BILL ANALYSIS                                                                                                                                                                                                    




                                                                  SB 1389
                                                                  Page A
          Date of Hearing:  June 17, 2002

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                              Roderick D. Wright, Chair
                     SB 1389 (Bowen) - As Amended:  June 13, 2002

           SENATE VOTE  :  26-5
           
          SUBJECT  :  Energy: planning and forecasting.

           SUMMARY  :  Consolidates and modifies the California Energy  
          Commission's (CEC) reporting requirements into one integrated  
          report, and requires the reporting of the energy data needed  
          from new market participants.  Specifically,  this bill  :   

          1)Repeals the provisions of law requiring reports on alternative  
            fuel vehicle infrastructure, energy conservation and energy  
            technology development.

          2)Requires CEC to prepare an integrated energy policy report on  
            or before November 1, 2003, and every 2 years thereafter,  
            consisting of 3 volumes:

             a)   Electricity and natural gas markets;

             b)   Public interest energy strategies; and

             c)   Transportation fuels, technologies and infrastructure.

          3)Establishes a process for CEC to collect data from energy  
            market participants to support its planning and forecasting  
            duties, to maintain the confidentiality of data, and to impose  
            penalties for noncompliance.

          4)Specifies that CEC is to continue to collect data for  
            petroleum fuel pursuant to existing law, but allows CEC to  
            also collect information about consumers' petroleum fuel use  
            from consumers' participation in surveys and other research  
            techniques.

           EXISTING LAW  requires CEC to prepare various reports, including:

             a)   A draft and final electricity report based on reporting  
               and forecasting required to be submitted by electric  
               utilities;









                                                                  SB 1389
                                                                  Page B

             b)   A report regarding emerging trends in energy  
               availability and use;

             c)   A report related to energy conservation, and

             d)   A report regarding emerging trends in use, availability,  
               and price of transportation fuels, among other things.

           FISCAL EFFECT  :  Unknown.


           COMMENTS  :

           Purpose of the bill
           
          The author's intent is to consolidate CEC's reporting  
          requirements into one timely, integrated report, to require  
          reporting of the energy data necessary to support this report  
          from new market participants, and to develop the capability to  
          produce the required analyses. 

           Background
           
          This bill repeals and re-enacts the Planning and Forecasting  
          chapter of the Warren-Alquist State Energy Resources  
          Conservation and Development Act, which among other things  
          created CEC in 1974.  That law requires CEC to develop long-term  
          forecasts of state energy needs, primarily to serve as the basis  
          for the planning and certification of individual power plants.   
          The changing electrical market has affected the direct  
          relationship between CEC's planning and siting functions.

          SB 110 (Peace), Chapter 581, Statutes of 1996, required CEC to  
          recommend ways to consolidate and clarify CEC's policy reporting  
          obligations, and to revise its authority to collect data.

          This bill would apply recommendations contained in the report.   
          Similarly, CEC is adopting revisions to its regulations.  This  
          bill repeals obsolete reporting and data collection requirements  
          and clarifies CEC's authority to collect data from new market  
          participants.  This bill also grants enforcement authority to  
          CEC so that data collection according to CEC regulations can be  
          certain.










                                                                  SB 1389
                                                                  Page C
           Confidentiality provisions
           
          This bill also enacts provisions intended by the author to  
          protect customer privacy and commercially sensitive data that  
          would be collected under the new reporting regime.  CEC has  
          current regulations governing confidentiality of data<1> under  
          the Warren-Alquist and the Public Records Act,<2> which CEC does  
          not intend to repeal.  Both the regulations and this bill  
          contain provision governing both the designation of public  
          records and the circumstances under which they will be  
          disclosed, but the process is different.  This could lead to  
          difficulty in applying the provisions the regulations and this  
          bill to the same set of records.  In addition, confidentiality  
          of data pertaining to petroleum fuel is subject to yet a  
          different statutory scheme in existing law.

          Because this bill incorporates some of CEC regulations by  
          reference, and also contains operative provisions that closely  
          track CEC regulations, the author and the committee may wish to  
          consider amendments to this bill.  An amendment that simply  
          incorporates by reference the existing CEC regulations governing  
          both designation and disclosure of confidential records would  
          clarify confidentiality, as well as reporting and forecasting,  
          in this bill.



           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Energy Commission
          Office of Ratepayer Advocates
          Independent Energy Producers Association
           
            Opposition 
           
          Sempra Energy (oppose unless amended)


           Analysis Prepared by  :    Paul Donahue / U. & C. / (916) 319-2083  


          ---------------------------
          <1> 20 Cal. Code of Regs.  2503 et seq.

          <2> Government Code  6250 et seq.








                                                                  SB 1389
                                                                  Page D