BILL ANALYSIS SB 1389 Page 1 SENATE THIRD READING SB 1389 (Bowen) As Amended August 23, 2002 Majority vote SENATE VOTE : 26-5 UTILITIES & COMMERCE 14-0 APPROPRIATIONS 20-2 ----------------------------------------------------------------- |Ayes:|Wright, Pescetti, |Ayes:|Steinberg, Alquist, | | |Calderon, | |Aroner, Cohn, Corbett, | | |Bill Campbell, | |Correa, Daucher, Diaz, | | |Canciamilla, Cardenas, | |Firebaugh, Goldberg, | | |Horton, Kelley, La Suer, | |Maldonado, Negrete | | |Maddox, Nation, Papan, | |McLeod, | | |Reyes, Simitian | |Robert Pacheco, Papan, | | | | |Pavley, Dickerson, | | | | |Simitian, Washington, | | | | |Wiggins, Wright | | | | | | |-----+--------------------------+-----+--------------------------| | | |Nays:|Ashburn, Zettel | | | | | | ----------------------------------------------------------------- SUMMARY : Consolidates and modifies the California Energy Commission's (CEC) reporting requirements into one integrated report, and requires the reporting of the energy data from all entities that participate in the state energy markets. 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 two years thereafter, consisting of three volumes: a) Electricity and natural gas markets; b) Public interest energy strategies; and, SB 1389 Page 2 c) Transportation fuels, technologies and infrastructure. 3)Requires CEC to include in the policy report an evaluation of the international energy market and its export promotion activities. 4)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. 5)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. 6)Requires state agencies with energy-related duties, which therefore receive the integrated energy policy report from CEC, in order to ensure a consistent state energy policy, to carry out their respective duties based upon the recommendations in the biennial report, unless an agency reasonably objects to the information in the report. 7)Modifies existing, and enacts additional provisions governing the designation of public records, and the circumstances under which they will be disclosed by CEC. 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; 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 : The Assembly Appropriations Committee notes absorbable costs to CEC to implement the revised reporting and SB 1389 Page 3 data collection requirements. COMMENTS : This bill consolidates CEC's reporting requirements into one integrated report, and requires reporting of energy data from new participants in the electric market. This bill's reporting and data-gathering requirements are also intended to develop a capability within CEC to conduct the analyses outlined in this bill. 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 enacts recommendations called for in the report. CEC is concurrently adopting revisions to its related 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 assured. Analysis Prepared by : Paul Donahue / U. & C. / (916) 319-2083 FN: 0006829