STATE OF CALIFORNIA



|STATE OF CALIFORNIA |Public Utilities Commission |

| |San Francisco |

|M e m o r a n d u m |

|Date: |May 1, 2017 |

| | |

|To: |The Commission |

| |(Meeting of May 11, 2017) |

| | | |

|From: |Hazel Miranda, Director |

| |Office of Governmental Affairs (OGA) – Sacramento |

| | |

|Subject: |Commission Position on SB 385: Public Utilities Commission: Reports (amended 4/3/17) |

| |

RecommendED POSITION: SUPPORT

REASON: This bill is sponsored by the California Public Utilities Commission (CPUC) and would improve regulatory accountability by helping modernize CPUC legislative reporting requirements to ensure that they are relevant, reasonable, and necessary.

SUMMARY OF BILL

• This bill would delete outdated reports to the Legislature, modify existing reporting requirements, and change report delivery dates to comport with the availability of information. In so doing, CPUC staff time would be prioritized to effectively and efficiently deliver relevant, useful and complete information to the Legislature, furthering policymaking and oversight.

EXISTING LAW:

1) Requires the CPUC to submit to the Legislature a detailed budget implementing transportation services related fees for the 1992-93 fiscal year. Requires the budget for expenditure of railroad corporation fees, for each of the 1996-97 and 1997-98 fiscal years does not exceed the amount of three million dollars. Requires the CPUC to conduct an audit of the expenditure of funds, commencing with the 1993-94 fiscal year, and in each subsequent fiscal year until the 1999-2000 fiscal year. Requires expenditures for an audit by the California State Auditor’s Office does not exceed seventy-five thousand. (Public Utilities Code §421)

2) Requires the CPUC, in conjunction with the California Environmental Protection Agency, to request, no later than July 1, 1992, the federal agencies to investigate and review other chemical compounds not presently considered to be hazardous or toxic for possible reclassification as hazardous substances, require the use of safer cars in rail transportation of all hazardous material, and other requests. Requires the CPUC to report to the Legislature on the status of its request no later than September 30, 1992, and every six months thereafter until September 30, 1995. (Public Utilities Code §765.7)

3) Requires the CPUC to in a proceeding not to exceed 18 months in duration, consider the need for performance reliability standards for all backup power systems installed on the property of residential and small commercial customers by a facilities-based provider of telephony services. Requires the CPUC to prepare and submit a report on the results of the proceeding before January 1, 2008. (Public Utilities Code §776)

4) Requires the CPUC to complete its investigation and report regarding recommendations from its examination of the current and future definitions of universal service on or before January 1, 2002. (Public Utilities Code §883)

5) Requires the CPUC to report annually on its efforts to identify ratepayer-funded energy efficiency programs that are similar to programs administered by the California Energy Commission, the State Air Resources Board, and the California Alternative Energy and Advanced Transportation Financing Authority in its annual report and to require revisions of ratepayer funded programs as necessary. (Public Utilities Code §913.9)

6) Requires the CPUC to report to the Legislature the findings of any risk assessment for a proposed new underground gas storage facility. (Public Utilities Code §1103)

7) Declares the intent of the Legislature that the CPUC authorize pilot projects to test the utility and safety of stationary, automated audible warning devices as an alternative to train s having to sound their horns as they approach highway rail crossings in specified communities. Prohibits new pilot projects from being authorized after January 1, 2003. Requires the CPUC to report to the Legislature by March 31, 2004, on the outcome of the pilot project. (Public Utilities Code §1202)

8) Requires the CPUC, on or before March 1, 2009, to request from each telephone corporation doing business in this state that possesses on or more telephone number prefixes, the specific telephone numbers and quantities within the possession of the provider, both in use and not in use. Requires the CPUC to submit a report to the Legislature on or before, July 1, 2001, on a study of telecommunications industry use rates. (Public Utilities Code §7937)

THIS BILL:

1) Repeals several outdated provisions of the current statutes related to the CPUC, including requirements of the CPUC to:

a) Conduct an audit, or have the State Auditor conduct an audit, of the expenditures of specified funds commencing with the 1993-94 fiscal year and in each subsequent year until the 1999-2000 fiscal year.

b) In conjunction with the California Environmental Protection Agency, request no later than July 1, 1992, the appropriate federal agencies to take specified actions relating to hazardous substances and materials, and related status reports to the Legislature every six months beginning September 30, 1992 until September 30, 1995.

c) Prepare and submit a report, before January 1, 2008, to the Legislature regarding performance reliability standards adopted for all backup commercial customers installed by a facilities-based provider of telephony services.

d) Report to the Legislature its findings and recommendations, on or before January 1, 2002, related to examining the current and future definitions of universal service.

e) Authorize specified pilot programs relating to rail crossings prior to January 1, 2003, and requirements to report the Legislature by March 31, 2004, on the outcome of those pilot programs.

f) Prepare and submit to the Legislature, on or before, July 1, 2001, a study of telecommunications industry use rates.

2) Moves, to the part of the Public Utilities Code that lists all required reports, provisions of the statutes requiring reports to be submitted by the CPUC to the Legislature, including:

a) The findings of any risk assessment completed to evaluate the potential impact of a leak from a proposed new underground gas storage facility.

b) A detailed budget for the expenditure of railroad corporation fees for the ensuing budget year.

3) Clarifies that an existing required report of the CPUC to the Legislature regarding energy efficiency programs applies to those programs of the investor-owned utilities and requires the report is submitted biannually beginning December 31, 2018.

BACKGROUND:

Current law makes several requirements of the CPUC related to reports that must be submitted to the Legislature. In many instances, these reports are required for specified time periods, however, the language requiring these reports is kept in the code even after the provisions have become obsolete. In recent years, there is an effort to maintain all reports of the CPUC to the Legislature in one section of the Public Utilities Code, so as to better track report requirements. However, bills often get adopted without ensuring any required reports to the Legislature by the CPUC are appropriately placed in the codes. Lastly, this bill appropriately clarifies that the requirement of the CPUC to track existing energy efficiency programs and ensure minimal duplication with similar state programs is narrow to the CPUC’s oversight of investor-owned energy utilities.

STAFF CONTACTS:

|Hazel Miranda, Director |Hazel.Miranda@cpuc. |

|Grant Mack, Senior Legislative Liaison |Grant.Mack@cpuc. |

|Lori Misicka, Legislative Liaison |Lori.Misicka@cpuc. |

|Ivy Walker, Legislative Liaison |Ivy.Walker@cpuc. |

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AB 2363

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