BILL ANALYSIS
AB 2561
Page 1
ASSEMBLY THIRD READING
AB 2561 (Villines and Fuentes)
As Amended April 26, 2010
Majority vote
UTILITIES & COMMERCE 14-0 NATURAL
RESOURCES 9-0
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|Ayes:|Bradford, Knight, Tom |Ayes:|Chesbro, Gilmore, |
| |Berryhill, Buchanan, | |Brownley, |
| |Carter, Fletcher, Fong, | |De Leon, Hill, Huffman, |
| |Fuentes, Fuller, | |Knight, Logue, Skinner |
| |Furutani, Huffman, Ma, | | |
| |Swanson, Villines | | |
| | | | |
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APPROPRIATIONS 17-0
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|Ayes:|Fuentes, Conway, Ammiano, | | |
| |Bradford, Charles | | |
| |Calderon, Coto, Davis, | | |
| |Monning, Ruskin, Harkey, | | |
| |Miller, Nielsen, Norby, | | |
| |Skinner, Solorio, | | |
| |Torlakson, Torrico | | |
| | | | |
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SUMMARY : Reforms the California Energy Commission (CEC), a
state entity under the Resources Agency, into a cabinet-level
Department of Energy (DOE), and adds energy-related
responsibilities previously performed by the Electricity
Oversight Board (EOB) and the Department of Community Services
and Development (CSD). Specifically, this bill :
1)Creates a DOE headed by a Governor-appointed Secretary.
2)Renames CEC the "California Energy Board." (The five-member
board resembles the current CEC commission.)
3)Designates the Secretary of DOE as Chair of the
California Energy Board.
AB 2561
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4)Transfers responsibilities previously performed by CEC, to
DOE.
5)Repeals the California Consumer Power and Conservation
Financing Authority.
6)Requires DOE to create a legal subcommittee comprised of
specified members to develop a single statewide position
on litigation concerning energy matters.
7)Transfers certain authority and duties of the former EOB
to the Secretary of Energy and DOE.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)EOB was defunded and ceased operations as of April 1, 2008,
thus reconstituting its functions within DOE will require
ongoing special fund costs in the range of $2 million to $3
million. (EOB was funded about 85% from the Public Utilities
Reimbursement Account and 15% from the Energy Resources
Programs Account.)
2)Assuming the staff and special fund resources associated with
the other non-CEC state functions being transferred to DOE
would also be transferred, the net fiscal impact of the
reorganization should not be significant.
COMMENTS : The Administration and the Legislature have
frequently evaluated the merits of having at least five separate
state energy agencies along with a smattering of energy-related
divisions or programs within other departments. Most energy
agencies were created during crises in order to perform a narrow
or specific function. Each time an agency was created, it was
intended to be a quick fix to an immediate problem and not
intended to perpetuate.
According to this reorganization plan and because of the
constitutionality of CPUC, CPUC would continue as a separate
ratemaking body and retain all of its functions. As such, CPUC
could continue to have an adversarial perspective on certain
issues, which may or may not benefit Californians depending on
the specific situation.
AB 2561
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This reorganization plan would include most of the State's
energy agencies, most of which are not funded or not staffed,
under one Secretary (absent CPUC). To develop a statewide
energy policy, the Secretary may or may not need to collaborate
with CPUC. The Secretary would be directly accountable to the
Governor and the energy policy directives should be consistent
with the Governor's policy. This reorganization plan may not
significantly change accountability to the Legislature. The
Legislature would continue to oversee and direct the departments
consistently with its current methods.
The investor-owned utilities are responsible for building and
owning transmission lines. They submit their plans to CAISO,
which then develops the statewide transmission plan. Prior to
building any needed transmission, CPUC must issue a certificate
of public convenience and necessity (which can take 3 to 4
years), and the transmission owner must request cost-recovery
for the transmission line from Federal Energy Regulatory
Commission. This bill requires DOE, in consultation with CPUC
and CAISO to prepare, and submit to the Governor and the
Legislature on or before January 1, 2012, a report that
identifies administrative and statutory measures that,
preserving environmental protections, public participation, and
continuity of existing electric transmission line siting
processes, would improve the siting and licensing process for
electric transmission lines.
Analysis Prepared by : Gina Adams / U. & C. / (916) 319-2083
FN: 0004643