BILL ANALYSIS                                                                                                                                                                                                    



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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          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  
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          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  
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          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

























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