BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 429
                                                                  Page  1

          Date of Hearing:   August 4, 2004

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                   SB 429 (Torlakson) - As Amended:  July 28, 2004 

          Policy Committee:                              UtilitiesVote:N/A
                        Natural Resources                     9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires an examination of government agencies'  
          requirements associated with the development of petroleum  
          infrastructure projects. Specifically, this bill:

          1)Requires the governor to designate a statewide petroleum  
            infrastructure facilitator within the California Energy  
            Commission (CEC) to investigate rulemaking, permitting, and  
            other government proceedings affecting petroleum  
            infrastructure projects in the state, and to suggest best  
            practices for these proceedings. 

          2)Requires the facilitator, within 120 days, and with respect to  
            such projects, to: 

             a)   Identify all permits required. 
             b)   Describe procedures used to expedite permitting. 
             c)   Identify all associated laws, rules, and regulations  
               affecting permitting. 
             d)   Make relevant information on permitting available to  
               those proposing projects. 
             e)   Survey local governments on their permitting procedures.  


          3)Requires the CEC to initiate consultations with the  
            facilitator and specified entities on best practices for  
            streamlining project permitting, and to publish such for  
            public comment by June 30, 2005. 

          4)Requires the CEC, by December 31, 2005 to report to the  
            Legislature and governor the results of (3) above and  








                                                                  SB 429
                                                                  Page  2

            recommendations for establishing improved permitting  
            processes.

          5)Sunsets the above on January 1, 2007.

           FISCAL EFFECT  

          The CEC will incur special fund costs of up to $500,000 for  
          contracts to compile the information required in (2) above  
          within 120 days. [Energy Resources Program Account] All other  
          costs should be absorbable.

           COMMENTS  

           Purpose  . According to the author's office, a December 2003  
          hearing of the Senate Select Committee on Bay Area  
          Infrastructure examined the reasons behind the rapid rise in  
          motor vehicle fuel prices in California. Several witnesses  
          testified that limited gasoline production in the state  
          contributes to price increases and that transportation fuel  
          supply is not keeping pace with growing demand. California thus  
          faces potentially serious transportation fuel imbalances over  
          the next several years that require immediate, statewide  
          attention. 

          The previous version of this bill provided for expedited  
          processing of permits for gasoline production projects at oil  
          refineries.  The bill was amended to, as a first step, look at  
          current permitting procedures and develop recommendations to  
          improve those procedures.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081