BILL NUMBER: SB 185 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 19, 2003
AMENDED IN SENATE APRIL 22, 2003
AMENDED IN SENATE MARCH 25, 2003
INTRODUCED BY Senator Sher
FEBRUARY 12, 2003
An act to amend 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). Disclosures to end-use
customers are required to be made quarterly. Existing law
provides that a 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. Disclosures to end-use customers would be
required to be made biennially. 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, identifying any renewable
energy resource fuel type used to generate 1% or more of annual
retail electricity sales.
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: yes.
State-mandated local program: 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 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 biennially 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:
(1) Coal.
(2) Large hydroelectric (greater than 30 megawatts).
(3) Natural gas.
(4) Nuclear.
(5) Eligible renewable energy resource, as defined in Section
399.12. Each eligible renewable energy resource fuel type that is
used to generate 1 percent or more of annual retail electricity
sales, shall be identified according to the percentage of annual
retail electricity sales derived from that fuel type.
(6) Other.
"Other" shall be used for fuel types other than those listed above
that represent less than 2 percent of net system power.
(h) The California Energy Resources Conservation and Development
Commission may specify additional categories or change 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 Electricity Coordinating
Council transmission system interconnected grid.
(k) For each offering made by a retail supplier, the retail
supplier shall disclose projected specific purchases for the current
calendar year. On or before 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.
(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 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 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 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 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.
(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 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.