BILL NUMBER: SB 185 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY SEPTEMBER 4, 2003
AMENDED IN ASSEMBLY JULY 6, 2003
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 State 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
May 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
twice yearly annually . 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
and assume the fuel mix of sources that cannot be traced to
specific sources to be the fuel mix of net system power . The
bill would also require the disclosure of electricity generated from
an eligible renewable energy resource
renewables , as defined, identifying any renewable
energy resource fuel type used to generate 1% or more of annual
retail electricity sales and additional identification
by fuel type, reflected as a percentage of annual sales, from
specified subcategories. The bill would require the Energy
Commission, in establishing the format for disclosure of electricity
sources, to include disclosure of a retail suppliers' progress in
meeting an annual procurement target and of the fuel mix of net
system power or other electricity products .
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 for
the previous calendar year .
(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 twice yearly annually to end-use
consumers of the offered electricity. The annual disclosure
shall be made by the end of the first complete billing cycle for the
third quarter of the year, and shall be consistent with information
provided to the State Energy Resources Conservation Development
Commission pursuant to Section 398.5.
(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
September 1, 2004, the State 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.
(5) Renewables, which include eligible renewable energy resources
as defined in Section 399.12, and any other electricity produced from
other than a conventional power source within the meaning of Section
2805, excluding a power source utilizing more than 25 percent fossil
fuel, shall be additionally identified by fuel type, reflected as a
percentage of annual sales, from the following subcategories:
(A) Biomass and waste.
(B) Geothermal.
(C) Small hydroelectric less than or equal to 30 megawatts.
(D) Solar.
(E) Wind.
(F) Ocean wave, ocean thermal, or tidal current.
(6) Other.
(h) The California State 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)
(k) In disclosing its electricity sources, every retail supplier
shall include all specific purchases, and shall assume the fuel mix
of sources that cannot be traced to specific purchases to be the fuel
mix of net system power.
(l) In establishing the format for disclosure of electricity
sources pursuant to this article, the State Energy Resources
Conservation and Development Commission shall include disclosure of a
retail supplier's progress in meeting the annual procurement target
adopted pursuant to Section 387 for a local publicly owned electric
utility, or pursuant to Article 16 (commencing with Section 399.11)
for an electrical corporation, and of the fuel mix of net system
power or other electricity products.
(m) Compliance with this section by a local publicly owned
electric utility shall constitute compliance with paragraph (2) of
subdivision (b) of Section 387, except that renewables that are
eligible renewable energy resources as defined in Section 399.12
shall be distinguished from other renewables disclosed pursuant to
paragraph (5) of subdivision (g).
(n) 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 State
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
State 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
September 1, 2004, the State 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 State 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 State 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. In preparing the report, the State Energy
Resources Conservation and Development Commission may require an
audit of a local publicly owned electric utility only upon a finding,
by the State Energy Resources Conservation and Development
Commission, of good cause.
(f) Beginning June 15, 1999 2004 ,
and annually thereafter, the California State
Energy Resources Conservation and Development Commission
shall issue a report calculating net system power. The
California State 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 State 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.