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
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             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  








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          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  



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