BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 460
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          Date of Hearing:  April 2, 2001

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                 Howard Wayne, Chair
                  AB 460 (Wyman) - As Introduced:  February 20, 2001
           
          SUBJECT  :  Environmental protection:  transmission Path 15.

           SUMMARY  :  This bill exempts from the California Environmental  
          Quality Act (CEQA) any project involving Path 15.

           EXISTING LAW  : Under the California Environmental Quality Act  
          (CEQA) (Pub. Res. Code secs. 21000 et seq.):

          1)Provides a systematic process for evaluating the environmental  
            impacts of a "discretionary project" undertaken or approved by  
            a public agency.   A project is discretionary if its approval  
            requires the exercise of judgment or deliberation on the part  
            of the agency.  CEQA provides a number of statutory exemptions  
            from its provisions; in addition, the Secretary of the  
            Resources Agency is authorized to identify categories of  
            projects that are exempt because they are determined not to  
            have a significant effect on the environment.

          2)Prescribes specific requirements for evaluating the impacts of  
            projects that are not exempt.  Specifically, the lead agency  
            (the agency with primary responsibility for approving the  
            project) first prepares an initial study to determine if the  
            project may have a significant effect on the environment.  If  
            the initial study shows the project's effects will not be  
            significant, the lead agency prepares a negative declaration.   
            If, however, the initial study shows the project's effects may  
            be significant, then the agency must prepare an environmental  
            impact report (EIR).  Information developed during preparation  
            of the EIR is used to set conditions on the project.  An  
            agency may only approve the project if all identified  
            significant effects have been mitigated, unless the agency  
            makes a finding of overriding considerations.  The CEQA  
            process also serves to provide notice to the public concerning  
            the project.  

           THIS BILL  : Provides a statutory exemption from CEQA for any  
          project primarily involved in planning, funding, design, site  
          acquisition, construction, operation, or maintenance of new or  
          replacement facilities or structures associated with the  








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          transmission path known as Path 15.

           FISCAL EFFECT  : Unknown.

           COMMENTS  :   

           1)Understanding Path 15  

          Generally, transmission is the movement of high-voltage  
          electricity over long distances.  Path 15, located between Tracy  
          and Bakersfield, is a specific group of high-voltage power lines  
          that feed electricity back and forth between Northern and  
          Southern California.  A "bottle neck" occurs on the transmission  
          lines, and in particular with Path 15, when the demand for power  
          supply from Southern California exceeds the capacity of the  
          transmission lines.

          Working together, municipal utilities, the federal government  
          and the State have identified a potential two-phase solution to  
          the current traffic jam on Path 15, that for the last several  
          months has been a principal component of the blackouts  
          Californians have experienced.

          Phase one of the Path 15 expansion will provide for an  
          additional 500kV-transmission line between Los Banos and Gates  
          (the two critical substations on either end of Path 15).  This  
          phase is estimated to be completed by summer 2002 with net  
          benefits of 500-700MW of additional capacity on the Path 15  
          lines.  Phase two of the Path 15 expansion will provide for  
          additional transmission lines and will likely be completed by  
          Summer 2003.  When completed, the expansion project will provide  
          improved reliability and accessibility (transfer of electrons)  
          between northern and southern California.  

           2)CEQA Exemption  

          Under current law, CEQA provides a process by which the  
          environmental impacts of a project are evaluated.  Current law  
          also provides a number of statutory exemptions from CEQA.   
          Generally, if a project is not exempt from CEQA (under the  
          existing statutory and regulatory exemptions), an initial study  
          is prepared to determine whether a project may have a  
          significant effect on the environment.  If the initial study  
          shows that there will not be significant adverse impacts on the  
          environment from the project, the lead agency must prepare a  








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          negative declaration.  If the project is shown to have  
          significant environmental impacts, the lead agency must prepare  
          an Environmental Impact Report (EIR).  

          Generally, an EIR must accurately describe the proposed project,  
          identify and analyze each significant environmental impact  
          expected to result from the proposed project, identify  
          mitigation measures to reduce those impacts to the extent  
          feasible, and evaluate a range of reasonable alternatives to the  
          proposed project.  Prior to approving any project that has  
          received environmental review, the lead agency must make certain  
          findings.  If mitigation measures are required or incorporated  
          into a project, the agency must adopt a reporting or monitoring  
          program to ensure compliance with those mitigation measures.

          According to the author's office, by streamlining the permitting  
          process for Path 15 through a statutory exemption from CEQA, the  
          ability to make repairs and upgrades for the transmission lines  
          will be significantly heightened.  

          This bill exempts from CEQA any project primarily involving the  
          planning, funding, design, site acquisition, construction,  
          operation or maintenance of new or replacement facilities or  
          structures associated with Path 15.  

          Several issues are raised by the possibility of an exemption  
          from CEQA.  First, the lack of review would likely allow for  
          inferior mitigation of impacts for transmission facilities  
          involving Path 15.  Given the fact that no work on Path 15 will  
          eliminate the "bottle neck" that is currently occurring on the  
          line by this summer or next summer, it is in the best interest  
          of the state to thoroughly review any improvements made to Path  
          15. 

          Second, existing law provides that the filing of an application  
          for a certificate of public convenience and necessity (CPCN) is  
          the triggering event for CEQA review.  The language in the bill  
          includes activities that fall under a CPCN, but also allow for  
          an exemption for operation and maintenance on a transmission  
          line, which generally does not require CEQA review.  In  
          addition, the language provides for activities "primarily  
          involving Path 15" but does not define what "primarily  
          involving" means.  This may cause additional exemptions under  
          CEQA for project within the vicinity of Path 15 or projects that  
          involve Path 15, but do not have involvement with the actual  








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          transmission lines.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Association of California Water Agencies

           Opposition 
           
          Planning on Conservation League
           

          Analysis Prepared by  :  Kyra Emanuels Ross / NAT. RES. / (916)  
          319-2092