BILL ANALYSIS
SB 1059
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Date of Hearing: June 28, 2006
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Simon Salinas, Chair
SB 1059 (Escutia) - As Amended: June 13, 2006
SENATE VOTE : 34-1
SUBJECT : Electric transmission corridors.
SUMMARY : Requires local governments to consider electric
"transmission corridor zones,"
as defined, when making land use determinations, and to notify
the State Energy Resources Conservation and Development
Commission of proposed development projects within transmission
corridor zones under specified circumstances. Specifically,
this bill :
1)Makes findings and declarations concerning the need for an
integrated, statewide approach to electric transmission
planning and permitting.
2)Authorizes the State Energy Resources Conservation and
Development Commission (Energy Commission), on its own motion
or by application of a person who plans to construct a
high-voltage electric transmission line within the state, to
designate a transmission corridor zone that identifies a
feasible corridor in which a future transmission line that is
consistent with the state's needs and objectives as set forth
in the strategic plan adopted by the Energy Commission can be
built.
3)Prescribes procedures for the designation of a transmission
corridor zone, including publication of the request for
designation and request for comments, provision of notice to
landowners, coordination with federal agencies and California
Native American tribal governments, informational hearings,
and requirements for a proposed decision.
4)Requires the Energy Commission, after designating a
transmission corridor zone, to identify that transmission
corridor zone in its subsequent strategic plans and to
regularly review and revise its designated transmission
corridor zones as necessary, but not less than once every 10
years.
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5)Requires a city or county, after receiving a notice from the
Energy Commission of a transmission corridor zone, to consider
the designated transmission corridor zone when making a
determination regarding a land use change within or adjacent
to the transmission corridor zone that could affect the
continuing viability to accommodate a transmission line
planned within the transmission corridor zone.
6)Requires a city or county, within 10 days of accepting as
complete an application for a development project within a
designated transmission corridor zone that the city or county
determines would threaten the potential to construct a
high-voltage electric transmission line, to notify the Energy
Commission of the proposed development project.
7)Requires the Energy Commission, upon making a specified
finding regarding the proposed development project, to provide
written comments to the city or county and would require the
city or county to consider the Energy Commission's comments.
EXISTING LAW :
1)Requires the Energy Commission to adopt a strategic plan for
the state's electric transmission grid using existing
resources.
2)Requires that the plan identify and recommend actions required
to implement investments needed to ensure reliability, relieve
congestion, and to meet future growth in load and generation,
including, but not limited to, renewable resources, energy
efficiency, and other demand reduction measures.
FISCAL EFFECT : According to the Senate Committee on
Appropriations, Energy Commission staff estimates total
increased costs at over $1.2 million annually by 2007-08. SB
1059 authorizes the Energy Commission to charge a fee sufficient
to cover all costs associated with reviewing an application,
and, if the Energy Commission initiates the designation of a
transmission corridor on its own, to set the electricity
surcharge on consumption at a level sufficient to recover its
costs.
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COMMENTS :
1)According to the Energy Commission's 2003 Integrated Energy
Policy Report (IEPR),
"(t)he state's bulk transmission system needs major upgrades and
improvements. The broken transmission permitting process in
the state must be fixed so that needed transmission
investments can move forward." In spite of the recognition of
the Energy Commission and other observers that the public
would benefit from new investments in the transmission grid,
little progress has been made in implementing major
transmission improvements in many years.
2)According to the author, the state is suffering from a lack of
direction on electric transmission infrastructure.
Notwithstanding the fact that most of the state's transmission
grid is now supposed to operate as an integrated system,
responsibility for planning and permitting transmission
projects is divided between a multitude of federal, state and
local agencies, as well as private corporations, who either
own or manage pieces of the grid. According to the CEC,
continuing urban expansion within California has increased
public opposition to the siting and development of new bulk
transmission lines. Long-term planning for, and designation
of, transmission corridors would help to alleviate this
problem. As part of the implementation of SB 1565 (Bowen),
Chapter 692, Statutes of 2004, the Energy Commission will
identify and evaluate potential transmission corridors to
accommodate future siting and construction of needed
transmission lines. However, the CEC does not now have the
authority to formally designate such corridors to ensure that
they will be available when needed.
3)SB 1059 authorizes the Energy Commission to designate a
transmission corridor zone that identifies a feasible corridor
in which a future transmission line that is consistent with
the state's needs and objectives as set forth in the SB 1565
strategic plan can be built. The designation of a
transmission corridor zone would not constitute approval in
whole or in part of any specific transmission project, nor
would the designation substitute for any of the federal, state
or local permits required to construct a transmission line
itself. Similarly, designation would not give eminent domain
authority to a project proponent, or justify condemnation of
specific properties necessary to accommodate the construction
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of a transmission line.
4)Earlier versions of SB 1059 would have required local
governments to amend their general plans to be consistent with
any transmission corridor zone designated by the Energy
Commission. These earlier iterations also failed to include
adequate provisions for notice to affected landowners. For
these reasons, the bill was opposed by the League of
California Cities, the California State Association of
Counties (CSAC), the Regional Council of Rural Counties
(RCRC), and the California Farm Bureau Federation.
5)Amendments taken on May 16, 2006 addressed these issues. They
specifically require the Energy Commission to notify all
landowners within any proposed transmission corridor zone.
Instead of requiring a general plan amendment, the bill now
only requires a city or county to consider the designated
transmission corridor zone when making any determination
regarding a land use change within or adjacent to the
transmission corridor zone that could affect its continuing
viability to accommodate a planned transmission line. The
bill now also requires a city or county to notify the Energy
Commission of any proposed development project within a
designated transmission corridor zone that the city or county
determines would threaten the potential to construct a
high-voltage electric transmission line. Finally,
it requires the Energy Commission, upon making a specified
finding regarding the proposed development project, to provide
written comments to the city or county, which the local
government must consider. As a result of the May 16, 2006
amendments, the League of California Cities, CSAC, RCRC, and
the Farm Bureau have withdrawn their opposition and have taken
a Neutral position on SB 1059.
6)SB 1059 contains provisions that fall outside the jurisdiction
of the Assembly Committee on Local Government. These
provisions have been analyzed by the Assembly Committee on
Utilities and Commerce.
7)This bill has been double-referred to the Committees on
Utilities and Commerce and Local Government.
REGISTERED SUPPORT / OPPOSITION :
Support Opposition
SB 1059
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Office of the Governor [SPONSOR] None on file
CA Chamber of Commerce
CA Energy Commission (if amended)
Imperial Irrigation District Energy
Sempra Energy
Analysis Prepared by : J. Stacey Sullivan / L. GOV. / (916)
319-3958