BILL ANALYSIS                                                                                                                                                                                                    



                                        
                       SENATE LOCAL GOVERNMENT COMMITTEE
                         Senator Christine Kehoe, Chair


          BILL NO:  SB 1059                     HEARING:  4/20/05
          AUTHOR:  Escutia                      FISCAL:  Yes
          VERSION:  4/18/05                     CONSULTANT:  Detwiler
          
                       ELECTRIC TRANSMISSION LINE SITING

                           Background and Existing Law  

          Delivering electricity to California's expanding population  
          requires a complex system of generating stations,  
          high-voltage transmission lines, and interconnections.  To  
          serve customers, both municipal utilities and investor  
          owned public utilities need transmission lines to reach  
          sources of renewable energy, to tap out-of-state sources,  
          to avoid congestion, and to promote system reliability.   
          State energy policy makers and utilities worry that, as  
          development spreads out, they may lose opportunities to  
          locate transmission lines.

          The Warren-Alquist Act requires the California Energy  
          Commission to adopt a biennial Integrated Energy Policy  
          Report (IEPR).  The IEPR must assess electricity  
          infrastructure needs and recommend state energy policies  
          (SB 1389, Bowen, 2002).  By November 1, 2005, the  
          California Energy Commission must adopt a strategic plan  
          for the state's electric transmission grid (SB 1565, Bowen,  
          2004).

          Before an investor owned public utility can build a  
          transmission line, the California Public Utilities  
          Commission must issue a Certificate of Public Convenience  
          and Necessity.  If necessary, a public utility can use  
          eminent domain to acquire the right-of-way for the  
          transmission line.  Although municipal utilities are not  
          subject to the California Public Utilities Commission, they  
          have eminent domain powers to acquire their own  
          rights-of-way.

          The California Energy Commission says there's a gap between  
          its policy documents and the utilities' construction of  
          high-voltage transmission lines.  The Commission says that  
          no one is identifying the corridors needed for future  
          transmission lines, nor is anyone protecting these pathways  
          from encroachment by development.  Without realistic  




           
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          planning, land use conflicts will make it hard for the  
          utilities to serve their future customers.


                                   Proposed Law  

          Senate Bill 1059 allows the California Energy Commission to  
          designate "transmission corridor zones" to accommodate  
          high-voltage electric transmission lines that are  
          consistent with the Commission's strategic plan.  SB 1059  
          contains findings and declarations to support its  
          provisions.
          The Commission must identify the transmission corridor  
          zones in its subsequent strategic plans and review the  
          designations at least once every six years.   SB 1059  
          declares that the California Environmental Quality Act  
          (CEQA) applies to the designation of the transmission  
          corridor zones and that the Commission is the lead agency.

          When designating transmission corridor zones, the  
          Commission must confer with cities, counties, federal  
          agencies, and California Native American tribal governments  
          to identify appropriate areas by conferring.  The  
          Commission cannot designate a transmission corridor zone  
          within a California Native American tribal government's  
          jurisdiction without its approval.

          The Commission can designate a transmission corridor zone  
          either on its own motion or at the request of a person who  
          wants to build a high-voltage electric transmission line.   
          SB 1059 requires the Commission to publicize the  
          application and ask for comments on its suitability.  The  
          bill allows the Commission to use current law to charge an  
          application fee and use the resulting revenues to pay for  
          these review costs.  The Commission must hold public  
          informational hearings on the application.  After the  
          Commission designates a transmission corridor zone, it must  
          send a copy of its decision and a description of the zone  
          to the affected cities, counties, state agencies, and  
          federal agencies.

          SB 1059 requires the cities and counties where designated  
          transmission corridor zones are located to integrate the  
          designations into their general plans and specific plans.   
          Cities and counties must comply during their next regular  





           
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          general plan revision, but not later than five years after  
          receiving the Commission's decision.

          The bill allows cities and counties to permit development  
          within a designated transportation corridor zone with the  
          Commission's approval.


                                     Comments  

          1.   Plan to grow  .  The California Energy Commission has  
          identified a gap in logic between its long-term strategic  
          planning and the physical construction of high-voltage  
          electric transmission lines.  There is no intermediate  
          process or document to identify the routes that utilities  
          will need in the future.  Further, there's no way to  
          protect those increasingly scarce routes from encroachment  
          by incompatible development.  Once buildings go up and  
          people move in, an area is no longer suitable for  
          high-voltage lines.  SB 1059 fills that gap by requiring  
          state officials to identify transmission corridor zones and  
          by requiring counties and cities to integrate those assets  
          into usual land use planning and development decisions.   
          Losing the pathways loses the opportunities for economic  
          growth.

          2.   State intrusion  .  Few dispute the need to identify  
          swaths of undeveloped land that utilities can use for  
          future high-voltage lines.  But SB 1059 is another example  
          of the state government's intrusion into local land use  
          decisions.  State law requires counties and cities to adopt  
          comprehensive general plans, and then requires local  
          officials to follow their own plans when zoning property,  
          subdividing land, building public works, and regulating  
          land uses.  SB 1059 goes beyond that scheme by giving the  
          California Energy Commission direct permit authority over  
          land use decisions inside the new transmission corridor  
          zones.  The Committee may wish to consider alternative ways  
          to protect those pathways without preempting local land use  
          permits.

          3.   Precedents and alternatives  .  The state has taken land  
          use permit powers away from local officials in three  
          regions to protect natural resources with statewide  
          importance: the San Francisco Bay Conservation Development  





           
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          Commission, the Tahoe Regional Planning Agency, and the  
          California Coastal Commission.  But four statutes protect  
          valuable state resources without directly preempting local  
          land use decisions.  The Committee may wish to consider  
          amending SB 1059 by adapting these precedents to the need  
          to protect corridors for high-voltage lines:

               Delta Protection Commission.  The Delta Protection  
          Commission must adopt a resource management plan.  The  
          underlying counties and cities must propose amendments to  
          conform their general plans to the Commission's plan.  The  
          Commission reviews and approves the proposed general plan  
          amendments.  Counties and cities then amend their general  
          plans to conform to the Commission's plan.  Following  
          existing law, local land use decisions must be consistent  
          with the amended general plans.

               Airport Land Use Commissions.  Airport Land Use  
          Commissions adopt an airport land use compatibility plan  
          for each public use airport.  These plans protect the  
          airports from encroachment by incompatible land uses and  
          protect adjacent properties from noise and safety hazards.   
          The underlying counties and cities must send their general  
          plans to the Commission for consistency reviews.  Local  
          officials can overrule the Commission, but only after  
          making stringent findings and on a 2/3-vote.  Following  
          existing law, local land use decisions must be consistent  
          with the amended general plans.

               Alquist-Priolo Act.  The State Geologist maps  
          earthquake fault zones, sends the maps to the affected  
          counties and cities for review, considers local comments,  
          and sends final maps to the counties and cities.  If local  
          officials want to permit developments in an earthquake  
          fault zone, they must require geologic reports.  The  
          Natural Hazards Disclosure Act requires sellers to tell  
          prospective buyers if residential property is within a  
          mapped earthquake fault zone.

               Surface Mining and Reclamation Act.  The State  
          Geologist maps areas that have statewide and regionally  
          significant mineral deposits.  The underlying counties and  
          cities must amend these designations into their general  
          plans.  Following existing law, local land use decisions  
          must be consistent with the amended general plans.  Before  





           
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          allowing a land use that threatens the potential to mine  
          the mapped resource, local officials must evaluate the  
          project and send the results to the State Geologist.

          4.   Charter cities and municipal affairs  .  The California  
          Constitution allows charter cities to control their own  
          "municipal affairs," free of legislative interference.  But  
          charter cities must follow state laws when it comes to  
          topics of statewide concern.  The 1962 Modesto Irrigation  
          District v. City of Modesto decision said "that the  
          placement, construction and maintenance of power lines is a  
          matter of state concern."  SB 1059 declares that the  
          orderly planning and development of high-voltage lines by  
          designating transmission corridor zones is an issue of  
          statewide concern.  Although the final interpretation of  
          this constitutional principle is up to the courts, SB 1059  
          clearly intends that charter cities follow its  
          requirements.

          5.   It's in the details  .  SB 1059 imperfectly grafts the  
          Alquist-Priolo Act to the Planning and Zoning Law.   
          Detailed amendments are needed to make the new statute work  
          properly.  For example, the statutory schedule for the  
          California Energy Commission to consider and act on  
          applications to designate transportation corridor zones  
          should fit the deadlines in the existing Permit  
          Streamlining Act.  The mandate to "integrate" the  
          Commission's designated corridors into local general plans  
          should reflect a more realistic procedure for amendments.   
          The bill's requirement for the Commission to approve local  
          development decisions does not describe the procedures for  
          referral, public notice, public hearing, and appeals.  The  
          Committee may wish to amend SB 1059 to avoid these  
          problems.

          6.   Second reference  .  The Senate Rules Committee referred  
          SB 1059 first to the Senate Energy, Utilities and  
          Communications Committee, and then to the Senate Local  
          Government Committee.  On April 5, the Energy Committee  
          passed the bill on a 10-0 vote.


                         Support and Opposition  (4/14/05)

           Support  :  California Energy Commission, California Chamber  





           
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          of Commerce, Pacific Gas and Electric Company, Sempra  
          Energy.

           Opposition  :  League of California Cities, California State  
          Association of Counties, Regional Council of Rural  
          Counties, Southern California Edison, Cities of Costa Mesa  
          and Murrieta.