SBX1 7 Senate Bill, 1st Ext. Session

BILL NUMBER: SBX1 7	CHAPTERED
	BILL TEXT

	CHAPTER  3
	FILED WITH SECRETARY OF STATE  JANUARY 19, 2001
	APPROVED BY GOVERNOR  JANUARY 19, 2001
	PASSED THE SENATE  JANUARY 18, 2001
	PASSED THE ASSEMBLY  JANUARY 18, 2001
	AMENDED IN SENATE  JANUARY 18, 2001

INTRODUCED BY   Senator Burton

                        JANUARY 18, 2001

   An act to add and repeal Section 200 of the Water Code, relating
to public utilities, making an appropriation therefor, and declaring
the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 7, Burton.  Public utilities.
   Existing law imposes various duties and responsibilities on the
Department of Water Resources with respect to the purchase of water
and electricity.
   This bill would authorize, for a period not to exceed 12 days from
the effective date of the act, the Department of Water Resources to
purchase electric power from any party and make that electric power
available at the cost of its purchase, plus any specified
administrative costs, transmission and scheduling costs, and other
related costs, incurred by the department, to the Independent System
Operator, public utility electrical corporations, or retail end-use
customers.
   The bill would require that the obligations incurred and funding
of the contract and arrangements for the purchase of electric power
are to be maintained by the Department of Water Resources, separate
and distinct from the funds, moneys and obligations of the State
Water Resources Development System.  The bill would prohibit the full
faith and credit and the taxing power of the state to be pledged for
payment of these obligations.
   The bill would establish in the State Treasury the Department of
Water Resources Electric Power Fund as a continuously appropriated
fund and would require all revenues payable to the department under
the act to be deposited in the fund.  The bill would require payments
from the fund to be made only for specified purposes and would
require all authorized contracts to be payable solely from the fund.

   The bill would require the Public Utilities Commission to adopt
and implement emergency regulations to provide for delivery and
payment mechanisms relating to the sale of electric power purchased
by the Department of Water Resources for sale directly or indirectly
to the Independent System Operator, public utilities, or retail
end-use customers.
  This bill would make these provisions inoperative on February 2,
2001, and would repeal them as of January 1, 2002.
   The bill would transfer $400,000,000 from the General Fund to the
Department of Water Resources to purchase electric power, as
specified.
   The bill would declare that it is to take effect immediately as an
urgency statute.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 200 is added to the Water Code, to read:
   200.  (a) The Legislature finds and declares that there is an
urgent short-term need for the State of California, through the
department, to assist in meeting the public's electricity needs
through the emergency purchase of electricity.  It is the intent of
the Legislature that this section clarify on a temporary basis the
department's authority to purchase electricity and make it available
to assist in meeting California's energy needs.
   (b) For a period not to exceed 12 days from the effective date of
this section, the department may purchase electric power from any
party and make that electric power available at the cost of its
purchase, plus any administrative costs (not to exceed a total amount
of one million dollars ($1,000,000) for all purchases entered into
pursuant to this section), transmission and scheduling costs, and
other related costs, incurred by the department, to the Independent
System Operator, public utility electrical corporations, or retail
end-use customers.  With respect to electric power made available to
retail end-use customers, the customers shall be responsible for
costs at no more than the rates established by the Public Utilities
Commission in effect on the date the power is made available to the
customers.
   (c) The purchases made pursuant to this section are separate and
apart from the State Water Resources Development System, and the
obligations incurred and funding of those contracts and arrangements
shall be maintained by the department, separate and distinct from the
funds, moneys and obligations of the State Water Resources
Development System.
   (d) Notwithstanding any other provision of law, the department
shall use any and all means feasible, as determined by the
department, to secure the state's right and ability to recover funds
expended pursuant to this section.
   (e) No contract or purchase agreement shall contain terms that
diminish the state's interest in recovering any funds expended for
purchase of power at rates that exceed just and reasonable rates.
   (f) There is hereby established in the State Treasury the
Department of Water Resources Electric Power Fund.  Notwithstanding
Section 13340 of the Government Code, money in the fund is
continuously appropriated without regard to fiscal year to the
department for purposes of this section.  All revenues payable to the
department under this act shall be deposited in the fund.
Notwithstanding any other provision of law, interest accruing on
money in the fund shall remain in the fund and shall be used for the
purposes of this act.  Payments from the fund may be made only for
the purposes authorized by this section.
   (g) All contracts authorized by this act shall be payable solely
from the fund established pursuant to this section.
   (h) Neither the full faith and credit nor the taxing power of the
state are or may be pledged for payment for any obligation authorized
under this section.
   (i) The Public Utilities Commission shall adopt and implement
emergency regulations that shall become effective on the operative
date of this section to provide for delivery and payment mechanisms
relating to the sale of electric power purchased by the department
for sale directly or indirectly to the Independent System Operator,
public utilities, or retail end-use customers.
   (j) No purchases of electric power shall be entered into pursuant
to this section after February 1, 2001.  No purchases of electric
power entered into pursuant to this section may extend in duration
past February 15, 2001.
   (k) This section shall become inoperative on February 2, 2001,
and, as of January 1, 2002, is repealed, unless a later enacted
statute that is enacted before January 1, 2002, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 2.  The sum of four hundred million dollars ($400,000,000) is
hereby transferred from the General Fund to the Department of Water
Resources Electric Power Fund, established by Section 200 of the
Water Code, for the purposes of implementing Section 1 of this act.

  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to ensure that the State of California and its citizens
have an adequate supply of electricity, thereby preserving the public
health, safety, and welfare, it is necessary that this act take
effect immediately.