BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1389|
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UNFINISHED BUSINESS
Bill No: SB 1389
Author: Bowen (D)
Amended: 8/23/02
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 8-0, 4/23/02
AYES: Bowen, Alarcon, Battin, Murray, Sher, Speier,
Vasconcellos, Vincent
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 26-5, 5/23/02
AYES: Alarcon, Alpert, Bowen, Burton, Chesbro, Costa,
Dunn, Escutia, Figueroa, Johannessen, Karnette, Kuehl,
Margett, McPherson, Murray, O'Connell, Ortiz, Peace,
Perata, Romero, Scott, Sher, Soto, Speier, Torlakson,
Vasconcellos
NOES: Ackerman, Haynes, Knight, McClintock, Oller
ASSEMBLY FLOOR : 66-11, 8/25/02 - See last page for vote
SUBJECT : Energy: planning and forecasting
SOURCE : Author
DIGEST : This bill consolidates and updates the
California Energy Commission's reporting requirements into
one integrated report and requires the reporting of the
energy data from all entities that participate in the state
energy markets.
CONTINUED
SB 1389
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Assembly Amendments make further clarifying and
consolidating modifications.
ANALYSIS : Under existing law (Chapter 4 of the
Warren-Alquist Act), the California Energy Commission (CEC)
has various energy planning and forecasting duties,
including the preparation of periodic reports on
electricity and natural gas demand, energy efficiency,
renewable technologies, public interest energy research,
climate change, environmental performance of power plants,
and the use, availability and price of transportation
fuels.
Background
In 1974, the Warren-Alquist Act established the CEC and
required it to develop long-term forecasts of state energy
needs, which formerly served as the basis for the planning
and certification of individual power plants. Since the
advent of electrical restructuring, the link between the
CEC's planning and siting functions has been severed.
The act gives the CEC broad authority to undertake a
continuing assessment of trends in the consumption and
supply of electricity and other forms of energy and to
analyze the social, economic, and environmental
consequences of these trends. The CEC is also required to
prepare several policy reports on a biennial cycle,
including the Biennial Report, Electricity Report, Fuels
Report, Energy Efficiency Report, and Energy Development
Report.
Circumstances in energy markets have changed dramatically
since original passage of the act, but the act itself
hasn't been updated to reflect these changes. As a
consequence, the existing planning and forecasting
requirements are not well suited to support analysis of
current energy issues.
For example, the CEC is required to conduct its forecasting
and assessment of the electricity industry in the context
of the Electricity Report (ER), which is based on forecasts
submitted by the investor-owned utilities (IOUs). One of
the primary purposes of the ER was to assess the need for
new generating facilities (the Integrated Assessment of
SB 1389
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Need). The ER established policies and criteria for
determining whether power plant applications before the CEC
were in conformance with that assessment of need. SB 110
(Peace), Chapter 581, Statutes of 1999, eliminated the
requirement that every power plant licensing decision
determine that the need for the facility conformed to the
CEC's integrated assessment of need.
While the role of IOUs has diminished in the restructured
market, the current data collection provisions remain
targeted solely at IOUs. This fails to provide for data
collection from new participants in the electricity market,
such as merchant generators, wholesale marketers and energy
service providers. According to the CEC, it is in the
process of revising its data collection regulations to
bring them into conformance with changes in the
restructured market. However, statutory revisions are
needed to eliminate obsolete data collection authority and
clarify the CEC's authority to collect necessary data from
new market participants. In addition, revisions are
necessary to ensure that new data collection regulations
can adequately be enforced and to ensure the CEC is able to
provide appropriate confidentiality protections to protect
customer privacy and commercially sensitive data.
The purpose of this bill is to consolidate the CEC's
reporting requirements into one timely, integrated report,
to require the reporting of the energy data necessary to
support this report from new market participants, and to
develop and maintain the capability to produce the required
analyses.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Absorbable costs
SUPPORT : (Verified 8/24/02)
California Energy Commission
Independent Energy Producers Association
Office of Ratepayer Advocates
SB 1389
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ASSEMBLY FLOOR
AYES: Aanestad, Alquist, Aroner, Bogh, Briggs,
Canciamilla, Cardenas, Cardoza, Cedillo, Chan, Chavez,
Chu, Cogdill, Cohn, Corbett, Correa, Daucher, Diaz,
Dickerson, Dutra, Firebaugh, Florez, Frommer, Goldberg,
Harman, Havice, Hertzberg, Horton, Jackson, Keeley,
Kehoe, Kelley, Koretz, Leach, Leslie, Liu, Longville,
Lowenthal, Maddox, Maldonado, Matthews, Migden, Nakano,
Nation, Negrete McLeod, Oropeza, Robert Pacheco, Rod
Pacheco, Papan, Pavley, Pescetti, Reyes, Richman,
Salinas, Shelley, Simitian, Steinberg, Strickland,
Strom-Martin, Thomson, Washington, Wayne, Wiggins,
Wright, Wyland, Wesson
NOES: Ashburn, Bates, John Campbell, Cox, Hollingsworth,
La Suer, Leonard, Mountjoy, Runner, Wyman, Zettel
NC:kb 8/26/02 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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