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Summary of Energy-Related Legislation
2003 Legislative Session

The following is a list of energy-related bills that were chaptered or vetoed in 2003, the first year of the 2003-2004 legislative session.




ASSEMBLY BILLS

AB 16 (Jackson), Chapter 420, Statutes of 2003 - Oil and Gas Development: Pipelines
Summary:
This bill requires that the oil from new or expanded offshore oil facilities be moved onshore by pipeline only. It requires companies to transport oil from new or expanded offshore facilities to processing and refining facilities by pipeline, once the oil is onshore.

AB 583 (Leslie), Chapter 108, Statutes of 2003 - Generation Facilities: Regulation
Summary:
Pursuant to AB 6X (Dutra), Chapter 2, Statutes of 2001, the sale of any investor owned utility generation facility is prohibited until January 1, 2006. This bill exempts from the noted provisions, the disposition of generating facilities that are located outside of California and are owned exclusively by a public utility that serves 60,000 or fewer customer accounts in the State.

AB 844 (Nation), Chapter 645, Statutes of 2003 - Replacement Tire Efficiency Program Summary: This bill requires the Energy Commission, in consultation with the California Integrated Waste Management Board (CIWMB), to develop a statewide fuel efficiency program for replacement tires for passenger cars and light trucks that is designed to ensure that replacement tires are at least as energy efficient, on average, as the tires sold as original equipment on new vehicles. This program could include tire standards if specified conditions are met.

AB 1051 (Goldberg) - Capital Facilities Fees - VETOED
Summary:
This bill would authorize a public agency utility to charge public agency customers rates or charges on the same basis as comparable nonpublic users, except for "capital facilities fees," which a public agency utility would negotiate with schools, public higher education, and state agencies.

In his veto message Governor Davis stated his concern about the potentially significant fiscal impact on public entities and state agencies, specifically, educational institutions.

AB 1214 (Firebaugh), Chapter 661, Statutes of 2003 - Net Energy Metering: Fuel Cell Customer-Generators
Summary:
This bill, until January 1, 2006, requires every electrical corporation to provide net energy metering for eligible fuel cell customer-generators until the total cumulative rated generating capacity used by the eligible fuel cell customer-generators equals 45 megawatts (MW) within the service territory of an electrical corporation with a peak demand above 10,000 MW, or equals 22.5 MW within the service territory of an electrical corporation with a peak demand of 10,000 MW or less. The bill prohibits the combined statewide cumulative rated generating capacity used by the eligible fuel cell customer-generators in the service territories of all electrical corporations from exceeding 112.5 MW.

AB 1284 (Leslie), Chapter 239, Statutes of 2003 - Direct Transactions: Cost Responsibility Surcharge
Summary:
This bill authorizes the Public Utilities Commission (PUC), if it is in the public’s interest and there is no feasible alternative, to exempt direct transaction customers from certain surcharge components imposed by the PUC, to the extent necessary to mitigate certain conditions described in an application and declaration submitted by the customer to the commission. This bill sunsets on January 1, 2009.

AB 1340 (Kehoe), Chapter 692, Statutes of 2003 - Petroleum: Information Reports
Summary:
This bill requires an oil refiner, oil producer, petroleum product transporter, petroleum product marketer, petroleum product pipeline operator, and terminal operator to report to the Energy Commission weekly rather than monthly on receipts, inventory levels, imports, exports, transportation, sources, and prices. The bill also permits any person required to submit this information to request that specific information be held in confidence.

AB 1407 (Wolk), Chapter 290, Statutes of 2003 - Solar Energy Systems
Summary:
This bill specifies that a public entity is subject to the requirements of Section 714 of the Civil Code, which prohibits restrictions against the installation of solar energy systems and may not exempt its residents from this requirement. The bill also prohibits a public entity from receiving funds from a state-sponsored grant or loan program for solar energy if it fails to comply with these requirements.

AB 1685 (Leno), Chapter 894, Statutes of 2003 - Energy: Self Generation Incentive Program
Summary:
This bill requires the California Public Utilities Commission (PUC), in consultation with the Energy Commission, to continue the Self-Generation Incentives Program. This program provides financial incentives to customers installing new, qualifying self-generation equipment to meet all or a portion of their electric energy needs. The bill also requires combustion-operated distributed generation using fossil fuels to meet a specified Oxides of Nitrogen emissions level and efficiency threshold to be eligible for the program.

In his signing message Governor Davis indicated concern with the disqualification of "waste gas" fired internal combustion engines from the program.

AB 1735 (Utilities and Commerce Committee), Chapter 452, Statutes of 2003 - Public Utilities Commission: Rate Setting and Quasi-Legislative Cases
Summary:
Existing law authorizes the Public Utilities Commission (PUC) to determine whether a proceeding requires a hearing and assign one or more commissioners or administrative law judges to the case. The assigned commissioner or judge is required to issue a scoping memo that describes the issues to be considered and the applicable timetable for resolution. This bill requires the PUC to resolve the issues in the scoping memo in a rate-setting or quasi-legislative case within 18 months of the date the scoping memo is issued, unless the commission makes a written determination that the deadline cannot be met and issues an order extending that deadline. It authorizes the commission to specify a later resolution date if the memo includes specific reasons and it is approved by the assigned commissioner.



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SENATE BILLS

SB 67 (Bowen), Chapter 731, Statutes of 2003 - Energy: Renewables Portfolio Standard Program
Summary:
This bill allows the Public Utilities Commission (PUC) to require an electrical corporation to procure renewable energy in order to meet California's Renewable Portfolio Standard (RPS), if the PUC determines that the terms of the procurement are reasonable and would not impair an electrical corporation's opportunity for creditworthiness. In addition, this bill clarifies that an electrical corporation is allowed rate recovery for renewable electricity procurement and administration. Further, the bill restores RPS eligibility for out-of-state renewable energy generators if specified conditions are met.

SB 168 (Energy, Utilities and Communications Committee), Chapter 733, Statutes of 2003 - Renewable Resource Trust Fund: Payphone Service
Summary:
This bill makes a number of nonsubstantive technical changes to the Public Utilities Code and to the Public Resources Code, which include minor changes to the powerplant siting and Public Interest Energy Research programs and consolidation of renewable program reporting requirements.

Comments: The modifications to the reporting requirements for the Renewable Energy Investment Program are included in this bill. However, SB 183 (Sher), Chapter 666, Statutes of 2003, repealed the Public Utilities Code section which this bill would have modified and moves current statute, without the changes to the reporting requirements, to the Public Resources Code.

SB 183 (Sher), Chapter 666, Statutes of 2003 - Energy: Renewable Technologies
Summary:
This bill moves the provisions for the Renewable Energy Investment Program from the Public Utilities Code to the Public Resources Code. The bill requires the Energy Commission to report, at least annually, on the status of the Emerging Renewable Energy Account (EREA), requires biomass facilities to report on their fuel use, and sets additional criteria for the eligibility of out-of-state renewable resources for the Renewable Portfolio Standard supplemental energy payment.

SB 552 (Burton), Chapter 737, Statutes 0f 2003 – State Motor Vehicle Fleets
Summary:
This bill requires the Department of General Services (DGS), on or before January 1, 2005, in consultation with the Energy Commission and the California Air Resources Board, to develop and adopt specifications and standards for all passenger cars and light-duty trucks that are purchased or leased on behalf of, or by, state offices, agencies, or departments. The bill requires the specifications and standards include certain elements. The bill requires these entities to the maximum extent practicable to use the appropriate fuel in bi-fuel natural gas and bi-fuel propane vehicles and to dispose of nonessential sport utility vehicles and 4-wheel drive trucks.

SB 671 (Florez), Chapter 63, Statutes of 2003 - Motor Vehicle Fuel: Alcohol Content and Tax Rates
Summary:
This bill modifies the reporting requirements for a manufacturer, blender, agent, jobber, consignment agent, or distributor who distributes motor fuel products that contain at least 1 percent alcohol by volume. Existing law requires a statement of the percentage and type of alcohol. This bill provides that a statement that a product contains up to 10 percent ethanol, if applicable, would meet this requirement.

SB 704 (Florez), Chapter 480, Statutes of 2003 - Air Quality: Agricultural Burning
Summary:
This bill requires the Energy Commission, in consultation with the California Environmental Protection Agency (Cal/EPA), to allocate $6 million from the Renewable Resources Trust Fund (RRTF) to be used to provide incentives to biomass facilities that increase the use of qualified agricultural biomass. The bill also requires that the incentives be dispersed within 90 days of the bill’s effective date and provides an exemption from Office of Administrative Law requirements to allow the accelerated adoption of guidelines. This bill is single-joined to SB 705 (Florez), Chapter 481, Statutes of 2003, which provides for the phaseout of agricultural waste burning within the San Joaquin Valley Unified Air Pollution Control District.

In his signing message Governor Davis stated his concern with the timing of this incentive. As written, SB 704 funds the purchase of agricultural waste prior to the ban on open field burning rather than offsetting the cost of disposing of waste that will no longer be burned.

SB 1049 (Budget and Fiscal Review Committee), Chapter 741, Statutes of 2003 - Resources: Siting Fee
Summary:
This bill is one of a series of budget trailer bills that would provide for new and increased fees in the areas of natural resources and environmental protection, and provide support for other related departments. Specifically, this bill contains a provision that requires the Energy Commission to assess a siting fee on powerplant applicants. This report summarizes only this provision of the bill.

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