BILL NUMBER: AB 808 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 19, 2003
AMENDED IN ASSEMBLY APRIL 30, 2003
INTRODUCED BY Assembly Members Canciamilla and Richman
(Coauthors: Assembly Members Diaz and Levine)
FEBRUARY 20, 2003
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, Canciamilla. Energy: agency consolidation.
(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 establishes the Division of Oil, Gas, and Geothermal
Resources within the Department of Conservation.
This bill would enact the Energy Code and would establish the
Energy Agency under the administration of the Secretary of Energy,
who would be appointed by the Governor and subject to confirmation by
the Senate. 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 (ISO) , 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.
(2) The existing restructuring of the electrical services industry
establishes the Electricity Oversight Board (Oversight Board) to
oversee the Independent System Operator ISO
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 eliminate the California Consumer
Power and Conservation Financing Authority and transfer its
authority to the Energy Agency; (3) merge the State Energy
Resources Conservation and Development Commission into the Energy
Agency; (3) (4) eliminate the
Electricity Oversight Board and transfer its functions for
monitoring and investigating wholesale energy markets to the Energy
Agency ; (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 in the
Energy Agency, with responsibility for state approval for the siting
of energy production, storage, and transmission facilities; (8)
establish the Secretary of Energy as the sole authorized
representative of the state before the Federal Energy Regulatory
Commission (FERC); (9) require the ISO to report any filings or
appearances before FERC to the secretary; and (10) provide public
oversight of the ISO by the Energy Agency, to the extent permitted
under federal law .
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 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) Having a single agency responsible for the siting of
generation, transmission, and natural gas infrastructure will
increase the efficiency and effectiveness of the siting process,
thereby helping to ensure Californians will receive a reliable supply
of energy at a reasonable cost.
(g) It is the intent of the Legislature to enact an Energy
Code, under the governance of the Energy Agency.
(g)
(h) 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)
(i) 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)
(j) 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 Eliminate the California
Consumer Power and Conservation Financing Authority and transfer
its authority to the Energy Agency.
(3) Merge the State Energy Resources Conservation and
Development Commission into the Energy Agency.
(3)
(4) Eliminate the Electricity Oversight Board and
transfer its functions for monitoring and investigating wholesale
energy markets to the Energy Agency .
(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 in the Energy Agency, with
responsibility for state approval for the siting of energy
production, storage, and transmission facilities, including electric
plant and gas plant , that will coordinate with agencies with
environmental protection responsibilities. The decisions of the
board on any application for certification of a site and related
facility are subject to judicial review by the Supreme Court of
California.
(8) Establish the Secretary of Energy, or the designee of the
secretary, as the sole authorized representative of the state before
the Federal Energy Regulatory Commission.
(9) Require the Independent System Operator to report any filings
or appearances before the Federal Energy Regulatory Commission to the
Secretary of Energy.
(10) Provide for public oversight of the Independent System
Operator by the Energy Agency, to the extent permitted under federal
law.
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 a 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
Secretary 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 process on behalf
of the secretary 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 secretary 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.
(f) Do any and all things necessary to carry out the purposes of
this chapter.
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 secretary
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. that is relevant to the
secretary's duties.
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 that is required
to be kept confidential by federal statute, rule, or order, or that
is nonpublic pursuant to another provision of state law, or if the
secretary determines that the information is proprietary, a trade
secret, or that its disclosure would be likely to result in harm to
the functioning of the market or create a significant risk of harm to
the public . 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 enforcement of all regulatory
responsibilities of the agency , 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."