I. INTRODUCTION
In this Order we dispose of the applications for rehearing of Decision
(D.) 08-04-039 as modified by D.08-04-054 ("Corrected D.08-04-039" or "Decision") filed by the Utility Reform Network ("TURN"), the Division of Ratepayer Advocates ("DRA"), and the Utility Consumers Action Network ("UCAN") (collectively the "Joint Parties"), and by the Consumer Federation of California ("CFC").1
Our Decision approved establishment of the California Institute for Climate Solutions ("CICS"). The CICS was intended to be a grant-making body to fund applied research and development ("R&D") of practical and commercially viable technologies to reduce GHG emissions and slow global warming. The mission of the CICS was consistent with climate change and GHG emissions policies under Assembly Bill ("AB") 32, The Global Warming Solutions Act of 2006,2 and Senate Bill ("SB") 1368.3
Timely applications for rehearing were filed by the Joint Parties, and by CFC. The Joint Parties incorporated by reference the Legislative Counsel of California Letter of April 28, 2008 opposing the Decision. Accordingly, they challenged the Decision on the grounds that: (1) AB 32 and SB 1368 do not provide the Commission with authority to establish the CICS; (2) the Commission exceeded its authority under the California Constitution; and (3) the establishment of the CICS is inconsistent with the statutorily established scheme for energy R&D related to electrical and gas corporations. The Joint Parties also requested an explanation regarding the administration of ratepayer funds.
CFC challenged the Decision on the grounds that: (1) the Commission exceeded its authority under the California Constitution; (2) the Commission unlawfully invaded a field which the Legislature has occupied; (3) the Decision interferes with CARB's authority to regulate GHG emissions; and (4) the surcharge is an unlawful tax. No responses were filed.
On September 23, 2008, the Governor signed the State budget, including trailer bill AB 1338 (Stats. 2008, ch. 760, effective immediately).4 AB 1338 contains language regarding the Commission's authority to authorize funds for establishment of the CICS.5
As explained below, as a result of the passage of AB 1338 we find it appropriate to vacate the Decision. We will direct the Energy Division to cease any efforts to review and approve utility advice letters filed for the purpose of implementing tariffs in connection with the Decision. We will also dismiss the applications for rehearing of Corrected D.08-04-039, as moot.
1 In D.08-04-054, we corrected typographical errors and inadvertent inconsistencies in D.08-04-039. No substantive changes were made.
2 AB 32 (Stats. 2006, ch. 488, effective September 27, 2006), codified in Division 24.5 of the Health and Safety Code. AB 32 requires, among other things, that the California Air Resources Board ("CARB") adopt regulations to require the reporting of GHG emissions and to monitor and enforce compliance with the program (Health & Saf. Code, § 38530, subd. (a)), and approve a statewide GHG emissions limit equivalent to the level to be achieved by 2020. (Health & Saf. Code, § 38550.)
3 SB 1368 (Stats. 2006, ch. 598, effective September 29, 2006), codified in Division 4.1, Chapter 3 (commencing with Section 8340) of the Public Utilities Code. SB 1368 requires, among other things, that the Commission, through a rulemaking proceeding, and in consultation with the Energy Commission and CARB, establish a GHG emission performance standard for all baseload generation of load-serving entities, at a rate of emissions that is no higher than the rate for combined-cycle natural gas baseload generation. (Pub. Util. Code, § 8341, subd. (d)(1).)
4 The Governor approved AB 1338 on September 30, 2008.
5 On September 30, 2008, the Governor vetoed Senate Bill ("SB") 1762. SB 1762 would have authorized a California Climate Change Institute to be established by the University of California, subject to the general oversight of the Legislature.
