BILL ANALYSIS                                                                                                                                                                                                    




          Appropriations Committee Fiscal Summary
                                SB 110 ( Peace)
Hearing Date: 5/10/99           Amended: 4/5/99        
Consultant:  Bob Franzoia           Policy Vote: E, U & C   
8-0                      
____________________________________________________________ 

BILL SUMMARY: SB 110 would do the following:
 Eliminate the requirement that 5- and 12-year forecasts  
  established by the California Energy Commission (CEC)  
  shall serve as the basis for the planning and  
  certification of electric transmission and powerplant  
  facilities.
 Eliminate the prohibition that the CEC cannot certify any  
  facility unless it makes findings relating to conformity  
  of the facility with an integrated assessment of need.
 Make various changes to the information and analyses  
  contained in the CEC's biennial Electricity Report.
 Make various changes to the information required to be  
  provided in an application to the CEC for powerplant  
  facility certification.
                         Fiscal Impact (in thousands)
  Major Provisions             1999-2000       2000-01       2001-02    Fund  
Elimination of Integrated                 Unknown costGeneral*
Assessment of Need
document

* Energy Resources Programs Account in the General Fund
STAFF COMMENTS: This bill may meet the criteria to be  
placed on the Suspense File.

The CEC has relied on the Integrated Assessment of Need  
(IAN) function in the biennial Electricity Report for a  
variety of purposes including those set forth in Public  
Resources Code Section 25309 (b) which is eliminated by the  
bill.  This section provides that the CEC's IAN shall serve  
as the basis for planning and approval of new power  
facilities which will balance, among other things, the  
protection of public health and safety, the preservation of  
environmental quality, and the conservation of resources.   
The CEC has provided general policy guidance to persons  
proposing new power facilities in this manner.  The CEC  
indicates that guidance has encouraged proponents to  
address these issues early in the process, which has  
resulted in reduced CEC certification costs.  











It is the CEC's position that absent the IAN there will be  
issues associated with the certification of powerplant  
facilities that will not be address by the project's  
proponents.  As a result, new power generation facilities  
will be brought before the CEC for certification that will  
result in more costly review.  If that is the case, the  
bill may increase certification costs.  With potentially  
forty new power facilities coming before the CEC in the  
next few years, these costs could be substantial.  These  
costs could be reduced by allowing the CEC the ability to  
set guidelines not related to need or by the adoption of a  
facility certification fee.  Currently, all certification  
costs are borne by the CEC.  Since these projects are being  
requested by private, for profit entities it may be  
appropriate for them to pay some or all of the  
certification costs.