BILL NUMBER: AB 808	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Richman

                        FEBRUARY 20, 2003

   An act to enact the Energy Code, to repeal Division 3 (commencing
with Section 3000) of, and to repeal Division 15 (commencing with
Section 25000) of, the Public Resources Code, to repeal Chapter 2.3
(commencing with Section 330) of Part 1 of Division 1 of, to repeal
Chapter 4 (commencing with Section 701) of Part 1 of Division 1 of,
to repeal Chapter 5 (commencing with Section 1001) of Part 1 of
Division 1 of, to repeal Chapter 7 (commencing with Section 1351) of
Part 1 of Division 1 of, to repeal Chapter 8 (commencing with Section
1401) of Part 1 of Division 1 of, to repeal Chapter 9 (commencing
with Section 1701) of Part 1 of Division 1 of, to repeal Chapter 10
(commencing with Section 1901) of Part 1 of Division 1 of, to repeal
Chapter 11 (commencing with Section 2100) of Part 1 of Division 1 of,
and to repeal Division 1.5 (commencing with Section 3300) of, the
Public Utilities Code, and to repeal Division 27 (commencing with
Section 80000) of the Water Code, relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 808, as introduced, Richman.  Energy:  agency consolidation.
   The Warren-Alquist State Energy Resources Conservation and
Development Act establishes the State Energy Resources Conservation
and Development Commission (Energy Commission) and requires it to
certify sufficient sites and related facilities that are required to
provide a supply of electricity sufficient to accommodate projected
demand for power statewide.  Under that act, the Energy Commission
also administers existing law with respect to energy conservation.
   Existing law authorizes the Public Utilities Commission to
regulate public utilities, including electrical and gas corporations.
  Under existing law, the commission is charged with issuing
certificates of public convenience and necessity to every electrical
and gas corporation proposing to construct or modify any electric or
gas plant within the state, is authorized to determine the value of
the property of every public utility in the state, to fix the just
compensation to be paid by a political subdivision for public utility
property acquired by eminent domain, to hold hearings concerning
complaints against certain entities, including electrical and gas
corporations, and to charge and collect certain fees.  Under existing
law, a public utility is guilty of a crime for failing to comply
with provisions of the Public Utilities Act, the California
Constitution, or an order by the commission.
   Under existing law, the California Consumer Power and Conservation
Financing Authority Act establishes the California Consumer Power
and Conservation Financing Authority (Power Authority), with certain
powers and responsibilities, including the issuance of up to
$5,000,000,000 of revenue bonds, for the purposes of augmenting
electric generating facilities and ensuring a sufficient and reliable
supply of electricity.
   Existing law authorizes the Department of Water Resources to enter
into contracts for the purchase and sale of electricity in
accordance with specified requirements.
   This bill would enact the Energy Code.  The bill would delete the
above described provisions of existing law and would establish the
Department of Energy under the administration of the Secretary for
Energy, who would be appointed by the Governor and subject to
confirmation by the Senate.  The bill would state the intent of the
Legislature to propose changes in existing law to transfer to the
department all the duties, powers, purposes, responsibilities, and
jurisdiction of the Public Utilities Commission relating to the
ownership, operation, control, and management of a line, plant, or
system for the production, generation, transmission, and furnishing
of heat, light, and power directly or indirectly to or for the
public.  The bill would transfer to the department all the duties,
powers, purposes, responsibilities, and jurisdiction of the Power
Authority, the Energy Commission, and the Department of Water
Resources relating to the purchase and sale of electric power.  The
bill would require all the officers and employees of the Power
Authority, the Energy Commission, and the Department of Water
Resources who, on the operative date of this bill are exercising any
duty, power, purpose, responsibility, or jurisdiction to which the
department succeeds to, to be employed by the department.
   This bill would establish an Energy Reliability Board consisting
of a chairperson, appointed by the Governor and confirmed by the
Senate, the secretary of the department, a representative of public
utilities, appointed by the Governor and confirmed by the Senate, and
an energy ratepayer, appointed by the Governor and confirmed by the
Senate.  The bill would declare the intent of the Legislature to
propose changes to existing law to vest the board with all ratemaking
powers for electrical transmission and distribution, and natural gas
transportation, consistent with former powers of the Public
Utilities Commission with respect to the regulation of the electrical
and natural gas industries.
   The existing restructuring of the electrical services industry
establishes the Electricity Oversight Board (Oversight Board) to
oversee the Independent System Operator and the Power Exchange in
order to ensure the success of the electrical industry restructuring
and to ensure a reliable supply of electricity in the transition to a
new market structure.
   This bill would delete these provisions.
   The bill would declare the intent of the Legislature to codify the
provisions that would be repealed by the bill in the Energy Code
under the governance of the department, the Independent System
Operator, and the Energy Reliability Board.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Energy Code is enacted, to read:
      DIVISION 1.  PRELIMINARY PROVISIONS
      Article 1.  General Provisions

   1.  This code is known as the Energy Code.
   2.  Division, chapter, article, and section headings do not affect
the scope, meaning, or intent of this code.
   3.  Unless the provision or context otherwise requires, the
general provisions and rules of construction in this division govern
the construction of this code.
   4.  If a reference is made to a portion of this code or to another
law, the reference applies to all amendments and additions
regardless of the time made.
   5.  Unless otherwise expressly stated:
   (a) "Division" means a division of this code.
   (b) "Part" means a part of the division in which that term occurs.

   (c) "Chapter" means a chapter of the division or part, as the case
may be, in which that term occurs.
   (d) "Article" means an article of the chapter in which that term
occurs.
   (e) "Section" means a section of this code.
   (f) "Subdivision" means a subdivision of the section in which that
term occurs.
   (g) "Paragraph" means a paragraph of the subdivision in which that
term occurs.
   (h) "Subparagraph" means a subparagraph of the paragraph in which
that term occurs.
   6.  The present tense includes the past and future tenses, and the
future, the present.
   7.  The singular number includes the plural, and the plural, the
singular.
   8.  "Shall" is mandatory and "may" is permissive.  "Shall not" and
"may not" are prohibitory.
   9.  If a provision or clause of this code or its application to
any person or circumstances is held invalid, the invalidity does not
affect other provisions or applications of the code that can be given
effect without the invalid provision or application, and to this
end, the provisions of this code are severable.
   10.  (a) Any reference in any code to the California Consumer
Power and Conservation Financing Authority, the State Energy
Resources Conservation and Development Commission, or the Division of
Oil, Gas, and Geothermal Resources in the Department of
Conservation, shall be deemed to refer to the Department of Energy.
   (b) Any reference in any code to the Department of Water Resources
relating to the purchase or sale of electric power pursuant to
Division 27 (commencing with Section 80000) of the Water Code, shall
be deemed to refer to the Department of Energy.

      Article 2.  Definitions

   11.  As used in this code, unless otherwise indicated, the
following terms have the following meanings:
   (a) "Department" means the Department of Energy.

      DIVISION 2.  DEPARTMENT OF ENERGY

   50.  The Department of Energy is hereby established.
   51.  (a) The department is administered by the Secretary for
Energy.
   (b) The secretary is appointed by the Governor and subject to
confirmation by the Senate.
   52.  (a) It is the intent of the Legislature to propose changes in
existing law so that the department succeeds to, and is vested with,
all the duties, powers, purposes, responsibilities, and jurisdiction
of the Public Utilities Commission relating to the ownership,
operation, control, and management of a line, plant, or system for
the production, generation, transmission, and furnishing of heat,
light, and power directly or indirectly to or for the public.
   (b) (1) Notwithstanding any other provision of law, except as
specified in paragraph (2), the department succeeds to, and is vested
with, all the duties, powers, purposes, responsibilities, and
jurisdiction of the California Consumer Power and Conservation
Financing Authority.
   (2) Notwithstanding Section 3380.1 of the Public Utilities Code,
the department may issue bonds only for the purposes of energy
conservation in an amount not to exceed one billion dollars
($1,000,000,000), exclusive of any refunds.
   (c) Notwithstanding any other provision of law, the department
succeeds to, and is vested with, all the duties, powers, purposes,
responsibilities, and jurisdiction of the State Energy Resources
Conservation and Development Commission.
   (d) Notwithstanding any other provision of law, the department
succeeds to, and is vested with, all the duties, powers, purposes,
responsibilities, and jurisdiction of the Division of Oil, Gas, and
Geothermal Resources in the Department of Conservation.
   (e) Notwithstanding any other provision of law, the department
succeeds to, and is vested with, all the duties, powers, purposes,
responsibilities, and jurisdiction of the Department of Water
Resources relating to the purchase and sale of electric power
pursuant to Division 27 (commencing with Section 80000) of the Water
Code.
   53.  All officers and employees of the Public Utilities
Commission, the California Consumer Power and Conservation Financing
Authority, the State Energy Resources Conservation and Development
Commission, the Division of Oil, Gas, and Geothermal Resources in the
Department of Conservation, and the Department of Water Resources
who, on the operative date of this section, are serving in the state
civil service, other than as temporary employees, and are exercising
any duty, power, purpose, responsibility, or jurisdiction to which
the department succeeds pursuant to Section 52, are transferred to
the department.  The status, positions, and rights of those persons
existing prior to the transfer shall not be affected by the transfer
and shall be retained by those persons as officers and employees of
the agency, pursuant to the State Civil Service Act (Part 2
(commencing with Section 18500) of Division 5 of Title 2 of the
Government Code), except as to positions exempted from civil service.

   54.  The department shall have possession and control of all
records, papers, offices, equipment, supplies, moneys, funds,
appropriations, licenses, permits, agreements, contracts, claims,
judgments, and land or other property, real or personal, connected
with the administration of, or held for the benefit or use of, the
Public Utilities Commission, the California Consumer Power and
Conservation Financing Authority, the State Energy Resources
Conservation and Development Commission, the Division of Oil, Gas,
and Geothermal Resources in the Department of Conservation, and the
Department of Water Resources for the performance of the functions
transferred to the department by Section 52.

      DIVISION 3.  ENERGY RELIABILITY BOARD

   75.  The Energy Reliability Board is hereby established.
   76.  It is the intent of the Legislature to propose changes in
existing law to vest the Energy Reliability Board with all ratemaking
powers for electrical transmission and distribution, and natural gas
transportation, consistent with former powers of the Public
Utilities Commission with respect to the regulation of the electrical
and natural gas industries.
   77.  The Energy Reliability Board shall consist of five members as
follows:
   (a) A chairperson, appointed by and serving at the pleasure of,
the Governor, subject to confirmation by the Senate.
   (b) The secretary of the department.
   (c) The chairperson of the Independent System Operator.
   (d) A representative of public utilities, who shall be appointed
by the Governor, confirmed by the Senate, for an initial two-year
term, and four-year terms thereafter.
   (e) An energy ratepayer, who shall be appointed by the Governor,
confirmed by the Senate, for an initial three-year term, and
four-year terms thereafter.
  SEC. 2.  Division 15 (commencing with Section 25000) of the Public
Resources Code is repealed.
  SEC. 3.  Chapter 2.3 (commencing with Section 330) of the Public
Utilities Code is repealed.
  SEC. 4.  Chapter 4 (commencing with Section 701) of the Public
Utilities Code is repealed.
  SEC. 5.  Chapter 5 (commencing with Section 1001) of the Public
Utilities Code is repealed.
  SEC. 6.  Chapter 7 (commencing with Section 1351) of the Public
Utilities Code is repealed.
  SEC. 7.  Chapter 8 (commencing with Section 1401) of the Public
Utilities Code is repealed.
  SEC. 8.  Chapter 9 (commencing with Section 1701) of the Public
Utilities Code is repealed.
  SEC. 9.  Chapter 10 (commencing with Section 1901) of the Public
Utilities Code is repealed.
  SEC. 10.  Chapter 11 (commencing with Section 2100) of the Public
Utilities Code is repealed.
  SEC. 11.  Division 1.5 (commencing with Section 3300) of the Public
Utilities Code is repealed.
  SEC. 12.  Division 27 (commencing with Section 80000) of the Public
Utilities Code is repealed.
  SEC. 13.  It is the intent of the Legislature in subsequent
legislation to codify the repealed provisions set forth in Sections 2
to 12, inclusive, of this act in the Energy Code under the
governance of the Department of Energy, the Independent System
Operator, and the Energy Reliability Board.  It is further the intent
of the Legislature to abolish the Electricity Oversight Board.