BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1059
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          SENATE THIRD READING
          SB 1059 (Escutia)
          As Amended August 21, 2006
          Majority vote 

           SENATE VOTE  :34-1  
          
           UTILITIES & COMMERCE             11-0               LOCAL  
          GOVERNMENT              7-0     
           
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          |Ayes:|Levine, Blakeslee, Baca,  |Ayes:|Salinas, Emmerson, De La  |
          |     |Bogh, Cohn, De La Torre,  |     |Torre, Houston, Lieber,   |
          |     |Jerome Horton, Keene,     |     |Berg, Jones               |
          |     |Montanez, Ridley-Thomas,  |     |                          |
          |     |Wyland                    |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      18-0                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Chu, Sharon Runner, Bass, |     |                          |
          |     |Berg, Calderon, De La     |     |                          |
          |     |Torre, Emmerson, Haynes,  |     |                          |
          |     |Karnette, Klehs, Leno,    |     |                          |
          |     |Nakanishi, Nation, Laird, |     |                          |
          |     |                          |     |                          |
          |     |Ridley-Thomas, Saldana,   |     |                          |
          |     |Walters, Yee              |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Authorizes the California Energy Commission (CEC) to  
          designate electric transmission corridor zones (TCZ), according  
          to a specified process, in which high-voltage electric  
          transmission lines may be built in the future.  

           EXISTING LAW  requires the California Public Utilities Commission  
          (PUC) to certify the public convenience and necessity of a  
          transmission line before an investor-owned utility (IOU) may  
          begin construction [Certificate of Public Convenience and  
          Necessity (CPCN)].  









                                                                  SB 1059
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           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee analysis: 

          1)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 California Environmental  
            Quality Act work and outreach to local entities. [Energy  
            Resources Programs Account]

          2)The state will incur additional unknown costs to the extent  
            cities and counties seek reimbursement for their costs to  
            review applications for TCZs designated by the CEC.  Costs are  
            dependent on the number of TCZs and the number of  
            jurisdictions involved.

           COMMENTS  :  This bill may provide direction on electric  
          transmission infrastructure and coordinate planning and  
          permitting 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. 

          The federal Energy Policy Act of 2005 directs the secretaries of  
          federal departments to review, designate, and adopt major energy  
          corridors across 11 states, and designate power lines in the  
          national interest, which would allow them to overrule federal  
          agencies or states or counties that withhold approval for  
          segments of projects.  The Federal Energy Regulatory Commission  
          can pre-empt the state and authorize a permit under specified  
          conditions.  

          AB 974 (Nu?ez), pending in the Senate, requires  
          transmission-owning IOUs to send a 10-year transmission forecast  
          to PUC, and the Independent System Operator to provide a 10-year  
          transmission forecast to PUC, CEC, and the Electricity Oversight  
          Board. Requires PUC to send to the Legislature, an annually  
          updated report that summarizes the status of every application  
          for transmission line construction, upgrade, or enhancement.


           Analysis Prepared by  :    Gina Adams / U. & C. / (916) 319-2083 


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                                                                  SB 1059
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