BILL NUMBER: SB 185 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 25, 2003
INTRODUCED BY Senator Sher
FEBRUARY 12, 2003
An act to amend Section Sections 398.4 and
398.5 of the Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
SB 185, as amended, Sher. Electricity: source disclosure.
The existing Public Utilities Act, provides for the furnishing of
utility services, including electricity, by privately owned public
utilities subject to the jurisdiction and control of the Public
Utilities Commission and similar services by publicly owned public
utilities.
Existing law establishes a program under which entities offering
electric services disclose accurate, reliable, and simple to
understand information on the generation attributes of the
electricity they propose to sell, including eligible renewables,
as defined, and requires beginning March 1, 1999, and annually
thereafter, that certain electricity source information be reported
to the California Energy Resources Conservation and Development
Commission (Energy Commission). Existing law provides that
retail supplier of electricity that does not make any claims that
identify its electricity sources as different than net system
electricity is authorized to disclose net system electricity sources.
This bill would require that beginning April 1, 2004, and annually
thereafter, that retail suppliers report the information to the
Energy Commission. The bill would delete the provision
authorizing a retail supplier of electricity that does not make any
claims that identify its electricity generation sources as different
than net system electricity, to disclose net system electricity
sources, and would require that all retail suppliers disclose
electricity sources as specific purchases. The bill would also
require the disclosure of electricity generated from an eligible
renewable energy resource, as defined.
Since existing law makes any public utility, as defined, and any
person or entity other than a public utility, that violates the
Public Utilities Act guilty of a misdemeanor, and the provisions of
the bill would be within the act, this bill would impose a
state-mandated local program by expanding a crime.
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.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee:
no yes . State-mandated local program:
no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 398.4 of the Public Utilities Code is
amended to read:
398.4. (a) Every retail supplier that makes an offering to sell
electricity that is consumed in California shall disclose its
electricity sources . A retail supplier that does not make
any claims that identify its electricity sources as different than
net system power may disclose net system power. Every retail
supplier that makes an offering to sell electricity that is consumed
in California and makes any claims that identify any of its
electricity sources as different than net system power shall disclose
these sources as specific purchases.
(b) The disclosures required by this section shall be made to
potential end-use consumers in all product-specific written
promotional materials that are distributed to consumers by either
printed or electronic means, except that advertisements and notices
in general circulation media shall not be subject to this
requirement.
(c) The disclosures required by this section shall be made at
least quarterly to end-use consumers of the offered electricity.
(d) The disclosures required by this section shall be made
separately for each offering made by the retail supplier.
(e) On or before January 1, 1998, the California Energy Resources
Conservation and Development Commission shall specify guidelines for
the format and means for disclosure required by Section 398.3 and
this section, based on the requirements of this article and subject
to public hearing.
(f) The costs of making the disclosures required by this section
shall be considered to be generation-related.
(g) The disclosures required by this section shall be expressed as
a percentage of annual retail electricity sales derived
from each of the following categories , unless no specific
purchases are disclosed, in which case only the first category shall
be disclosed:
(1) Net system power.
(2) Specific purchases.
(h) (1) Each of the categories specified in subdivision (g) shall
be additionally identified as a percentage of annual sales that is
derived from each fuel type of the categories specified as follows
sources used for the generation of electricity :
(A)
(1) Coal.
(B)
(2) Large hydroelectric (greater than 30 megawatts).
(C)
(3) Natural gas.
(D)
(4) Nuclear.
(5) Eligible renewable energy resource, as defined in Section
399.12.
(E)
(6) Other.
(F) Eligible renewables, which means renewable resource
technologies defined as electricity produced from other than a
conventional power source within the meaning of Section 2805,
provided that a power source utilizing more than 25 percent fossil
fuel may not be included, shall be additionally identified as a
percentage of annual sales that is derived from each fuel type of the
subcategories specified as follows:
(i) Biomass and waste.
(ii) Geothermal.
(iii) Small hydroelectric (less than or equal to 30 megawatts).
(iv) Solar.
(v) Wind.
(2) The category "Other" shall be used for fuel types
other than those listed above that represent less than 2 percent of
net system power. The
(h) The California Energy Resources Conservation and
Development Commission may specify additional categories or change
these the categories specified in
subdivision (g) , consistent with the requirements of this
article and subject to public hearing, if it determines that the
changes will facilitate the disclosure objectives of this section.
(i) All electricity sources disclosed as specific purchases shall
meet the requirements of subdivision (b) of Section 398.2.
(j) Specific purchases identified pursuant to this section shall
be from sources connected to the Western Systems
Electricity Coordinating Council transmission system
interconnected grid.
(k) Net system power shall be disclosed for the most
recent calendar year available. Disclosure of net system power shall
be accompanied by this qualifying note: "The State of California
determines this net system power mix annually; your actual
electricity purchases may vary." The California Energy Resources
Conservation and Development Commission may modify this note,
consistent with the requirements of this article and subject to
public hearing, if it determines that the changes will facilitate the
disclosure objectives of this section.
(l) For each offering made by a retail supplier
for which specific purchases are disclosed , the retail
supplier shall disclose projected specific purchases for the current
calendar year. Projected specific purchases need not be
disclosed by numerical percentage at the subcategory level identified
in subparagraph (F) of paragraph (1) of subdivision (h).
On or before April 15, 1999 July 1, 2004
, and annually thereafter, every retail supplier that discloses
specific purchases shall also disclose to its customers, separately
for each offering made by the retail supplier, its actual specific
purchases for the previous calendar year consistent with information
provided to the California Energy Resources Conservation and
Development Commission pursuant to Section 398.5. Disclosure of
projected specific purchases and actual specific purchases shall each
be accompanied by statements identifying whether the data are
projected or actual, as developed by the California Energy Resources
Conservation and Development Commission, subject to public hearing.
(m)
(l) The provisions of this section shall not apply to
generators providing electric service onsite, under an over-the-fence
transaction as described in Section 218, or to an affiliate or
affiliates, as defined in subdivision (a) of Section 372.
SEC. 2. Section 398.5 of the Public Utilities Code is
amended to read:
398.5. (a) Retail suppliers that disclose specific
purchases pursuant to Section 398.4 shall report on April 1,
shall report on May 1, 2004, and annually
thereafter, to the California Energy Resources Conservation and
Development Commission, for each electricity offering, for the
previous calendar year each of the following:
(1) The kilowatt-hour kilowatthours
purchased, by generator and fuel type during the previous calendar
year, consistent with the meter data, including losses, reported to
the system operator.
(2) For each electricity offering the kilowatt-hour
kilowatthours sold at retail.
(3) For each electricity offering the disclosures made to
consumers pursuant to Section 398.4.
(b) Information submitted to the California Energy Resources
Conservation and Development Commission pursuant to this section that
is a trade secret as defined in subdivision (d) of Section 3426.1 of
the Civil Code shall not be released except in an aggregated form
such that trade secrets cannot be discerned.
(c) On or before January 1, 1998, the California Energy Resources
Conservation and Development Commission shall specify guidelines and
standard formats, based on the requirements of this article and
subject to public hearing, for the submittal of information pursuant
to this article.
(d) In developing the rules and procedures specified in this
section, the California Energy Resources Conservation and Development
Commission shall seek to minimize the reporting burden and cost of
reporting that it imposes on retail suppliers.
(e) On or before October 15, 1999, and annually thereafter, the
California Energy Resources Conservation and Development Commission
shall issue a report comparing information available pursuant to
Section 398.3 with information submitted by retail suppliers pursuant
to this section, and with information disclosed to consumers
pursuant to Section 398.4. This report shall be forwarded to the
California Public Utilities Commission.
(f) Beginning April June 15, 1999,
and annually thereafter, the California Energy Resources
Conservation and Development Commission shall issue a report
calculating net system power. The California Energy Resources
Conservation and Development Commission will establish the generation
mix for net generation imports delivered at interface points and
metered by the system operators. The California Energy
Resources Conservation and Development Commission shall issue an
initial report calculating preliminary net system power for calendar
year 1997 on or before January 1, 1998. This report shall be updated
on or before October 15, 1998.
(g) The provisions of this section shall not apply to generators
providing electric service onsite, under an over-the-fence
transaction as described in Section 218, or to an affiliate or
affiliates, as defined in subdivision (a) of Section 372.
(h) The California Energy Resources Conservation and Development
Commission may verify the veracity of environmental
specific purchase claims made by retail
suppliers.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.