ALJ/CFT/gd2 Date of Issuance 4/13/2010

Decision 10-04-022 April 8, 2010

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Implement the Commission's Procurement Incentive Framework and to Examine the Integration of Greenhouse Gas Emissions Standards into Procurement Policies.

Rulemaking 06-04-009
(Filed April 13, 2006)

DECISION GRANTING INTERVENOR COMPENSATION
TO UNION OF CONCERNED SCIENTISTS AND NATURAL RESOURCES
DEFENSE COUNCIL FOR SUBSTANTIAL CONTRIBUTION TO
DECISIONS (D.) 07-09-017, D.08-03-018, AND D.08-10-037

DECISION GRANTING INTERVENOR COMPENSATION TO
UNION OF CONCERNED SCIENTISTS AND NATURAL RESOURCES
DEFENSE COUNCIL FOR SUBSTANTIAL CONTRIBUTION TO
DECISIONS (D.) 07-09-017, D.08-03-018, AND D.08-10-037 1 1

1. Background 2 2

2. Requirements for Awards of Compensation 3 3

2.1. Preliminary Procedural Issues 4 4

3. Substantial Contribution 6 6

3.1. UCS' and NRDC's Contributions to D.07-09-017 7 7

3.2. UCS' and NRDC's Contributions to D.08-03-018 9 9

3.3. UCS' and NRDC's Contributions to D.08-10-037 12 12

4. Contributions of Other Parties 20 20

5. Reasonableness of Requested Compensation 22 22

5.1. Hours and Costs Related to and Necessary for Substantial Contributions 24 24

5.1.1. UCS' Hours and Costs 24 24

5.1.2. NRDC's Hours and Costs 33 33

5.2. Intervenor Hourly Rates 36 36

5.2.1. Alan Nogee 36 36

5.2.2. John Galloway 37 37

5.2.3. Cliff Chen 37 37

5.2.4. Chris Busch 37 37

5.2.5. Laura Wisland 38 38

5.2.6. Audrey Chang 39 39

5.2.7. Kristin Grenfell 39 39

5.2.8. Noah Long 39 39

5.2.9. Peter Miller 40 40

5.2.10. Devra Wang 40 40

5.3. Direct Expenses 40 40

6. Productivity 40 40

6.1. Union of Concerned Scientists 41 41

6.2. Natural Resources Defence Council 41 41

6.3. Conclusion 43 43

7. Award 43 43

8. Waiver of Comment Period 46 46

9. Assignment of Proceeding 46 46

Findings of Fact 46 46

Conclusions of Law 47 47

ORDER 47 47

Appendix A

DECISION GRANTING INTERVENOR COMPENSATION
TO UNION OF CONCERNED SCIENTISTS AND NATURAL RESOURCES
DEFENSE COUNCIL FOR SUBSTANTIAL CONTRIBUTION TO
DECISIONS (D.) 07-09-017, D.08-03-018, AND D.08-10-037

This decision awards Union of Concerned Scientists (UCS) $48,056.65 and Natural Resources Defense Council (NRDC) $95,478.39 for their respective substantial contributions to Decisions (D.) 07-09-017, D.08-03-018, and D.08-10-037. This represents a decrease of $13,204.85 or 21% from the amount requested by UCS and of $28,831.61 or 23% from the amount requested by NRDC due to, among other things, unproductive effort, inefficient work, and excessive hours. Today's award payment will be allocated to the affected utilities. This proceeding remains open to address a petition for modification.

1. Background

This proceeding was originally initiated to implement an emissions performance standard and a load-based emission cap. The rulemaking was subsequently modified several times to make it the venue for implementing Senate Bill (SB) 1368¹ and Assembly Bill (AB) 32.²

In Phase 1 of the proceeding the California Public Utilities Commission (Commission) adopted an interim Greenhouse Gas (GHG) Emissions Performance Standard (EPS) for new long-term financial commitments to baseload generation, consistent with the requirements and definitions of SB 1368.

The Phase 2 Scoping Memo provided that the proceeding would be used for the Commission to provide, in collaboration with the California Energy Commission (CEC), recommendations to the California Air Resources Board (ARB) regarding, among other things, a GHG emissions cap, and reporting and verification regulations that ARB should adopt pursuant to AB 32. Decisions (D.) 07-09-017, D.08-03-018, and D.08-10-037 addressed Phase 2 issues. D.07-09-017 recommended that ARB adopt the proposed regulations as reporting and verification requirements applicable to retail providers and marketers in the electricity sector. Phase 2 of the proceeding also addressed the appropriate regulatory model for GHG regulation in the electric sector, the appropriate mix of regulatory versus market strategies for regulating GHG emissions and the method for allocating allowances under a potential cap-and-trade system. In D.08-03-018 the Commission recommended that the electric sector be included in a multi-sector cap-and-trade system with in-state generators and "first sellers" as the regulated entities. In D.08-10-037 the Commission made recommendations concerning emissions reduction strategies and the allocation of allowances in a cap-and-trade system.

¹ Codified in Public Utilities Code Sections 8340 et seq.

² Codified in Health and Safety Code Sections 38500 et seq.