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 SB 1059 -- 4/18/05 -- Page 2 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 SB 1059 -- 4/18/05 -- Page 3 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 SB 1059 -- 4/18/05 -- Page 4 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 SB 1059 -- 4/18/05 -- Page 5 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 SB 1059 -- 4/18/05 -- Page 6 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.