SECTIONS 25300-25324 - California Statutes

PUBLIC RESOURCES CODE

SECTION 25300-25324

25300. (a) The Legislature finds and declares that clean and
reliable energy is essential to the health of the California economy
and of vital importance to the health and welfare of the citizens of
the state and to the environment.
(b) The Legislature further finds and declares that government has
an essential role to ensure that a reliable supply of energy is
provided consistent with protection of public health and safety,
promotion of the general welfare, maintenance of a sound economy,
conservation of resources, and preservation of environmental quality.
(c) The Legislature further finds and declares that the state
government requires at all times a complete and thorough
understanding of the operation of energy markets, including
electricity, natural gas, petroleum, and alternative energy sources,
to enable it to respond to possible shortages, price shocks,
oversupplies, or other disruptions.
(d) The Legislature further finds and declares that timely
reporting, assessment, forecasting, and data collection activities
are essential to serve the information and policy development needs
of the Governor, the Legislature, public agencies, market
participants, and the public.
(e) The Legislature further finds and declares that one of the
objectives of this act is to encourage cooperation among the various
state agencies with energy responsibilities.

25301. (a) At least every two years, the commission shall conduct
assessments and forecasts of all aspects of energy industry supply,
production, transportation, delivery and distribution, demand, and
prices. The commission shall use these assessments and forecasts to
develop energy policies that conserve resources, protect the
environment, ensure energy reliability, enhance the state's economy,
and protect public health and safety. To perform these assessments
and forecasts, the commission may require submission of demand
forecasts, resource plans, market assessments, and related outlooks
from electric and natural gas utilities, transportation fuel and
technology suppliers, and other market participants. These
assessments and forecasts shall be done in consultation with the
appropriate state and federal agencies including, but not limited to,
the Public Utilities Commission, the Office of Ratepayer Advocates,
the Air Resources Board, the Electricity Oversight Board, the
Independent System Operator, the Department of Water Resources, the
California Consumer Power and Conservation Financing Authority, the
Department of Transportation, and the Department of Motor Vehicles.
(b) In developing the assessments and forecasts prepared pursuant
to subdivision (a), the commission shall do all of the following:
(1) Provide information about the performance of energy
industries.
(2) Develop and maintain the analytical capability sufficient to
answer inquiries about energy issues from government, market
participants, and the public.
(3) Analyze and develop energy policies.
(4) Provide an analytical foundation for regulatory and policy
decisionmaking.
(5) Facilitate efficient and reliable energy markets.

25302. (a) Beginning November 1, 2003, and every two years
thereafter, the commission shall adopt an integrated energy policy
report. This integrated report shall contain an overview of major
energy trends and issues facing the state, including, but not limited
to, supply, demand, pricing, reliability, efficiency, and impacts on
public health and safety, the economy, resources, and the
environment. Energy markets and systems shall be grouped and assessed
in three subsidiary volumes:
(1) Electricity and natural gas markets.
(2) Transportation fuels, technologies, and infrastructure.
(3) Public interest energy strategies.
(b) The commission shall compile the integrated energy policy
report prepared pursuant to subdivision (a) by consolidating the
analyses and findings of the subsidiary volumes in paragraphs (1),
(2), and (3) of subdivision (a). The integrated energy policy report
shall present policy recommendations based on an indepth and
integrated analysis of the most current and pressing energy issues
facing the state. The analyses supporting this integrated energy
policy report shall explicitly address interfuel and intermarket
effects to provide a more informed evaluation of potential tradeoffs
when developing energy policy across different markets and systems.
(c) The integrated energy policy report shall include an
assessment and forecast of system reliability and the need for
resource additions, efficiency, and conservation that considers all
aspects of energy industries and markets that are essential for the
state economy, general welfare, public health and safety, energy
diversity, and protection of the environment. This assessment shall
be based on determinations made pursuant to this chapter.
(d) Beginning November 1, 2004, and every two years thereafter,
the commission shall prepare an energy policy review to update
analyses from the integrated energy policy report prepared pursuant
to subdivisions (a), (b), and (c), or to raise energy issues that
have emerged since the release of the integrated energy policy
report. The commission may also periodically prepare and release
technical analyses and assessments of energy issues and concerns to
provide timely and relevant information for the Governor, the
Legislature, market participants, and the public.
(e) In preparation of the report, the commission shall consult
with the following entities: the Public Utilities Commission, the
Office of Ratepayer Advocates, the State Air Resources Board, the
Electricity Oversight Board, the Independent System Operator, the
Department of Water Resources, the California Consumer Power and
Conservation Financing Authority, the Department of Transportation,
and the Department of Motor Vehicles, and any federal, state, and
local agencies it deems necessary in preparation of the integrated
energy policy report. To assure collaborative development of state
energy policies, these agencies shall make a good faith effort to
provide data, assessment, and proposed recommendations for review by
the commission.
(f) The commission shall provide the report to the Public
Utilities Commission, the Office of Ratepayer Advocates, the State
Air Resources Board, the Electricity Oversight Board, the Independent
System Operator, the Department of Water Resources, the California
Consumer Power and Conservation Financing Authority, and the
Department of Transportation. For the purpose of ensuring consistency
in the underlying information that forms the foundation of energy
policies and decisions affecting the state, those entities shall
carry out their energy-related duties and responsibilities based upon
the information and analyses contained in the report. If an entity
listed in this subdivision objects to information contained in the
report, and has a reasonable basis for that objection, the entity
shall not be required to consider that information in carrying out
its energy-related duties.
(g) The commission shall make the report accessible to state,
local, and federal entities and to the general public.

25302.5. (a) As part of each integrated energy policy report
required pursuant to Section 25302, each entity that serves or plans
to serve electricity to retail customers, including, but not limited
to, electrical corporations, nonutility electric service providers,
community choice aggregators, and local publicly owned electric
utilities, shall provide the commission with its forecast of both of
the following:
(1) The amount of its forecasted load that may be lost or added by
any of the following:
(A) A community choice aggregator.
(B) An existing local publicly owned electric utility.
(C) A newly formed local publicly owned electric utility.
(2) Load that will be served by an electric service provider.
(b) The commission shall perform an assessment in the service
territory of each electrical corporation of the loss or addition of
load described in this section and submit the results of the
assessment to the Public Utilities Commission.
(c) Notwithstanding subdivision (a), the commission may exempt
from the forecasting requirements in that subdivision, a local
publicly owned electric utility that is not planning to acquire
additional load beyond its existing exclusive service territory
within the forecast period provided by the commission pursuant to
Section 25303.
(d) For purposes of this section, the following terms have the
following meanings:
(1) "Community choice aggregator" means any "community choice
aggregator" as defined in Section 331.1 of the Public Utilities Code.
(2) "Electrical corporation" means any "electrical corporation" as
defined in Section 218 of the Public Utilities Code.
(3) "Electric service provider" means any "electric service
provider" as defined in Section 218.3 of the Public Utilities Code.
(4) "Local publicly owned electric utility" means any "local
publicly owned electric utility" as defined in Section 224.3 of the
Public Utilities Code.

25303. (a) The commission shall conduct electricity and natural gas
forecasting and assessment activities to meet the requirements of
paragraph (1) of subdivision (a) of Section 25302, including, but not
limited to, all of the following:
(1) Assessment of trends in electricity and natural gas supply and
demand, and the outlook for wholesale and retail prices for
commodity electricity and natural gas under current market structures
and expected market conditions.
(2) Forecasts of statewide and regional electricity and natural
gas demand including annual, seasonal, and peak demand, and the
factors leading to projected demand growth, including, but not
limited to, projected population growth, urban development,
industrial expansion and energy intensity of industries, energy
demand for different building types, energy efficiency, and other
factors influencing demand for electricity. With respect to
long-range forecasts of the demand for natural gas, the report shall
include an evaluation of average conditions, as well as best and
worst case scenarios, and an evaluation of the impact of the
increasing use of renewable resources on natural gas demand.
(3) Evaluation of the adequacy of electricity and natural gas
supplies to meet forecasted demand growth. Assessment of the
availability, reliability, and efficiency of the electricity and
natural gas infrastructure and systems, including, but not limited
to, natural gas production capability both in and out of state,
natural gas interstate and intrastate pipeline capacity, storage and
use, and western regional and California electricity and transmission
system capacity and use.
(4) Evaluation of potential impacts of electricity and natural gas
supply, demand, and infrastructure and resource additions on the
electricity and natural gas systems, public health and safety, the
economy, resources, and the environment.
(5) Evaluation of the potential impacts of electricity and natural
gas load management efforts, including end-user response to market
price signals, as a means to ensure reliable operation of electricity
and natural gas systems.
(6) Evaluation of whether electricity and natural gas markets are
adequately meeting public interest objectives including the provision
of all of the following: economic benefits; competitive, low-cost
reliable services; customer information and protection; and
environmentally sensitive electricity and natural gas supplies. This
evaluation may consider the extent to which California is an element
within western energy markets, the existence of appropriate
incentives for market participants to provide supplies and for
consumers to respond to energy prices, appropriate identification of
responsibilities of various market participants, and an assessment of
long-term versus short-term market performance. To the extent this
evaluation identifies market shortcomings, the commission shall
propose market structure changes to improve performance.
(7) Identification of impending or potential problems or
uncertainties in the electricity and natural gas markets, potential
options and solutions, and recommendations.
(8) (A) Compilation and assessment of existing scientific studies
that have been performed by persons or entities with expertise and
qualifications in the subject of the studies to determine the
potential vulnerability to a major disruption due to aging or a major
seismic event of large baseload generation facilities, of 1,700
megawatts or greater.
(B) The assessment specified in subparagraph (A) shall include an
analysis of the impact of a major disruption on system reliability,
public safety, and the economy.
(C) The commission may work with other public entities and public
agencies, including, but not limited to, the California Independent
System Operator, the Public Utilities Commission, the Department of
Conservation, and the Seismic Safety Commission as necessary, to
gather and analyze the information required by this paragraph.
(D) Upon completion and publication of the initial review of the
information required pursuant to this paragraph, the commission shall
perform subsequent updates as new data or new understanding of
potential seismic hazards emerge.
(b) Commencing November 1, 2003, and every two years thereafter,
to be included in the integrated energy policy report prepared
pursuant to Section 25302, the commission shall assess the current
status of the following:
(1) The environmental performance of the electric generation
facilities of the state, to include all of the following:
(A) Generation facility efficiency.
(B) Air emission control technologies in use in operating plants.
(C) The extent to which recent resource additions have, and
expected resource additions are likely to, displace or reduce the
operation of existing facilities, including the environmental
consequences of these changes.
(2) The geographic distribution of statewide environmental,
efficiency, and socioeconomic benefits and drawbacks of existing
generation facilities, including, but not limited to, the impacts on
natural resources including wildlife habitat, air quality, and water
resources, and the relationship to demographic factors. The
assessment shall describe the socioeconomic and demographic factors
that existed when the facilities were constructed and the current
status of these factors. In addition, the report shall include how
expected or recent resource additions could change the assessment
through displaced or reduced operation of existing facilities.
(c) In the absence of a long-term nuclear waste storage facility,
the commission shall assess the potential state and local costs and
impacts associated with accumulating waste at California's nuclear
powerplants. The commission shall further assess other key policy and
planning issues that will affect the future role of nuclear
powerplants in the state. The commission's assessment shall be
adopted on or before November 1, 2008, and included in the 2008
energy policy review adopted pursuant to subdivision (d) of Section
25302.

25304. The commission shall conduct transportation forecasting and
assessment activities to meet the requirements of paragraph (2) of
subdivision (a) of Section 25302 including, but not limited to:
(a) Assessment of trends in transportation fuels, technologies,
and infrastructure supply and demand and the outlook for wholesale
and retail prices for petroleum, petroleum products, and alternative
transportation fuels under current market structures and expected
market conditions.
(b) Forecasts of statewide and regional transportation energy
demand, both annual and seasonal, and the factors leading to
projected demand growth including, but not limited to, projected
population growth, urban development, vehicle miles traveled, the
type, class, and efficiency of personal vehicles and commercial
fleets, and shifts in transportation modes.
(c) Evaluation of the sufficiency of transportation fuel supplies,
technologies, and infrastructure to meet projected transportation
demand growth. Assessment of crude oil and other transportation fuel
feedstock supplies; in-state, national, and worldwide production and
refining capacity; product output storage availability; and
transportation and distribution systems capacity and use.
(d) Assessments of the risks of supply disruptions, price shocks,
or other events and the consequences of these events on the
availability and price of transportation fuels and effects on the
state's economy.
(e) Evaluation of the potential for needed changes in the state's
energy shortage contingency plans to increase production and
productivity, improve efficiency of fuel use, increase conservation
of resources, and other actions to maintain sufficient, secure, and
affordable transportation fuel supplies for the state.
(f) Evaluation of alternative transportation energy scenarios, in
the context of least environmental and economic costs, to examine
potential effects of alternative fuels usage, vehicle efficiency
improvements, and shifts in transportation modes on public health and
safety, the economy, resources, the environment, and energy
security.
(g) Examination of the success of introduction, prices, and
availability of advanced transportation technologies, low- or
zero-emission vehicles, and clean-burning transportation fuels,
including their potential future contributions to air quality, energy
security, and other public interest benefits.
(h) Recommendations to improve the efficiency of transportation
energy use, reduce dependence on petroleum fuels, decrease
environmental impacts from transportation energy use, and contribute
to reducing congestion, promoting economic development, and enhancing
energy diversity and security.

25305. The commission shall rely upon forecasting and assessments
performed in accordance with Sections 25301 to 25304, inclusive, as
the basis for analyzing the success of and developing policy
recommendations for public interest energy strategies. Public
interest energy strategies include, but are not limited to, achieving
energy efficiency and energy conservation; implementing load
management; pursuing research, development, demonstration, and
commercialization of new technologies; promoting renewable generation
technologies; reducing statewide greenhouse gas emissions and
addressing the impacts of climate change on California; stimulating
California's energy-related business activities to contribute to the
state's economy; and protecting and enhancing the environment.
Additional assessments to address public interest energy strategies
shall include, but are not limited to, all of the following:
(a) Identification of emerging trends in energy efficiency in the
residential, commercial, industrial, agricultural, and transportation
sectors of the state's economy, including, but not limited to,
evaluation of additional achievable energy efficiency measures and
technologies. Identification of policies that would permit fuller
realization of the potential for energy efficiency, either through
direct programmatic actions or facilitation of the market.
(b) Identification of emerging trends in the renewable energy
industry. In addition, the commission shall evaluate progress in
ensuring the operation of existing facilities, and the development of
new and emerging, in-state renewable resources.
(c) Identification of emerging trends in energy research,
development, and demonstration activities that advance science or
technology to produce public benefits.
(d) Identification of progress in reducing statewide greenhouse
gas emissions and addressing the effects of climate change on
California.

25305.5. The commission shall include in its report prepared
pursuant to Sections 25301 to 25304, inclusive, a description of
international energy market prospects and an evaluation of its export
promotion activities, as well as an assessment of the state of the
California energy technology and energy conservation industry's
efforts to enter foreign markets. The report shall also include
recommendations for state government initiatives to foster the
California energy technology and energy conservation industry's
competition in world markets.

25306. The commission shall conduct workshops, hearings, and other
forums to gain the perspectives of the public and market participants
for purposes of the integrated energy policy report prepared
pursuant to Section 25302 and the forecasting and assessments
prepared pursuant to Sections 25301, 25303, 25304, and 25305. The
commission shall include the comments, as well as responses to those
comments, of governmental agencies, industry representatives, market
participants, private groups, and any other person concerning the
commission's proposals and recommendations in the docket for the
integrated energy policy report.

25307. (a) The Governor shall review the integrated energy policy
report prepared pursuant to Section 25302 and shall, on or before 90
days after receipt of the report, report further to the Legislature
the Governor's agreement or disagreement with the policy
recommendations contained in that report. The Governor's report to
the Legislature shall cover the information required to be included
in the integrated energy policy report and may cover any additional
item that is necessary or appropriate. If the Governor disagrees with
one or more recommendations in the integrated energy policy report,
the Governor shall, in each instance, indicate the reason for
disagreement and shall specify the alternate policy the Governor
finds appropriate.
(b) The Governor's report to the Legislature pursuant to this
section is the Governor's official statement of energy policy.

25310. On or before November 1, 2007, and by November 1 of every
third year thereafter, the commission in consultation with the Public
Utilities Commission and local publicly owned electric utilities, in
a public process that allows input from other stakeholders, shall
develop a statewide estimate of all potentially achievable
cost-effective electricity and natural gas efficiency savings and
establish targets for statewide annual energy efficiency savings and
demand reduction for the next 10-year period. The commission shall
base its estimate at least in part on information developed pursuant
to Sections 454.55, 454.56, 715, 9615, and 9615.5 of the Public
Utilities Code. The commission shall, for each electrical corporation
and each gas corporation, include in the integrated energy policy
report, a comparison of the public utility's annual targets
established pursuant to Sections 454.55 and 454.56, and the public
utility's actual energy efficiency savings and demand reductions.

25320. (a) The commission shall manage a data collection system for
obtaining information necessary to develop the policy reports and
analyses required by Sections 25301 to 25307, inclusive, the energy
shortage contingency planning efforts in Chapter 8 (commencing with
Section 25700), and to support other duties of the commission.
(b) The data collection system, adopted by regulation under
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code, and managed by the commission
shall:
(1) Include a timetable for the submission of this information, so
that the integrated energy policy report required by Section 25302
can be completed in an accurate and timely manner.
(2) Require a person to submit only information that is reasonably
relevant, and that the person can either be expected to acquire
through his or her market activities, or possesses or controls.
Information collected pursuant to this section shall relate to the
functional role of each category of market participant in that
industry and the consumers within that industry.
(3) To the extent it satisfies the information needs of the
commission, rely on the use of estimates and proxies, to the maximum
extent practicable, for some data elements using survey and research
techniques, while for other information it shall obtain data from
market participants using submissions consistent with their
accounting records. In determining whether to rely upon estimates or
participant provided data, the commission shall weigh the burden of
compliance upon industry participants and energy consumers against
the benefit of participant provided data for the public interest.
(4) To the extent it satisfies the information needs of the
commission, rely on data, to the maximum extent practicable, that is
reported to other government agencies or is otherwise available to
the commission.
(c) Pursuant to the requirements of subdivision (b), the data
collection system for electricity and natural gas shall enumerate
specific requirements for each category of market participants,
including, but not limited to, private market participants, energy
service providers, energy service companies, natural gas marketers,
electric utility and natural gas utility companies, independent
generators, electric transmission entities, natural gas producers,
natural gas pipeline operators, importers and exporters of
electricity and natural gas, and specialized electric or natural gas
system operators. The commission may also collect information about
consumers' natural gas and electricity use from their voluntary
participation in surveys and other research techniques.
(d) Pursuant to the requirements of subdivision (b), the data
collection system for nonpetroleum fuels and transportation
technologies shall enumerate specific requirements for each category
of market participant, including, but not limited to, fuel importers
and exporters, fuel distributors and retailers, fuel pipeline
operators, natural gas liquid producers, and transportation
technology providers. The commission may also collect information
about consumers' nonpetroleum fuel and transportation technology use
from their voluntary participation in surveys and other research
techniques.
(e) The commission shall collect data for petroleum fuel pursuant
to Chapter 4.5 (commencing with Section 25350). The commission may
also collect information about consumers' petroleum fuel use from
consumers' participation in surveys and other research techniques.

25321. In order to ensure timely and accurate compliance with the
data collection system adopted under Section 25320, the commission
may use any of the following enforcement measures:
(a) If any person fails to comply with an applicable provision of
the data collection system, the commission shall notify the person.
If, after five working days from being notified of the violation, the
person continues to fail to comply, the person shall be subject to a
civil penalty, to be imposed by the commission after a hearing that
complies with constitutional requirements.
(1) The civil penalty shall not be less than five hundred dollars
($500) nor more than two thousand dollars ($2,000) for each category
of data the person did not provide and for each day the violation has
existed and continues to exist.
(2) In the case of a person who willfully makes any false
statement, representation, or certification in any record, report,
plan, or other document filed with the commission, the civil penalty
shall not be less than five hundred dollars ($500) nor more than two
thousand dollars ($2,000) per day applied to each day in the interval
between the original due date and the date when corrected
information is submitted.
(b) For the purposes of this section, "person" means, in addition
to the definition contained in Section 25116, any responsible
corporate officer.
(c) Enforcement measures for petroleum and other fuels shall be
those contained in Section 25362.

25322. (a) The data collection system managed pursuant to Section
25320 shall include the following requirements regarding the
confidentiality of the information collected by the commission:
(1) Any person required to present information to the commission
pursuant to this section may request that specific information be
held in confidence. The commission shall grant the request in any of
the following circumstances:
(A) The information is exempt from disclosure under the California
Public Records Act, Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code.
(B) The information satisfies the confidentiality requirements of
Article 2 (commencing with Section 2501) of Chapter 7 of Division 2
of Title 20 of the California Code of Regulations, as those
regulations existed on January 1, 2002.
(C) On the facts of the particular case, the public interest
served by not disclosing the information clearly outweighs the public
interest served by disclosure of the information.
(2) The commission may, by regulation, designate certain
categories of information as confidential, which removes the
obligation to request confidentiality for that information.
(3) Any confidential information pertinent to the responsibilities
of the commission specified in this chapter that is obtained by
another state agency, or the California Independent System Operator
or its successor, shall be available to the commission and shall be
treated in a confidential manner.
(4) Information presented to or developed by the commission and
deemed confidential pursuant to this section shall be held in
confidence by the commission. Confidential information shall be
aggregated or masked to the extent necessary to assure
confidentiality if public disclosure of the specific information
would result in an unfair competitive disadvantage to the person
supplying the information.
(b) Requests for records of information shall be handled as
follows:
(1) If the commission receives a written request to publicly
disclose information that is being held in confidence pursuant to
paragraph (1) or (2) of subdivision (a), the commission shall provide
the person making the request with written justification for the
confidential designation and a description of the process to seek
disclosure.
(2) If the commission receives a written request to publicly
disclose a disaggregated or unmasked record of information designated
as confidential under paragraph (1) or (2) of subdivision (a),
notice of the request shall be provided to the person that submitted
the record. Upon receipt of the notice, the person that submitted the
record may, within five working days of receipt of the notice,
provide a written justification of the claim of confidentiality.
(3) The commission or its designee shall rule on a request made
pursuant to paragraph (2) on or before 20 working days after its
receipt. The commission shall deny the request if the disclosure will
result in an unfair competitive disadvantage to the person that
submitted the information.
(4) If the commission grants the request pursuant to paragraph
(3), it shall withhold disclosure for a reasonable amount of time,
not to exceed 14 working days, to allow the submitter of the
information to seek judicial review.
(c) No information submitted to the commission pursuant to this
section is confidential if the person submitting the information has
made it public.
(d) The commission shall establish, maintain, and use appropriate
security practices and procedures to ensure that the information it
has designated as confidential, or received with a confidential
designation from another government agency, is protected against
disclosure other than that authorized using the procedures in
subdivision (b). The commission shall incorporate the following
elements into its security practices and procedures:
(1) Commission employees shall sign a confidential data disclosure
agreement providing for various remedies, including, but not limited
to, fines and termination for wrongful disclosure of confidential
information.
(2) Commission employees, or contract employees of the commission,
shall only have access to confidential information when it is
appropriate to their job assignments and if they have signed a
nondisclosure agreement.
(3) Computer data systems that hold confidential information shall
include sufficient security measures to protect the data from
inadvertent or wrongful access by unauthorized commission employees
and the public.
(e) Data collected by the commission on petroleum fuels in Section
25320 shall be subject to the confidentiality provisions of Sections
25364 to 25366, inclusive.

25323. Nothing in this division shall authorize the commission in
the performance of its analytical, planning, siting, or certification
responsibilities to mandate a specified supply plan for any utility.

25324. The commission, in consultation with the Public Utilities
Commission, the California Independent System Operator, transmission
owners, users, and consumers, shall adopt a strategic plan for the
state's electric transmission grid using existing resources. The
strategic plan shall identify and recommend actions required to
implement investments needed to ensure reliability, relieve
congestion, and meet future growth in load and generation, including,
but not limited to, renewable resources, energy efficiency, and
other demand reduction measures. The plan shall be included in the
integrated energy policy report adopted on November 1, 2005, pursuant
to subdivision (a) of Section 25302.