BILL NUMBER: SB 110 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 19, 1999
AMENDED IN ASSEMBLY AUGUST 16, 1999
AMENDED IN ASSEMBLY JULY 7, 1999
AMENDED IN SENATE APRIL 5, 1999
INTRODUCED BY Senator Peace
DECEMBER 15, 1998
An act to amend Sections 25005.5, 25104, 25106, 25112,
25305, 25308.5, 25309, 25520, 25523, 25524, 25540.6,
25541, 25911, and 26004 of, and 25541 of, and
to add Sections 25009 and 25543 to, and to repeal Section
25523.5 of, and to repeal and add Section 25541.5 of, and
Chapter 3 (commencing with Section 25200) of Division 15 of, the
Public Resources Code, and to amend Sections 335, 336, 337, 338, and
339 of, to add Sections 341.5, 351, 352, 353, 354, and 355 to, and to
repeal and add Section 359 of, the Public Utilities Code, relating
to energy. the Public Resources Code, relating to
energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 110, as amended, Peace. Energy conservation: power facility
and site certification.
(1) The Warren-Alquist State Energy Resources
Conservation and Development Act establishes the State Energy
Resources Conservation and Development Commission with prescribed
memberships, powers, and duties.
Existing law also creates the Electricity Oversight Board.
This bill would abolish the State Energy Conservation and
Development Commission and create the California Energy
Infrastructure and Oversight Commission with prescribed duties and
responsibilities.
(2) Existing law, the Warren-Alquist State Energy
Resources Conservation and Development Act, requires the State Energy
Resources Conservation and Development Commission to certify
sufficient sites and related facilities that are required to provide
a supply of electric power sufficient to accommodate projected demand
for power statewide. The act requires the commission to prepare and
distribute a specified draft electricity report setting forth its
findings and conclusions regarding the electric utilities' forecasts,
and requires that the 5- and 12-year forecasts or assessments
established by the commission serve as the basis for planning and
certification of electric transmission or thermal powerplant
facilities.
This bill would eliminate the requirement that those 5- and
12-year forecasts established by the commission serve as the basis
for the planning and certification of electric transmission and
thermal powerplant facilities.
(3)
(2) The existing act requires the commission, every 2 years,
to transmit to the Governor and the Legislature a comprehensive
report designed to identify emerging trends related to energy supply,
demand, and conservation and public health and safety factors, and
to provide the basis for state policy and actions in relation
thereto, including specified information.
This bill would make various changes with regard to the
information and analyses to be contained in that report, as
specified.
The act requires that an application for certification of a power
facility submitted to the commission pursuant to the act contain
specified information that the commission may require by regulation.
The act also requires that the commission prepare a written decision
after a public hearing on an application for certification, which
contains specified information.
This bill would make various changes with respect to the
information required to be provided in an application for
certification, and to be contained in the commission's written
decision concerning the application, as prescribed.
(4)
(3) The existing act prohibits the commission from
certifying any facility contained in the application for
certification, unless it makes specified findings relating to
conformity of the proposed facility with an integrated assessment of
need for the new facility.
This bill would eliminate that prohibition.
(5)
(4) The existing act authorizes the commission to exempt
from those certification requirements thermal powerplants with a
generating capacity of up to 100 megawatts and modifications to
existing generating facilities that do not add capacity in excess of
100 megawatts, if the commission finds that no substantial adverse
impact on the environment or energy resources will result from the
construction or operation of the proposed facility or from the
modification, and that generating capacity will not be added that is
substantially in excess of the integrated assessment of need for new
resource additions, as determined.
This bill would eliminate, for purposes of that exemption, the
requirement that the commission find that generating capacity will
not be added that is substantially in excess of the integrated
assessment of need for new resource additions, as determined.
The act would require the Secretary of the Resources Agency, by
January 1, 2001, to review the facility certification program to
determine whether that program meets specified criteria for state
regulatory programs under the California Environmental Quality Act,
and if the secretary determines the regulatory program meets those
criteria, the bill would require the secretary to continue the
certification of the program. The bill would also, under those
circumstances, require the commission to amend the regulatory program
from time to time, as necessary to permit the secretary to continue
to certify the program.
The bill would also make various related conforming changes
and legislative findings and declarations .
(6) The existing restructuring of the electrical services industry
provides for the authorization of direct transactions between
electricity suppliers and end use customers and for the creation of
an Independent System Operator and Power Exchange. An Oversight
Board is also created to, among other things, oversee the Independent
System Operator and Power Exchange, and to determine the composition
and terms of service and to appoint the members of the governing
boards of the Independent System Operator and the Power Exchange.
The Oversight Board is the appeal board for majority decisions of the
Independent System Operator governing board.
This bill would place the Oversight Board within the California
Energy Infrastructure and Oversight Commission and makes changes to
its membership and operation, as prescribed. The bill would revise
specified provisions relating to the Independent System Operator and
the Power Exchange, and to the duties of the Oversight Board. The
bill would require the Independent System Operator and the Power
Exchange to each be administered by a governing board appointed by
the Oversight Board until an agreement with a participating state is
in effect. The bill would authorize the Oversight Board to decline
to confirm the appointments of specific members of the governing
boards of the Independent System Operator and Power Exchange, and
would specify that the board has the exclusive right to approve
procedures and qualifications for those governing board members, all
of whom would be required to be electricity consumers, as specified.
The bill would make the Oversight Board the appeal authority for
majority decisions of the governing board of the Independent System
Operator only with respect to prescribed matters, that would be
subject to California's exclusive jurisdiction. The bill would
impose prescribed requirements regarding the bylaws of the
Independent System Operator and Power Exchange.
(7) Existing law requires the Independent System Operator to
ensure efficient and reliable operation of the transmission grid,
participate in federal proceedings, and adopt standards for
transmission facilities. The Electricity Oversight Board oversees
the Independent System Operator.
This bill would require the Independent System Operator to develop
a statewide electric grid plan, as prescribed.
This bill would also require the Electricity Oversight Board to
certify the electric grid plan after a public process, as prescribed.
The bill would require the Independent System Operator to secure
the resources necessary to meet system improvement needs identified
by the plan upon certification, as prescribed.
This bill would also give the Electricity Oversight Board
exclusive authority to site and license electricity transmission
projects, as prescribed.
This bill would also require the Independent System Operator to
develop a process for expediting planning and approval of
transmission facilities between 50kv and 200kv, as prescribed.
(8) Existing law governing electrical restructuring states the
intent of the Legislature that California enter into a compact with
western region states, and that the compact should require the
publicly and investor-owned utilities located in those states that
sell energy to California retail customers to adhere to enforceable
standards and protocols to protect the reliability of the
interconnected regional transmission and distribution systems.
Existing law provides for the creation of an Independent System
Operator and Power Exchange, with powers and duties as prescribed.
This bill would repeal that intent provision, and, instead, state
the intent of the Legislature to provide for the evolution of the
Independent System Operator and the Power Exchange into regional
organizations to promote the development of regional electricity
transmission markets in the western states and to improve the access
of consumers served by the Independent System Operator and the Power
Exchange to those markets. The bill would state that the preferred
means by which that voluntary evolution should occur is through the
adoption of a regional compact or other comparable agreement, as
described.
(9) Because a violation of certain provisions relating to the
energy commission is punishable as a crime, the bill would impose a
state-mandated local program by creating a new crimes.
(10) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
(5) Existing law establishes an application and certification
process for siting and licensing thermal electric power plants.
This bill would require that the commission prepare a report to
the Governor and the Legislature on or before March 31, 2000,
identifying improvements in this process and making recommendations,
as prescribed. The commission immediately may implement any
administrative recommendations.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature to place the
Electricity Oversight Board under the auspices of the California
Energy Infrastructure and Oversight Commission, and to expand the
authority of the Energy Reliability Commission, to include, in
addition to the powers and responsibilities created by this act, the
design and administration of energy efficient projects currently
administered by the Public Utilities Commission to take advantage of
the synergies associated with the institutional experience of the
California Energy Infrastructure and Oversight Commission in energy
efficiency. The undertaking of this responsibility shall commence on
January 1, 2002.
SEC. 2. Section 25005.5 of the Public Resources Code is amended to
read:
25005.5. The Legislature further finds and declares that
information should be acquired and analyzed by the California Energy
Infrastructure and Oversight Commission to ascertain future energy
problems and uncertainties, including, but not limited to, all of the
following:
(a) The state's role in production of oil from domestic reserves,
especially within Petroleum Administration for Defense District V.
(b) The production of Alaskan North Slope oil and its projected
use in the state.
(c) Plans of the federal government for development of oil in the
Outer Continental Shelf adjacent to the state.
(d) Impacts of petroleum price increases and projected
conservation measures on the demand for energy and indirect effects
on the need for offshore oil development and Alaskan oil delivery
into the state.
(e) Potential shipment of Alaskan oil through the state.
(f) Proposals for processing petroleum outside the state to supply
the needs within the state.
(g) The impact on the state of national energy policies, including
Project Independence.
SEC. 3. Section 25104 of the Public Resources Code is amended to
read:
25104. (a) "Commission" means the California Energy
Infrastructure and Oversight Commission.
(b) The State Energy Resources Conservation and Development
Commission is hereby abolished. The California Energy Infrastructure
and Oversight Commission succeeds to, and is vested with, all the
powers, duties, responsibilities, and jurisdiction of the former
State Energy Resources Conservation and Development Commission.
(c) Any reference in any law to the State Energy Resources
Conservation and Development Commission shall be deemed to be a
reference to, and to mean, the California Energy Infrastructure and
Oversight Commission.
SEC. 4. Section 25106 of the Public Resources Code is amended to
read:
25106. "Adviser" means the public adviser employed by the
commission pursuant to Section 25215.
SEC. 5. Section 25112 of the Public Resources Code is amended to
read:
25112. "Member" or "member of the commission" means a member of
the California Energy Infrastructure and Oversight Commission
appointed pursuant to Section 25201.
SEC. 6. Chapter 3 (commencing with Section 25200) of Division 15
of the Public Resources Code is repealed.
SEC. 7. Chapter 3 (commencing with Section 25200) is added to
Division 15 of the Public Resources Code, to read:
CHAPTER 3. CALIFORNIA ENERGY INFRASTRUCTURE AND OVERSIGHT
COMMISSION
25200. There is in the Resources Agency the California Energy
Infrastructure and Oversight Commission.
25201. (a) The California Energy Infrastructure and Oversight
Commission shall be comprised of seven members as follows:
(1) One member appointed by the Governor, who shall have a
background in engineering or physical science with a knowledge of
energy systems and institutions and senior management experience.
(2) One member appointed by the Governor, who shall be an attorney
and a member of the State Bar, with administrative law, senior
management, and energy industry experience.
(3) One member appointed by the Governor, shall have a background,
and experience, in environmental protection as it relates to energy
systems and senior management experience.
(4) One member appointed by the Governor, who shall be an
economist with a background, and experience, in energy and have
senior management experience.
(5) On member appointed by the Governor, who shall represent the
public at large, with experience relevant to the field of energy, and
have senior management experience.
(6) One member of the Assembly appointed by the Speaker of the
Assembly.
(7) One member of the Senate appointed by the President Pro Tem of
the Senate.
(b) Legislative members appointed pursuant to paragraphs (6) and
(7) of subdivision (a) are nonvoting members, however, they are
otherwise full members of the board with all rights and privileges
pertaining thereto.
(c) The Governor shall designate one of the voting members as the
chairperson of the Energy Reliability Commission who shall preside
over meetings and direct the executive director in the routine
administration of the California Energy Infrastructure and Oversight
Commission's business. The Governor shall also designate one of the
other voting members as a vice-chairperson to preside over meetings
in the absence of the chairperson. The chairperson and
vice-chairperson shall serve in those capacities at the pleasure of
the Governor.
(d) Each member of the commission designated in paragraphs (1) to
(5), inclusive, of subdivision (a) shall serve on a full-time basis
and represent the state at large, and not any particular area
thereof.
(e) (1) The Governor shall appoint the voting members of the
commission designated in paragraphs (1) to (5), inclusive, of
subdivision (a) within 30 days after the effective date of this
chapter. Every appointment made to the commission shall be subject
to the advice and consent of the majority of the members elected to
the Senate. The terms of office of those members shall be for five
years, except that the terms of members first appointed to the
commission shall classify themselves by lot so that the term of
office of one member shall expire at the end of each one of the five
years following the effective date of this chapter. Any vacancy
shall be filled by the Governor within 30 days of the date on which a
vacancy occurs for the unexpired portion of the term in which it
occurs for any new term of office.
(2) Effective January 1, 2000, through December 31, 2000, in order
to ensure that current energy facility siting cases are not delayed
due to a commissioner vacancy during the transition period created by
the abolishment of the Energy Resources and Conservation Commission
and the creation of the California Energy Infrastructure and
Oversight Commission, a previously appointed Energy Resources and
Conservation Commission commissioner assigned to a facility siting
case shall continue to preside over the case and exercise all powers
and authority of a commissioner of the California Energy
Infrastructure and Oversight Commission until the Governor makes an
appointment to fill the vacancy.
25202. The Secretary of the Resources Agency and the President of
the Public Utilities Commission shall be ex officio, nonvoting
members of the commission, whose presence shall not be counted for a
quorum or for vote requirements.
25203. (a) No person shall be a member of the commission who,
during the two years prior to appointment on the commission, received
any substantial portion of his or her income directly or indirectly
from any electric utility, or who engages in the sale or manufacture
of any major component of any facility. No member of the commission
shall be employed by any electric utility, applicant, or, within two
years after he or she ceases to be a member of the commission, by any
person who engages in the sale or manufacture of any major component
of any facility.
(b) Except as provided in paragraphs (6) and (7) of subdivision
(a) of Section 25201 and Section 25202, the members of the commission
shall not hold any other elected or appointed public office or
position.
(c) The members of the commission and all employees of the
commission shall comply with all applicable provisions of Section
19990 of the Government Code.
(d) No person who is a member or employee of the commission shall
participate personally and substantially as a member or employee of
the commission, through decision, approval, disapproval,
recommendation, the rendering of advice, investigation, or otherwise,
in a judicial or other proceeding, hearing, application, request for
a ruling, or other determination, contract, claim, controversy,
study, plan, or other particular matter in which, to his or her
knowledge, his or her spouse, minor child, or partner, or any
organization, except a governmental agency or educational or research
institution qualifying as a nonprofit organization under state or
federal income tax law, in which he or she is serving, or has served
as a officer, director, trustee, partner, or employee while serving
as a member or employee of the commission or within two years prior
to his or her appointment as a member of the commission, has a direct
or indirect financial interest.
(e) No person who is a partner, employer, or employee of a member
or employee of the commission shall act as an attorney, agent, or
employee for any person other than the state in connection with any
judicial or other proceeding, hearing, application, request for a
ruling, or other determination, contract, claim, controversy, study,
plan, or other particular matter in which the commission is a party
or has a direct and substantial interest.
(f) The provisions of this section shall not apply if the Attorney
General finds that the interest of the member or employee of the
commission is not so substantial as to be deemed likely to affect the
integrity of the services that the state may expect from such member
or employee.
(g) Any person who violates any provision of this section is
guilty of a felony and shall be subject to a fine of not more than
ten thousand dollars ($10,000) or imprisonment in the state prison,
or both.
25204. The members of the commission shall receive the salary
provided for by Chapter 6 (commencing with Section 11550) of Part 1
of Division 3 of Title 2 of the Government Code.
Each member of the commission shall receive the necessary travel
and other expenses incurred in the performance of his official
duties. When necessary, the members of the commission and its
employees may travel within or without the state.
25205. Each member of the commission shall have one vote. Except
as provided in Section 25208, the affirmative votes of at least
three members shall be required for the transaction of any business
of the commission.
25206. Any member of the commission may be removed from office by
the Legislature, by concurrent resolution adopted by a majority vote
of all members elected to each house, for dereliction of duty or
corruption or incompetence.
25207. The commission may hold any hearings and conduct any
investigations in any part of the state necessary to carry out its
powers and duties prescribed by this division and, for those
purposes, has the same powers as are conferred upon heads of
departments of the state by Article 2 (commencing with Section 11180)
of Chapter 2 of Part 1 of Division 3 of Title 2 of the Government
Code.
25208. The commission may appoint a committee of not less than
two members of the commission to carry on investigations, inquiries,
or hearings that the commission has power to undertake or to hold.
At least one member of the committee shall attend all public hearings
or other proceedings held pursuant to Chapter 6 (commencing with
Section 25500), and all public hearings in biennial report
proceedings and rulemaking proceedings, except that, upon agreement
of all parties to a proceeding who are present at the hearing or
proceeding, the committee may authorize a hearing officer to continue
to take evidence in the temporary absence of a commission member.
Every order made by the committee pursuant to the inquiry,
investigation, or hearing, when approved or confirmed by the
commission and ordered filed in its office, shall be the order of the
commission.
25209. The commission shall adopt rules and regulations, as
necessary, to carry out this division in conformity with the
provisions of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code. The commission
shall make available to any person upon request copies of proposed
regulations, together with summaries of reasons supporting their
adoption.
25210. The commission shall maintain its headquarters in the
County of Sacramento and may establish branch offices in those parts
of the state that the commission determines to be necessary in the
administration of this division. The commission shall hold meetings
at those times and places as it determines to be appropriate. All
meetings and hearings of the commission pursuant to this division
shall be open to the public, and an opportunity to be heard with
respect to the subject of the hearings shall be afforded to any
person. Upon request, an interested party may be granted reasonable
opportunity to examine any witness testifying at the hearing.
25211. In addition to any other duty specified in this division,
the commission shall do all of the following:
(a) Undertake a continuing assessment of trends in the consumption
of electrical energy and other forms of energy and analyze the
social, economic, and environmental consequences of those trends;
carry out directly, or cause to be carried out, energy conservation
measures specified in Chapter 5 (commencing with Section 25400); and
recommend to the Governor and the Legislature new and expanded energy
conservation measures as required to meet the objectives of this
division.
(b) Carry out, or cause to be carried out, under contract or other
arrangements, research and development into alternative sources of
energy, improvements in energy generation, transmission, and siting,
fuel substitution, and other topics related to energy supply, demand,
public safety, ecology, and conservation that are of particular
statewide importance.
25212. (a) The commission shall do all of the following:
(1) Compile relevant local, regional, state, and federal land use,
public safety, environmental, and other standards to be met in
designing, siting, and operating facilities in this state.
(2) Except as provided in subdivision (d) of Section 25402, adopt
standards, except for air and water quality, to be met in designing
or operating facilities to safeguard public health and safety, which
may be different from or more stringent than those adopted by local,
regional, or other state agencies, or by any federal agency if
permitted by federal law.
(3) Monitor compliance and ensure that all facilities are operated
in accordance with this division.
(b) Local, regional, and other state agencies shall advise the
commission as to any change in its standards, ordinances, or laws
that are pertinent and relevant to the objective of carrying out this
division.
25213. The commission shall do all of the following:
(a) Prescribe the form and content of applications for facilities;
conduct public hearings and take other actions to secure adequate
evaluation of applications; and formally act to approve or disapprove
applications, including specifying conditions under which approval
and continuing operation of any facility shall be permitted.
(b) Prepare an integrated plan specifying actions to be taken in
the event of an impending serious shortage of energy, or a clear
threat to public health, safety, or welfare.
(c) Evaluate policies governing the establishment of rates for
electric power and other sources of energy as related to energy
conservation, environmental protection, and other goals and policies
established in this division, and transmit recommendations for
changes in power-pricing policies and rate schedules to the Governor,
the Legislature, and to publicly owned electric utilities.
(d) Serve as a central repository within the state government for
the collection, storage, retrieval, and dissemination of data and
information on all forms of energy supply, demand, conservation,
public safety, research, and related subjects. The data and
information shall be derived from all sources, including, but not be
limited to, electric and gas utilities, oil and other energy
producing companies, institutions of higher education, private
industry, public and private research laboratories, private
individuals, and from any other source that the commission determines
is necessary to carry out its objectives under this division. The
commission may charge and collect a reasonable fee for retrieving and
disseminating any such information to cover the cost of such a
service. Any funds received by the commission pursuant to this
subdivision shall be deposited in the account and are continuously
appropriated for expenditure, by the commission, for purposes of
retrieving and disseminating any such information pursuant to this
section.
25214. The commission shall do all of the following:
(a) Appoint an executive director with administration and fiscal
experience for purposes of administering this division, who shall
serve at the pleasure of the commission and whose duties and salary
shall be prescribed by the commission.
(b) Employ and prescribe the duties of other staff members as
necessary to carry out this division. Those staff members may
participate in all matters before the commission subject to such
limits as may be prescribed by the commission.
(c) Employ legal counsel who shall advise the commission in its
administration of this division and represent it in legal matters and
litigation in connection with this division before any boards or
other agencies of the state or federal government.
25215. The commission shall nominate, and the Governor shall
appoint for a term of three years, a public adviser to the commission
who shall be an attorney admitted to the practice of law in this
state and who shall carry out the provisions of Section 25222 as well
as other duties prescribed by this division or by the commission in
its administration of this division. The adviser may be removed from
office only upon the joint concurrence of four commissioners and the
Governor.
25216. The chairperson of the commission shall direct the
adviser, the executive director, and other staff in the performance
of their duties in conformance with the policies and guidelines
established by the commission.
25217. In addition to other powers specified in this division,
the commission may do any of the following:
(a) Apply for and accept grants, contributions, and
appropriations.
(b) Contract for professional work or services if work or services
cannot be satisfactorily performed by its employees or by any other
state agency.
(c) Be sued and sue.
(d) Request and utilize the advice and services of all federal,
state, regional, and local agencies.
(e) Adopt any rule or regulation, or take any action, that the
commission determines to be reasonable and necessary to carry out
this division.
(f) Adopt rules and regulations, or take any action, that the
commission determines to be reasonable and necessary to ensure the
free and open participation of any member of the staff in proceedings
before the commission.
25218. The provisions of this division specifying any power or
duty of the commission shall be liberally construed, to carry out the
objectives of this division.
25219. As to any matter involving the federal government, its
departments or agencies, that is within the scope of the powers and
duties of the commission under this division, the commission may
represent its interest or the interest of any county, city, state
agency, or district upon its request, and to that end may correspond,
confer, and cooperate with the federal government, and its
departments or agencies.
25220. The commission may participate as a party, to the extent
that it shall determine, in any proceeding before any federal or
state agency having authority whatsoever to approve or disapprove any
aspect of a proposed facility, receive notice from any applicant of
all applications and pleadings filed subsequently by those applicants
in any such proceedings, and, upon its request, receive copies of
any such subsequently filed applications and pleadings that the
commission shall determine to be necessary.
25221. Upon request of the commission, the Attorney General shall
represent the commission and the state in litigation concerning the
affairs of the commission, unless the Attorney General represents
another state agency, in which case the commission may employ other
counsel.
25222. The adviser shall ensure that full and adequate
participation by all interested groups and the public at large is
secured in the energy resources planning, site and facility
certification, energy conservation, and emergency allocation
procedures prescribed in this division. The adviser shall ensure
that timely and complete notice of commission meetings and public
hearings is disseminated to all interested groups and to the public
at large. The adviser shall also advise those groups and the public
as to effective ways of participating in the commission's
proceedings. The adviser shall recommend to the commission
additional measures to assure open consideration and public
participation in energy resources planning, site and facility
certification, energy conservation, and emergency allocation
proceedings.
25223. The commission shall make available any information filed
or submitted pursuant to this division under the California Public
Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code), except that the commission shall
keep confidential any information submitted to the Division of Oil,
Gas, and Geothermal Resources of the Department of Conservation that
division determines, pursuant to Section 3752, to be proprietary.
25224. The commission and other state agencies shall, to the
fullest extent possible, exchange records, reports, material, and
other information relating to energy resources and conservation and
power facilities siting, or any areas of mutual concern, to the end
that unnecessary duplication of effort may be avoided.
25225. (a) Prior to expending any funds for any research,
development, or demonstration program or project relating to vehicles
or vehicle fuels, the commission shall do both of the following,
using existing resources:
(1) Adopt a plan describing any proposed expenditure that sets
forth the expected costs and qualitative as well as quantitative
benefits of the proposed program or project.
(2) Find that the proposed program or project will not duplicate
any other past or present publicly funded California program or
project. This paragraph is not intended to prevent funding for
programs or projects jointly funded with another
public agency where there is no duplication.
(b) Within 120 days from the date of the conclusion of a program
or project subject to subdivision (a) that is funded by the
commission, the commission shall issue a public report that sets
forth the actual costs of the program or project, the results
achieved and how they compare with expected costs and benefits
determined pursuant to paragraph (1) of subdivision (a), and any
problems that were encountered by the program or project.
(c) (1) This section does not apply to any funds appropriated for
research, development, or demonstration pursuant to a statute that
expressly specifies both of the following:
(A) A vehicle technology or vehicle fuel that is the subject of
the research, development, or demonstration.
(B) The purpose of, or anticipated products of, the research,
development, or demonstration.
(2) This section does not apply to the Katz Safe Schoolbus Clean
Fuel Efficiency Demonstration Program (Part 10.7 (commencing with
Section 17910) of Division 1 of Title 1 of the Education Code).
SEC. 8.
SECTION 1. Section 25009 is added to the Public Resources Code, to
read:
25009. The Legislature finds and declares that Chapter 854 of the
Statutes of 1996 restructured the California electricity industry
and created a competitive electricity generation market. In a
competitive generation market, the recovery by power plant owners of
their private investment and operating costs is at risk and no longer
guaranteed through regulated rates. Before the California
electricity industry was restructured, the regulated cost recovery
framework for power plants justified requiring the commission to
determine the need for new generation, and site only power plants for
which need was established. Now that power plant owners are at risk
to recover their investments, it is no longer appropriate to make
this determination. It is necessary that California site new power
plants to ensure electricity reliability, improve the environmental
performance of the current electricity industry and reduce consumer
costs. The success of California's restructured electricity industry
depends upon the willingness of private capital to invest in new
power plants. Therefore, it is necessary to modify the need for
determination requirements of the state's power plant siting and
licensing process to reflect the economics of the restructured
electricity industry and ensure the timely construction of new
electricity generation capacity.
SEC. 2. Section 25305 of the Public Resources Code is
amended to read:
25305. Within nine months after receipt of the reports specified
in Section 25300, the commission shall prepare and distribute a draft
electricity report, setting forth its findings and conclusions
regarding the electric utilities' forecasts. The report shall be
based upon information and views presented in the comments received
under Section 25303 and the commission's independent analysis, and
shall contain all of the following:
(a) The commission's evaluation of the probable service area and
statewide, environmental, and economic impact and the health and
safety aspect of constructing and operating the facilities proposed
by the electric utilities and a description of the measures
considered necessary by the commission to avoid or ameliorate any
adverse impacts.
(b) Discussion of reasonable alternative technologies to those
proposed by the electrical utilities for consideration pursuant to
Section 25604.
(c) After consideration of the utility reports, public and agency
comments, and forecasts prepared by the commission staff, the
commission's 5-and 12-year forecasts of demand for electrical energy
and capacity. Conservation, load management, or other demand-reducing
measures reasonably expected to occur shall be explicitly taken into
account only in the determinations made pursuant to this
subdivision, and shall not be considered as alternatives to a
proposed facility during the siting process specified in Chapter 6
(commencing with Section 25500).
(d) An analysis and evaluation of the means by which the projected
annual rate of demand growth of electrical energy may be reduced,
together with an estimate of the amount of the reduction to be
obtained by each of the means analyzed and evaluated, including a
statement of the impact of the reduction on the factors reviewed by
the commission set forth in Section 25304 and subdivision (a).
(e) A statement of the level of statewide and service area
electrical energy demand for the forthcoming 5- and 12-year forecast
or assessment period which, in the judgment of the commission, will
reasonably balance requirements of state and service area growth and
development, protection of public health and safety, preservation of
environmental quality, maintenance of a sound economy, and
conservation of energy and resources reasonably expected to occur.
(f) A statement, on a statewide and service area basis, of the
probable capacity additions consistent with the level of demand
determined by the commission pursuant to subdivision (e).
(g) The anticipated level of statewide and service area electrical
energy demand for 20 years, which shall serve as the basis for
recommendations by the commission to the Governor, the Legislature,
and other appropriate public and private agencies in all of the
following categories:
(1) Demand-reducing policies.
(2) Conservation of energy.
(3) Development of potential sources of energy.
(4) Other policies and actions designed to affect the rate of
growth in demand for electrical energy.
(h) A list, including maps, of existing electrical power
generating sites, indicating those where the commission has
determined that expansion is feasible within the forthcoming 12-year
period.
(i) A list, including maps, of possible areas appropriate for
additional electrical generating sites, including the generating
capacity to be installed at the sites and the type of fuel and other
general characteristics of the facilities which, as determined by the
commission, will be required to meet the 12-year level of electrical
energy demand established by the commission pursuant to subdivision
(a).
(j) A list, including maps of sites and potential
multiple-facility sites which have been found to be acceptable by the
commission pursuant to Sections 25516 and 25516.5, including the
generating capacity to be installed at each site and the type of fuel
and other general characteristics of the facilities at each site.
SEC. 9.
SEC. 3. Section 25308.5 of the Public Resources Code is
amended to read:
25308.5. In issuing the final electricity report, the commission
shall describe how the hearing record supports its policy decisions.
SEC. 10.
SEC. 4. Section 25309 of the Public Resources Code is
amended to read:
25309. Beginning May 1, 1985, and every two years thereafter,
notwithstanding Section 7550.5 of the Government Code, the commission
shall transmit to the Governor and the Legislature a comprehensive
report designed to identify emerging trends related to energy supply,
demand, and conservation and public health and safety factors, and
to provide the basis for state policy and actions in relation
thereto, including, but not limited to, approval of new sites for
additional facilities. The report shall include, but not be limited
to, all of the following:
(a) An overview, looking 20 years ahead, of statewide growth and
development as they relate to future requirements for energy,
including patterns of urban metropolitan expansion, statewide and
service area economic growth, shifts in transportation modes,
modifications in building types and design, and other trends and
factors which, as determined by the commission, will significantly
affect energy consumption and need to be considered in formulating
state energy policy and programs.
(b) The anticipated level of statewide and service area electrical
energy demand for 20 years, which shall serve as the basis for
recommendations by the commission to the Governor, the Legislature,
and other appropriate public and private agencies.
(c) Based upon the commission's 20-year forecasts or assessment of
growth trends in energy consumption and production, identification
of potential adverse social, economic, or environmental impacts which
might be imposed by continuation of the present trends, including,
but not limited to, the costs of electricity and other forms of
energy to consumers, significant increases in air, water, and other
forms of pollution, threats to public health and safety, and loss of
scenic and natural areas.
(d) Assessment of the energy resources available to the state,
including, among others, fossil fuels and nuclear, solar, geothermal,
cogeneration, and purchased power resources and power pooling;
assessment of the potential of, and examination of the availability
of, commercially developable fuels, including imported fuels, during
the forthcoming 12- and 20-year periods; and recommendations
regarding measures to be applied to conserve energy and fuels.
(e) An analysis and evaluation of the means by which the projected
annual rate of demand growth of energy may be reduced, together with
an estimate of the amount of the reduction to be obtained by
policies and programs evaluated pursuant to Section 25401.1.
(f) An indication of those technologies which merit continued
consideration or support in the commission's long range assessment
efforts and its research and development program. The report shall
also indicate those electrical generation and nongeneration
technologies which have been found to be commercially available or
reasonably expected to become available pursuant to Section 25604.
(g) A description of the commission's responsibilities and
recommendations for emergency measures to be applied in the event of
impending serious shortage of electrical and other forms of energy as
provided in Chapter 8 (commencing with Section 25700) and evaluated
under subdivision (b) of Section 25358.
(h) Recommendations to the Governor and the Legislature for
administrative and legislative actions based on the results of
commission studies and evaluations.
SEC. 11.
SEC. 5. Section 25520 of the Public Resources Code is amended
to read:
25520. The application shall contain all of the following
information and any other information that the commission by
regulation may require:
(a) A detailed description of the design, construction, and
operation of the proposed facility.
(b) Safety and reliability information, including, in addition to
documentation previously provided pursuant to Section 25511, planned
provisions for emergency operations and shutdowns.
(c) Available site information, including maps and descriptions of
present and proposed development and, as appropriate, geological,
aesthetic, ecological, seismic, water supply, population, and load
center data, and justification for the particular site proposed.
(d) Any other information relating to the design, operation, and
siting of the facility that the commission may specify.
(e) A description of the facility, the cost of the facility, the
fuel to be used, the source of fuel, fuel cost, plant service life
and capacity factor, and generating cost per kilowatthour.
(f) A description of any electric transmission lines, including
the estimated cost of the proposed electric transmission line; a map
in suitable scale of the proposed routing showing details of the
rights-of-way in the vicinity of settled areas, parks, recreational
areas, and scenic areas, and existing transmission lines within one
mile of the proposed route; justification for the route, and a
preliminary description of the effect of the proposed electric
transmission line on the environment, ecology, and scenic, historic,
and recreational values.
SEC. 12.
SEC. 6. Section 25523 of the Public Resources Code is
amended to read:
25523. The commission shall prepare a written decision after the
public hearing on an application, which includes all of the
following:
(a) Specific provisions relating to the manner in which the
proposed facility is to be designed, sited, and operated in order to
protect environmental quality and assure public health and safety.
(b) In the case of a site to be located in the coastal zone,
specific provisions to meet the objectives of Division 20 (commencing
with Section 30000) as may be specified in the report submitted by
the California Coastal Commission pursuant to subdivision (d) of
Section 30413, unless the commission specifically finds that the
adoption of the provisions specified in the report would result in
greater adverse effect on the environment or that the provisions
proposed in the report would not be feasible.
(c) In the case of a site to be located in the Suisun Marsh or in
the jurisdiction of the San Francisco Bay Conservation and
Development Commission, specific provisions to meet the requirements
of Division 19 (commencing with Section 29000) of this code or Title
7.2 (commencing with Section 66600) of the Government Code as may be
specified in the report submitted by the San Francisco Bay
Conservation and Development Commission pursuant to subdivision (d)
of Section 66645 of the Government Code, unless the commission
specifically finds that the adoption of the provisions specified in
the report would result in greater adverse effect on the environment
or the provisions proposed in the report would not be feasible.
(d) (1) Findings regarding the conformity of the proposed site and
related facilities with standards adopted by the commission pursuant
to Section 25216.3 and subdivision (d) of Section 25402, with public
safety standards and the applicable air and water quality standards,
and with other relevant local, regional, state, and federal
standards, ordinances, or laws. If the commission finds that there
is noncompliance with any state, local, or regional ordinance or
regulation in the application, it shall consult and meet with the
state, local, or regional governmental agency concerned to attempt to
correct or eliminate the noncompliance. If the noncompliance cannot
be corrected or eliminated, the commission shall inform the state,
local, or regional governmental agency if it makes the findings
required by Section 25525.
(2) The commission shall not find that the proposed facility
conforms with applicable air quality standards pursuant to paragraph
(1) unless the applicable air pollution control district or air
quality management district certifies that complete emissions offsets
for the proposed facility have been identified and will be obtained
by the applicant prior to the commission's licensing of the project,
to the extent that the proposed facility requires emission offsets to
comply with local, regional, state, or federal air quality
standards.
(e) Provision for restoring the site as necessary to protect the
environment, if the commission denies approval of the application.
(f) In the case of a geothermal site and related facility,
findings on whether there are sufficient commercial quantities of
geothermal resources available to operate the proposed facility for
its planned life.
(g) In the case of a site and related facility using resource
recovery (waste-to-energy) technology, specific conditions requiring
that the facility be monitored to ensure compliance with paragraphs
(1), (2), (3), and (6) of subdivision (a) of Section 42315 of the
Health and Safety Code.
(h) In the case of a facility, other than a resource recovery
facility subject to subdivision (g), specific conditions requiring
the facility to be monitored to ensure compliance with toxic air
contaminant control measures adopted by an air pollution control
district or air quality management district pursuant to subdivision
(d) of Section 39666 or Section 41700 of the Health and Safety Code,
whether the measures were adopted before or after issuance of a
determination of compliance by the district.
SEC. 13.
SEC. 7. Section 25523.5 of the Public Resources Code is
repealed.
SEC. 14.
SEC. 8. Section 25524 of the Public Resources Code is
amended to read:
25524. The commission shall not certify any geothermal site and
related facility unless it finds that the geothermal field dedicated
to the proposed powerplant is reasonably capable of providing
geothermal resources in sufficient commercial quantities to supply
the powerplant over its planned life.
SEC. 15.
SEC. 9. Section 25540.6 of the Public Resources Code is
amended to read:
25540.6. (a) Notwithstanding any other provision of law, no
notice of intention is required, and the commission shall issue its
final decision on the application, as specified in Section 25523,
within 12 months after the filing of the application for
certification of the powerplant and related facility or facilities,
or at any later time as is mutually agreed by the commission and the
applicant, for any of the following:
(1) A thermal powerplant which will employ cogeneration
technology, a thermal powerplant that will employ natural gas-fired
technology, or a solar thermal powerplant.
(2) A modification of an existing facility.
(3) A thermal powerplant which it is only technologically or
economically feasible to site at or near the energy source.
(4) A thermal powerplant with a generating capacity of up to 100
megawatts.
(5) A thermal powerplant designed to develop or demonstrate
technologies which have not previously been built or operated on a
commercial scale. Such a research, development, or commercial
demonstration project may include, but is not limited to, the use of
renewable or alternative fuels, improvements in energy conversion
efficiency, or the use of advanced pollution control systems. Such a
facility may not exceed 300 megawatts unless the commission, by
regulation, authorizes a greater capacity. Section 25524 does not
apply to such a powerplant and related facility or facilities.
(b) Projects exempted from the notice of intention requirement
pursuant to paragraph (1), (4), or (5) of subdivision (a) shall
include, in the application for certification, a discussion of the
applicant's site selection criteria, any alternative sites that the
applicant considered for the project, and the reasons why the
applicant chose the proposed site. That discussion shall not be
required for cogeneration projects at existing industrial sites. The
commission may also accept an application for a noncogeneration
project at an existing industrial site without requiring a discussion
of site alternatives if the commission finds that the project has a
strong relationship to the existing industrial site and that it is
therefore reasonable not to analyze alternative sites for the
project.
SEC. 16.
SEC. 10. Section 25541 of the Public Resources Code is
amended to read:
25541. The commission may exempt from this chapter thermal
powerplants with a generating capacity of up to 100 megawatts and
modifications to existing generating facilities that do not add
capacity in excess of 100 megawatts, if the commission finds that no
substantial adverse impact on the environment or energy resources
will result from the construction or operation of the proposed
facility or from the modifications.
SEC. 17.
SEC. 11. Section 25541.5 of the Public Resources Code is
repealed.
SEC. 18.
SEC. 12. Section 25541.5 is added to the Public Resources
Code, to read:
25541.5. (a) On or before January 1, 2001, the Secretary of the
Resources Agency shall review the regulatory program conducted
pursuant to this chapter that was certified pursuant to subdivision
(k) of Section 15251 of Title 14 of the California Code of
Regulations, to determine whether the regulatory program meets the
criteria specified in Section 21080.5. If the Secretary of the
Resources Agency determines that the regulatory program meets those
criteria, the secretary shall continue the certification of the
regulatory program.
(b) If the Secretary of the Resources Agency continues the
certification of the regulatory program, the commission shall amend
the regulatory program from time to time, as necessary to permit the
secretary to continue to certify the program.
(c) This section does not invalidate the certification of the
regulatory program, as it existed on January 1, 2000, pending the
review required by subdivision (a).
SEC. 19. Section 25911 of the Public Resources Code
SEC. 13. Section 25543 is added to the Public Resources Code, to
read:
25543. (a) It is the intent of the Legislature to improve the
process of siting and licensing new thermal electric power plants to
ensure that these facilities can be sited in a timely manner.
(b) Notwithstanding Section 7550.5 of the Government Code, the
commission shall prepare a report to the Governor and the Legislature
on or before March 31, 2000, that identifies administrative and
statutory measures that, preserving environmental protections, would
improve the commission's siting and licensing process for thermal
power plants of 50 megawatts and larger. The report shall include,
but is not limited to, all of the following:
(1) An examination of potential process efficiencies associated
with required hearings, site visits, and documents.
(2) A review of the impacts of restrictions on communications
between applicants and staff or decisionmakers.
(3) An assessment of means for improving coordination with the
licensing activities of local jurisdictions and participation by
other state agencies.
(4) An assessment of organizational structure issues including the
adequacy of the amounts and organization of current technical and
legal resources.
(5) Recommendations for administrative and statutory measures to
improve the siting and licensing process.
(c) The commission may immediately implement any administrative
recommendations. Regulations, as identified in paragraph (5),
adopted within 180 days of the effective date of this section may be
adopted as emergency regulations in accordance with Chapter 3.5
(commencing with Section 11340) of the Government Code. For purposes
of that chapter, including Section 11349.6 of the Government Code,
the adoption of the regulations shall be considered by the Office of
Administrative Law to be necessary for the immediate preservation of
the public peace, health, safety, and general welfare.
is amended to read:
25911. The California Energy Infrastructure and Oversight
Commission may adopt regulations pertaining to urea formaldehyde foam
insulation materials that are reasonably necessary to protect the
public health and safety. Those regulations may include, but are not
limited to, prohibition of the manufacture, sale, or installation of
urea formaldehyde foam insulation, requirements for safety notices
to consumers, certification of installers, and specification of
installation practices. Regulations adopted pursuant to this section
shall be adopted after public hearings in accordance with Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code. Any regulation adopted by the commission
to prohibit the sale and installation of urea formaldehyde foam
insulation shall be based upon a record of scientific evidence that
demonstrates the need for the prohibition to protect the public
health and safety.
SEC. 20. Section 26004 of the Public Resources Code is amended to
read:
26004. (a) There is in the state government the California
Alternative Energy and Advanced Transportation Financing Authority.
The authority constitutes a public instrumentality and the exercise
by the authority of powers conferred by this division is the
performance of an essential public function.
(b) The authority shall consist of five members, as follows:
(1) The Director of Finance.
(2) The Chairperson of the California Energy Infrastructure and
Oversight Commission.
(3) The President of the Public Utilities Commission.
(4) The Controller.
(5) The Treasurer, who shall serve as the chairperson of the
authority.
(c) The members listed in subdivision (b) may each designate a
deputy or clerk in his or her agency to act for and represent the
member at all meetings of the authority.
(d) The first meeting of the authority shall be convened by the
Treasurer.
SEC. 21. Section 335 of the Public Utilities Code is amended to
read:
335. In order to ensure that the interests of the people of
California are served, a seven-member Electricity Oversight Board is
hereby created as provided in Section 336. For purposes of this
chapter, any reference to the Oversight Board shall mean the
Electricity Oversight Board. Its functions shall be all of the
following:
(a) To oversee the Independent System Operator and the Power
Exchange.
(b) To determine the composition and terms of service and to
exercise the exclusive right to decline to confirm the appointments
of specific members of the governing boards of the Independent System
Operator and the Power Exchange, as specified in subdivision (f).
(c) To serve as an appeal board for majority decisions of the
Independent System Operator governing board, as they relate to
matters subject to exclusive state jurisdiction, as specified in
Section 339.
(d) To perform licensing functions and review in
accordance with the California Environmental Quality Act (Division 13
(commencing with Section 21000) of the Public Resources Code), for
electric transmission lines and natural gas pipelines.
(e) To certify a five-year statewide electricity transmission
plan, prepared and annually updated by the Independent System
Operator, for the expansion and upgrade of the transmission system by
the Independent System Operator.
(f) Those members of the Independent System Operator and Power
Exchange governing boards whose appointments the Oversight Board has
the exclusive right to decline to confirm include proposed governing
board members representing agricultural end users, industrial end
users, commercial end-users, residential end users, end users at
large, nonmarket participants, and public interest groups.
SEC. 22. Section 336 of the Public Utilities Code is amended to
read:
336. (a) The Electricity Oversight Board shall be within and
under the auspices of the California Energy Infrastructure and
Oversight Commission.
(b) The seven-member Electricity Oversight Board shall be
comprised as follows:
(1) Five members who are voting commissioners of the California
Energy Infrastructure and Oversight Committee.
(2) One member of the Assembly appointed by the Speaker of the
Assembly.
(3) One member of the Senate appointed by the Senate Committee on
Rules.
(c) Legislative members shall be nonvoting members, however, they
are otherwise full members of the board with all rights and
privileges pertaining thereto.
(d) The terms of voting members of the Oversight Board members
shall be coterminous with their terms as commissioners of the
California Energy Infrastructure and Oversight Commission.
(e) The chairperson of the California Energy Infrastructure and
Oversight Commission shall serve as the chairperson of the Oversight
Board and shall preside over Oversight Board meetings and direct the
board's Executive Director, General Counsel, and staff, in accordance
with the policies and guidelines of the Oversight Board.
(f) Three voting members shall constitute a quorum. Any decision
or action of the Oversight Board shall be by majority vote of the
voting members.
(g) There shall be separate staffs and legal organizations for the
Electricity Oversight Board within the California Energy
Infrastructure and Oversight Commission.
SEC. 23. Section 337 of the Public Utilities Code is amended to
read:
337. The Oversight Board, shall have the exclusive right to
approve procedures for the election and submission for confirmation
and the qualifications for Independent System Operator governing
board members specified in subdivision (f) of Section 335, all of
whom shall be required to be electricity consumers in the area served
by the Independent System Operator. The Independent System Operator
governing board shall include, but not be limited to,
representatives of investor-owned utility transmission owners,
publicly owned utility transmission owners, nonutility electricity
sellers, public buyers and sellers, private buyers and sellers,
industrial end users, commercial end users, residential end users,
agricultural end users, public interest groups, and nonmarket
participant representatives. A simple majority of the board shall
consist of persons who are themselves unaffiliated with electric
generation, transmission or distribution corporations. The
structural composition of the Independent System Operator governing
board existing on July 1, 1999, shall remain in effect until an
agreement with a participating state is legally in effect. However,
prior to such an agreement, California shall retain the right to
change the Independent System Operator governing board into a
nonstakeholder board. In the event of such a legislative change,
revised bylaws shall be filed with the Federal Energy Regulatory
Commission under Section 205 of the Federal Power Act (16 U.S.C.A.
Sec. 842d).
SEC. 24. Section 338 of the Public Utilities Code is amended to
read:
338. The Oversight Board, shall have the exclusive right to
approve procedures and the qualifications for Power Exchange
governing board members specified in subdivision (f) of Section 335,
all of whom shall be required to be electricity customers in the area
served by the Power Exchange. The Power Exchange governing board
shall include, but not be limited to, representatives of
investor-owned electric distribution companies, publicly owned
electric distribution companies, nonutility generators, public buyers
and sellers, private buyers and sellers, industrial end users,
commercial end users, residential end users, agricultural end users,
public interest groups, and nonmarket participant representatives.
The structural composition of the Power Exchange governing board
existing on July 1, 1999, shall remain in effect until an agreement
with a participating state is legally in effect. However, prior to
such an agreement, California shall retain the right to change the
Power Exchange governing board into a nonstakeholder board. In the
event of such a legislative change, revised bylaws shall be filed
with the Federal Energy Regulatory Commission under Section 205 of
the Federal Power Act (16 U.S.C.A. Sec. 842d).
SEC. 25. Section 339 of the Public Utilities Code is amended to
read:
339. (a) The Oversight Board is the appeal board for majority
decisions of the Independent System Operator governing board relating
to matters that are identified in subdivision (b) as they pertain to
the Independent System Operator.
(b) The following matters are subject to California's exclusive
jurisdiction:
(1) Selections by California of governing board members, as
described in Sections 335, 337, and 338.
(2) Matters pertaining to retail electric service or retail sales
of electric energy.
(3) Ensuring that the purposes and functions of the Independent
System Operator and Power Exchange are consistent with the purposes
and functions of California nonprofit public benefit corporations,
including duties of care and conflict of interest standards for
directors of the corporations.
(4) State functions assigned to the Independent System Operator
and Power Exchange under state law.
(5) Open meeting standards and meeting notice requirements.
(6) Appointment of advisory representatives representing state
interests.
(7) Public access to corporate records.
(8) The amendment of bylaws relevant to these matters.
(c) Only members of the Independent System Operator governing
board may appeal a majority decision of the Independent System
Operator related to any of the matters specified in subdivision (b)
to the Oversight Board.
SEC. 26. Section 341.5 is added to the Public Utilities Code, to
read:
341.5. (a) The Independent System Operator and Power Exchange
bylaws shall contain provisions that identify those matters specified
in subdivision (b) of Section 339 as matters within state
jurisdiction. The bylaws shall also contain provisions which state
that California's bylaws approval function with respect to the
matters specified in subdivision (b) of Section 339 shall not
preclude the Federal Energy Regulatory Commission from taking any
action necessary to address undue discrimination or other violations
of the Federal Power Act (16 U.S.C.A. Sec. 791a et seq.) or to
exercise any other commission responsibility under the Federal Power
Act. In taking any such action, the Federal Energy Regulatory
Commission shall give due respect to California's jurisdictional
interests in the functions of the Independent System Operator and
Power Exchange and to attempt to accommodate state interests to the
extent those interests are not inconsistent with the Federal Energy
Regulatory Commission's statutory responsibilities. The bylaws shall
state that any future agreement regarding the apportionment of the
Independent System Operator and Power Exchange board appointment
function among participating states associated with the expansion of
the Independent System Operator and Power Exchange into multistate
entities shall be filed with the Federal Energy Regulatory Commission
pursuant to Section 205 of the Federal Power Act (16 U.S.C.A. Sec.
824d).
(b) Any necessary bylaw changes to implement the provisions of
Section 335, 337, 338, 339, or subdivision (a) of this section, or
changes required pursuant to an agreement as contemplated by
subdivision (a) of this section with a participating state for a
regional organization, shall be effective upon approval of the
respective governing boards and the Oversight Board and acceptance
for filing by the Federal Energy Regulatory Commission.
SEC. 27. Section 351 is added to the Public Utilities Code, to
read:
351. (a) The Independent System Operator shall develop an
annually updated, five-year draft statewide electric grid plan for
expansion and upgrade of the statewide electric grid under its
control. The plan shall include projects that would do the
following:
(1) Maintain or enhance reliability in the electric grid operated
by the Independent System Operator.
(2) Improve the competitive structure and performance of the
electricity market served by the Independent System Operator and
thereby reduce the cost of electricity to electricity consumers
served by the Independent System Operator, or both.
(b) In developing its draft plan, the Independent System Operator
shall review proposals from participating and nonparticipating
transmission owners and third parties.
(1) Participating transmission owners shall propose annually
updated five-year electric grid plans for the transmission systems
they own and have committed to the Independent System Operator.
These plans shall be developed using grid planning criteria specified
by the Independent System Operator and reflect anticipated load
growth, congestion mitigation, reliability requirements, and new
generation and transmission projects whose future development is
reasonably assured.
(2) Nonparticipating transmission owners and third parties may
also propose projects that conform to the Independent System Operator'
s grid planning criteria.
(c) The Independent System Operator's draft statewide electric
grid plan shall consist of a detailed specification of those projects
it includes from the proposals of participating and nonparticipating
transmission owners and third parties and proposals it originates
itself. The draft statewide electric grid plan shall include
analytical support for its findings and conclusions that the
individual projects selected do the following:
(1) Provide the cost-effective solutions to identified reliability
problems.
(2) In the case of projects to improve the competitive structure
and performance of the electricity market, reduce the cost of
electricity to electricity consumers.
(d) The Independent System Operator shall develop its draft
statewide electric grid plan through a process that provides
opportunity for stakeholders, interested parties, and public agencies
to comment upon elements of the plan and the overall plan itself.
The Independent System Operator shall develop a publicly available
record of such comments.
(e) Upon adoption of the draft statewide electric grid plan by the
Independent System Operator Governing Board, the plan, the record
developed in subdivision (d), and the Independent System Operator's
responses to those comments shall be transmitted to the Electricity
Oversight Board in the California Energy Infrastructure and Oversight
Commission accompanied by a request that the draft plan be
certified.
(f) The Independent System Operator shall, through public
hearings, develop guidelines for its draft statewide electric grid
plan development process.
(g) The draft statewide electric grid plan is not a project within
the meaning of that term as used in the California Environmental Act
(Division 13 (commencing with Section 21000) of the Public Resources
Code).
SEC. 28. Section 352 is added to the Public Utilities Code, to
read:
352. (a) The Electricity Oversight Board shall conduct a public
process to annually review for certification the draft statewide
electric grid plan submitted by the Independent System Operator.
(b) In order to certify the plan, the Electricity Oversight Board
shall find that the submitted draft electric grid plan is a
cost-effective plan to maintain or improve system reliability and
reduce the costs of electricity to consumers. The Electricity
Oversight Board may certify all or parts of the plan. If any part of
the plan is not certified, the Electricity Oversight Board shall
identify deficiencies that are required to be remedied prior to
certification of that part of the plan. The certification of any
projects in the plan shall be determinative of public need for those
projects for purposes of the California Environmental Quality Act
(Division 13 (commencing with Section 21000) of the Public Resources
Code). The Electricity Oversight Board shall make its certification
determinations within 90 days of the date the Independent System
Operator transmits the draft electric grid plan.
(c) The Electricity Oversight Board shall develop guidelines,
including timelines and other procedural requirements, to implement
its process for the certification of the draft statewide electric
grid plan.
SEC. 29. Section 353 is added to the Public Utilities Code, to
read:
353. (a) Upon certification of the statewide electric grid plan
by the Electricity Oversight Board, the Independent System Operator
shall secure the resources needed to meet system improvement needs
identified in the statewide transmission plan. Those resources may
include transmission proposals included in the statewide electric
grid plan and generation or other viable alternatives that provide
comparable system benefits. The Independent System Operator shall
develop a procedure to quantify the system benefit equivalence of
alternatives to transmission projects.
(b) If requested by the Independent System Operator, participating
transmission owners shall do the following:
(1) Secure the required permits and approvals.
(2) Build transmission improvements that the Independent System
Operator has determined will provide system benefits identified in
the statewide transmission plan. The cost of the improvements,
including the ongoing operation and maintenance expenses, shall be
recoverable in rates, subject to the approval of the Federal Energy
Regulatory Commission.
SEC. 30. Section 354 is added to the Public Utilities Code, to
read:
354. (a) The Electricity Oversight Board shall have the exclusive
authority to site and license electricity transmission projects and
shall serve as the lead agency for that purpose under the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code).
(b) Notwithstanding subdivision (a), modifications and
improvements to substations and transmission facilities provided for
in Public Utilities Commission General Order 131-D shall not be
subject to the requirements of this section.
(c) Alternatives analysis under the California Environmental
Quality Act (Division 13 (commencing with Section 21000) of the
Public Resources Code) of transmission projects certified in the
statewide electric grid plan shall be limited to the project goals
identified by the Independent System Operator in the certified
statewide electric grid plan. Specific project goals certified in
the plan shall be deemed project goals in the siting and licensing
process and not be subject to relitigation. However, alternative
project routes or configurations may be considered.
(d) The issuance of a license by the Electricity Oversight Board
to build a transmission project shall confer upon the licensee the
right to exercise eminent domain to build the project.
(e) The Electricity Oversight Board shall develop guidelines,
including timelines and other procedural requirements, that
expeditiously implement the transmission siting and licensing
process.
SEC. 31. Section 355 is added to the Public and Utilities Code, to
read:
355. Notwithstanding Sections 351, 352, and 353, the Independent
System Operator shall develop a process for expediting the planning
and approval of transmission facilities of between 50kv and 200kv
needed for anticipated local growth, congestion mitigation or
reliability requirements. The process shall be developed with input
from stakeholders, interested parties and public agencies and shall
be subject to the approval of the Electricity Oversight Board. The
Electricity Oversight Board shall develop any guidelines it deems
necessary for the licensing and siting of those facilities, as
provided under Section 354.
SEC. 32. Section 359 of the Public Utilities Code is repealed.
SEC. 33. Section 359 is added to the Public Utilities Code, to
read:
359. (a) It is the intent of the Legislature to provide for the
evolution of the Independent System Operator and the Power Exchange
into regional organizations to promote the development of regional
electricity transmission markets in the western states and to improve
the access of consumers served by the Independent System Operator
and the Power Exchange to those markets.
(b) The preferred means by which the voluntary evolution described
in subdivision (a) should occur is through the adoption of a
regional compact or other comparable agreement among cooperating
party states, the retail customers of which states would reside
within the geographic territories served by the Independent System
Operator and the Power Exchange.
(c) The agreement described in subdivision (b) should provide for
all of the following:
(1) An equitable process for the appointment or confirmation by
party states of members of the governing boards of the Independent
System Operator and the Power Exchange.
(2) A respecification of the size, structure, representation,
eligible membership, nominating procedures, and member terms of
service of the governing boards of the Independent System Operator
and the Power Exchange.
(3) Mechanisms by which each party state, jointly or separately,
can oversee effectively the actions of the Independent System
Operator and the Power Exchange as those actions relate to the
assurance of electricity system reliability within the party state
and to matters that affect electricity sales to the retail customers
of the party state or otherwise affect the general welfare of the
electricity consumers and the general public of the party state.
(4) The adherence by publicly owned and investor-owned utilities
located in party states to enforceable standards and protocols to
protect the reliability of the interconnected regional transmission
and distribution systems.
SEC. 34. The California Energy Infrastructure and Oversight
Commission may use the unexpended balance of funds available for use
in connection with the performance of the functions of the former
State Energy Resources Conservation and Development Commission.
SEC. 35. Any officer or employee of the former State Energy
Resources Conservation and Development Commission or the Oversight
Board who is serving in the state civil service, other than as a
temporary employee, and who is engaged in the performance of a
function vested in the former State Energy Resources Conservation and
Development Commission or the Oversight Board shall be transferred
to the California Energy Infrastructure and Oversight Commission.
The status, position, and rights of that person shall not be affected
by the transfer and shall be retained by the person as an officer or
employee of the Public Utilities Commission, pursuant to the State
Civil Service Act (Part 2 (commencing with Section 18500) of Division
5 of Title 2 of the Government Code), except as to a position that
is exempt from civil service.
SEC. 36. The California Energy Infrastructure and Oversight
Commission shall have possession and control of all records, papers,
offices, equipment, supplies, money, funds, appropriations, licenses,
permits, agreements, contracts, claims, judgments, land, and other
property, real or personal, connected with the administration of, or
held for the benefit or use of, the former State Energy Resources
Conservation and Development Commission and the Oversight Board.
SEC. 37. (a) Any regulation or other action, adopted, prescribed,
taken, or performed by the former State Energy Resources Conservation
and Development Commission or the Oversight Board or by any of its
officers in the administration of a program, the performance of a
power, duty, or responsibility, or the exercise of any function
transferred by this act shall remain in effect and shall be deemed to
be a regulation or action of the California Energy Infrastructure
and Oversight Commission or of any of its officers to whom the
program, power, duty, responsibility, or function is transferred.
(b) No suit, action, or other proceeding lawfully commenced by or
against the former State Energy Resources Conservation and
Development Commission or the Oversight Board or any of its officers,
in relation to the administration of any program or the discharge of
any power, duty, responsibility, or jurisdiction transferred by this
act, shall abate by reason of the transfer of the program, power,
duty, responsibility, or jurisdiction under this act.
SEC. 38. The Department of Finance may direct the transfer of
unexpended balances of appropriations and other funds available for
use in connection with any function affected by the reorganization
prescribed by this act that the director determines to be necessary
to facilitate the reorganization, for use in connection with the
functions affected by the reorganization, provided that any
unexpended balances of appropriations and other funds so transferred
shall be used, as to appropriations, only for purposes that were
authorized by the appropriation and, as to other available funds,
only for purposes authorized as of the effective date of this act.
SEC. 39. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.