BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1709| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 1709 Author: Kelley (R) Amended: As introduced Vote: 21 SENATE ENERGY, U.&C. COMMITTEE : 8-1, 4/11/00 AYES: Bowen, Brulte, Hughes, Kelley, Mountjoy, Peace, Solis, Vasconcellos NOES: Alarcon NOT VOTING: Murray, Speier SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 SUBJECT : Public utilities: electrical corporation SOURCE : Association of California Water Agencies DIGEST : This bill clarifies that providers of anaerobic or digester gas technologies are exempt from the definition of an electrical corporation and from regulation by the California Public Utilities Commission. ANALYSIS : Current law defines an electrical corporation as every corporation or person owning, controlling, operating, or managing any electric plant for compensation in the state -- except where the electricity is generated for its own use or the use of its tenants and not for sale or transmission to others. Current law has two different definitions for activities that would not qualify a person or company as an CONTINUED SB 1709 Page 2 "electrical corporation." This bill clarifies that providers of anaerobic or digester gas technologies are exempt from the definition of an electrical corporation and from regulation by the California Public Utilities Commission (CPUC). Comments : According to the sponsor of this bill, the Association of California Water Agencies, there are approximately 200-250 water treatment plants in the state and many of them use an anaerobic -- without oxygen -- process to break down wastewater for final disposal. The process is carried out in a large metal or concrete tank and during the treatment process, a methane gas is created and released. The sponsor asserts that roughly 100 water treatment organizations, notably Inland Empire Water Agency, are capturing the gas that would otherwise be burned and released into the open air, and are turning it into electric power for their own use and for sale to others. This bill appears to be a response to a problem that occurred in the Inland Empire Utilities Agency where, according to the sponsor, the Agency's ability to use digester gas technology and provide electricity across a natural easement was called into question. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 5/3/00) Association of California Water Agencies (source) California Association of Sanitation Agencies Inland Empire Utilities Agency Los Angeles County Sanitation Districts of Los Angeles County Sierra Club California OPPOSITION : (Verified 5/3/00) Sempra Energy SB 1709 Page 3 NC:jk 5/3/00 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****