BILL ANALYSIS
SB 1059
Page 1
Date of Hearing: August 16, 2006
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Judy Chu, Chair
SB 1059 (Escutia) - As Amended: August 7, 2006
Policy Committee:
UtilitiesVote:11-0
Local Government 7-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill authorizes the California Energy Commission (CEC),
according to a specified process, to designate electric
transmission corridors zones (TCZs) for future construction of
high-voltage (at least 200 kilovolt) transmission lines
consistent with the states' needs and objectives. This bill
also:
1)Specifies the commission may designate a TCZ on its own motion
or in response to an application from a person seeking a TCZ
designation based on its future plans to construct a
high-voltage electric transmission line.
2)Requires the commission to charge an applicant for all costs
associated with reviewing the application. For a designation
proposed by the commission, the commission's costs are to be
covered by revenues from the existing energy resources
surcharge (for which the commission is funded through the
Energy Resources Programs Account).
3)Makes the CEC the lead agency, for purposes of the California
Environmental Quality Act (CEQA), for the designation of any
TCZ.
4)Requires the CEC to notify affected cities, counties, state
and federal agencies, and Native American tribal governments
of a proposed TCZ designation and requests that these entities
review and provide comments regarding the application.
5)Authorizes a city or county, upon receiving a request per (4),
SB 1059
Page 2
to request a fee from the commission to cover the city's or
county's costs to review a proposed designation.
6)Requires an affected city or county, upon CEC designation of a
TCZ, to consider the designation when making a land use change
within or adjacent to the TCZ.
7)Requires a affected city or county, within 10 days of
accepting as complete an application for a development project
that could threaten the potential construction of a
high-voltage line within a TCZ, to notify the CEC of the
proposed project.
8)Authorizes the CEC, upon notification per (7), to recommend
revisions to the project to eliminate the threat, and requires
the city or county to consider the CEC's recommendation and
provide written comments.
FISCAL EFFECT
1)The CEC indicates a need for eight positions at a cost of
about $900,000 annually for technical and planning staff to
develop the TCZ designations, including CEQA work and outreach
to local entities. [Energy Resources Programs Account]
2)The state will incur additional costs to the extent cities and
counties seek reimbursement for their costs to review
applications for TCZs designated by the CEC. These costs,
which would depend on the number of TCZs and the number of
jurisdictions involved are unknown.
COMMENTS
1)Purpose . According to the author, the purpose of this bill,
which is sponsored by the Governor's Office, is to provide
direction on electric transmission infrastructure and to
coordinate planning and permitting for transmission projects,
which is currently divided between a multitude of federal,
state, and local agencies, as well as private corporations,
who either own or manage pieces of the transmission grid.
2)Background . The CEC's 2003 Integrated Energy Policy Report
claims that the state's bulk transmission system needs major
SB 1059
Page 3
upgrades and improvements. The CEC says there is a gap
between its policy documents and the construction of
high-voltage transmission lines. The commission claims no one
is identifying the corridors needed for future transmission
lines, nor is anyone protecting these pathways from
encroachment by development.
In response to the fact that no specific state agency was
charged with planning for the future of the transmission
system as a whole, SB 1565 (Bowen)/Chapter 962 of 2004, was
enacted to require the CEC to develop a strategic transmission
plan that recommends actions required to implement investments
needed to ensure reliability, relieve congestion, and to meet
future growth in load and generation. The strategic plan was
required to be included in the IEPR adopted on November 1,
2005. As part of the SB 1565 process, the CEC identified and
evaluated potential transmission corridors to accommodate
future siting and construction of needed transmission lines.
The CEC transmission plan is only a recommendation and does
not possess the authority to formally designate such corridors
to ensure that they will be available when needed.
3)Opposition . Just as a local zoning ordinance does not approve
specific developments, the designation of a TCZ pursuant to
this bill would not constitute approval in whole or in part of
any specific transmission project, nor would TCZ designation
substitute for any of the federal, state or local permits
required to construct a transmission line itself. Similarly,
designation of a TCZ would not give eminent domain authority
to a project proponent, or justify condemnation of specific
properties necessary to accommodate the construction of a
transmission line. Those procedures follow an application to
construct a transmission line with the relevant permitting
agencies, like the PUC and others, and not the CEC.
The PUC is opposed to this bill because currently the PUC is
the lead agency in the siting of all transmission lines and
substations for applications submitted by the investor-owned
utilities. The PUC is concerned that this bill would confuse
and complicate this arrangement by turning aspects of the
siting of transmission lines over to the CEC by allowing
applicants to apply directly to the CEC for transmission
corridor designation, and by requiring the CEC to be the lead
CEQA agency. This bill creates a new planning tool which
doesn't currently exist and doesn't conflict with any existing
SB 1059
Page 4
authority.
In response , the author indicates that designation of
transmission corridors is intended as an optional up-front
planning process, to identify areas suitable for future
transmission lines, and that will precede the permitting
process for any particular line. The PUC would continue as the
permitting agency for the investor-owned utilities that are
subject to its jurisdiction. Among its decision-making
responsibilities for IOU transmission applications, the PUC
will also remain the CEQA lead agency.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081