AB 808 Assembly Bill

BILL NUMBER: AB 808	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 30, 2003

INTRODUCED BY   Assembly  Member   Members
Canciamilla and  Richman
    (Coauthors:  Assembly Members Diaz and Levine) 

                        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.    An act to enact the Energy Code, and to amend
Sections 11550 and 12800 of the Government Code, relating to energy.




	LEGISLATIVE COUNSEL'S DIGEST


   AB 808, as amended,  Richman   Canciamilla
 .  Energy:  agency consolidation. 
   The  
   (1) 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  and renewable electricity generation sources
 .
   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.  
   Existing law establishes the Division of Oil, Gas, and Geothermal
Resources within the Department of Conservation. 
   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 
Agency  under the administration of the  Secretary for
  Secretary of  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.    The agency would be responsible for
the planning, development, and implementation of all major aspects of
the state energy policy to ensure an adequate, reasonably priced
supply of electricity and natural gas. The secretary, in consultation
with the Independent System Operator, would be required to determine
appropriate reserve levels needed to maintain the reliability and
stability of the electrical transmission and distribution grid and
the Public Utilities Commission would be required to ensure that
electrical corporations meet the reserve levels determined to be
appropriate by the secretary.  
   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  
   (2) 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.  
   Existing law establishes the Milton Marks "Little Hoover"
Commission on California State Government Organization and Economy
(commission) to promote economy, efficiency, and improved service in
the transaction of the public business in the various departments,
agencies, and instrumentalities of the executive branch of the state
government.
   Existing law authorizes the Governor to perform executive branch
reorganizations for certain purposes, except an agency whose primary
purpose is service to the legislative or judicial branches or any
agency that is administered by an elective officer.  The
reorganization plan becomes effective on the 61st day after it has
been given to the Legislature unless either the Senate or the
Assembly adopts, by majority vote, a resolution rejecting the plan.
The Governor is required to submit for study and recommendation any
reorganization plan to the Little Hoover Commission at least 30 days
prior to submitting the plan to the Legislature.
   This bill would require the Governor to examine and on or before
May 1, 2004, submit for study and recommendation to the Little Hoover
Commission, and on or before July 1, 2004, transmit to the
Legislature, a plan for reorganization of the energy regulatory
activities of the state.  The plan of reorganization would be
required to (1) establish within the Energy Agency all major policy
making functions with respect to the state's energy policy; (2) merge
the California Consumer Power and Conservation Financing Authority
and the State Energy Resources Conservation and Development
Commission into the Energy Agency; (3) eliminate the Electricity
Oversight Board; (4) eliminate the Power Exchange; (5) transfer to
the Energy Agency all policy making functions with respect to energy
matters currently performed by the Public Utilities Commission and
establish review mechanisms to ensure that the regulatory activities
of the Public Utilities Commission are consistent with the state's
energy policy; (6) transfer to the Energy Agency all energy
conservation programs and oversight currently performed by the Public
Utilities Commission; and (7) establish a single board responsible
for the siting of electrical generation and transmission facilities
and natural gas transmission facilities that will coordinate with
agencies with environmental protection responsibilities. 

   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:  
  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) California's existing energy regulatory system has resulted in
significant fragmentation, duplication, overlap, and confusion in
the formulation and execution of the state's energy related
functions.
   (b) Having a single agency that is responsible for the state's
energy policy will better ensure that the state sends a clear and
consistent message to the public, the business community, the energy
industry, and financial markets relative to policy objectives and the
means to carry out those objectives.  Consolidating energy policy
making into a single lead agency will ensure that all agencies
advocate for, and carry out, one state energy policy, rather than
disagreeing on elements of energy policy as they have in the past.
   (c) Having a cabinet-level gubernatorial appointee with
responsibility for overseeing a single agency that is responsible for
the state's energy policy will promote accountability to the
Legislature and the public for policy, legal, and administrative
actions.
   (d) Having a single agency that is responsible for the state's
energy policy will eliminate duplication of effort and save money in
research, developing policy, program design and coordination, program
implementation, consumer protection, and compliance with
environmental objectives and protections.  Consolidation will reduce
the number of high-level officials responsible for policy, legal,
communications, and administrative issues.
   (e) Having a cabinet-level gubernatorial appointee with
responsibility for overseeing a single agency that is responsible for
the state's energy policy will allow for more timely and
comprehensive responses to shortages, emergencies, and enforcement
issues, because of decreased potential for conflicts between
agencies.
   (f) It is the intent of the Legislature to enact an Energy Code,
under the governance of the Energy Agency.
   (g) It is the further intent of the Legislature that the Energy
Agency be responsible for the development of the state's energy
policy and for strategic planning on how to implement the state's
energy policy.
   (h) It is the further intent of the Legislature that the Public
Utilities Commission carry out its regulatory powers and jurisdiction
over public utilities in a manner that is consistent with the state'
s energy policy, as developed and refined by the Energy Agency.  The
Energy Agency will set policy and the Public Utilities Commission
will implement it in the regulatory arena.
   (i) It is the further intent of the Legislature that the joint
Legislative Audit Committee, Senate Energy, Utilities and
Communications Committee, and Assembly Utilities and Commerce
Committees hold regular oversight hearings on agency activities,
including agency expenditures and policy planning.  
  SEC. 2.  (a) The Governor shall examine and on or before May 1,
2004, submit for study and recommendation to the Milton Marks "Little
Hoover" Commission on California State Government Organization and
Economy established pursuant to Chapter 6 (commencing with Section
8501) of Division 1 of Title 2 of the Government Code, a plan for
reorganization of the energy regulatory activities of the state,
pursuant to Article 7.5 (commencing with Section 12080) of Chapter 1
of Part 2 of Division 3 of Title 2 of the Government Code.
   (b) The Governor shall on or before July 1, 2004, transmit to the
Legislature, a plan for reorganization of the energy regulatory
activities of the state pursuant to Article 7.5 (commencing with
Section 12080) of Chapter 1 of Part 2 of Division 3 of Title 2 of the
Government Code.
   (c) The Governor's plan of reorganization shall include all of the
following provisions:
   (1) Establish within the Energy Agency all major policy making
functions with respect to the state's energy policy.
   (2) Merge the California Consumer Power and Conservation Financing
Authority and the State Energy Resources Conservation and
Development Commission into the Energy Agency.
   (3) Eliminate the Electricity Oversight Board.
   (4) Eliminate the Power Exchange.
   (5) Transfer to the Energy Agency all policy making functions with
respect to energy matters currently performed by the Public
Utilities Commission and establish review mechanisms to ensure that
the regulatory activities of the Public Utilities Commission are
consistent with the state's energy policy.
   (6) Transfer to the Energy Agency all energy conservation programs
and oversight currently performed by the Public Utilities
Commission.
   (7) Establish a single board responsible for the siting of
electrical generation and transmission facilities and natural gas
transmission facilities, that will coordinate with agencies with
environmental protection responsibilities.  
  SEC. 3.  The Department of Finance may direct the transfer of
unexpended and unencumbered balances of appropriations and other
funds available for use in connection with any function affected by
the reorganization prescribed by the act adding this section that the
Director of Finance determines to be necessary to facilitate the
reorganization, for use in connection with the functions affected by
the reorganization, provided that any unexpended and unencumbered
balances of appropriations and other funds so transferred shall be
expended, as to appropriations, only for purposes that were
authorized by the appropriation and, as to other available funds,
only for purposes authorized as of the effective date of the act
adding this section.  
  SEC. 4.  The Energy Code is enacted, to read:

      DIVISION 1.  PRELIMINARY PROVISIONS
      CHAPTER 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 unless some other
statute or code is specifically mentioned.
   (f) "Subdivision" means a subdivision of the section in which that
term occurs unless some other section is expressly mentioned.
   (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 masculine gender includes the feminine and the neuter.
   8.  The singular number includes the plural, and the plural, the
singular.
   9.  "Shall" is mandatory and "may" is permissive.  "Shall not" and
"may not" are prohibitory.
   10.  "Oath" includes affirmation.
   11.  "Signature" or "subscription" includes mark when the signer
or subscriber cannot write, such signer's or subscriber's name being
written near the mark by a witness who writes his own name near the
signer's or subscriber's name;  but a signature or subscription by
mark can be acknowledged or can serve as a signature or subscription
to a sworn statement only when two witnesses so sign their own names
thereto.
   12.  "State" means the State of California, unless applied to the
different parts of the United States.  In the latter case, it
includes the District of Columbia and the territories.
   13.  "County" includes city and county.
   14.  "City" includes city and county and "incorporated town," but
does not include "unincorporated town" or "village."
   15.  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.
   16.  No action or proceeding commenced before this code takes
effect, and no right accrued, is affected by this code, but all
procedure thereafter taken therein shall conform to this code in so
far as possible.
   17.  Whenever a power is granted to, or a duty is imposed upon, a
public officer, including the Director of Energy, the power may be
exercised or the duty may be performed by a deputy of the officer or
by a person authorized, pursuant to law, by the officer, unless this
code expressly provides otherwise.
   18.  Writing includes any form of recorded message capable of
comprehension by ordinary visual means.  Whenever any notice, report,
statement, petition, or record is required or authorized by this
code, it shall be made in writing in the English language unless it
is expressly provided otherwise.  Wherever any notice or other
communication is required by this code to be mailed by registered
mail by or to any person or corporation, the mailing of such notice
or other communication by certified mail shall be deemed to be a
sufficient compliance with the requirements of law.
   19.  Whenever reference is made to any portion of this code or of
any other law of this state, the reference applies to all amendments
and additions heretofore or hereafter made.

      CHAPTER 2.  DEFINITIONS

   100.  The following terms have the following meanings and shall
govern the construction of this code, unless the provision or the
context otherwise requires.
   101.  "Agency" means the Energy Agency.
   102.  "Corporation" includes a corporation, a company, an
association, and a joint stock association.
   103.  "Person" includes an individual, a firm, and a
copartnership.
   104.  "Secretary" means the Secretary of Energy.
   105.  As used in this code "person" and "corporation" include the
lessees, trustees, receivers or trustees appointed by any court
whatsoever, of the person or corporation.
   106.  "Public or any portion thereof" means the public generally,
or any limited portion of the public, including a person, private
corporation, municipality, or other political subdivision of the
state, for which the service is performed or to which the commodity
is delivered.

      DIVISION 2.  ENERGY AGENCY
      CHAPTER 1.   ADMINISTRATION

   200.  The Energy Agency is hereby established.
   201.  (a) The agency is administered by the Secretary of Energy.
   (b) The secretary is appointed by the Governor and subject to
confirmation by the Senate.
   202.  (a) The secretary shall direct the departments and staff of
the agency, in the performance of their duties, in accordance with
statutes and agency policies and guidelines.  The secretary shall be
responsible for the agency's executive and administrative duties and
shall organize, coordinate, supervise, and direct the operations and
affairs of the agency and expedite all matters within the agency's
jurisdiction.
   (b) The secretary shall keep a full and true record of all
proceedings of the agency, issue all necessary process, writs,
warrants, and notices, and perform such other duties as are necessary
to carry out the duties of the agency.  The secretary may dismiss
complaints or applications when all parties are in agreement thereto,
in accordance with rules that the agency may prescribe.
   (c) The secretary may appoint assistant executives who may serve
warrants and other process in any county or city and county of this
state.
   203.  The secretary may employ any officers, administrative law
judges, experts, engineers, statisticians, accountants, inspectors,
clerks, and employees as the secretary deems necessary to carry out
or to perform the duties and exercise the powers conferred upon the
agency by law.  All officers and employees shall receive compensation
as is established by the secretary.
   204.  (a) The agency shall adopt procedures on the
disqualification of administrative law judges due to bias or
prejudice similar to those of other state agencies and superior
courts.
   (b) The agency shall develop the procedures with the opportunity
for public review and comment.
   205.  The agency may do any of the following:
   (a) Apply for and accept grants and contributions, and expend
appropriations.
   (b) Contract for professional work or services if work or services
cannot be satisfactorily performed by its employees or by any other
state agency.
   (c) Be sued and sue.
   (d) Request and utilize the advice and services of all federal,
state, regional, and local agencies.
   (e) Adopt any rule or regulation, or take any action, that the
director determines to be reasonable and necessary to carry out this
code.  The agency shall adopt rules and regulations, as necessary, to
carry out this code in conformity with Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code.
   206.  The provisions of this division specifying any power or duty
of the agency shall be liberally construed, to carry out the
objectives of this code.
   207.  As to any matter involving the federal government, its
departments or agencies, that is within the scope of the powers and
duties of the agency, the director may represent its interest or the
interest of any county, city, state agency, or district upon its
request, and to that end may correspond, confer, and cooperate with
the federal government, and its departments or agencies.
   208.  The secretary may participate as a party in any proceeding
before any federal or state agency having authority whatsoever to
approve or disapprove any aspect of a proposed facility, receive
notice from any applicant of all applications and pleadings filed
subsequently by those applicants in any such proceeding, and, upon
request, receive copies of any such subsequently filed applications
and pleadings that the director shall determine to be necessary.

      CHAPTER 2.   OFFICES AND MEETINGS

   250.  (a) The agency shall maintain its headquarters in the County
of Sacramento and may establish branch offices in those parts of the
state that the agency determines to be necessary.
   (b) The meetings of the agency shall be open and public in
accordance with Article 9 (commencing with Section 11120) of Chapter
1 of Part 1 of Division 3 of Title 2 of the Government Code.
   (c) The agency shall have a seal, bearing the inscription "Energy
Agency."  The seal shall be affixed to all writs and authentications
of copies of records and to such other instruments as the director
shall direct.
   (d) The agency may procure all necessary books, maps, charts,
stationery, instruments, office furniture, apparatus, and appliances.


      CHAPTER 3.  RECORDS

   260.  The agency shall make available any information filed or
submitted pursuant to this code under the California Public Records
Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of
Title 1 of the Government Code), except that the agency shall keep
confidential any information submitted to the agency that the
secretary determines to be proprietary, or the disclosure of which
would likely injure competition.  The secretary shall annually report
to the Legislature, summary information concerning information
withheld from the public pursuant to this section.

      CHAPTER 4.  LEGAL AFFAIRS

   300.  The Legal Affairs Department is established in the Energy
Agency, administered by the agency counsel, with responsibility for
facility compliance, permit condition compliance, energy market
enforcement, and representation of the state's proprietary interests
and the interests of ratepayers.
   301.  (a) The secretary may appoint as agency counsel, an attorney
at law of this state, who shall hold office during the pleasure of
the secretary.
   (b) The attorney shall represent and appear for the people of the
State of California and the agency in all actions and proceedings
involving any question under this code or under any order or act of
the agency.  If directed to do so by the secretary, the attorney
shall intervene, if possible, in any action or proceeding in which
any such question is involved.
   (c) The attorney shall commence, prosecute, and expedite the final
determination of all actions and proceedings directed or authorized
by the secretary, advise the secretary, when so requested, in regard
to all matters in connection with the powers and duties of the agency
and the members thereof, and generally perform all duties and
services as attorney to the agency that the secretary may require of
him or her.

      DIVISION 3.  ENERGY POLICY AND PLANNING

   1000.  (a) The agency shall be responsible for the planning,
development, and implementation of all major aspects of the state
energy policy.  The state energy policy will ensure an adequate,
reasonably priced supply of electricity and natural gas.
   (b) When agencies, departments, and commissions retain powers and
authority with respect to energy programs, those agencies,
departments, and commissions shall coordinate their activities with
the agency and not act in a manner that defeats the state energy
policy.
   1001.  The secretary, in consultation with the Independent System
Operator, shall determine appropriate reserve levels needed to
maintain the reliability and stability of the electrical transmission
and distribution grid.  The Public Utilities Commission shall ensure
that electrical corporations meet the reserve levels determined to
be appropriate by the secretary.  
  SEC. 5.  Section 11550 of the Government Code is amended to read:

   11550.  Effective January 1, 1988, an annual salary of ninety-one
thousand fifty-four dollars ($91,054) shall be paid to each of the
following:
   (a) Director of Finance.
   (b) Secretary of Business, Transportation and Housing.
   (c) Secretary of Resources.
   (d) Secretary of Health and Human Services.
   (e) Secretary of State and Consumer Services.
   (f) Commissioner of the California Highway Patrol.
   (g) Secretary of the Youth and Adult Correctional Agency.
   (h) Secretary of Food and Agriculture.
   (i) Secretary of Technology, Trade, and Commerce.
   (j) Secretary of Veterans Affairs.
   (k) Secretary of Labor and Workforce Development.  
   (l) Secretary of Energy. 
   The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees.  The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general salary increases provided for state
employees during that fiscal year.   
  SEC. 6.  Section 12800 of the Government Code is amended to read:

   12800.  There are in the state government the following agencies:
State and Consumer Services; Business, Transportation and Housing;
California Environmental Protection; California Health and Human
Services;  Energy;  Labor and Workforce Development;
Resources; Technology, Trade, and Commerce; and Youth and Adult
Correctional.
   Whenever the term "Agriculture and Services Agency" appears in any
law, it means the "State and Consumer Services Agency," and whenever
the term "Secretary of Agriculture and Services Agency" appears in
any law, it means the "Secretary of State and Consumer Services."
   Whenever the term "Business and Transportation Agency" appears in
any law, it means the "Business, Transportation and Housing Agency,"
and whenever the term "Secretary of the Business and Transportation
Agency" appears in any law, it means the "Secretary of Business,
Transportation and Housing."
   Whenever the term "Health and Welfare Agency" appears in any law,
it means the "California Health and Human Services Agency," and
whenever the term "Secretary of the Health and Welfare Agency"
appears in any law, it means the "Secretary of California Health and
Human Services."  
      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.