BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 698|
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THIRD READING
Bill No: AB 698
Author: Skinner (D)
Amended: 4/21/09 in Assembly
Vote: 21
SENATE ENERGY, U. & C. COMMITTEE : 11-0, 7/7/09
AYES: Padilla, Benoit, Calderon, Corbett, Cox, Kehoe,
Lowenthal, Simitian, Strickland, Wiggins, Wright
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 73-0, 5/14/09 - See last page for vote
SUBJECT : Utility property: Divestitures
SOURCE : Pacific Gas and Electric
DIGEST : This bill authorizes a staff director of the
Public Utilities Commission to approve the disposal of a
utilitys property when the transaction is valued under $5
million and the utility's application is not contested by
any party.
ANALYSIS :
Existing law:
1.Prohibits a public utility regulated by the Public
Utilities Commission (PUC) from disposing of any property
necessary or useful in the utility's performance of its
CONTINUED
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duties to the public without approval of the PUC.
Transactions valued above $5 million require a formal
order of the PUC approving an application filed by the
utility. Transactions valued at $5 million or less may
be approved by the PUC via a resolution approving an
advice letter filed by the utility.
2.Provides that proposed transactions that require review
under the California Environmental Quality Act (CEQA) are
not eligible for approval by the PUC via advice letter.
This bill:
1. Authorizes a staff director of the 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 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.
Comments
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 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.
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Minor administrative cost savings to the PUC from
streamlining the property disposition approval process.
SUPPORT : (Verified 7/20/09)
Pacific Gas and Electric Company (source)
California Public Utilities Commission
Southern California Edison
ASSEMBLY FLOOR :
AYES: Adams, Anderson, Arambula, Beall, Bill Berryhill,
Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley,
Buchanan, Caballero, Charles Calderon, Carter, Chesbro,
Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,
Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,
Fuller, Furutani, Galgiani, Gilmore, Hagman, Hall,
Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Niello, Nielsen, John A. Perez, V. Manuel Perez,
Portantino, Price, Ruskin, Salas, Silva, Skinner,
Solorio, Audra Strickland, Swanson, Torlakson, Torres,
Torrico, Tran, Villines, Yamada
NO VOTE RECORDED: Ammiano, Fuentes, Gaines, Garrick,
Saldana, Smyth, Bass
DLW:do 7/22/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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