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