BACKGROUND
The second year of the state legislative session brings several big issues carried forward from the previous session. Although we are still early in the legislative session some of the key issues the electric utility industry will be facing are identified below:
Regionalization
• AB 813 (Holden) Regional Transmission Grid.
This proposal is the first in a two-step process to identify desired characteristics of any multi-state regional transmission organization that California entities would join. It includes provisions related to procedures and jurisdictional oversight of the organization, as well as the preservation of state authority on procurement, resource planning and siting decisions.
Staff is watching this legislation to determine if participating in a regional market would increase transmission costs that would more than offset the direct benefits to customers.
Renewable Energy Standards
• SB 100 (de Leon) Renewables Portfolio Standard/Carbon Free Portfolio.
This bill would create a policy that eligible renewable energy resources and zero carbon resources supply all of retail sales of electricity to serve California end use customers. The author is proposing to meet this goal by December 31, 2045. Staff is concerned about the lack of assessment regarding the potential impacts on system reliability and impacts to customer rates. There is also concern that such a proposal may not protect against stranded public investments.
Wildfires
• SB 901 (Dodd): Local publicly owned electric utilities: wildfire mitigation plans.
This bill would require a local publicly owned electric utility to review and determine if they need to implement any policies or procedures to de-energize its electrical lines as a form of fire mitigation. Staff is evaluating this bill to determine any impacts to the department.
Electric Vehicles
• AB 1745 (Ting) Clean Cars 2040 Act.
This bill would prohibit the Department of Motor Vehicles from accepting an application for original registration of a motor vehicle, unless the vehicle is a zero emissions vehicle, beginning January 1, 2040. Staff is watching this bill to determine any potential impacts to the department’s programs and services.
Federal Issues
• Privatization of the Power Marketing Administration Assets. There have been recent proposals that seek to give Federal agencies the authority to sell off federally owned transmission assets. Staff is concerned about potential rate increases to customers if these federal assets are privatized.
• Wireless Communication deployment on public infrastructure.
There have been plans discussed to allow the deployment of small cell equipment on local infrastructure. The department is concerned of any efforts by Congress to weaken or eliminate the municipal exemption public power entities have from federal pole attachment regulations and are opposed to burdensome FCC oversight and unfair “one-size-fits-all” pole attachment rates and regulations.
• Hydropower Relicensing Reforms.
The house approved HR 3043, the hydropower policy modernization act, which will streamline procedures for the relicensing of hydropower projects. The department is supportive of legislation that encourages the development of new hydropower facilities and the relicensing of existing facilities. The bill has moved over to the Senate Committee on energy and natural resources.
Conclusion
There is a great deal of activity at both the State and Federal level. By the end of February staff will have a clearer picture on the key state legislation that will be moving forward. These bills will be addressed in the upcoming Law & Regulation meetings.