BILL NUMBER: AB 2499 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 23, 2004
AMENDED IN SENATE JULY 2, 2004
AMENDED IN SENATE JUNE 16, 2004
AMENDED IN SENATE JUNE 14, 2004
AMENDED IN ASSEMBLY MAY 20, 2004
AMENDED IN ASSEMBLY APRIL 12, 2004
AMENDED IN ASSEMBLY MARCH 26, 2004
INTRODUCED BY Assembly Member Jerome Horton
FEBRUARY 19, 2004
An act to add and repeal Section 40409 of the Health and
Safety Code, and to add a chapter heading to, and to add
Chapter 2 (commencing with Section 9505) to, Division 4.8 of the
Public Utilities Code, relating to new locally owned public
utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 2499, as amended, Jerome Horton. New publicly owned electric
utilities: resource plans.
(1) Under existing law, the governing board of the South
Coast Air Quality Management District is required to adopt rules and
regulations to carry out the South Coast District Air Quality
Management Plan, including rules and regulations promoting cleaner
burning alternative fuels.
This bill would require the board of the South Coast Air Quality
Management District to exempt vehicles used for electric utility high
voltage construction or maintenance from any district rule or
regulation requiring the use of alternative-fueled vehicles. These
provisions of the bill would be repealed on January 1, 2010.
(2) The Public Utilities Act imposes various duties and
responsibilities on the Public Utilities Commission with respect to
the purchase of electricity and requires the commission to review and
adopt a procurement plan and a renewable energy procurement plan for
each electrical corporation pursuant to the California Renewables
Portfolio Standard Program. Under existing law, the governing board
of a local publicly owned electric utility is responsible for
implementing and enforcing a renewables portfolio standard that
recognizes the intent of the Legislature to encourage renewable
resources, while taking into consideration the effect of the standard
on rates, reliability, and financial resources and the goal of
environmental improvement.
This bill would require new publicly owned electric utilities, as
defined, to meet equivalent requirements for resource adequacy as
those requirements that are applicable to an electrical corporation,
including reserve requirements. The bill would require a new
publicly owned electric utility to adopt a specified finding
regarding resource adequacy, before commencing operation or providing
electricity to any new or additional electrical service area, on or
after January 1, 2006. By imposing new requirements on new local
publicly owned electrical utilities, this bill would impose a
state-mandated local program.
(2)
(3) The California Constitution requires the state to
reimburse local agencies and school districts for certain costs
mandated by the state. Statutory provisions establish procedures for
making that reimbursement, including the creation of a State
Mandates Claims Fund to pay the costs of mandates that do not exceed
$1,000,000 statewide and other procedures for claims whose statewide
costs exceed $1,000,000.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 40409 is added to the Health and Safety
Code, to read:
40409. Notwithstanding any other provision of law, in order to
protect the health and safety of utility workers and to ensure the
continued reliability of the electrical transmission system, the
south coast district board shall exempt from any rule or regulation
requiring the use of alternative-fueled vehicles, vehicles that are
used for electric utility high voltage construction or maintenance
operations.
This section shall remain in effect only until January 1, 2010,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2010, deletes or extends that date.
SEC. 2. A chapter heading is added to Division 4.8
(commencing with Section 9500) of the Public Utilities Code,
immediately preceding Section 9500, to read:
CHAPTER 1. WEATHERIZATION PROGRAMS
SEC. 2.
SEC. 3. Chapter 2 (commencing with Section 9505) is added to
Division 4.8 of the Public Utilities Code, to read:
CHAPTER 2. NEW PUBLICLY OWNED ELECTRIC UTILITY RESOURCE
PLANNING
9505. "New publicly owned electric utility" means a local
publicly owned electric utility, as defined in subdivision (d) of
Section 9604 of the Public Utilities Code, that commenced operations
and provided electricity and distribution service to retail customers
within its jurisdiction as an operating publicly owned electric
utility on or after January 1, 2001.
9506. In order to provide reliable and sustainable electricity to
retail end-use customers of new publicly owned electric utilities,
new publicly owned electric utilities shall meet equivalent
requirements for resource adequacy as those requirements that are
applicable to an electrical corporation, including reserve
requirements.
9507. Before commencing operation or providing electricity to any
new or additional electrical service area on or after January 1,
2006, a new publicly owned electric utility shall, in a public
hearing that allows for public participation, adopt findings,
supported by a written record, that the resource plan of the new
publicly owned electric utility meets the adequacy requirements of
Section 9506.
SEC. 3.
SEC. 4. Notwithstanding Section 17610 of the Government
Code, if the Commission on State Mandates determines that this act
contains costs mandated by the state, reimbursement to local agencies
and school districts for those costs shall be made pursuant to Part
7 (commencing with Section 17500) of Division 4 of Title 2 of the
Government Code. If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.