BILL NUMBER: SB 1183	AMENDED
	BILL TEXT

	AMENDED IN SENATE   APRIL 8, 1999

INTRODUCED BY   Senator Leslie

                        FEBRUARY 26, 1999

   An act to add Section 851.5 to the Public Utilities Code, relating
to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1183, as amended, Leslie.  Disposal of utility property:
hydroelectric facilities.
   The Public Utilities Act generally prohibits any public utility
from disposing or encumbering property necessary or useful in the
performance of its duties to the public, or any franchise or permit
or any right thereunder, or merging or consolidating property with
any other public utility, or franchises or permits or any part
thereof, without the authorization of the Public Utilities
Commission.
   This bill would prohibit a public utility from directly or
indirectly disposing of hydroelectric power facilities, as defined,
following the approval of such a disposal by the commission, without
first offering in writing to  the local agency that holds a
prescribed federal license for those facilities, or in the absence of
any such agency, to  the county in which the facilities are
located, a right of first refusal for the acquisition of the
facilities, as prescribed.  The bill would prohibit the disposal of
facilities to a county, or a public agency designated by a county,
from being considered to be a project within the meaning of the
California Environmental Quality Act.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 851.5 is added to the Public Utilities Code, to
read:
   851.5.  (a) As used in this section, the term "hydroelectric power
facilities" or "facilities" includes any permit, license, or
contract related to those hydroelectric power facilities.
   (b) (1) Notwithstanding any other provision of law, a public
utility may not sell, lease, assign, mortgage, or otherwise dispose
of the whole or any part of its hydroelectric power facilities,
directly or indirectly, following approval of such a disposal by the
commission pursuant to Section 851, or any other law governing the
disposal of hydroelectric power facilities by a public utility,
without first offering in writing to  the local agency that holds
a license for those facilities granted by the Federal Energy
Regulatory Commission, or in the absence of any such agency, to 
the county in which the facilities are located, a right of first
refusal for the acquisition of the facilities at the same price and
under the same terms and conditions approved by the commission
pursuant to Section 851.  That right of first refusal shall be of at
least 180 days' duration.  The county may designate one or more
public agencies to act as agents for the purpose of exercising the
right of first refusal.  The commission, in approving a transaction
pursuant to Section 851, shall not approve any term or condition that
would have the effect of impairing the exercise of the right of
first refusal pursuant to this subdivision.
   (2) The disposal of facilities in accordance with this section to
a county, or a public agency designated by a county pursuant to
paragraph (1), shall not be considered to be a project as defined in
Section 21065 of the Public Resources Code.