120 days.  The more formal procedures for issuing an order  
          can take the PUC up to 18 months.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081