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
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           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