BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1059| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 SB 1059 Page 2 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) SB 1059 Page 3 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 **** END ****