BILL NUMBER: SB 1389 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 29, 2002
PASSED THE ASSEMBLY AUGUST 25, 2002
AMENDED IN ASSEMBLY AUGUST 23, 2002
AMENDED IN ASSEMBLY AUGUST 1, 2002
AMENDED IN ASSEMBLY JUNE 24, 2002
AMENDED IN ASSEMBLY JUNE 13, 2002
AMENDED IN SENATE MAY 2, 2002
AMENDED IN SENATE APRIL 18, 2002
INTRODUCED BY Senators Bowen and Sher
FEBRUARY 12, 2002
An act to repeal Sections 25401.1, 25553, 25604, and 25698 of, and
to repeal and add Chapter 4 (commencing with Section 25300) of
Division 15 of, the Public Resources Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1389, Bowen. Energy: planning and forecasting.
The planning and forecasting provisions of the existing
Warren-Alquist State Energy Resources Conservation and Development
Act require the State Energy Resources Conservation and Development
Commission to prepare various reports. These reports include a draft
and final electricity report based on reporting and forecasting
required to be submitted by electric utilities, a report regarding
emerging trends in energy availability and use, a report related to
energy conservation, and a report regarding emerging trends in use,
availability, and price of transportation fuels, among other things.
This bill would repeal the provisions of law requiring various
reports, and instead require the commission to prepare an integrated
energy policy report on or before November 1, 2003, and every 2 years
thereafter, as specified. The bill would require the commission to
conduct assessments and forecasts as often as necessary, but no less
frequently than every 2 years. The bill would require the commission
to conduct workshops and hearings for purposes of the report. The
bill would additionally require the commission to include in the
report a description of the international energy market prospects and
an evaluation of its export promotion activities, along with other
related items.
The bill would also require the commission to manage a data
collection system for obtaining the information necessary to develop
specified energy policy reports and analyses, and energy shortage
contingency planning efforts, and to support other duties of the
commission, as prescribed. The bill would authorize the commission
to impose a civil penalty to ensure timely and accurate compliance
with the data collection system. The bill would include certain
requirements relating to the confidentiality of the data.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 4 (commencing with Section 25300) of Division
15 of the Public Resources Code is repealed.
SEC. 2. Chapter 4 (commencing with Section 25300) is added to
Division 15 of the Public Resources Code, to read:
CHAPTER 4. INTEGRATED ENERGY POLICY REPORTING
25300. (a) The Legislature finds and declares that clean and
reliable energy is essential to the health of the California economy
and of vital importance to the health and welfare of the citizens of
the state and to the environment.
(b) The Legislature further finds and declares that government has
an essential role to ensure that a reliable supply of energy is
provided consistent with protection of public health and safety,
promotion of the general welfare, maintenance of a sound economy,
conservation of resources, and preservation of environmental quality.
(c) The Legislature further finds and declares that the state
government requires at all times a complete and thorough
understanding of the operation of energy markets, including
electricity, natural gas, petroleum, and alternative energy sources,
to enable it to respond to possible shortages, price shocks,
oversupplies, or other disruptions.
(d) The Legislature further finds and declares that timely
reporting, assessment, forecasting, and data collection activities
are essential to serve the information and policy development needs
of the Governor, the Legislature, public agencies, market
participants, and the public.
(e) The Legislature further finds and declares that one of the
objectives of this act is to encourage cooperation among the various
state agencies with energy responsibilities.
25301. (a) At least every two years, the commission shall conduct
assessments and forecasts of all aspects of energy industry supply,
production, transportation, delivery and distribution, demand, and
prices. The commission shall use these assessments and forecasts to
develop energy policies that conserve resources, protect the
environment, ensure energy reliability, enhance the state's economy,
and protect public health and safety. To perform these assessments
and forecasts, the commission may require submission of demand
forecasts, resource plans, market assessments, and related outlooks
from electric and natural gas utilities, transportation fuel and
technology suppliers, and other market participants. These
assessments and forecasts shall be done in consultation with the
appropriate state and federal agencies including, but not limited to,
the Public Utilities Commission, the Office of Ratepayer Advocates,
the Air Resources Board, the Electricity Oversight Board, the
Independent System Operator, the Department of Water Resources, the
California Consumer Power and Conservation Financing Authority, the
Department of Transportation, and the Department of Motor Vehicles.
(b) In developing the assessments and forecasts prepared pursuant
to subdivision (a), the commission shall do all of the following:
(1) Provide information about the performance of energy
industries.
(2) Develop and maintain the analytical capability sufficient to
answer inquiries about energy issues from government, market
participants, and the public.
(3) Analyze and develop energy policies.
(4) Provide an analytical foundation for regulatory and policy
decisionmaking.
(5) Facilitate efficient and reliable energy markets.
25302. (a) Beginning November 1, 2003, and every two years
thereafter, the commission shall adopt an integrated energy policy
report. This integrated report shall contain an overview of major
energy trends and issues facing the state, including, but not limited
to, supply, demand, pricing, reliability, efficiency, and impacts on
public health and safety, the economy, resources, and the
environment. Energy markets and systems shall be grouped and
assessed in three subsidiary volumes:
(1) Electricity and natural gas markets.
(2) Transportation fuels, technologies, and infrastructure.
(3) Public interest energy strategies.
(b) The commission shall compile the integrated energy policy
report prepared pursuant to subdivision (a) by consolidating the
analyses and findings of the subsidiary volumes in paragraphs (1),
(2), and (3) of subdivision (a). The integrated energy policy report
shall present policy recommendations based on an indepth and
integrated analysis of the most current and pressing energy issues
facing the state. The analyses supporting this integrated energy
policy report shall explicitly address interfuel and intermarket
effects to provide a more informed evaluation of potential tradeoffs
when developing energy policy across different markets and systems.
(c) The integrated energy policy report shall include an
assessment and forecast of system reliability and the need for
resource additions, efficiency, and conservation that considers all
aspects of energy industries and markets that are essential for the
state economy, general welfare, public health and safety, energy
diversity, and protection of the environment. This assessment shall
be based on determinations made pursuant to this chapter.
(d) Beginning November 1, 2004, and every two years thereafter,
the commission shall prepare an energy policy review to update
analyses from the integrated energy policy report prepared pursuant
to subdivisions (a), (b), and (c), or to raise energy issues that
have emerged since the release of the integrated energy policy
report. The commission may also periodically prepare and release
technical analyses and assessments of energy issues and concerns to
provide timely and relevant information for the Governor, the
Legislature, market participants, and the public.
(e) In preparation of the report, the commission shall consult
with the following entities: the Public Utilities Commission, the
Office of Ratepayer Advocates, the State Air Resources Board, the
Electricity Oversight Board, the Independent System Operator, the
Department of Water Resources, the California Consumer Power and
Conservation Financing Authority, the Department of Transportation,
and the Department of Motor Vehicles, and any federal, state, and
local agencies it deems necessary in preparation of the integrated
energy policy report. To assure collaborative development of state
energy policies, these agencies shall make a good faith effort to
provide data, assessment, and proposed recommendations for review by
the commission.
(f) The commission shall provide the report to the Public
Utilities Commission, the Office of Ratepayer Advocates, the State
Air Resources Board, the Electricity Oversight Board, the Independent
System Operator, the Department of Water Resources, the California
Consumer Power and Conservation Financing Authority, and the
Department of Transportation. For the purpose of ensuring
consistency in the underlying information that forms the foundation
of energy policies and decisions affecting the state, those entities
shall carry out their energy-related duties and responsibilities
based upon the information and analyses contained in the report . If
an entity listed in this subdivision objects to information
contained in the report, and has a reasonable basis for that
objection, the entity shall not be required to consider that
information in carrying out its energy-related duties.
(g) The commission shall make the report accessible to state,
local, and federal entities and to the general public.
25303. (a) The commission shall conduct electricity and natural
gas forecasting and assessment activities to meet the requirements of
paragraph (1) of subdivision (a) of Section 25302, including, but
not limited to, all of the following:
(1) Assessment of trends in electricity and natural gas supply and
demand, and the outlook for wholesale and retail prices for
commodity electricity and natural gas under current market structures
and expected market conditions.
(2) Forecasts of statewide and regional electricity and natural
gas demand including annual, seasonal, and peak demand, and the
factors leading to projected demand growth including, but not limited
to, projected population growth, urban development, industrial
expansion and energy intensity of industries, energy demand for
different building types, energy efficiency, and other factors
influencing demand for electricity. With respect to long-range
forecasts of the demand for natural gas, the report shall include an
evaluation of average conditions, as well as best and worst case
scenarios, and an evaluation of the impact of the increasing use of
renewable resources on natural gas demand.
(3) Evaluation of the adequacy of electricity and natural gas
supplies to meet forecasted demand growth. Assessment of the
availability, reliability, and efficiency of the electricity and
natural gas infrastructure and systems including, but not limited to,
natural gas production capability both in and out of state, natural
gas interstate and intrastate pipeline capacity, storage and use, and
western regional and California electricity and transmission system
capacity and use.
(4) Evaluation of potential impacts of electricity and natural gas
supply, demand, and infrastructure and resource additions on the
electricity and natural gas systems, public health and safety, the
economy, resources, and the environment.
(5) Evaluation of the potential impacts of electricity and natural
gas load management efforts, including end user response to market
price signals, as a means to ensure reliable operation of electricity
and natural gas systems.
(6) Evaluation of whether electricity and natural gas markets are
adequately meeting public interest objectives including the provision
of all of the following: economic benefits; competitive, low-cost
reliable services; customer information and protection; and
environmentally sensitive electricity and natural gas supplies. This
evaluation may consider the extent to which California is an element
within western energy markets, the existence of appropriate
incentives for market participants to provide supplies and for
consumers to respond to energy prices, appropriate identification of
responsibilities of various market participants, and an assessment of
long-term versus short-term market performance. To the extent this
evaluation identifies market shortcomings, the commission shall
propose market structure changes to improve performance.
(7) Identification of impending or potential problems or
uncertainties in the electricity and natural gas markets, potential
options and solutions, and recommendations.
(b) Commencing November 1, 2003, and every two years thereafter,
to be included in the integrated energy policy report prepared
pursuant to Section 25302, the commission shall assess the current
status of the following:
(1) The environmental performance of the electric generation
facilities of the state, to include all of the following:
(A) Generation facility efficiency.
(B) Air emission control technologies in use in operating plants.
(C) The extent to which recent resource additions have, and
expected resource additions are likely to, displace or reduce the
operation of existing facilities, including the environmental
consequences of these changes.
(2) The geographic distribution of statewide environmental,
efficiency, and socioeconomic benefits and drawbacks of existing
generation facilities, including, but not limited to, the impacts on
natural resources including wildlife habitat, air quality, and water
resources, and the relationship to demographic factors. The
assessment shall describe the socioeconomic and demographic factors
that existed when the facilities were constructed and the current
status of these factors. In addition, the report shall include how
expected or recent resource additions could change the assessment
through displaced or reduced operation of existing facilities.
25304. The commission shall conduct transportation forecasting
and assessment activities to meet the requirements of paragraph (2)
of subdivision (a) of Section 25302 including, but not limited to:
(a) Assessment of trends in transportation fuels, technologies,
and infrastructure supply and demand and the outlook for wholesale
and retail prices for petroleum, petroleum products, and alternative
transportation fuels under current market structures and expected
market conditions.
(b) Forecasts of statewide and regional transportation energy
demand, both annual and seasonal, and the factors leading to
projected demand growth including, but not limited to, projected
population growth, urban development, vehicle miles traveled, the
type, class, and efficiency of personal vehicles and commercial
fleets, and shifts in transportation modes.
(c) Evaluation of the sufficiency of transportation fuel supplies,
technologies, and infrastructure to meet projected transportation
demand growth. Assessment of crude oil and other transportation fuel
feedstock supplies; in-state, national, and worldwide production and
refining capacity; product output storage availability; and
transportation and distribution systems capacity and use.
(d) Assessments of the risks of supply disruptions, price shocks,
or other events and the consequences of these events on the
availability and price of transportation fuels and effects on the
state's economy.
(e) Evaluation of the potential for needed changes in the state's
energy shortage contingency plans to increase production and
productivity, improve efficiency of fuel use, increase conservation
of resources, and other actions to maintain sufficient, secure, and
affordable transportation fuel supplies for the state.
(f) Evaluation of alternative transportation energy scenarios, in
the context of least environmental and economic costs, to examine
potential effects of alternative fuels usage, vehicle efficiency
improvements, and shifts in transportation modes on public health and
safety, the economy, resources, the environment, and energy
security.
(g) Examination of the success of introduction, prices, and
availability of advanced transportation technologies, low- or
zero-emission vehicles, and clean-burning transportation fuels,
including their potential future contributions to air quality, energy
security, and other public interest benefits.
(h) Recommendations to improve the efficiency of transportation
energy use, reduce dependence on petroleum fuels, decrease
environmental impacts from transportation energy use, and contribute
to reducing congestion, promoting economic development, and enhancing
energy diversity and security.
25305. The commission shall rely upon forecasting and assessments
performed in accordance with Sections 25301 to 25304, inclusive, as
the basis for analyzing the success of and developing policy
recommendations for public interest energy strategies. Public
interest energy strategies include, but are not limited to, achieving
energy efficiency and energy conservation; implementing load
management; pursuing research, development, demonstration, and
commercialization of new technologies; promoting renewable generation
technologies; reducing statewide greenhouse gas emissions and
addressing the impacts of climate change on California; stimulating
California's energy-related business activities to contribute to the
state's economy; and protecting and enhancing the environment.
Additional assessments to address public interest energy strategies
shall include, but are not limited to, all of the following:
(a) Identification of emerging trends in energy efficiency in the
residential, commercial, industrial, agricultural, and transportation
sectors of the state's economy, including, but not limited to,
evaluation of additional achievable energy efficiency measures and
technologies. Identification of policies that would permit fuller
realization of the potential for energy efficiency, either through
direct programmatic actions or facilitation of the market.
(b) Identification of emerging trends in the renewable energy
industry. In addition, the commission shall evaluate progress in
ensuring the operation of existing facilities, and the development of
new and emerging, in-state renewable resources.
(c) Identification of emerging trends in energy research,
development, and demonstration activities that advance science or
technology to produce public benefits.
(d) Identification of progress in reducing statewide greenhouse
gas emissions and addressing the effects of climate change on
California.
25305.5. The commission shall include in its report prepared
pursuant to Sections 25301 to 25304, inclusive, a description of
international energy market prospects and an evaluation of its export
promotion activities, as well as an assessment of the state of the
California energy technology and energy conservation industry's
efforts to enter foreign markets. The report shall also include
recommendations for state government initiatives to foster the
California energy technology and energy conservation industry's
competition in world markets.
25306. The commission shall conduct workshops, hearings, and
other forums to gain the perspectives of the public and market
participants for purposes of the integrated energy policy report
prepared pursuant to Section 25302 and the forecasting and
assessments prepared pursuant to Sections 25301, 25303, 25304, and
25305. The commission shall include the comments, as well as
responses to those comments, of governmental agencies, industry
representatives, market participants, private groups, and any other
person concerning the commission's proposals and recommendations in
the docket for the integrated energy policy report.
25307. (a) The Governor shall review the integrated energy policy
report prepared pursuant to Section 25302 and shall, on or before 90
days after receipt of the report, report further to the Legislature
the Governor's agreement or disagreement with the policy
recommendations contained in that report. The Governor's report to
the Legislature shall cover the information required to be included
in the integrated energy policy report and may cover any additional
item that is necessary or appropriate. If the Governor disagrees
with one or more recommendations in the integrated energy policy
report, the Governor shall, in each instance, indicate the reason for
disagreement and shall specify the alternate policy the Governor
finds appropriate.
(b) The Governor's report to the Legislature pursuant to this
section is the Governor's official statement of energy policy.
25320. (a) The commission shall manage a data collection system
for obtaining information necessary to develop the policy reports and
analyses required by Sections 25301 to 25307, inclusive, the energy
shortage contingency planning efforts in Chapter 8 (commencing with
Section 25700), and to support other duties of the commission.
(b) The data collection system, adopted by regulation under
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code, and managed by the commission
shall:
(1) Include a timetable for the submission of this information, so
that the integrated energy policy report required by Section 25302
can be completed in an accurate and timely manner.
(2) Require a person to submit only information that is reasonably
relevant, and that the person can either be expected to acquire
through his or her market activities, or possesses or controls.
Information collected pursuant to this section shall relate to the
functional role of each category of market participant in that
industry and the consumers within that industry.
(3) To the extent it satisfies the information needs of the
commission, rely on the use of estimates and proxies, to the maximum
extent practicable, for some data elements using survey and research
techniques, while for other information it shall obtain data from
market participants using submissions consistent with their
accounting records. In determining whether to rely upon estimates or
participant provided data, the commission shall weigh the burden of
compliance upon industry participants and energy consumers against
the benefit of participant provided data for the public interest.
(4) To the extent it satisfies the information needs of the
commission, rely on data, to the maximum extent practicable, that is
reported to other government agencies or is otherwise available to
the commission.
(c) Pursuant to the requirements of subdivision (b), the data
collection system for electricity and natural gas shall enumerate
specific requirements for each category of market participants,
including, but not limited to, private market participants, energy
service providers, energy service companies, natural gas marketers,
electric utility and natural gas utility companies, independent
generators, electric transmission entities, natural gas producers,
natural gas pipeline operators, importers and exporters of
electricity and natural gas, and specialized electric or natural gas
system operators. The commission may also collect information about
consumers' natural gas and electricity use from their voluntary
participation in surveys and other research techniques.
(d) Pursuant to the requirements of subdivision (b), the data
collection system for nonpetroleum fuels and transportation
technologies shall enumerate specific requirements for each category
of market participant, including, but not limited to, fuel importers
and exporters, fuel distributors and retailers, fuel pipeline
operators, natural gas liquid producers, and transportation
technology providers. The commission may also collect information
about consumers' nonpetroleum fuel and transportation technology use
from their voluntary participation in surveys and other research
techniques.
(e) The commission shall collect data for petroleum fuel pursuant
to Chapter 4.5 (commencing with Section 25350). The commission may
also collect information about consumers' petroleum fuel use from
consumers' participation in surveys and other research techniques.
25321. In order to ensure timely and accurate compliance with the
data collection system adopted under Section 25320, the commission
may use any of the following enforcement measures:
(a) If any person fails to comply with an applicable provision of
the data collection system, the commission shall notify the person.
If, after five working days from being notified of the violation, the
person continues to fail to comply, the person shall be subject to a
civil penalty, to be imposed by the commission after a hearing that
complies with constitutional requirements.
(1) The civil penalty shall not be less than five hundred dollars
($500) nor more than two thousand dollars ($2,000) for each category
of data the person did not provide and for each day the violation has
existed and continues to exist.
(2) In the case of a person who willfully makes any false
statement, representation, or certification in any record, report,
plan, or other document filed with the commission, the civil penalty
shall not be less than five hundred dollars ($500) nor more than two
thousand dollars ($2,000) per day applied to each day in the interval
between the original due date and the date when corrected
information is submitted.
(b) For the purposes of this section, "person" means, in addition
to the definition contained in Section 25116, any responsible
corporate officer.
(c) Enforcement measures for petroleum and other fuels shall be
those contained in Section 25362.
25322. (a) The data collection system managed pursuant to Section
25320 shall include the following requirements regarding the
confidentiality of the information collected by the commission:
(1) Any person required to present information to the commission
pursuant to this section may request that specific information be
held in confidence. The commission shall grant the request in any of
the following circumstances:
(A) The information is exempt from disclosure under the California
Public Records Act, Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code.
(B) The information satisfies the confidentiality requirements of
Article 2 (commencing with Section 2501) of Chapter 7 of Division 2
of Title 20 of the California Code of Regulations, as those
regulations existed on January 1, 2002.
(C) On the facts of the particular case, the public interest
served by not disclosing the information clearly outweighs the public
interest served by disclosure of the information.
(2) The commission may, by regulation, designate certain
categories of information as confidential, which removes the
obligation to request confidentiality for that information.
(3) Any confidential information pertinent to the responsibilities
of the commission specified in this chapter that is obtained by
another state agency, or the California Independent System Operator
or its successor, shall be available to the commission and shall be
treated in a confidential manner.
(4) Information presented to or developed by the commission and
deemed confidential pursuant to this section shall be held in
confidence by the commission. Confidential information shall be
aggregated or masked to the extent necessary to assure
confidentiality if public disclosure of the specific information
would result in an unfair competitive disadvantage to the person
supplying the information.
(b) Requests for records of information shall be handled as
follows:
(1) If the commission receives a written request to publicly
disclose information that is being held in confidence pursuant to
paragraph (1) or (2) of subdivision (a), the commission shall provide
the person making the request with written justification for the
confidential designation and a description of the process to seek
disclosure.
(2) If the commission receives a written request to publicly
disclose a disaggregated or unmasked record of information designated
as confidential under paragraph (1) or (2) of subdivision (a),
notice of the request shall be provided to the person that submitted
the record. Upon receipt of the notice, the person that submitted
the record may, within five working days of receipt of the notice,
provide a written justification of the claim of confidentiality.
(3) The commission or its designee shall rule on a request made
pursuant to paragraph (2) on or before 20 working days after its
receipt. The commission shall deny the request if the disclosure
will result in an unfair competitive
disadvantage to the person that submitted the
information.
(4) If the commission grants the request pursuant to paragraph
(3), it shall withhold disclosure for a reasonable amount of time,
not to exceed 14 working days, to allow the submitter of the
information to seek judicial review.
(c) No information submitted to the commission pursuant to this
section is confidential if the person submitting the information has
made it public.
(d) The commission shall establish, maintain, and use appropriate
security practices and procedures to ensure that the information it
has designated as confidential, or received with a confidential
designation from another government agency, is protected against
disclosure other than that authorized using the procedures in
subdivision (b). The commission shall incorporate the following
elements into its security practices and procedures:
(1) Commission employees shall sign a confidential data disclosure
agreement providing for various remedies, including, but not limited
to, fines and termination for wrongful disclosure of confidential
information.
(2) Commission employees, or contract employees of the commission,
shall only have access to confidential information when it is
appropriate to their job assignments and if they have signed a
nondisclosure agreement.
(3) Computer data systems that hold confidential information shall
include sufficient security measures to protect the data from
inadvertent or wrongful access by unauthorized commission employees
and the public.
(e) Data collected by the commission on petroleum fuels in Section
25320 shall be subject to the confidentiality provisions of Sections
25364 to 25366, inclusive.
25323. Nothing in this division shall authorize the commission in
the performance of its analytical, planning, siting, or
certification responsibilities to mandate a specified supply plan for
any utility.
SEC. 3. Section 25401.1 of the Public Resources Code is repealed.
SEC. 4. Section 25553 of the Public Resources Code is repealed.
SEC. 5. Section 25604 of the Public Resources Code is repealed.
SEC. 6. Section 25698 of the Public Resources Code is repealed.