Bill Text: CA SB884 | 2021-2022 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Electricity: expedited utility distribution infrastructure undergrounding program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2022-09-29 - Chaptered by Secretary of State. Chapter 819, Statutes of 2022. [SB884 Detail]

Download: California-2021-SB884-Amended.html

Amended  IN  Senate  April 26, 2022
Amended  IN  Senate  April 07, 2022
Amended  IN  Senate  March 16, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 884


Introduced by Senator McGuire

January 26, 2022


An act to amend Sections 65940, 65943, and 65950 of, and to add Sections 65935 and 65960.7 to, the Government Code, to amend Sections 21180 and 21183 of the Public Resources Code, and to add Section 563 to the Public Utilities Code, relating to electricity.


LEGISLATIVE COUNSEL'S DIGEST


SB 884, as amended, McGuire. Electricity: expedited utility distribution infrastructure undergrounding program.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Under existing law, it is the policy of this state to achieve, whenever feasible and not inconsistent with sound environmental planning, the undergrounding of all future electric and communication distribution facilities that are proposed to be erected in proximity to designated state scenic highways and that would be visible from those highways if erected above ground. The commission’s existing Electric Tariff Rule 20 establishes policies for the undergrounding of electrical facilities and includes, among other programs, the Rule 20A undergrounding program that requires electrical corporations to convert overhead electrical facilities to underground facilities when it is in the public interest for specified reasons.
The Jobs and Economic Improvement Through Environmental Leadership Act of 2021 authorizes the Governor, until January 1, 2024, to certify projects that meet specified requirements for certain streamlining benefits related to the California Environmental Quality Act.
The Permit Streamlining Act requires public agencies to approve or disapprove of a development project within certain timeframes, as specified.
This bill would require the commission to establish an expedited utility distribution infrastructure undergrounding program, and would authorize a large electrical corporation, as defined, to participate in the program by submitting to the commission, on or before July 1, 2023, a plan that identifies the eligible undergrounding projects that it will construct as part of the program, including timelines for the completion of those undergrounding projects. projects, as specified. If the commission approves the electrical corporation’s plan, the bill would require a telecommunications provider to cooperate with the electrical corporation to underground any of its infrastructure on utility poles that will be removed as part of an undergrounding project, except as specified, require each undergrounding project to fully exhaust all available federal federal, state, and other nonratepayer moneys before any costs are recovered from ratepayers, and deem each undergrounding project to be an environmental leadership development project for purposes of the Jobs and Economic Improvement Through Environmental Leadership Act of 2021 and a development project for purposes of the Permit Streamlining Act, as specified. The bill would require that an electrical corporation earn a rate of return on its investments or expenditures made pursuant to the program, subject to a performance metric developed by the commission that would, at a minimum, require the withholding of those earnings until 60 consecutive months have elapsed without either the undergrounding project’s infrastructure causing a deenergization event or a wildfire resulting from the undergrounding project’s infrastructure.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because certain of the above provisions would be part of the act and a violation of a commission action implementing this bill’s requirements would be a crime, the bill would impose a state-mandated local program. Additionally, by expanding the applicability of the Permit Streamlining Act to undergrounding projects, the bill would impose new duties on local agencies.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for specified reasons.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 65935 is added to the Government Code, to read:

65935.
 “Undergrounding development project” means an undergrounding project identified in a plan approved by the Public Utilities Commission pursuant to Section 563 of the Public Utilities Code.

SEC. 2.

 Section 65940 of the Government Code, as amended by Section 4 of Chapter 161 of the Statutes of 2021, is amended to read:

65940.
 (a) (1) Each public agency shall compile one or more lists that shall specify in detail the information that will be required from any applicant for a development project. Each public agency shall revise the list of information required from an applicant to include a certification of compliance with Section 65962.5, and the statement of application required by Section 65943. Copies of the information, including the statement of application required by Section 65943, shall be made available to all applicants for development projects and to any person who requests the information.
(2) An affected city or affected county, as defined in Section 66300, shall include the information necessary to determine compliance with the requirements of subdivision (d) of Section 66300 in the list compiled pursuant to paragraph (1).
(b) The list of information required from any applicant shall include, where applicable, identification of whether the proposed project is located within 1,000 feet of a military installation, beneath a low-level flight path or within special use airspace as defined in Section 21098 of the Public Resources Code, and within an urbanized area as defined in Section 65944.
(c) (1) A public agency that is not beneath a low-level flight path or not within special use airspace and does not contain a military installation is not required to change its list of information required from applicants to comply with subdivision (b).
(2) A public agency that is entirely urbanized, as defined in subdivision (e) of Section 65944, with the exception of a jurisdiction that contains a military installation, is not required to change its list of information required from applicants to comply with subdivision (b).
(d) For purposes of this section, “development project” includes, but is not limited to, an undergrounding development project and a housing development project as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(e) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.

SEC. 3.

 Section 65943 of the Government Code, as amended by Section 7 of Chapter 161 of the Statutes of 2021, is amended to read:

65943.
 (a) Not later than 30 calendar days after any public agency has received an application for a development project, the agency shall determine in writing whether the application is complete and shall immediately transmit the determination to the applicant for the development project. If the application is determined to be incomplete, the lead agency shall provide the applicant with an exhaustive list of items that were not complete. That list shall be limited to those items actually required on the lead agency’s submittal requirement checklist. In any subsequent review of the application determined to be incomplete, the local agency shall not request the applicant to provide any new information that was not stated in the initial list of items that were not complete. If the written determination is not made within 30 days after receipt of the application, and the application includes a statement that it is an application for a development permit, the application shall be deemed complete for purposes of this chapter. Upon receipt of any resubmittal of the application, a new 30-day period shall begin, during which the public agency shall determine the completeness of the application. If the application is determined not to be complete, the agency’s determination shall specify those parts of the application that are incomplete and shall indicate the manner in which they can be made complete, including a list and thorough description of the specific information needed to complete the application. The applicant shall submit materials to the public agency in response to the list and description.
(b) Not later than 30 calendar days after receipt of the submitted materials described in subdivision (a), the public agency shall determine in writing whether the application as supplemented or amended by the submitted materials is complete and shall immediately transmit that determination to the applicant. In making this determination, the public agency is limited to determining whether the application as supplemented or amended includes the information required by the list and a thorough description of the specific information needed to complete the application required by subdivision (a). If the written determination is not made within that 30-day period, the application together with the submitted materials shall be deemed complete for purposes of this chapter.
(c) (1) If the application together with the submitted materials are determined not to be complete pursuant to subdivision (b), the public agency shall provide a process for the applicant to appeal that decision in writing to the governing body of the agency or, if there is no governing body, to the director of the agency, as provided by that agency. A city or county shall provide that the right of appeal is to the governing body or, at their option, the planning commission, or both.
(2) There shall be a final written determination by the agency on the appeal not later than 60 calendar days after receipt of the applicant’s written appeal. The fact that an appeal is permitted to both the planning commission and to the governing body does not extend the 60-day period. Notwithstanding a decision pursuant to subdivision (b) that the application and submitted materials are not complete, if the final written determination on the appeal is not made within that 60-day period, the application with the submitted materials shall be deemed complete for the purposes of this chapter.
(d) Nothing in this section precludes an applicant and a public agency from mutually agreeing to an extension of any time limit provided by this section.
(e) A public agency may charge applicants a fee not to exceed the amount reasonably necessary to provide the service required by this section. If a fee is charged pursuant to this section, the fee shall be collected as part of the application fee charged for the development permit.
(f) Each city and each county shall make copies of any list compiled pursuant to Section 65940 with respect to information required from an applicant for a housing development project, as that term is defined in paragraph (2) of subdivision (h) of Section 65589.5, available both (1) in writing to those persons to whom the agency is required to make information available under subdivision (a) of that section, and (2) publicly available on the internet website of the city or county.
(g) For purposes of this section, “development project” includes, but is not limited to, an undergrounding development project and a housing development project as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(h) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.

SEC. 4.

 Section 65950 of the Government Code, as amended by Section 9 of Chapter 161 of the Statutes of 2021, is amended to read:

65950.
 (a) A public agency that is the lead agency for a development project shall approve or disapprove the project within whichever of the following periods is applicable:
(1) One hundred eighty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for the development project.
(2) Ninety days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a development project defined in subdivision (c).
(3) Sixty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a development project defined in subdivision (c) and all of the following conditions are met:
(A) At least 49 percent of the units in the development project are affordable to very low or low-income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B) Prior to the application being deemed complete for the development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for and the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
(C) There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.
(4) Sixty days from the date of adoption by the lead agency of the negative declaration, if a negative declaration is completed and adopted for the development project.
(5) Sixty days from the determination by the lead agency that the project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if the project is exempt from that act.
(6) One hundred fifty days from the date the application for an undergrounding development project is deemed complete.
(b) This section does not preclude a project applicant and a public agency from mutually agreeing in writing to an extension of any time limit provided by this section pursuant to Section 65957.
(c) For purposes of paragraphs (2) and (3) of subdivision (a) and Section 65952, “development project” means a housing development project, as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(d) For purposes of this section, “lead agency” and “negative declaration” have the same meaning as defined in Sections 21067 and 21064 of the Public Resources Code, respectively.
(e) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.

SEC. 5.

 Section 65960.7 is added to the Government Code, to read:

65960.7.
 (a) Notwithstanding any other law, only one permit from the lead agency and one permit from each responsible agency shall be required for all activities required to complete construction and begin operation of an undergrounding development project.
(b) When an application for an undergrounding development project complies with applicable, objective general plan, zoning, and other permitting standards and criteria in effect at the time that the application was deemed complete, but the local agency proposes to disapprove the undergrounding development project or to impose conditions that would render the undergrounding development project financially infeasible, the local agency shall base its decision regarding the application on written findings supported by a preponderance of the evidence on the record that both of the following conditions exist:
(1) The undergrounding development project would have a specific, adverse impact on public health or safety, unless the undergrounding development project is disapproved or conditions are imposed that would render the undergrounding development project financially infeasible. As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.
(2) There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the undergrounding development project or imposing conditions on the undergrounding development project that would render it financially infeasible.
(c) If the local agency considers an undergrounding development project to be inconsistent, not in compliance, or not in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision, it shall provide the applicant with written documentation identifying the provision and an explanation of the reason it considers the undergrounding development project to be inconsistent, not in compliance, or not in conformity within 150 days of the date that the application for the undergrounding development project is determined to be complete.
(d) An application for an undergrounding development project shall be deemed approved by the applicable local agency if both of the following conditions are satisfied:
(1) (A) The local government fails to approve or disapprove the application within 150 days pursuant to paragraph (6) of subdivision (a) of Section 65950.
(B) Upon the expiration of the 150-day period described in subparagraph (A), the applicant shall provide notice to the local agency that the 150-day period has expired and the application is deemed approved pursuant to this paragraph. Within 30 days of receiving this notice, the local agency may seek judicial review of the operation of this section to the application.
(2) The applicant has complied with all public notice requirements applicable to the undergrounding development project or application.
(e) If the local agency requires a traffic control plan, or another submission or permit related to public safety or the obstruction of the right-of-way, the applicant shall not begin construction of the undergrounding development project until it has complied with that requirement.
(f) A local agency shall not unreasonably withhold, condition, or delay approval of an application for an undergrounding development project.

SEC. 6.

 Section 21180 of the Public Resources Code is amended to read:

21180.
 For purposes of this chapter, the following definitions apply:
(a) “Applicant” means a public or private entity or its affiliates, or a person or entity that undertakes a public works project, that proposes a project and its successors, heirs, and assignees.
(b) “Environmental leadership development project,” “leadership project,” or “project” means a project as described in Section 21065 that is one of the following:
(1) A residential, retail, commercial, sports, cultural, entertainment, or recreational use project that is certified as Leadership in Energy and Environmental Design (LEED) gold or better by the United States Green Building Council and, where applicable, that achieves a 15-percent greater standard for transportation efficiency than for comparable projects. These projects must be located on an infill site. For a project that is within a metropolitan planning organization for which a sustainable communities strategy or alternative planning strategy is in effect, the infill project shall be consistent with the general use designation, density, building intensity, and applicable policies specified for the project area in either a sustainable communities strategy or an alternative planning strategy, for which the State Air Resources Board has accepted a metropolitan planning organization’s determination, under subparagraph (H) of paragraph (2) of subdivision (b) of Section 65080 of the Government Code, that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets.
(2) A clean renewable energy project that generates electricity exclusively through wind or solar, but not including waste incineration or conversion.
(3) A clean energy manufacturing project that manufactures products, equipment, or components used for renewable energy generation, energy efficiency, or for the production of clean alternative fuel vehicles.
(4) (A) A housing development project that meets all of the following conditions:
(i) The housing development project is located on an infill site.
(ii) For a housing development project that is located within a metropolitan planning organization for which a sustainable communities strategy or alternative planning strategy is in effect, the project is consistent with the general use designation, density, building intensity, and applicable policies specified for the project area in either a sustainable communities strategy or an alternative planning strategy, for which the State Air Resources Board has accepted a metropolitan planning organization’s determination, under subparagraph (H) of paragraph (2) of subdivision (b) of Section 65080 of the Government Code, that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets.
(iii)  Notwithstanding paragraph (1) of subdivision (a) of Section 21183, the housing development project will result in a minimum investment of fifteen million dollars ($15,000,000), but less than one hundred million dollars ($100,000,000), in California upon completion of construction.
(iv) (I) Except as provided in subclause (II), at least 15 percent of the housing development project is dedicated as housing that is affordable to lower income households, as defined in Section 50079.5 of the Health and Safety Code. Upon completion of a housing development project that is qualified under this paragraph and is certified by the Governor, the lead agency or applicant of the project shall notify the Office of Planning and Research of the number of housing units and affordable housing units established by the project.
(II) Notwithstanding subclause (I), if a local agency has adopted an inclusionary zoning ordinance that establishes a minimum percentage for affordable housing within the jurisdiction in which the housing development project is located that is higher than 15 percent, the percentage specified in the inclusionary zoning ordinance shall be the threshold for affordable housing.
(v) (I) Except for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code, no part of the housing development project shall be used for a rental unit for a term shorter than 30 days, or designated for hotel, motel, bed and breakfast inn, or other transient lodging use.
(II) No part of the housing development project shall be used for manufacturing or industrial uses.
(B) For purposes of this paragraph, “housing development project” means a project for any of the following:
(i)  Residential units only.
(ii) Mixed-use developments consisting of residential and nonresidential uses with at least two-thirds of the square footage designated for residential use.
(iii) Transitional housing or supportive housing.
(5) An undergrounding project identified in a plan approved by the Public Utilities Commission pursuant to Section 563 of the Public Utilities Code.
(c) “Infill site” has the same meaning as set forth in Section 21061.3.
(d) “Transportation efficiency” means the number of vehicle trips by employees, visitors, or customers of the residential, retail, commercial, sports, cultural, entertainment, or recreational use project divided by the total number of employees, visitors, and customers.

SEC. 7.

 Section 21183 of the Public Resources Code is amended to read:

21183.
 The Governor may certify a leadership project for streamlining before a lead agency certifies a final environmental impact report for a project under this chapter if all the following conditions are met:
(a) (1) Except as provided in paragraph (2), the project will result in a minimum investment of one hundred million dollars ($100,000,000) in California upon completion of construction.
(2) Paragraph (1) does not apply to a leadership project described in paragraph (4) or (5) of subdivision (b) of Section 21180.
(b) (1) The project creates high-wage, highly skilled jobs that pay prevailing wages and living wages, provides construction jobs and permanent jobs for Californians, helps reduce unemployment, and promotes apprenticeship training. For purposes of this subdivision, a project is deemed to create jobs that pay prevailing wages, create highly skilled jobs, and promote apprenticeship training if the applicant demonstrates to the satisfaction of the Governor that the project will comply with Section 21183.5.
(2) Paragraph (1) does not apply to a leadership project described in paragraph (5) of subdivision (b) of Section 21180.
(c) (1) For a project described in paragraph (1), (2), or (3) of subdivision (b) of Section 21180, the project does not result in any net additional emission of greenhouse gases, including greenhouse gas emissions from employee transportation. For purposes of this paragraph, a project is deemed to meet the requirements of this paragraph if the applicant demonstrates to the satisfaction of the Governor that the project will comply with Section 21183.6.
(2) For a project described in paragraph (4) or (5) of subdivision (b) of Section 21180, the project does not result in any net additional emission of greenhouse gases, including greenhouse gas emissions from employee transportation.
(d) The applicant demonstrates compliance with the requirements of Chapter 12.8 (commencing with Section 42649) and Chapter 12.9 (commencing with Section 42649.8) of Part 3 of Division 30, as applicable.
(e) The applicant has entered into a binding and enforceable agreement that all mitigation measures required under this division to certify the project under this chapter shall be conditions of approval of the project, and those conditions will be fully enforceable by the lead agency or another agency designated by the lead agency. In the case of environmental mitigation measures, the applicant agrees, as an ongoing obligation, that those measures will be monitored and enforced by the lead agency for the life of the obligation.
(f) The applicant agrees to pay the costs of the trial court and the court of appeal in hearing and deciding any case challenging a lead agency’s action on a certified project under this division, including payment of the costs for the appointment of a special master if deemed appropriate by the court, in a form and manner specified by the Judicial Council, as provided in the California Rules of Court adopted by the Judicial Council under Section 21185.
(g) The applicant agrees to pay the costs of preparing the record of proceedings for the project concurrent with review and consideration of the project under this division, in a form and manner specified by the lead agency for the project.
(h) For a project for which environmental review has commenced, the applicant demonstrates that the record of proceedings is being prepared in accordance with Section 21186.

SEC. 8.

 Section 563 is added to the Public Utilities Code, to read:

563.
 (a) For purposes of this section, the following definitions apply:
(1) “Large electrical corporation” has the same meaning as defined in Section 3280.
(2) “Program” means the expedited utility distribution infrastructure undergrounding program established pursuant to subdivision (b).
(b) The commission shall establish an expedited utility distribution infrastructure undergrounding program.
(c) A large electrical corporation may participate in the program.
(d) In order to participate in the program, a large electrical corporation, on or before July 1, 2023, shall submit to the commission a plan that identifies the undergrounding projects that will be constructed as part of the program, including timelines for the completion of those undergrounding projects.
(e) Only those undergrounding projects for electric distribution circuits identified as high fire risk in a large electrical corporation’s most recent wildfire mitigation plan, as submitted to and approved by the Office of Energy Infrastructure Safety, are eligible to be constructed as part of the program.
(f) In reviewing a plan submitted pursuant to subdivision (d), the commission shall work with the large electrical corporation to ensure that the plan would not require the relocation of colocated telecommunications infrastructure pursuant to paragraph (1) of subdivision (g) in a manner that would result in the loss of telecommunications services or have the effect of degrading telecommunications services.

(e)

(g) If the commission approves a plan submitted pursuant to subdivision (d), both of the following shall apply to each undergrounding project identified in the plan:
(1) (A) A telecommunications provider with infrastructure colocated on utility poles that will be removed as part of the project shall cooperate with the participating large electrical corporation to underground that infrastructure as part of the project so that the utility pole can be entirely removed. removed, except as specified in subparagraph (B). The telecommunications provider shall pay the portion of the costs associated with undergrounding its infrastructure.
(B) Telecommunications infrastructure that provides personal wireless services, as defined in Section 332 of Title 47 of the United States Code, or mobile services, as defined in Section 153 of Title 47 of the United States Code, shall not be required to be relocated underground pursuant to this section.
(2) The project shall be deemed an environmental leadership development project, as defined in Section 21180 of the Public Resources Code, and a development project for purposes of the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code).

(f)

(h) Each undergrounding project constructed pursuant to the program shall fully exhaust all available federal federal, state, and other nonratepayer moneys before any costs may be recovered from ratepayers. The commission shall ensure a large electrical corporation participating in the program continuously demonstrates that it is exhausting all available nonratepayer moneys for each undergrounding project.

(g)

(i) (1) A participating large electrical corporation shall earn a rate of return on investments or expenditures made pursuant to the program based on the performance metric developed pursuant to paragraph (2).
(2) (A) On or before June 30, 2023, the commission shall develop a performance metric for purposes of paragraph (1).
(B) At a minimum, the performance metric shall, for each undergrounding project, withhold any moneys earned by the participating large electrical corporation through the rate of return pursuant to this subdivision until 60 consecutive months have elapsed without either the undergrounding project’s infrastructure causing a deenergization event or a wildfire resulting from the undergrounding project’s infrastructure.

SEC. 9.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
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