BILL ANALYSIS + ----------------------------------------------------------------- | | | SENATE COMMITTEE ON NATURAL RESOURCES AND WATER | | Senator Fran Pavley, Chair | | 2009-2010 Regular Session | | | ----------------------------------------------------------------- BILL NO: AB 1012 HEARING DATE: August 25, 2010 AUTHOR: M. Perez URGENCY: Yes VERSION: August 20, 2010 CONSULTANT: Bill Craven DUAL REFERRAL: No FISCAL: Yes SUBJECT: Energy: renewable resources: endangered species. BACKGROUND AND EXISTING LAW Earlier this year, the Legislature passed and the Governor approved SB 8X 34 (Padilla), a measure which, among other provisions, allowed the Department of Fish and Game (DFG) to collect a fee of $75,000 for specified renewable energy projects in the area included within the Desert Renewable Energy Conservation Plan (DRECP). The DRECP includes large swaths of the Colorado and Mojave deserts in Imperial, San Diego, Riverside, San Bernardino, Los Angeles, Kern, and Mono counties. The DRECP is intended to serve as a Natural Communities Conservation Plan (NCCP) for this region's development of renewable energy projects. As such, lands designated for development and lands designated for conservation purposes will be identified and dedicated to those purposes consistent with the terms of the NCCP Act and other applicable provisions of law. The fee is intended to offset the department's costs in processing incidental take permit applications that may be needed depending on the circumstances of each proposed renewable energy development. Projects eligible pursuant to SB 8X 34 were limited to those within the DRECP, those receiving federal American Recovery and Reinvestment Act (ARRA) funding, and also were limited to solar thermal or photovoltaic power plants. This latter limitation was designed to focus on the 15 projects that were pending review in the DRECP region that needed to have permits issued in 2010 in 1 order to retain their ARRA funding and their federal tax credits. ARRA requires projects to begin construction by December 31, 2010. SB 8X 34 also allowed developers to pay in-lieu fees that would be used by DFG to acquire and restore habitat lands for species affected by these specified renewable energy projects. This provision could be used as an alternative to developers' mitigating the impacts of each of these projects on an individual, per project basis. This approach also allows DFG to coordinate the mitigation and to avoid piecemeal mitigation. DFG received a loan of $10 million for this purpose. The bill also required DFG to develop an interim mitigation strategy that would establish conservation benchmarks for the DRECP and to identify high priority lands that should be acquired. The interim mitigation strategy has been revised by DFG and is now undergoing review by a science panel. PROPOSED LAW This bill would require DFG to collect a fee of $75,000 to pay for all or a portion of the costs of DFG processing incidental take permits on a statewide basis, not just in the DRECP. Unlike SB 8X 34, this bill would define "eligible project" to mean all renewable energy resource development projects as defined in the California Renewable Portfolio Standard. Those projects include solar photovoltaic, biomass, biogas, small hydro, geothermal, and wind, among others. If the fee is inadequate for this purpose, the DFG may obtain an additional fee that represents its actual costs but that shall not exceed $75,000. ARGUMENTS IN SUPPORT None received ARGUMENTS IN OPPOSITION None received COMMENTS This bill would allow DFG to collect a fee from renewable energy developers for all renewable energy development applications on a statewide basis. Several state agencies are involved in processing applications by developers of renewable energy projects. DFG has been trying not only to develop its in-lieu pricing structure (which is not 2 yet finalized) but also working to conclude its arrangements for 36,000 acres of lands that could be used as advance mitigation. Moreover, some 287 projects are now in the regulatory process of the state agencies, but DFG is authorized to collect the $75,000 fee only for specified projects in the DRECP. DFG has been subject to criticism that it is not moving fast enough on this front. For example, an article in California Energy Markets of August 20, 2010, states that "no developer has specifically taken advantage of SB X8 34, in part because the mitigation strategies that were to be designed by the Department of Fish and Game are not yet finalized." That and other criticisms notwithstanding, it may be the case that DFG's capacity to process and issue permits would improve were this bill to become law. SUPPORT None Received OPPOSITION None Received 3