BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Carole Migden, Chair
1059 (Escutia and Morrow)
Hearing Date: 5/26/05 Amended: 4/26/05
Consultant: Lisa Matocq Policy Vote: E, U & C 10-0
Loc Gov 9-0
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BILL SUMMARY: SB 1059 authorizes the California Energy
Commission (CEC) to designate electric "transmission corridor
zones", according to a specified process, in which high-voltage
electric transmission lines may be built in the future.
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Fiscal Impact (in thousands)
Major Provisions 2005-06 2006-07 2007-08 Fund
CEC $350+ $1,050+
$1,200+ Special*
Costs should be recovered
from
fee or surcharge
revenues.
General plans Unknown
increased, probably non- Local
reimbursable,
costs
*Energy Resources Program Account (ERPA)
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STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
Under current law, cities and counties are required to adopt
general plans for land use.
Existing law also provides that the construction of transmission
lines is subject to certification, by the Public Utilities
Commission (PUC), of public convenience and necessity. The
certification process includes such things as environmental
review, and confers eminent domain authority for the project.
Existing law, SB 1565 (Bowen, Ch. 692, St. of 2004), requires
the CEC to include in its biennial Integrated Energy Policy
Report (IEPR) a strategic plan for the state's electric
transmission grid. The next IEPR is due November 1, 2005.
In order to identify and reserve for future use land that is
suitable for high-voltage transmission lines, this bill
authorizes the CEC to designate electric "transmission corridor
zones", according to a specified process, in which high-voltage
electric transmission lines may be built in the future. The
commission may make such a designation on its own motion or in
response to an application of a person who plans to build a
transmission line. The bill authorizes the CEC to charge the
applicant a fee for the reasonable costs incurred in making the
designation.
SB 1059
Page Two
This bill also requires a city or county, within 12 months of
receiving a notice from the CEC that a transmission corridor
zone has been designated, to update its general plan
accordingly. In addition, cities and counties would be
required, under certain circumstances, to notify the CEC within
ten days of accepting an application for a development project
within a designated transmission corridor zone.
Increased costs to cities and counties are unknown, and depend
on the number and location of transmission corridor zones
designated. Any increased costs to locals for amending their
general plans are probably nonreimbursable, due to their
existing authority to impose developer fees for such costs.
The League of California Cities opposes the bill for a number of
reasons, including local land use preemption, and increased
costs for general plan revisions.
CEC staff estimate the need for eight personnel years (PYs),
hired over a two-year period, to perform analytical work and
planning activities with local and regional stakeholders.
Assuming average salary and benefits of $75,000, increased
personnel costs would be $600,000 annually by 2007-08. In
addition, the CEC may need to contract out for specialized
services, such as geographic mapping, etc. These costs are
estimated at $200,000+ in the first year, and $600,000+ annually
thereafter. Total increased costs are estimated at $1.2 million+
annually by 2007-08. Costs may be offset to some extent by
application fee revenues. ERPA revenues are derived from a
surcharge imposed on electricity bills, and are the primary
funding source for CEC staff, contracts and operating expenses.
SB 1037 (Kehoe), also being heard in this Committee today,
requires the PUC, in considering an application for a
certificate of public convenience and necessity for an electric
transmission or distribution facility, to consider all
cost-effective alternatives that meet the need, as specified.
AS PROPOSED TO BE AMENDED, the CEC is authorized to charge a fee
sufficient to cover all costs associated with reviewing the
application. Further, if the CEC initiates the designation of a
transmission corridor on its own, the commission may set the
electricity surcharge on consumption at a level sufficient to
recover its costs.