CPUC Public Agenda 3283 Thursday, October 20, 2011, 9:00 a.m. 505 Van Ness Ave, San Francisco Commissioners: Michael R. Peevey Timothy Alan Simon Michel

CPUC Public Agenda 3283Thursday, October 20, 2011, 9:00 a.m.

505 Van Ness Ave, San Francisco

Commissioners: Michael R. Peevey

Timothy Alan Simon Michel Peter Florio

Catherine J.K. SandovalMark J. Ferron

www.cpuc.ca.gov

http://www.cpuc.ca.gov/

Public Comment• Per Resolution ALJ-252, any member of the public who wishes to address the CPUC about matters before the Commission must either sign up at the Commission's webpage section "Public Comment Sign-Up" or with the Public Advisor before the meeting begins.

• Public speakers must visit the Public Advisors table before the start of the meeting on the day of the Commission Meeting to ask our staff to mark their presence.

• Once called, each speaker has up to 3 minutes at the discretion of the Commission President, depending on the number of speakers.

• A sign will be posted when 1 minute remains.

• A bell will ring when time has expired.

•Those who sign up after 10:00 a.m. will only have 1 minute.

The following items are NOT subject to Public Comment:Item: 28 & 29All items on the Closed Session Agenda



• Once called, each speaker has up to 2 minutes to address the Commission.

• A sign will be posted when 1 minute remains.


•Those who sign up after 10:00 a.m. will only have 1 minute.

The following items are NOT subject to Public Comment:Item: 28 & 29 All items on the Closed Session Agenda



• Once called, each speaker has up to 1 minute to address the Commission.


•The following items are NOT subject to Public Comment:Item: 28 & 29All items on the Closed Session Agenda

Agenda Changes• Items shown on the Consent Agenda will be taken up and voted on as a group in one of the first items of business of each CPUC meeting.

• Items on Today’s Consent Agenda are: 1, 6, 9, 10, 11, 14, 15, 16, 18, 19, 22, 23, 24, 25, 26, 27, 29, 30, 31, 32, 33 & 34

• Any Commissioner, with consent of the other Commissioners, may request an item from the Regular Agenda be moved to the Consent Agenda prior to the meeting.Item: 43 from the Regular Agenda has been added to the Consent Agenda.

• Any Commissioner may request an item be removed from the Consent Agenda for discussion on the Regular Agenda prior to the meeting. Item: None have been moved to the Regular Agenda.

• Item: 28 & 44 have been withdrawn.

• The following items have been held to future Commission Meetings:

Held to 11/10/11: 2, 3, 4, 5, 7, 8, 12, 13, 17, 20, 21, 35, 38, 38a, 38b, 40, 41 & 42

Regular Agenda

• Each item on the Regular Agenda (and its alternate if any) will be introduced by the assigned Commissioner or CPUC staff and discussed before it is moved for a vote.

• For each agenda item, a summary of the proposed action is included on the agenda; the CPUC’s decision may, however, differ from that proposed.

• The complete text of every Proposed Decision or Draft Resolution is available for download on the CPUC’s website: www.cpuc.ca.gov.

• Late changes to agenda items are available on the Escutia Table.

http://www.cpuc.ca.gov/

Regular Agenda – Energy Orders

Item #36 [10747] New Order Instituting Rulemaking

R__________ Order Instituting Rulemaking to Oversee the Resource Adequacy Program, Consider Program Refinements, and Establish Annual Local Procurement Obligations.------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Initiates a rulemaking to establish local capacity requirements for 2013 and 2014, and further refine the Commission’s Resource Adequacy program.

ESTIMATED COST:

None.

Regular Agenda – Energy Resolutions and Written Reports

Item #37 [10579] San Diego Gas & Electric Company's Two Renewable Energy Credit Purchase and Sale Agreements With Cabazon Wind Partners LLC and Whitewater Hill Wind Partners LLC

Res E-4335, Advice Letter 2118-E filed on October 28, 2009, Advice Letter 2118-E-A filed on June 2, 2011, and Advice Letter AL 2118-E-B filed on June 10, 2011 - Related matters----------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Approves with modification cost recovery for San Diego Gas & Electric Company's (SDG&E) renewable energy credit purchase and sale agreements with Cabazon Wind Partners LLC and Whitewater Hill Wind Partners LLC.

• The Commission makes no determination in this resolution regarding the purchase and sale agreements classification for the purposes of their contribution towards SDG&E’s Renewables Portfolio Standard compliance obligations.

ESTIMATED COST:

• Costs of these purchase and sale agreements are confidential at this time.


ALTERNATE TO ITEM 10579

Item #37a [10651] --------------------------------------------------------------------------------PROPOSED OUTCOME:

• Approves cost recovery for San Diego Gas & Electric Company’s (SDG&E) renewable energy credit purchase and sale agreements with Cabazon Wind Partners LLC and Whitewater Hill Wind Partners LLC.

• The Commission makes the following determination in this resolution regarding these specific purchase and sale agreements classification for the purposes of their contribution towards SDG&E’s Renewable Portfolio Standard compliance obligations: to the extent that the renewable energy credits are reunited with the generation from which they derive, they will be treated as “bundled” procurement for RPS compliance purposes.

ESTIMATED COST:


Resolution E-4335 & Alternate Resolution E-4335

(Agenda Item 37 and 37a)

San Diego Gas & Electric Company (SDG&E) requests approval of two renewable energy

credit contracts with Cabazon Wind Partners LLC and Whitewater Hill Wind Partners LLC and

classification of the transactions as bundled products

Presented by Judith Iklé, Program Manager Energy Division

Contracts Summary

• Renewable Energy Credits (RECs) are from operating wind farms located in California.

• Energy from the facilities is currently under contract to California Department of Water Resources (DWR) pursuant to contracts executed during the summer of 2001.

• The RECs were not included in the DWR energy contracts.

Generating

facilities

Resource

Contract

Length

Megawatt

Capacity

Annual Deliverie

sLocation

Cabazon IWind,

existing3 years 42.9 MW

119 GWh/yr

Near Palm Springs, CA

Whitewater Hill

Wind, existing

3 years 61.5 MW166

(GWh/yr)Near Palm

Springs, CA

Resolution E-4335• Resolution E-4335 approves the contracts.

• Contracts are approved as REC-only contracts based on current Commission rules.

• Pursuant to current rules the contracts are for REC-only products because the contracts do not include the procurement of energy.

A Proposed Decision Implementing SB 2 (1X) Has Been Issued

A proposed decision was issued on October 7, 2011. The proposed decision orders:“The general rules about the use of unbundled renewable energy credits for compliance with the California renewables portfolio standard should not be applied in the unique and limited circumstance of the contracts signed by Department of Water Resources during the energy crisis with Cabazon Wind Partners LLC and Whitewater Hill Wind Partners LLC and assigned to San Diego Gas & Electric Company, which may be allowed to acquire the unbundled renewable energy credits separately from the energy but receive credit for compliance with the California renewables portfolio standard as though they had been purchased together.”

Alternate Resolution E-4335• Alternate Resolution approves the contracts. • Alternate Resolution approves as bundled

products based on an exemption to current Commission rules.

• Exemption based on the exceptional circumstances that the underlying RPS-eligible wind energy PPAs were executed by DWR as the result of the Energy Crisis and DWR did not contract for the purchase of the RECs associated with the energy.

• Exemption is limited to the Cabazon and Whitewater Hill contracts.

Cabazon Wind Farm

Whitewater Hill Wind Farm

16

Location of Wind Facilities


Item #37 [10579] San Diego Gas & Electric Company's Two Renewable Energy Credit Purchase and Sale Agreements With Cabazon Wind Partners LLC and Whitewater Hill Wind Partners LLC

Res E-4335, Advice Letter 2118-E filed on October 28, 2009, Advice Letter 2118-E-A filed on June 2, 2011, and Advice Letter AL 2118-E-B filed on June 10, 2011 - Related matters----------------------------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Approves with modification cost recovery for San Diego Gas & Electric Company's (SDG&E) renewable energy credit purchase and sale agreements with Cabazon Wind Partners LLC and Whitewater Hill Wind Partners LLC.

• The Commission makes no determination in this resolution regarding the purchase and sale agreements classification for the purposes of their contribution towards SDG&E’s Renewables Portfolio Standard compliance obligations.

ESTIMATED COST:



ALTERNATE TO ITEM 10579

Item #37a [10651] --------------------------------------------------------------------------------PROPOSED OUTCOME:

• Approves cost recovery for San Diego Gas & Electric Company’s (SDG&E) renewable energy credit purchase and sale agreements with Cabazon Wind Partners LLC and Whitewater Hill Wind Partners LLC.

• The Commission makes the following determination in this resolution regarding these specific purchase and sale agreements classification for the purposes of their contribution towards SDG&E’s Renewable Portfolio Standard compliance obligations: to the extent that the renewable energy credits are reunited with the generation from which they derive, they will be treated as “bundled” procurement for RPS compliance purposes.

ESTIMATED COST:



Item #39 [10716] Pacific Gas and Electric Company’s Renewable Energy Power Purchase Agreement with North Star Solar, LLC

Res E-4436, Advice Letter 3759-E filed on November 12, 2010 and supplemental Advice Letter 3759-E-A filed on July 27, 2011 - Related matters-------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Denies cost recovery for the long-term renewable energy power purchase agreement between Pacific Gas and Electric Company and North Star Solar, LLC.

ESTIMATED COST:

• Actual costs are confidential at this time.


Item #39a [10717] ALTERNATE TO ITEM 10716------------------------------------------------------------------------

PROPOSED OUTCOME:

• Approves cost recovery for the long-term renewable energy power purchase agreement between Pacific Gas and Electric Company and North Star Solar, LLC.

ESTIMATED COST:


Resolution E-4436 & Alternate Resolution E-4436

(Agenda Item 39 and 39a)

Pacific Gas and Electric Company (PG&E) requests approval of a renewable energy

contract with North Star Solar, LLC

Presented by Judith Iklé, Program Manager Energy Division

Contract SummaryGenerating

facilityResource

Contract Length

Megawatt Capacity

Annual Deliveries Online Date Location

North Star Solar

Solar PV, New

20years

60 MW 136 GWh/yr June 30, 2013 Mendota County, CA

• Amended Power Purchase Agreement (PPA), filed on July 27, 2011 in a supplemental advice letter, reflects a price reduction of over 20% from original PPA filed on November 10, 2010.

• Independent Evaluator recommends approval of the amended PPA with “reservation” – price is still high, value and viability are still low compared to similar contracts offered to PG&E and executed by PG&E.

• Resolution (Item 39) rejects the PPA on the basis of price, value and viability.

• Alternate Resolution (Item 39a) approves the PPA on the basis of negotiating in “Good Faith”

Resolution (Reject PPA)Item 39

• Amended PPA was compared to contracts available to PG&E or executed by PG&E during the time the Amended North Star PPA was negotiated and executed.

• Amended PPA is higher in price, lower in value, and lower in viability than (1) executed bilaterals, and (2) comparable shortlisted projects from PG&E’s 2011 RPS Solicitation.

• “Value” is defined as the Net Market Value which equals the PPA Price + Network Upgrade Costs - the Energy Value and Capacity Value associated with the North Star Project.

Alternate Resolution (Approve PPA)Item 39a

• The amended PPA was negotiated in “Good Faith”

• 50% Joint Venture partner in North Star is the module supplier for the Project. Supplier may not be cost competitive with other available suppliers in the marketplace.

• Amended PPA takes into consideration the potential cost disadvantage of the module supplier (i.e. 50% JV Partner).

Key Concerns

• Was the North Star PPA fairly compared to similar Projects that were being offered and executed at the time the Amended PPA was negotiated and executed?

• Does the project viability score for the North Star Project capture all of the significant milestones achieved to date?

Amended PPA Evaluation Timeline

May 18

North Star Amended PPA Re-negotiation Timeline

July 27July 11 Sept. 6 Oct. 18Sept. 13

Project Location


Item #39 [10716] Pacific Gas and Electric Company’s Renewable Energy Power Purchase Agreement with North Star Solar, LLC

Res E-4436, Advice Letter 3759-E filed on November 12, 2010 and supplemental Advice Letter 3759-E-A filed on July 27, 2011 - Related matters-------------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Denies cost recovery for the long-term renewable energy power purchase agreement between Pacific Gas and Electric Company and North Star Solar, LLC.

ESTIMATED COST:



Item #39a [10717] ALTERNATE TO ITEM 10716------------------------------------------------------------------------

PROPOSED OUTCOME:

• Approves cost recovery for the long-term renewable energy power purchase agreement between Pacific Gas and Electric Company and North Star Solar, LLC.

ESTIMATED COST:


Regular Agenda – Communication Resolutions and Reports

Item #40 [10643] Rural Telecommunications Infrastructure Grant Program Application for the Godfrey Ranch Line Extension Project

Res T-17316------------------------------------------------------------------------------------

PROPOSED OUTCOME:

• Requests a California High Cost Fund-A funding for the construction of the Godfrey Ranch Line Extension Project by the Siskiyou Telephone Company.

ESTIMATED COST:

• $1,444,100.

Commissioners’ Reports

Management Reports

Regular Agenda – Legislative and Other Matters

Item #45 [10761] Office of Governmental Affairs Legislative Wrap Up -------------------------------------------------------------------------

Edward RandolphDirector, Office of Governmental Affairs

October 20, 2011

CALIFORNIA PUBLIC UTILITIES COMMISSION

2011 Legislative Wrap-up

-- PRESENTATION OUTLINE --• LEGISLATIVE OVERVIEW

• RPS & PGC BILLS

• OTHER ENERGY BILLS

• PIPELINE SAFETY BILLS

• TELECOMMUNICATIONS BILLS

• MISCELLANEOUS BILLS

• BUDGET

• INFORMATIONAL HEARINGS

• TASKS

-- LEGISLATIVE OVERVIEW --

2011 Legislative Wrap-upPORTFOLIO AT A GLANCE

117 total bills monitored71 two-year bills (shelved temporarily)

Positions taken on 14

11 held on suspense (deemed too expensive)Positions taken on 2

35 sent to the Governor (passed Legislature)Positions taken on 18

Positions taken on 34 bills total

2011 Legislative Wrap-upPOSITION CHANGES

9 initial ‘Support’ positionsNo position changes

11 initial ‘Support if Amended’ positions11 position changes: 11 ‘Support’

4 initial ‘Oppose’ positionsNo position changes

10 initial ‘Oppose Unless Amended’ positions4 position changes: 3 ‘Neutral’, 1 ‘Support’

2011 Legislative Wrap-upBILL OUTCOMES

21 final ‘Support’ positions6 defeated/delayed, 15 passed, 15 signed

3 final ‘Neutral’ positions0 defeated/delayed, 3 passed, 3 signed

10 final ‘Oppose’ positions10 defeated/delayed, 0 passed, 0 signed

-- RPS & PGC BILLS --

2011 Legislative Wrap-upRPS

SBX1 2 (Simitian) – 33% RPS Mandate Codifies a 33% by 2020 RPS mandate Identical to SB 722 (Simitian) from 2010 Passed without amendments

– CPUC POSITION: SUPPORT– Governor Action: Signed

SB 23 (Simitian) – RPS Clean-up Would clarify key terms and provisions terms Would give the CPUC reporting flexibility and discretion Would extend numerous deadlines Was non-controversial and unopposed but failed on final day of session

– CPUC POSITION: SUPPORT (Initial: SUPPORT IF AMENDED)– This bill passed the Assembly (52-17) but was never transmitted to the Senate

2011 Legislative Wrap-upPGC

AB 724 (Bradford) – PGC Reauthorization Would reauthorize PGC collections through January 1, 2020, and create new policy

guidance on renewables and energy efficiency Was a 2/3 vote bill

– CPUC POSITION: NONE– This bill failed (19-17) in the Senate

SB 870 (Padilla) – PIER Funding Would establish the California Energy Innovation Program for the purpose of funding

energy-related RD&D Was contingent upon PGC reauthorization

– CPUC POSITION: NONE– This bill passed the Assembly (50-18) but was held in the Senate

-- OTHER ENERGY BILLS --

2011 Legislative Wrap-upENERGY EFFICIENCY (1 of 2)

AB 904 (Skinner) – Energy Efficiency TURN-sponsored bill that would require CPUC to focus on “real”, absolute reductions

in energy consumption, to examine 3rd-party administration, and evaluate financing mechanisms

– CPUC POSITION: NONE– Author decided not to move bill

AB 1124 (Skinner) – Low-Income Energy Efficiency Would authorize low-income multifamily buildings to receive subsidized HVAC and

water heating systems up to $2,700/unit Would lower eligibility criteria, required energy audit Sponsored by California Housing Partnership Corporation

– CPUC POSITION: OPPOSE UNLESS AMENDED– Author decided not to move bill this year but intends to in 2012

2011 Legislative Wrap-upENERGY EFFICIENCY (2 of 2)

SB 343 (de Leon) – Energy Efficiency Financing Would require the CPUC to determine energy efficiency financing measures and

funding sources for the residential, commercial, and public building sectors consistent with the EE Strategic Plan

– CPUC POSITION: NONE– This bill was held in the Assembly

SB 454 (Pavley) – Appliance and Rebate Standards Authorizes the California Energy Commission to impose civil penalties to enforce its

appliance standards Requires IOUs to provide rebates or incentives only if the recipient certifies that

applicable permitting requirements were followed and that any contractors hold appropriate license


2011 Legislative Wrap-upSELF-GENERATION INCENTIVE PROGRAM

AB 1150 (Perez, V.) – SGIP Extension Extends SGIP collections through 2014

– CPUC POSITION: SUPPORT (Initial: OPPOSE UNLESS AMENDED)– Governor Action: Signed

AB 864 (Huffman) – Expansion of SGIP Incentives Would authorize an increase in project size to 10 MW (from 5 MW) and increase in

incentives up to 5 MW (from 3 MW)– CPUC POSITION: OPPOSE– Author decided not to move bill

2011 Legislative Wrap-upNET ENERGY METERING

SB 489 (Wolk) – NEM Eligibility Expansion Expands NEM eligibility to include all RPS-eligible technologies


SB 370 (Blakeslee) – Agriculture NEM Would allow agricultural customers with solar or wind systems to offset load from

multiple meters on the same property or adjacent properties– CPUC POSITION: OPPOSE UNLESS AMENDED– This bill was held in the Senate

2011 Legislative Wrap-upELECTRIC VEHICLES

AB 631 (Ma) – EV Charging Stations Codifies the CPUC's Phase 1 PEV Decision that electric vehicle charging services

are not public utilities pursuant to current law Was amended to highlight the CPUC's continuing authority to address potential

impacts of electric vehicle charging services through public utilities' rate-setting process or other legislatively-authorized means

– CPUC POSITION: SUPPORT (Initial: SUPPORT IF AMENDED)– Governor Action: Signed

SB 859 (Padilla) – EV Customer Privacy Allows confidential home address information in Department of Motor Vehicles

records to be disclosed to an IOU Information is only to be used for the purpose of identifying where an electric vehicle

is registered– CPUC POSITION: NONE– Governor Action: Signed

2011 Legislative Wrap-upSOLAR SITING

AB 982 (Skinner) – School Lands Facilitates land exchanges between State Lands Commission and Secretary of the

Interior for purposes of creating contiguous parcels suitable for renewable energy development


SB 618 (Wolk) – Solar-use Easements Authorizes the conversion of a Williamson Act contract into a PV solar-use easement

for a term no less than 20 years– CPUC POSITION: SUPPORT– Governor Action: Signed

2011 Legislative Wrap-upTRANSMISSION

AB 1214 (Skinner) – Transmission Planning Would require the CPUC and ISO, by March 31, 2012, to determine which new or

upgraded transmission facilities in ISO’s transmission plan would be “necessary or useful” to achieve 33% RPS for IOUs and POUs. Also required timeframes for obtaining all government approvals for construction and analysis of any permit barriers

Essentially would codify existing MOU (May 2010) between CPUC and ISO to streamline transmission planning and permitting efforts

Was opposed by TURN– CPUC POSITION: OPPOSE– Author decided not to move bill

2011 Legislative Wrap-upCOMMUNITY CHOICE AGGREGATION

SB 790 (Leno) – CCA Formation and Operation Requires the CPUC to consider the impact of IOU noncooperation to CCA customers

and establish a code of conduct governing IOU marketing against CCAs Requires the CPUC to proactively expedite CCA complaints against IOUs and

facilitate CCA administration of energy efficiency and conservation funds Requires the CPUC to ensure that the cost of generation resources is allocated fairly

and reduced exit fees for customers leaving bundled service in the event that those customers are entitled to any benefits that would otherwise remain with bundled service customers

Prohibits the CPUC from requiring a CCA to procure resources, except where generation procurement arrangements are expressly authorized by statute

– CPUC POSITION: NEUTRAL (Initial: OPPOSE UNLESS AMENDED)– Governor Action: Signed

2011 Legislative Wrap-upRES-BCT & CSI

AB 512 (Gordon) – RES-BCT Eligible Facilities Expands eligible facility size for the Renewable Energy System-Bill Credit Transport

program from 1 MW to 5 MW– CPUC POSITION: SUPPORT– Governor Action: Signed

SB 585 (Kehoe) – CSI Funding Authorizes $200 million in additional CSI collections to address funding shortfall Requires CPUC to reduce discount rate and set per unit cost caps


-- PIPELINE SAFETY BILLS --

2011 Legislative Wrap-upPIPELINE SAFETY BILLS (1 of 3)

SB 216 (Yee) – Shut-off Valves Directs the CPUC to require utilities to install remote controlled or automatic shut-off

valves on gas pipelines in high-consequence areas or on pipelines that traverse an earthquake fault if the CPUC finds them necessary


SB 705 (Leno) – Safety Planning Requires each gas corporation to develop a plan for the safe and reliable operation of

its pipeline facilities, and require the CPUC to approve the initial plans by December 31, 2012


2011 Legislative Wrap-upPIPELINE SAFETY BILLS (2 of 3)

SB 44 (Corbett) – Emergency Response Standards Requires the CPUC to set emergency response standards for gas pipeline and

distribution systems– CPUC POSITION: SUPPORT (Initial: SUPPORT IF AMENDED)– Governor Action: Signed

SB 879 (Padilla) – Balancing Account and Fining Authority Requires the gas utilities to establish a balancing account for the collection and

expenditures of funds used for the maintenance and upgrade of the intrastate pipeline system

Increases the maximum penalty from $20,000 to $50,000 for any public utility that fails or neglects to comply with any order, decision, decree, rule, direction, demand, or requirement of the CPUC


2011 Legislative Wrap-up PIPELINE SAFETY BILLS (3 of 3)

AB 56 (Hill) – Penalty Recovery Prohibition Prohibits a gas corporation from recovering any fine or penalty in any rate approved

by the CPUC Codifies a number of procedures imposed by the CPUC, including requiring the

utilities to test pipelines to measure the maximum amount of gas pressure, install automatic or remote controlled shut-off valves, and submit a gas transmission and storage safety report to the CPUC


-- TELECOMMUNICATIONS BILLS --

2011 Legislative Wrap-upVOIP & CHCF

AB 841 (Buchanan) – VoIP Collections Requires the collection of universal service surcharges by interconnected Voice over

Internet Protocol service providers Service providers currently only collecting on a voluntarily basis CPUC has an open proceeding to consider this issue further


SB 3 (Padilla) – CHCF Extension Extends the sunset on funding for both the California High-Cost Fund A and

California High-Cost Fund B programs to January 1, 2015 Contains same VoIP provisions as AB 841


2011 Legislative Wrap-upSPEECH-GENERATING DEVICES & PREPAID

WIRELESSAB 136 (Beall) – Speech-generating Devices Expands the Deaf and Disabled Telecommunication Program to include speech-

generating devices May necessitate raising the DDTP surcharge to accommodate increased costs

– CPUC POSITION: NONE– Governor Action: Signed

AB 1050 (Ma) – Prepaid Surcharge Collections Would establish a method for retail sellers of prepaid phone cards to collect CPUC

communications surcharges and other local taxes and fees Would shift responsibility for paying communications taxes, fees and surcharges from

the service provider to the customer– CPUC POSITION: OPPOSE– Author decided not to move bill this year but will continue to work on the issue

next year.

-- MISCELLANEOUS BILLS --

2011 Legislative Wrap-upWATER & TRANSPORTATION

AB 19 (Fong) – Multi-unit Water Metering Would require water meters for each individual dwelling unit in newly-constructed

multi-unit residential structures or mixed-use residential and commercial structures as a condition for water service

Would exempt low-income housing, student dormitories, long-term health care facilities, and time-share properties

– CPUC POSITION: NONE– This bill was held in the Assembly

AB 45 (Hill) – Charter-party Alcohol Restrictions Would extend to all charter-party carrier vehicles the protections against underage

drinking of alcoholic beverages that currently apply only to limousines Would make a third or subsequent offense by a driver or carrier official of the

prohibition against carrying an open container of alcoholic beverage in a vehicle when a minor is on board a misdemeanor

– CPUC POSITION: SUPPORT (Initial: SUPPORT IF AMENDED)– Author decided not to move bill

2011 Legislative Wrap-upREPORTING REQUIREMENTS

AB 1055 (Hill) – CPUC Solicitation of Contributions Would have prohibited CPUC commissioners and other certain CPUC employees

from knowingly soliciting charitable contributions from regulated utilities and also requires a report detailing all the organizations for which certain Commission employees serve as an officer or member of the board of directors

Was a response to CPUC Foundation– CPUC POSITION: NONE– Governor Action: Vetoed

-- BUDGET --

2011 Legislative Wrap-upBUDGET (RPS)

RPSRequested and received 10 PYs to implement RPS,

renewable DG programs and renewable transmission and permitting.

Senate Budget Committee included control language limiting use of new PYs for work on DG. Governor blue-penciled that control language.

2011 Legislative Wrap-upBUDGET (PIPELINE SAFETY)

Pipeline SafetyIn the May Revise, Governor’s Budget requested 4

PYs for a new risk assessment unit. The Legislature expressed concern that the budget

did not request additional inspectors post-San Bruno above and beyond the 4 PYs approved in the wake of the tragedy.

In response to a request from Senator Padilla, we estimated that 5.5 PYs would be necessary for the state to reach parity with the national rate of inspectors per 1,000 miles of pipeline in 2009.

Mirroring this estimate, the Legislature approved in the budget an additional 5 pipeline safety inspectors.

2011 Legislative Wrap-upBUDGET (GAS PUBLIC PURPOSE PROGRAMS)

Gas Public Purpose ProgramsTransfer of $155 million from the gas Public Purpose

Program surcharge fund to balance the state budget this fiscal year.

The budget included language authorizing the CPUC to seek other funding sources for the PPP program or suspend Public Purpose Programs and relieved gas corporations from program obligations to the extent that alternative sources of funding, approved by the CPUC, were not found.

-- INFORMATIONAL HEARINGS --

2011 Legislative Wrap-upINFORMATIONAL HEARINGS (1 of 2)

Senate Energy, Utilities and Communications Committee Hearings October 19, 2010 Joint Informational Hearing with the Senate Public Safety

Committee: ‘The San Bruno Explosion: Pipeline Safety in California’ February 1, 2011 Informational Hearing: ‘Overview and Status Report on

Renewable Portfolio Standards’ February 4, 2011 Informational Hearing in Los Angeles: ‘Telephone Service

Outages and Infrastructure Needs’ March 1, 2011 Informational Hearing: ‘Public Interest Energy Research Program

– Part 2’ March 29, 2011 Informational Hearing: ‘The Public Goods Charge & the

Renewable Resources Trust Fund’ April 14, 2011 Informational Hearing: ‘After Japan: Nuclear Power Plant Safety in

California’ May 17, 2011 Informational Hearing: ‘Energy Efficiency: Is California's Top

Energy Strategy Working?’ August 16, 2011 Informational Hearing: ‘California Public Utilities Commission

Annual Update’ August 31, 2011 Joint Informational Hearing: ‘Clean Energy Jobs & Investment

Act (PGC)’ October 19, 2011 Informational Hearing: ‘Advanced Transportation and

Alternative Sources Manufacturing Sales and Use Tax Exclusion Program’

2011 Legislative Wrap-upINFORMATIONAL HEARINGS (2 of 2)

Assembly Utilities and Commerce Committee Hearings March 7, 2011 Informational Hearing: ‘Overview and Status of the California

Solar Initiative’ March 14, 2011 Informational Hearing: ‘California Public Utilities Commission

Annual Update’

Additional Informational Hearings October 5, 2010 Assembly Select Committee on California's Green Economy:

‘Growing the Green Economy’ March 21, 2011 Senate Select Committee on Earthquake Safety and

Preparedness: ‘The Japan Earthquake: The Impact and Lessons for California’ July 20-21, 2011 Senate Select Committee on Energy Efficiency (San

Francisco, Silicon Valley, and Los Angeles): ‘Stakeholder Meetings on Energy Efficiency Financing’

August 17, 2011 Assembly Committee on Accountability and Administrative Review: ‘Natural Gas Pipeline Oversight’

September 27, 2011 Little Hoover Commission: ‘Energy Governance’

-- TASKS --

2011 Legislative Wrap-upTASKS (1 of 2)

Legislation enacted this session requires the CPUC to:

>>>Adopt rules to integrate speech-generating devices into the DDTP. Source: AB 136 (Beall) Deadline: January 1, 2014

>>>Revise the RES-BCT tariff to expand allowable project cap to 5 MW. Source: AB 512 (Gordon) Deadline: None

>>>Adopt rules to ensure VoIP carrier compliance with surcharge collections. Source: AB 841 (Buchanan) Deadline: None

>>>Open rulemaking to establish compatible emergency response standards for CPUC-regulated gas pipeline facilities. Source: SB 44 (Corbett) Deadline: July 1, 2012 (to open OIR); Jan 1, 2013 (to report progress)

>>>Open rulemaking to require the installation of automatic shutoff or remote controlled sectionalized block valves on transmission lines located in a high consequence areas. Source: SB 216 (Yee) Deadline: None

2011 Legislative Wrap-upTASKS (2 of 2)

>>>Establish and impose CSI project cost caps for residential and nonresidential projects. Source: SB 585 (Kehoe) Deadline: December 8, 2011

>>>Accept, modify, or reject each gas corporation's new safety plan. Source: SB 705 (Leno) Deadline: December 31, 2012

>>>Open rulemaking to consider code of conduct, rules, and enforcement procedures governing conduct of electrical corporations relative to formation of CCAs. Source: SB 790 (Leno) Deadline: March 1, 2012 (to open OIR); January 1, 2013 (to close OIR)

>>>Annually report to the Legislature the costs of all renewable procurement contracts and costs of utility-owned generation approved by the CPUC. Source: SB 836 (Padilla) Deadline: February 1, 2012

In total, legislation approved this year requires 22.5 new PYs.

Team Effort

Thank you!– Dan Chia – Nick Zanjani– Gina Adams– Yvonne Wilson– Jaimie Thai– All the Division staff and Advisors that worked

on legislation this year

Regular Agenda – Legislative and Other Matters

Item #45 [10761] Office of Governmental Affairs Legislative Wrap Up -------------------------------------------------------------------------

Regular Agenda – Management Reports and Resolutions

Item #46 [10731] Report and Discussion by Consumer Protection and Safety Division on Recent Safety Program Activities -------------------------------------------------------------------------

Management Reports

The CPUC Thanks YouFor Attending Today’s Meeting

The Public Meeting is adjourned.

The next Public Meeting will be:

November 10, 2011, at 9:00 a.m.in San Francisco, CA

Documents

CPUC Public Agenda 3283 Thursday, October 20, 2011, 9:00 a.m. 505 Van Ness Ave, San Francisco Commissioners: Michael R. Peevey Timothy Alan Simon Michel