BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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                                 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  
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          "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







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          NC:jk  5/3/00   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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