Schwarzenegger Halts Energy Agency Rulemaking

Recently adopted energy regulations were frozen for 180 days by the new governor on his first day in office. Four recent rulemaking proceedings at the California Energy Commission (CEC) have been affected, while the impact on the California Public Utilities Commission (CPUC) is unclear. The executive order issued by Governor Arnold Schwarzenegger directly affected the CEC?s recently adopted regulations that specify who can leave the grid without paying an exit fee, energy- and water-efficiency standards for washing machines, and the commission?s updated conflict-of-interest rules for employees required to disclose investments that could affect decision making. Indirectly affected are the agency?s energy-efficiency standards for new and existing buildings and outdoor lighting adopted November 5. The latter circumvent the governor?s order because they apply to rules under review by the Office of Administrative Law (OAL). Unlike the other three rules, the CEC?s building conservation regulations are being reviewed by the Building Standards Commission. Few expect Schwarzenegger?s November 17 order, which stops recently adopted or proposed rules implementing state legislation and standards in their tracks, to interfere with the various CPUC proceedings, including the one regarding utilities? power purchases. At a November 19 hearing by the Senate Energy, Utilities and Communications Committee, Paul Clanon, the CPUC?s Energy Division director, told lawmakers his agency was assessing the order but ?nothing was on hold today.? Senator Byron Sher (D-Palo Alto) was quick to point out that the CPUC is a constitutionally created entity not under the control of the executive branch. The California Power Authority is not affected because it is not a regulatory body and cannot issue binding rules. An executive order freezing state agencies? rulemaking procedures is unprecedented, but it is not uncommon for incoming administrations to request that state agencies report on all new rules and proposed regulations in the works, noted CEC spokesperson Claudia Chandler. The stated rationale for Schwarzenegger?s order is the ?unprecedented growth? in regulations and associated increases in costs, which have diminished the competitiveness of California businesses. The order calls for the ?immediate return? of all state regulations adopted, repealed, or processed by the OAL. In addition, it requires all state agencies to submit reports on all regulations adopted or in the works since 1999. The reporting requirements will be met by a business impact analysis that the CEC has been working on, Chandler said.

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Schwarzenegger Halts Energy Agency Rulemaking

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