Today's Law As Amended


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SB-48 Public utilities: research and development projects.(2013-2014)



As Amends the Law Today


SECTION 1.
 The Legislature finds and declares all of the following:
(a) It is in the interest of the state that its residents have confidence in the decisions of the state’s agencies and in the operations of the industries that those agencies regulate.
(b) Research and development projects are scientific in nature, technical in nature, or both, and therefore the advice of independent scientific and technical experts may be used to inform agency decisionmaking in the approval of those projects. Demonstration projects concern the application of technology, and so scientific and technical experts may not be necessary to inform agency decisionmaking in approving those projects.
(c) It is in the interest of the state to ensure that the advice issued by independent scientific and technical experts to state agencies is sound, and that this advice should be, and should be perceived to be, not only highly competent, but also the result of a process that is fairly balanced in terms of the knowledge, experience, and perspectives used to produce it, free of any significant conflict of interest, and not subject to undue influence from the state agencies that they advise.
(d) The goal of independent expert review is to ensure the scientific integrity and technical credibility of a decisionmaking process. Independent expert review is different from, and complementary to, stakeholder involvement.
(e) The credibility of agency decisions is improved when the results of independent scientific and technical expert review are used to improve the quality of an agency’s decisionmaking process. The use of independent expert review therefore provides observers confidence that decisions are made with the best available scientific and technical information.

SECTION 1.SEC. 2.

 Section 740.1 of the Public Utilities Code is amended to read:

740.1.
 (a)  The commission shall consider the following guidelines in evaluating the research, development, and demonstration programs proposed by electrical and gas corporations:
(a) (1)  Projects should offer a reasonable probability of providing benefits to ratepayers.
(b) (2)  Expenditures on projects which that  have a low probability for success should be minimized.
(c) (3)  Projects should be consistent with the corporation’s resource plan.
(d) (4)  Projects should not unnecessarily duplicate research currently, previously, or imminently undertaken by other electrical or gas corporations or research organizations.
(e) (5)  Each project should also support one or more of the following objectives:
(1) (A)  Environmental improvement.
(2) (B)  Public and employee safety.
(3) (C)  Conservation by efficient resource use or by reducing or shifting system load.
(4) (D)  Development of new resources and processes, particularly renewable resources and processes which that  further supply technologies.
(5) (E)  Improve operating efficiency and reliability or otherwise reduce operating costs.
(b) (1) Findings supporting a decision to approve the inclusion of expenses incurred for research and development projects or programs in electricity rates pursuant to Section 740 shall be informed by independent expert review. Independent expert review means a review to examine the effectiveness with which the proposed research and development application meets the guidelines described in subdivision (a) that is performed by persons who have the following attributes:
(A) Are independent of the applicant.
(B) Are independent of the persons conducting the proposed project or program, if different from the applicant.
(C) Are knowledgeable about the scientific or technical aspects of the field of endeavor to which the proposed application pertains.
(D) Are free of any financial or other interest that could significantly impair the ability of the person to be objective or that could create an unfair competitive advantage in favor of a person or organization.
(2) This subdivision shall become operative on ____.
(c) The establishment of an advisory committee to perform the independent review pursuant to subdivision (b) is not an unlawful delegation of the commission’s authority.

SEC. 3.

 Section 740.12 is added to the Public Utilities Code, to read:

740.12.
 (a) On or before February 1, 2016, and, notwithstanding Section 10231.5 of the Government Code, on or before February 1 of every three years thereafter or more frequently as determined by the commission, the commission shall submit to the fiscal and relevant policy committees of the Legislature a report listing all research and development projects for which the costs of the projects were or are recovered from ratepayers during the previous three years, including, for each project the citations of all published papers, all oral and poster presentations given at public meetings, and all patents awarded for the funded projects.
(b) The report submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.