BILL ANALYSIS
AB 1529
Page 1
ASSEMBLY THIRD READING
AB 1529 (Wyman)
As Amended January 10, 2002
Majority vote
UTILITIES AND COMMERCE 15-0 NATURAL RESOURCES 8-0
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|Ayes:|Wright, Pescetti, |Ayes:|Wayne, Dickerson, Harman, |
| |Calderon, | |Keeley, Lowenthal, |
| |Bill Campbell, John | |Negrete McLeod, Migden, |
| |Campbell, Canciamilla, | |Wyman |
| |Cardenas, Diaz, Kelley, | | |
| |La Suer, Maddox, Nation, | | |
| |Reyes, Simitian, | | |
| |Steinberg | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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APPROPRIATIONS 19-0
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|Ayes:|Migden, Bates, Alquist, | | |
| |Aroner, Ashburn, Cedillo, | | |
| |Corbett, Correa, Daucher, | | |
| |Goldberg, Maldonado, | | |
| |Robert Pacheco, Papan, | | |
| |Runner, Simitian, | | |
| |Thomson, Steinberg, | | |
| |Wiggins, Wright | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : 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 CPUC,
a Certificate prior to construction of any electrical plant,
AB 1529
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line, or extension, or gas plant, line, or extension.
2)Requires 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; and,
d) Influence on environment.
3)Requires 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 CPUC to certify the EIR on the construction of a
transmission line or pipeline within 12 months.
5)Requires 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
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 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 : During the Certificate process, 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 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
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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. Under current
law, CPUC generally has 12 months (from the time the initial
application for the Certificate is filed, until the EIR is
certified) for CEQA portion of the Certificate process.
After the certification of the EIR, if the Certificate has not
been issued, 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 CPUC. For any proceeding of this
portion of the Certificate process, 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.
According to the author's office, 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 PSA and the existing statutory deadlines are
both equal to 18 months in length, this bill does not change any
of the statutory deadlines. Therefore, this bill only appears
to encourage CPUC to act as expeditiously as possible.
Analysis Prepared by : Kyra Ross / NAT. RES. / (916) 319-2092
FN: 0004186