CPUC Public Agenda 3241 Thursday, September 24, 2009, 10 a.m. 505 Van Ness Ave, San Francisco Commissioners: Michael R. Peevey Dian M. Grueneich John A. Bohn Rachelle Chong Timothy Alan Simon

Public Comment Any member of the public who wishes to address the CPUC about matters before the Commission, must first sign up with the Public Advisor before the meeting begins. Once called, at the discretion of the President of the CPUC, each speaker has up to 2 minutes. A sign will be posted when 1 minute remains. A bell will ring when time has expired. The following items are NOT subject to Public Comment:  Items: 4, 18, 21  All 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, 7, 8, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30 & 31. 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. Items: 35, 37, 41, 44 & 46 from the Regular Agenda have 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. Items: None have been moved to the Regular Agenda. Items: 32 & 47 have been withdrawn. The following items have been held to future Commission Meetings: Held to 10/15/09: 2, 3, 4, 5, 6, 9, 38, 39, 40, 42, 45 & 48.

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

Regular Agenda – Energy Orders PROPOSED OUTCOME: Awards Sustainable Conservation $21, in compensation for its substantial contributions to Decision Closes the proceeding. ESTIMATED COST: Payment will be made by Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Edison Company based on their proportional gas and electric revenues for Item #33 [8616] Compensation to Sustainable Conservation for Substantial Contributions to Decision R Order Instituting Rulemaking to Continue Implementation and Administration of California Renewables Portfolio Standard Program. Ratesetting Comr. Peevey/ ALJ Division ____________________________________________________________________________________________________________________________________________________

Regular Agenda – Energy Orders PROPOSED OUTCOME: Unlike the Proposed Decision, the Alternate denies Sustainable Conservation intervenor compensation for its substantial contributions to Decision because its request for intervenor compensation does not comply with the Public Utilities Code Sections 1802(b)(1) and 1804(b)(1). Closes the proceeding. ESTIMATED COST: None Item #33a [8732] ALTERNATE TO ITEM 8616 Ratesetting Comr. Bohn

Regular Agenda – Energy Orders PROPOSED OUTCOME: Denies San Diego Gas & Electric Company's application for approval of the Celerity Distributed Generation Supply Contract. Closes the proceeding. ESTIMATED COST: None. Item #34 [8617] San Diego Gas & Electric Company for Approval of the Celerity Distributed Generation Supply Contract A Ratesetting Comr. Bohn/ ALJ Farrar _______________________________________________________________________________________________________________________________________________________

Regular Agenda – Energy Orders PROPOSED OUTCOME: This alternate decision differs from the Administrative Law Judge’s proposed decision in that it: Determines that the low cost capacity and emission reductions provided by the contract justify its approval; Approves the contract contingent upon the contract capacity qualifying to meet resource adequacy requirements and upon installation of air emission filters on the generation units involved in the contract. ESTIMATED COST: The contract costs are confidential at this time. Application is closed. Item #34a [8847] ALTERNATE TO ITEM 8617 Ratesetting Comr. Bohn

Regular Agenda – Energy Orders PROPOSED OUTCOME: Grants Southern California Gas Company authority to issue up to $570 million of its requested $800 million of long-term Debt Securities. Debt Securities include: (a) secured debt, (b) unsecured debt, (c) debt placed in foreign capital markets, (d) medium-term notes, (e) direct long-term loans, (f) accounts receivable financing, (g) variable- rate debt, (h) “fall-away” mortgage bonds initially secured and subsequently convertible into unsecured debt, and (i) subordinated debt. Denies the remaining $230 million of its request because Southern California Gas Company already has access to $230 million of unused long-term debt authority to help satisfy its 2009 through 2011 long-term debt needs. Allows Southern California Gas Company to encumber utility property, including its accounts receivable, to secure Debt Securities and use hedges to manage interest rate risk. Authorizes Southern California Gas Company to enter into: (a) put options, (b) call options, (c) sinking funds, (d) interest rate swaps, (e) swaptions to enter or exit swap agreements under specified terms and conditions, (f) caps and collars, (g) currency swaps, (h) credit enhancements, (i) capital replacement, (j) interest deferral, (k) special- purpose entity transactions, and (l) delayed draw downs. Exempts certain Debt Securities from the Commission’s Competitive Bidding Rule as enumerated in the decision and authorizes Southern California Gas Company to report all required General Order 24-B Debt Securities information to the Commission on a quarterly basis unless directed to report on a monthly basis by the Commission staff. Closes the proceeding. ESTIMATED COST: None. Item #35 [8777] Southern California Gas Company Request to Issue New Long-Term Debt A Application of Southern California Gas Company for Authorization to: (1) Obtain Long-term Debt Capital Not to Exceed the Equivalent of U.S. $800,000,000; (2) Include Certain Features in Debt Securities or Enter into Certain Derivative Transactions; (3) Hedge Issuances of Debt Securities and Preferred or Preference Securities; (4) Obtain Exemptions from the Competitive Bidding Rule; and (5) Take All Other Necessary, Related Actions. Ratesetting Comr. Simon/ ALJ Galvin

Regular Agenda – Energy Orders PROPOSED OUTCOME: Adopts 2010 to 2012 energy efficiency budgets for Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas). Adopts cost-effective portfolios of energy efficiency measures which provide the utilities a reasonable opportunity to reach adopted energy savings goals. Substantially implements the California Long-Term Energy Efficiency Strategic Plan adopted in D through 12 statewide programs. Establishes the California Statewide Program for Residential Energy Efficiency, a residential retrofit program aimed at a 20% reduction in annual energy consumption of 130,000 homes. Modifies energy savings goals based on updated data; decreases SDG&E energy savings goals to align its goals with other utilities. Reduces utility-proposed budgets for administrative costs, marketing, education and outreach, and non-resource support costs to levels more consistent with national averages. Tentatively reduces evaluation, measurement and verification budgets, subject to a detailed follow-up decision. Reduces utility-proposed budgets for compact fluorescent light subsidies because the market is nearly transformed. Extends bridge funding adopted in D to the end of Creates a new marketing brand to coordinate messages about energy efficiency, renewable energy and demand-side management, alongside those of climate action. ESTIMATED COST: Increases the three-year energy efficiency budget by 30%, from $2.2 billion for 2006 to 2008 to $2.9 billion for 2010 to Increases the “Bridge Funding” budgets for 2009 adopted in D by 11%. Compared to adopted 2006 – 2008 energy efficiency budgets, SCE’s budget increases by $397 million, PG&E’s budget increases by $248 million, SDG&E’s budget decreases by $13 million, and SoCalGas’ budget increases by $95 million. Item #36 [8801] 2010 to 2012 Energy Efficiency Portfolios and Budgets A Application of Southern California Edison Company for Approval of its Energy Efficiency Program Plans and Associated Public Goods Charge and Procurement Funding Requests, A , A , A Related matters. Ratesetting Comr. Grueneich/ ALJ Gamson

Regular Agenda – Energy Orders Item #37 [8815] Petition to Modify Self Generation on Incentive Program Rules Regarding Renewable Fuels R Order Instituting Rulemaking Regarding Policies, Procedures and Rules for the California Solar Initiative, the Self-Generation Incentive Program and Other Distributed Generation Issues. Quasi-Legislative Comr. Peevey/ ALJ Duda PROPOSED OUTCOME: Grants a petition by Bloom Energy Corporation to modify program rules for the Self- Generation Incentive Program (SGIP). Directs the SGIP program administrators to implement handbook changes to authorize SGIP-eligible distributed generation projects to receive Level 2 incentives of $4.50 per watt if the renewable fuel for the facility is obtained from a directed biogas contract (i.e., where biogas is nominated and delivered to customers via a natural gas pipeline). ESTIMATED COST: Implementation cost is expected to be minimal and can be absorbed within the administrative budget for Self-Generation Incentive Program.

Regular Agenda – Energy Resolutions and Written Reports Item #38 [8518] Moorpark-Newbury 66 kV Subtransmission Line Res E-4243, Advice Letter 2272-E, filed on October 2, Related matters PROPOSED OUTCOME: Affirms a prior Executive Director’s Action Resolution E-4225 findings related to Southern California Edison’s (SCE’s) proposed Moorpark-Newbury 66 kV Subtransmission line. Finds that: SCE complied with the notice requirements for the proposed construction of facilities; The proposed facilities were exempt from Permit to Construct requirements; Facts claimed in protests to Executive Director’s Action Resolution did not support a finding that General Order 131-D exemption criteria applied. Dismisses protests. ESTIMATED COST: Moorpark-Newbury 66kV Subtransmission Line was filed as Advice Letter 2272-E Notice of Proposed Construction Project Pursuant to General Order 131-D, therefore no cost information is provided or required for Permits to Construct.

Regular Agenda – Energy Resolutions and Written Reports Item #39 [8520] Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Edison Company Qualifying Facilities Contracts Res E-4242, Advice Letter (AL) PG&E AL 3197-E, SDG&E AL 1958-E and SCE AL 2200-E, filed on January 14, 2008, Supplemental Advice Letters PG&E AL 3197-E-A, SDG&E AL 1958-E-A and SCE AL 2200-E-A, filed on July 11, 2008, and Supplemental Advice Letters PG&E AL 3197-E-B – Related matters PROPOSED OUTCOME: Adopts, with modifications, the Qualifying Facility (QF) Standard Offer Contracts proposed by Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE) and San Diego Gas & Electric Company (SDG&E). Upon adoption, there will be one QF Standard Offer Contract across all three electric Investor Owned Utilities (IOUs). The new contract may be signed by new and existing QFs with expired contracts in addition to QFs pursuing other contracting methods such as participating in an IOU’s Request for Offer process or negotiating a bilateral contract. ESTIMATED COST: Adoption of this resolution does not imply any specific cost, however, upon adoption, the utilities may enter into contracts with new or existing QFs. These contracts will form part of the utilities’ procurement costs for electricity. t is impossible to know in advance the total cost of those contracts, but in the past, QF power has represented no more than 20% of the utilities’ portfolio. Contracts executed with existing QFs should not result in any additional costs as the utilities were already purchasing power from these QFs in the past. Contracts signed with new QFs will represent new incremental expenditures, but this spending will be offset by the reduced need for new generation as a result of contracting with the new QF.

Regular Agenda – Energy Resolutions and Written Reports Item #40 [8754] Energy Efficiency Interim Verification Report Res E PROPOSED OUTCOME: Adopts the interim Verification Report prepared by the Energy Division to verify the costs and installations of the Investor Owned Utilities’ energy efficiency program activities during the program period. ESTIMATED COST: None.

Regular Agenda – Energy Resolutions and Written Reports Item #41 [8797] Pacific Gas and Electric Company Power Purchase Agreements Res E-4269, Advice Letter 3459-E filed on May 13, Related matters PROPOSED OUTCOME: Approves cost recovery for five power purchase agreements (PPAs) resulting from bilateral negotiations between Pacific Gas & Electric Company (PG&E) and BrightSource Energy, Inc., pursuant to California’s renewables portfolio standard program. Approves the PPAs with modifications. Proceeds from the Royalty Agreement entered in to by PG&E and BrightSource Energy, Inc. in connection with these PPAs will be credited to PG&E’s Energy Resource Recovery Account for the benefit of PG&E’s ratepayers. ESTIMATED COST: Actual costs are confidential at this time.

Regular Agenda – Energy Resolutions and Written Reports Item #42 [8804] Pacific Gas and Electric Company and Southern California Edison Company Departing Service Charges Res E-4226, PG&E Advice Letter (AL) 3446-E, Filed on April 2, 2009; and SCE AL 2320-E, Filed on February 9, Related matters PROPOSED OUTCOME: Clarifies that New World Generation Charges Do Not Apply to Customer Generation or Municipal Departing Load. Clarifies that Vintaged Cost Responsibility Surcharge (beginning with the 2009 vintage) will be effective for non-exempt customers departing bundled service on or after the effective date of this resolution. The Power Charge Indifference Adjustment shall vary by customer class in the same proportion as ongoing Competition Transition Charges. ESTIMATED COST: No cost impact.

Regular Agenda – Communication Resolutions and Reports Item #43 [8795] Contingent Approval of Funding for Lookout Unserved Broadband Project Res T PROPOSED OUTCOME: Conditionally adopts California Advanced Services Fund (CASF) funding for the Lookout Project providing broadband service to an unserved area in Modoc County. The project is contingent on receiving an American Recovery and Reinvestment Act grant for 80% of the total project cost. ESTIMATED COST: $50,707 from the CASF which represents 10% of the total project cost.

Regular Agenda – Legal Division Matters Item #44 [8820] Comments Before Federal Communications Commission Regarding Extension of Truth-In-Billing Rules to Additional Services CG Docket No et. al. In the Matter of Consumer Information and Disclosure, CG Docket No , Truth-in Billing and Billing Format, CC Docket No , and IP-Enabled Services, WC Docket No ; Notice of Inquiry, FCC The Federal Communications Commission (FCC) seeks comment on whether truth-in-billing rules should be extended to additional services, such as broadband Internet access and subscription video service. The FCC hopes to build a record for assessing whether there are opportunities to protect and empower consumers through policies addressing information disclosure. Staff is recommending that the California Public Utilities Commission file comments informing the FCC of California’s relevant statutes, regulations and consumer protection experience in these areas, and making policy recommendations consistent with California law and CPUC policy.

Regular Agenda – Legal Division Matters Item #45 [8821] Comments Before Federal Communications Commission Regarding Wireless Markets WT Docket No In the Matter of Implementation of Section 6002(b) of the Omnibus Budget Reconciliation Act of 1993, Annual Report and Analysis of Competitive Market Conditions With Respect to Mobile Wireless including Commercial Mobile Services, WT Docket No ; Notice of Inquiry, FCC The Federal Communications Commission seeks to expand and enhance its analysis of competitive conditions in the entire wireless market. Staff recommends that the California Public Utilities Commission file comments supporting this inquiry into competition in the wireless market, and supporting use of the existing four indicators for CMRS competition which include assessment of market share and integration.

Regular Agenda – Legal Division Matters Item #46 [8822] Comments Before Federal Communications Commission Regarding Timely Deployment of Broadband Services GN Docket No et. al. In the Matters of Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, and Possible Steps to Accelerate Such Deployment Pursuant to Section 706 of the Telecommunications Act of 1996, as Amended by the Broadband Data Improvement Act, GN Docket No , A National Broadband Plan for Our Future, GC Docket No ; Notice of Inquiry, FCC The Federal Communications Commission (FCC) seeks comment on whether broadband services are being deployed to all Americans in a reasonable and timely fashion. Staff recommends that the California Public Utilities Commission file comments in a number of areas, including the following: the definition of broadband, the definition of geographic areas used for certain types of reports, proposing that the FCC share with the states raw data on broadband availability, and proposing that the FCC consider satellite-based broadband services in evaluating access to broadband.

Regular Agenda – Legal Division Matters Item #47 [8845] Comments Before Federal Communications Commission Regarding Universal service Charges for Voice Over Internet Protocol Services WC Docket No Petition of Nebraska Public Service Commission and Kansas Corporation Commission for Declaratory Ruling or, in the Alternative, Adoption of Rules Allowing State Universal Service Funds to Assess Charges on Nomadic Voice over Internet Protocol Intrastate Revenues The Federal Communications Commission (FCC) seeks comment on a Petition for Declaratory Ruling (Petition) filed by the Nebraska Public Service Commission and the Kansas Corporation Commission (Petitioners) on July 16, Petitioners ask the FCC to issue a declaratory ruling that the FCC has not pre-empted the states from assessing universal service charges on the intrastate revenues collected by providers of “nomadic” interconnected Voice over Internet Protocol (VoIP) services. Petitioners also ask the FCC to declare that states have discretion to adopt certain mechanisms and procedures for identifying and assessing intrastate revenues. In the alternative, Petitioners ask the FCC to propose and then adopt relevant rules. Staff seeks authority to submit comments in support of state authority to require universal service contributions from interconnected VoIP providers.

Regular Agenda – Commissioner’s Reports Item #48 [8748] Appointments to the Low Income Oversight Board Commissioner Grueneich Report Discussion and action regarding the appointment to the Commission’s Low Income Oversight Board (LIOB) of Ortensia Lopez and Louise Perez as public representatives and Allan Rago as the private contractor representative. The 11-member LIOB advises the Commission on low-income electric, gas, and water customer issues and serves as a liaison for the Commission to low-income ratepayers and representatives.

Commissioners’ Reports

Management Reports

Pamela C. Loomis Director, Office of Governmental Affairs September 24, 2009 C ALIFORNIA P UBLIC U TILITIES C OMMISSION 2009 Legislative Wrap Up

Presentation Overview ENERGY BILLS TELECOMMUNICATIONS BILLS TRANSPORTATION BILLS WATER BILLS MISCELLANEOUS BILLS

2009 Legislative Wrap Up ENERGY BILLS Assembly Bills 21 & 64 (Krekorian) and Senate Bills 14 & 62 (Simitian) –Renewable Portfolio Standard (RPS): 33% RPS by 2020 Moves current target of 20% by 2010 to 2013, and establishes new targets of 25% by 2016 and 33% by 2020 Establishes a hard cost cap of 6% of an IOU’s total 2008 bundled electric revenues multiplied by the number of years remaining until 2020, and applies it to all renewable procurement starting January 1, 2010 Expands the flexible compliance rules for IOUs that are having difficulty procuring renewables due to project delays and lack of transmission lines Modifies the eligibility requirements for the state’s RPS program, including substantially changing the definition of delivery for purposes of counting out- of-state renewable resources For the use of RECs from otherwise ineligible out-of-state renewable resources, establishes a cap of 25-30% of 33% RPS target Requires the CPUC to approve a transmission CPCN within 18-months of receipt of a complete application unless the CPUC finds that the line threatens the environment and requires a longer process All of the RPS bills have been enrolled - speculation as to whether the Legislature will release them to the Governor’s desk in order to avoid veto

2009 Legislative Wrap Up ENERGY BILLS Assembly Bill 413 (Fuentes) and Senate Bill 695 (Kehoe) –Energy: rates: AB 1x fix and miscellaneous provisions Allows the CPUC to increase non-CARE residential Tier 1 & 2 rates over a period of years and as prescribed by the bill Removes the cap on residential CARE rates for usage up to 130% of baseline and allows for rate increases based on percentage increases to CalWORKs benefits Allows the CPUC to employ default time-variant pricing after January 1, 2014, and only after certain consumer education measures have been operational for two years Codifies existing income eligibility for CARE at 200% of the federal poverty guidelines and the equal cents recovery method for program costs Prohibits the CPUC from reopening direct access without express statutory authority and provides a modest expansion of the direct access market not to exceed pre-suspension levels AB 413 was held on the inactive file on the Senate Floor SB 695 is on the Governor’s desk, and will take effect immediately

2009 Legislative Wrap Up ENERGY BILLS Assembly Bill 920 (Huffman) and Senate Bill 7 (Wiggins) –Net Energy Metering (NEM): reimbursement for excess generation SB 7 allows NEM customers who produce more electricity than they consume in a given year to carry the credits for the excess production forward for an additional two years AB 920 allows NEM customers to sell any excess electricity they produce over the course of a year to their electric utility at a rate to be determined by the CPUC SB 7 was held on the inactive file on the Assembly Floor AB 920 is on the Governor’s desk Assembly Bill 560 (Skinner) –Net Energy Metering (NEM) Cap Would increase the existing NEM cap from 2.5 percent of a utility's peak demand to 5 percent Would prohibit solar installations of greater than 250 kilowatts from being done by a C-46 licensee AB 560 was held in the Senate Business and Professions Committee

2009 Legislative Wrap Up ENERGY BILLS Assembly Bill 1106 (Fuentes) –Feed-In Tariff (FIT) Program Sunsets the current FIT program on June 30, 2011 and establishes a new FIT program of 10MW Establishes a two tier pricing structure - Tier 1 capacity is 5 MW or less and Tier 2 capacity is over 5 MW and less than 10 MW AB 1106 was held by the author and is a two-year bill Senate Bill 32 (Negrete McLeod) –Feed-In Tariff (FIT) Program Increases the FIT program from 1.5 MW to 3MW and requires the CPUC to adjust the price based upon the MPR plus other attributes Increases the statewide total capacity cap from 500 MW to 750 MW SB 32 is on the Governor’s desk

2009 Legislative Wrap Up ENERGY BILLS Assembly Bill 51 (Blakeslee) and Senate Bill 806 (Wiggins) –Administrative cost cap on energy efficiency programs Requires the CPUC to limit the administrative costs for each IOU energy efficiency program to no more than a small percentage of the funds expended (AB 51 – 10% cap; SB 806 – 5% cap) AB 51 was held in Senate EU&C at the request of the author SB 806 was held on suspense in Senate Appropriations Assembly Bill 758 (Skinner) –In-home energy efficiency audits Requires the CEC to develop a comprehensive energy audit program for residential and nonresidential building stock Requires the CPUC to investigate the viability of various utility-run financing options for the purposes of implementing the energy efficiency program Requires the CPUC to report its findings as part of its triennial energy efficiency report to the Legislature AB 758 is on the Governor’s desk

2009 Legislative Wrap Up ENERGY BILLS Senate Bill 542 (Wiggins) –Solar and Energy Efficiency Programs Requires the Commission to develop and implement a strategy, by July 1, 2010, to expand the participation of multi-unit residential and commercial rental properties in energy efficiency and solar energy programs SB 542 was held on Suspense in Assembly Appropriations Senate Bill 17 (Padilla) –Smart Grid Technology Requires the commission, in consultation with the ISO, CEC and IOUs, to determine smart grid technology requirements by July 1, 2010 Requires electrical corporations, by July 1, 2011, to develop and submit a smart grid deployment plan to the Commission for approval SB 17 is on the Governor’s desk Senate Bill 626 (Kehoe) –Plug-in hybrid and electrical vehicle (PEVs) charging infrastructure Requires the CPUC, in consultation with the CEC, ARB, IOUs, and others, to evaluate policies for the development of fueling infrastructure for PEVs SB 626 is on the Governor’s desk

2009 Legislative Wrap Up ENERGY BILLS Assembly Bill 1110 (Fuentes) –Advanced electrical distributed generation (AEDG) Authorizes the CPUC and ARB to treat AEDG technology as cogeneration Extends preferential natural gas rates for cogeneration technologies to AEDG Sunsets on January 1, 2014 AB 1110 is on the Governor’s desk Senate Bill 412 (Kehoe) –Self-Generation Incentive Program (SGIP) Allows the CPUC authority to determine eligible technologies for SGIP based on AB 32 (Pavley, 2006) greenhouse gas (GHG) emissions standards developed by CARB Authorizes the commission to collect funds to support SGIP through December 31, 2011 and continue administration of the program through January 1, 2016 SB 412 is on the Governor’s Desk

2009 Legislative Wrap Up ENERGY BILLS Assembly Bill 1031 (Blumenfield) –Local Government Renewable Energy Self-Generation Program Includes college campuses in the program that allows local governments to generate renewable energy at one facility and credit excess generation to the electricity consumption at their other facilities AB 1031 is on the Governor’s desk. Assembly Bill 1318 (Perez, V.) –South coast air credits for CPV Sentinel power plant Provides a limited CEQA exemption to allow the South Coast Air Quality Management District (SCAQMD) to issue permits for the proposed Sentinel Power Plant Requires the ARB, in consultation with the CPUC, CEC, CAISO, and the State Water Resources Control Board (SWRCB), to submit a report to the Governor and Legislature that evaluates the system reliability needs of the South Coast Air Basin AB 1318 is on the Governor’s desk

2009 Legislative Wrap Up ENERGY BILLS Senate Bills 696 and 827 (Wright) –SCAQMD air credit permits Provides a limited CEQA exemption to allow SCAQMD to issue permits for essential public services and power plants that are located in the region Amended in Senate Environmental Quality to limit the bill’s scope to only essential public services To comply with Assembly House Rules deadlines, the bill’s provisions were amended into SB 827 (Wright) Held at Assembly Desk Senate Bill 42 (Corbett) –Once-through cooling (OTC) ban Imposes a ban on new power plants that use OTC after January 1, 2010 Requires the SWRCB to implement a statewide policy on OTC power plants, in consultation with the CEC and other relevant agencies, by March 2010 Held at author’s request in Senate EU&C

2009 Legislative Wrap Up TELECOMMUNICATIONS BILLS Assembly Bill 1553 (Fuentes) –Deaf and Disabled Telecommunications Program (DDTP) This bill extends the sunset date from January 1, 2010 to January 1, 2014 for the funding and operation of DDTP AB 1553 is on the Governor’s desk Assembly Bill 1555 (Perez and Fuentes) –California Advanced Services Fund Permits any entity eligible for grants or loan programs under the federal American Recovery and Reinvestment Act of 2009 (ARRA) to apply to participate in the CASF program for the sole purpose of seeking funds to help meet the ARRA matching fund requirement This bill is an urgency measure, and took effect immediately Chaptered by Secretary of State - Chapter 24, Statutes of 2009

2009 Legislative Wrap Up TRANSPORTATION BILLS Assembly Bill 636 (Jones) –Charter-party carriers license revocation Requires the CPUC to permanently revoke the operating authority of a charter-party carrier under certain conditions Imposes a five-year suspension on unlicensed drivers The bill is double-joined to AB 951 (Lieu) AB 636 is on the Governor’s desk Assembly Bill 951 (Lieu) –Charter-party carriers fines and penalties Increases the levels of fines and penalties under various sections of the Charter-Party Carrier’s Act The bill is double-joined to AB 636 (Jones) AB 951 is on the Governor’s desk

2009 Legislative Wrap Up TRANSPORTATION BILLS Assembly Bill 709 (Lieu) –Charter-party carriers and background checks Requires charter-party carriers that provide transportation to and from airports, to have their drivers undergo criminal background checks Requires the CPUC to issue a credential for those drivers once the background checks have been completed Held in the Assembly Appropriations Committee Senate Bill 409 (Ducheny) –Department of Railroads Would have stripped the CPUC and Caltrans of their railroad oversight authority and transferred it to a newly created Department of Railroads Placed on the Senate Inactive File at the request of the author

2009 Legislative Wrap Up WATER BILLS Assembly Bill 49 (Feuer) –Water conservation: proposed conference report no. 1 Requires the state to achieve 20% reduction in urban water use in California by December 31, 2020 Requires agricultural water suppliers to adopt agricultural water management plans Amended to become one of several Conference Committee water bills Conference Report not adopted Assembly Bill 975 (Fong) –Water meters Requires water corporations regulated by the CPUC to install water meters on new service connections and on unmetered connections Authorizes the CPUC to require a water corporation with less than 500 customers to install water meters if the CPUC makes one of the specific findings contained in the bill AB 975 is on the Governor’s desk

2009 Legislative Wrap Up MISC BILLS Assembly Bill 698 (Skinner) –Utility Property Divestitures Authorizes a staff director of the Commission to approve the disposal of a utility's property when the transaction is valued under $5 million and the utility's application is not contested by any party AB 698 is on the Governor’s desk Assembly Bill 1108 (Fuentes) –Electric and gas utility service: master-meter customers Requires owners of master-meter electricity and natural gas systems that serve mobile home parks and manufactured housing developments to transfer ownership and operation of those systems to the utilities Requires the Commission to open a proceeding to develop procedures and schedules for the transfers This bill is being held by the author as a two-year bill

2009 Legislative Wrap Up MISC BILLS Assembly Bill 1315 (Ruskin) –CPUC governance Replaces the Governor’s appointment of CPUC president with the Commission selecting a president from among themselves Places the direction of the Executive Director and General Counsel under the Commission as a whole rather than the president Held at the request of the author in the Senate EU&C Assembly Bill 1316 (Ma) –Low-Income Oversight Board (LIOB) Requires the LIOB to provide recommendations to the Legislature, as requested, on policy or legislation impacting low-income customers Allows the LIOB to solicit public input through hosting town hall meetings and forums on low-income issues Held at the request of the author in the Senate EU&C

Thank you! For Additional Information:

The CPUC Thanks You For Attending Today’s Meeting The Public Meeting is adjourned. The next Public Meeting will be: October 15, 2009, at 10 a.m.