BILL ANALYSIS
AB 1529
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Date of Hearing: January 14, 2002
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Roderick D. Wright, Chair
AB 1529 (Wyman) - As Amended: January 10, 2002
SUBJECT : Transmission and gas lines.
SUMMARY : Requires the California Public Utilities Commission
(CPUC) to act as expeditiously as possible, but in no event
exceed the timelines provided in current law, when reviewing or
acting upon an application for a Certificate of Public
Convenience and Necessity (CPCN) authorizing construction of any
electric plant, line, or extension, or gas plant, line, or
extension.
EXISTING LAW :
1)Requires electrical and gas corporations to obtain from CPUC a
CPCN prior to construction of any electric plant, line, or
extension, or gas plant, line, or extension.
2)Requires CPUC, when granting a CPCN, to give consideration to
the following factors:
a) Community values;
b) Recreational and parks areas;
c) Historical and aesthetic values;
d) Influence on environment.
3)Pursuant to the Permit Streamlining Act, requires CPUC, as the
lead agency of the project, to approve or disapprove the
project within 180 days (six months) from the certification of
an environmental impact report (EIR), or within 60 days (two
months) if a negative declaration is completed and adopted for
the project or a determination that the project is exempt from
the California Environmental Quality Act (CEQA).
4)Allows additional time if there are compelling circumstances
and the project applicant consents.
FISCAL EFFECT : Unknown.
AB 1529
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COMMENTS :
The Need for Additional Electric and Gas Infrastructure
Despite a significant increase in electricity demand in recent
years, California has not built any major transmission projects
in more than a decade. The lack of transmission upgrades has
created transmission congestion, or "bottlenecks," which have
exacerbated the state's energy woes and contributed to the
increase in the price of electricity. The state's gas
infrastructure has also suffered from a lack of investment,
which has contributed to an increase in the cost of natural gas.
Much of California's natural gas supply comes from out of
state. Improvements to the natural gas infrastructure would
help reduce gas prices and reduce our reliance on out of state
gas.
The CPCN Process
During the CPCN process, CPUC considers an array of factors,
including cost, reliability, need, and environmental impact.
The environmental issues are addressed pursuant to CEQA. CEQA
requires CPUC to prepare an initial study to assess the
project's impact on the environment, and to issue a negative
declaration if the initial study shows no significant effects.
Most electric transmission and gas distribution line projects
are large in scale and cause significant environmental impacts,
in which case CPUC is required to prepare an EIR.
The CPCN process is subject to the Permit Streamlining Act,
which sets deadlines for public agencies to act on proposed
projects. This bill requires CPUC to act as expeditiously as
possible in reviewing and acting upon electric and gas related
CPCNs, but does not change any of the current statutory
deadlines.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
AB 1529
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None on file.
Analysis Prepared by : Joseph Lyons / U. & C. / (916) 319-2083