BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  SB 1059
          Author:   Escutia (D) and Morrow (R)
          Amended:  04/04/05
          Vote:     21

           
           SEN. ENERGY, UTIL. & COMMUNICATIONS COMM.  :  10-0, 4/5/05
          AYES:  Escutia, Alarcon, Battin,Bowen, Campbell, Cox, Dunn,  
            Kehoe, Murray, Simitian

           SENATE LOCAL GOVERNMENT COMMITTEE  :  9-0, 4/20/05
          AYES:  Kehoe, Cox, Ackerman, Kuehl, Machado, McClintock,  
            Perata, Soto, Torlakson

           SENATE APPROPRIATIONS COMMITTEE  :  13-0, 5/26/05
          AYES:  Migden, Aanestad, Alarcon, Alquist, Ashburn, Battin,  
            Dutton, Escutia, Florez, Murray, Ortiz, Poochigian,  
            Romero


           SUBJECT  :    Electric transmission corridors

           SOURCE  :     Author


           DIGEST  :    This bill authorizes the California Energy  
          Commission to designate electric transmission corridor  
          zones, according to a specified process, in which  
          high-voltage electric transmission lines may be built in  
          the future.

           ANALYSIS  :    Under current law, cities and counties are  
          required to adopt general plans for land use.
                                                           CONTINUED





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          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), Chapter 692, Statutes of  
          2004, requires the California Energy Commission (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.

          This bill, in order to identify and reserve for future use  
          land that is suitable for high-voltage transmission lines,  
          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 CEC 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  
          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 CEC may set the  
          electricity surcharge on consumption at a level sufficient  
          to recover its costs.

          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 will be  
          required, under certain circumstances, to notify the CEC  
          within 10 days of accepting an application for a  
          development project within a designated transmission  
          corridor zone.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT :   (Verified  4/14/05) (Unable to reverify at time  
          of writing)







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          California Energy Commission
          California Chamber of Commerce
          Pacific Gas and Electric Company
          Sempra Energy

           OPPOSITION  :    (Verified  4/14/05) (Unable to reverify at  
          time of writing)

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

           ARGUMENTS IN SUPPORT  :    Proponents argue the CEC 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.

           ARGUMENTS IN OPPOSITION  :    The League of California Cities  
          oppose the bill for a number of reasons, including local  
          land use preemption, and increased costs for general plan  
          revisions.  
           

          NC:cm  5/28/05   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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