BILL ANALYSIS 1 1 SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE DEBRA BOWEN, CHAIRWOMAN AB 1529 - Wyman Hearing Date: June 25, 2002 A As Amended: January 10, 2002 FISCAL B 1 5 2 9 DESCRIPTION Existing law requires public utilities to secure a certificate of public convenience and necessity (CPCN) from the California Public Utilities Commission (CPUC) prior to constructing any gas or electric line, plant or system. Existing law , the Permit Streamlining Act (PSA), requires CEQA lead agencies, including the CPUC, to approve or disapprove development projects within 180 days of certification of the project Environmental Impact Report, or 60 days from adoption of a negative declaration or determination of exemption from CEQA. The PSA further requires responsible agencies to approve or disapprove development projects within 180 days of a lead agency's approval. Existing law , SB 960 (Leonard, Peace, and Sher), Chapter 856, Statutes of 1996, states the intent of the Legislature that the CPUC establish reasonable time periods for the resolution of proceedings, that it meet those deadlines, and requires the CPUC's final decision to be issued not later than 60 days after the issuance of the proposed decision in rate-setting proceedings. This bill requires the CPUC to act "as expeditiously as possible," but in no event exceed the PSA timelines, when reviewing or acting upon an application for a CPCN to authorize the construction of any gas or electric plant, line or extension. BACKGROUND The CPUC's process for issuing a CPCN for major utility construction projects includes environmental review pursuant to the California Environmental Quality Act (CEQA). In many cases, the CPUC is the lead agency under CEQA. The notable exception is an application to construct a thermal power plant over 50 megawatts, in which case the California Energy Commission is functionally the CEQA lead agency. The CPUC may share lead agency responsibilities with a federal agency in cases where joint CEQA and National Environmental Policy Act review are required. The Permit Streamlining Act currently applies to the CPUC in general, in any proceeding where CEQA applies, including a CPCN or a Permit to Construct, which apply to electric transmission projects less than 200 kV. CPCN proceedings are generally categorized as rate-setting, so the SB 960 deadlines referenced above also apply. According to the author, California was in an energy crisis, and still has energy supply needs. COMMENTS 1)The law is the law . It is unclear what requiring the CPUC to "act as expeditiously as possible" would do to change its treatment of applications for CPCNs. As noted above, the CPUC, in its review of a CPCN, is currently subject to the PSA, so it is already prevented from exceeding the timelines set forth in that Act. 2)Does one size fit all? While this bill appears simply to duplicate existing law, it may be more restrictive than the PSA. One could argue that this bill would prevent the extension of PSA-prescribed timelines by mutual agreement. The PSA provides for extension by mutual agreement, but this bill says PSA timelines may be exceeded "in no event." One consequence could be that the CPUC is compelled to deny a CPCN application at the expiration of the timeline, which would necessitate re-filing, even if the applicant wanted an extension. The bill does not provide for penalties or otherwise say what happens if the timelines are exceeded. ASSEMBLY VOTES Assembly Floor (44-3) Assembly Appropriations Committee (19-0) Assembly Natural Resources Committee (8-0) Assembly Utilities and Commerce Committee (15-0) POSITIONS Sponsor: Author Support: Pacific Gas and Electric Company Oppose: None on file Lawrence Lingbloom AB 1529 Analysis Hearing Date: June 25, 2002