Bill Text: CA AB2620 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Passenger rail projects: funding.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2016-09-28 - Chaptered by Secretary of State - Chapter 763, Statutes of 2016. [AB2620 Detail]

Download: California-2015-AB2620-Amended.html

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BILL NUMBER: AB 2620	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 18, 2016

INTRODUCED BY   Assembly Member Dababneh

                        FEBRUARY 19, 2016

   An act to  amend   add  Section 
701.1 of   99684.5 to  the Public Utilities Code,
relating to  energy.   transportation, and
making an appropriation therefor. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2620, as amended, Dababneh.  Valuation of energy
resources.   Passenger rail projects: funding. 

   Proposition 116, an initiative measure, enacted the Clean Air and
Transportation Improvement Act of 1990, which establishes the Clean
Air and Transportation Improvement Fund, allocates specified amounts
from the fund for, among other things, rights-of-way for rail
purposes and capital expenditures deemed necessary for a specified
rail service, and requires the California Transportation Commission
to adopt guidelines for the approval of grants for transit projects
which are essential to the implementation of safe and reliable
transit services.  
   The act authorizes, if any of the funds are not expended or
encumbered prior to July 1, 2010, the Legislature to reallocate the
funds for any other passenger rail project in the state by a statute
passed in each house by a 2/3 vote.  
   This bill would reallocate funds allocated pursuant to the act
that are not expended or encumbered by July 1, 2020, to any other
existing passenger rail project in the state. The bill would require
the commission to determine the existing passenger rail projects in
the state and implement the reallocation on a pro-rata basis. By
reallocating unexpended or unencumbered funds to any other existing
passenger rail project, the bill would make an appropriation. 

   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations
and gas corporations. The Public Utilities Act prohibits any
electrical corporation or gas corporation from beginning the
construction of, among other things, a line, plant, or system, or of
any extension thereof, without having first obtained from the
commission a certificate that the present or future public
convenience and necessity require or will require that construction.
The act requires the commission, when calculating the
cost-effectiveness of energy resources, to include a value for any
costs and benefits to the environment.  
   This bill would make a nonsubstantive, revision to the requirement
that the commission, when calculating the cost-effectiveness of
energy resources, include a value for any costs and benefits to the
environment. 
   Vote:  majority   2/3  . Appropriation:
 no  yes  . Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION   1   .    Section 99684.5
is added to the   Public Utilities Code   , to
read:  
   99684.5.  (a) Funds allocated pursuant to this part that are not
expended or encumbered by July 1, 2020, are hereby reallocated
pursuant to subdivision (b) of Section 99684 to any other existing
passenger rail project.
   (b) The California Transportation Commission shall determine the
existing passenger rail projects in the state and implement the
reallocation described in subdivision (a) on a pro-rata basis. 

  SECTION 1.    Section 701.1 of the Public
Utilities Code is amended to read:
   701.1.  (a) (1) The Legislature finds and declares that, in
addition to other ratepayer protection objectives, a principal goal
of electric and natural gas utilities' resource planning and
investment shall be to minimize the cost to society of the reliable
energy services that are provided by natural gas and electricity, and
to improve the environment and to encourage the diversity of energy
sources through improvements in energy efficiency, development of
renewable energy resources, such as wind, solar, biomass, and
geothermal energy, and widespread transportation electrification.
   (2) The amendment made to this subdivision by the Clean Energy and
Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of
2015) does not expand the authority of the commission beyond that
provided by other law.
   (b) The Legislature further finds and declares that, in addition
to any appropriate investments in energy production, electrical and
natural gas utilities should seek to exploit all practicable and
cost-effective conservation and improvements in the efficiency of
energy use and distribution that offer equivalent or better system
reliability, and which are not being exploited by any other entity.
   (c) In calculating the cost-effectiveness of energy resources,
including conservation and load management options, the commission
shall include, in addition to other ratepayer protection objectives,
a value for any costs and benefits to the environment, including air
quality. The commission shall ensure that any values it develops
pursuant to this section are consistent with values developed by the
State Energy Resources Conservation and Development Commission
pursuant to Section 25000.1 of the Public Resources Code. However, if
the commission determines that a value developed pursuant to this
subdivision is not consistent with a value developed by the State
Energy Resources Conservation and Development Commission pursuant to
subdivision (c) of Section 25000.1 of the Public Resources Code, the
commission may nonetheless use this value if, in the appropriate
record of its proceedings, it states its reasons for using the value
it has selected.
   (d) In determining the emission values associated with the current
operating capacity of existing electric powerplants pursuant to
subdivision (c), the commission shall adhere to the following
protocol in determining values for air quality costs and benefits to
the environment. If the commission finds that an air pollutant that
is subject to regulation is a component of residual emissions from an
electric powerplant and that the owner of that powerplant is either
of the following:
   (1) Using a tradable emission allowance, right, or offset for that
pollutant, which (A) has been approved by the air quality district
regulating the powerplant, (B) is consistent with federal and state
law, and (C) has been obtained, authorized, or acquired in a
market-based system.
   (2) Paying a tax per measured unit of that pollutant.
   The commission shall not assign a value or cost to that residual
pollutant for the current operating capacity of that powerplant
because the alternative protocol for dealing with the pollutant
operates to internalize its cost for the purpose of planning for and
acquiring new generating resources.
   (e) (1) The values determined pursuant to subdivision (c) to
represent costs and benefits to the environment shall not be used by
the commission, in and of themselves, to require early
decommissioning or retirement of an electric utility powerplant that
complies with applicable prevailing environmental regulations.
   (2) Further, the environmental values determined pursuant to
subdivision (c) shall not be used by the commission in a manner
which, when those values are aggregated, will result in advancing an
electric utility's need for new powerplant capacity by more than 15
months.
   (f) This subdivision shall apply whenever a powerplant bid
solicitation is required by the commission for an electric utility
and a portion of the amount of new powerplant capacity, which is the
subject of the bid solicitation, is the result of the commission's
use of environmental values to advance that electric utility's need
for new powerplant capacity in the manner authorized by paragraph (2)
of subdivision (e). The affected electric utility may propose to the
commission any combination of alternatives to that portion of the
new powerplant capacity that is the result of the commission's use of
environmental values as authorized by paragraph (2) of subdivision
(c). The commission shall approve an alternative in place of the new
powerplant capacity if it finds all of the following:
   (1) The alternative has been approved by the relevant air quality
district.
   (2) The alternative is consistent with federal and state law.
   (3) The alternative will result in needed system reliability for
the electric utility at least equivalent to that which would result
from bidding for new powerplant capacity.
   (4) The alternative will result in reducing system operating costs
for the electric utility over those which would result from the
process of bidding for new powerplant capacity.
   (5) The alternative will result in equivalent or better
environmental improvements at a lower cost than would result from
bidding for new powerplant capacity.
   (g) This section does not require an electric utility to alter the
dispatch of its powerplants for environmental purposes.
   (h) This section does not preclude an electric utility from
submitting to the commission any combination of alternatives to meet
a commission-identified need for new capacity, if the submission is
otherwise authorized by the commission.
   (i) This section does not change or alter any provision of
commission decision 92-04-045, dated April 22, 1992.