BILL ANALYSIS AB 1529 Page 1 Date of Hearing: January 29, 2002 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Howard Wayne, Chair AB 1529 (Wyman) - As Amended: January 10, 2002 SUBJECT : Transmission and gas lines. SUMMARY : This bill requires the California Public Utilities Commission (CPUC) to act as expeditiously as possible, but in no event to exceed the timelines provided in current law, when reviewing or acting upon an application for a Certificate of Public Convenience and Necessity (Certificate) 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 the CPUC, a Certificate prior to construction of any electrical plant, line, or extension, or gas plant, line, or extension. 2)Requires the CPUC, when granting a Certificate, to give consideration to the following factors: a) Community values b) Recreational and park areas c) Historical and aesthetic values d) Influence on environment 3)Requires the CPUC, pursuant to the California Environmental Quality Act (CEQA) (Public Resources Code 21000, et seq.), to prepare an Environmental Impact Report (EIR) or receive a negative declaration prior to the construction of an electric plant, line, or extension, or gas plant, line, or extension. 4)Requires the CPUC to certify the EIR on the construction of a transmission line or pipeline within 12 months. 5)Requires the CPUC, pursuant to the Permit Streamlining Act (PSA) (Government Code Section 65920 et seq.) to approve or disapprove the project within 180 days from the certification AB 1529 Page 2 of an EIR, or within 60 days if a negative declaration is completed and adopted for the project or a determination that the project is exempt from CEQA. 6)Requires the CPUC to establish reasonable time periods for the resolution of proceedings, not to exceed 18 months and to be consistent with the rate case plans, whichever is shorter. 7)Allows additional time if there are compelling circumstances and the project applicant consents. FISCAL EFFECT : Unknown. COMMENTS : 1)The Certificate Process During the Certificate process, the CPUC considers an array of factors, including cost, reliability, need, and environmental impact. The process can generally be broken down into two parts. In the first part, environmental issues are addressed pursuant to CEQA. CEQA requires the CPUC to prepare an initial study to assess the projects 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 the CPUC is required to prepare an EIR. Under current law, the CPUC generally has 12 months (from the time the initial application for the Certificate is filed, until the EIR is certified) for the CEQA portion of the Certificate process. After the certification of the EIR, if the Certificate has not been issued, the CPUC begins the second part of the process to determine the final cost of the sale of an asset or any additional work that may still be needed for rate recovery. In the majority of cases, the Certificate is issued at the same time the EIR is certified by the CPUC. For any proceeding of this portion of the Certificate process, the CPUC may not exceed 18 months. Generally, in the last few years the only delays have been in the sale of generation assets when the financial markets have needed time to determine the actual market value of the asset. AB 1529 Page 3 2)What is the purpose of the bill ? According to the author's office, the CPUC generally takes between 16 and 24 months in their post-EIR Certificate proceedings. This bill would require all of the work on the Certificate process (both CEQA and non-CEQA portions) to be completed as expeditiously as possible in reviewing and acting upon electric and gas related Certificates, but in no way exceed the 18-month PSA timeline. However, because the PSA and the existing statutory deadlines are both equal to 18 months in length, the bill does not change any of the statutory deadlines. Therefore, this bill only appears to encourage the CPUC to act as expeditiously as possible. REGISTERED SUPPORT / OPPOSITION : Support None on file Opposition None on file Analysis Prepared by : Kyra Ross / NAT. RES. / (916) 319-2092