BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  AB 1012|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 1012
          Author:   V. Manuel Perez (D), et al
          Amended:  8/20/10 in Senate
          Vote:     21

           
           PRIOR VOTES NOT RELEVANT

          SENATE NATURAL RES. & WATER COMMITTEE  :  5-2, 8/25/10
          AYES:  Pavley, Kehoe, Lowenthal, Padilla, Wolk
          NOES:  Cogdill, Huff
          NO VOTE RECORDED:  Hollingsworth, Simitian

           SENATE APPROPRIATIONS COMMITTEE  :  7-3, 8/27/10
          AYES:  Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
          NOES:  Ashburn, Emmerson, Walters
          NO VOTE RECORDED:  Wyland


           SUBJECT  :    Energy:  renewable resources:  endangered  
          species

           SOURCE  :     Author


           DIGEST  :    This bill establishes a procedure for the  
          Department of Fish and Game to assess a permit application  
          fee from the owner or developer of an eligible renewable  
          energy project.

           Senate Floor Amendments  of 8/20/10 delete the previous  
          version of the bill relating to broad band communications  
          and now authorizes a fee of $75,000 for the Department of  
                                                           CONTINUED





                                                               AB 1012
                                                                Page  
          2

          Fish and Game's permitting work pursuant to the California  
          Endangered Species Act for specified renewable energy  
          projects.

           ANALYSIS  :    The Warren-Alquist State Energy Resources  
          Conservation and Development Act establishes the State  
          Energy Resources Conservation and Development Commission  
          (Energy Commission), and requires it to certify sufficient  
          sites and related facilities that are required to provide a  
          supply of electricity sufficient to accommodate projected  
          demand for power statewide.  The act grants the Energy  
          Commission the exclusive authority to certify any  
          stationary or floating electrical generating facility using  
          any source of thermal energy, with a generating capacity of  
          50 megawatts or more, and any facilities appurtenant  
          thereto.  Existing law requires the Energy Commission to  
          establish a process for certain applicants for  
          certification of a solar thermal powerplant that are  
          proposed to be constructed in the planning area for the  
          Desert Renewable Energy Conservation Plan, as defined, that  
          allows the applicant to elect to pay additional fees to be  
          used by the Energy Commission to contract with 3rd parties  
          to assist the Energy Commission staff in performing the  
          analysis otherwise performed by staff in determining  
          whether or not to issue a certification.

          The California Endangered Species Act (CESA) requires the  
          Fish and Game Commission to establish a list of endangered  
          species and a list of threatened species, and requires the  
          Department of Fish and Game (DFG) to recommend, and the  
          commission to adopt, criteria for determining if a species  
          is endangered or threatened.  CESA authorizes DFG to  
          authorize the take of threatened species, endangered  
          species, or candidate species by permit if certain  
          requirements are met.  CESA authorizes DFG, in consultation  
          with the Energy Commission and, to the extent practicable,  
          the United States Fish and Wildlife Service and the United  
          States Bureau of Land Management, to design and implement  
          actions to protect, restore, or enhance the habitat of  
          plants and wildlife that can be used to fully mitigate the  
          impacts of the take of endangered, threatened, or candidate  
          species (mitigation actions) resulting from certain solar  
          thermal and photovoltaic powerplants in the planning area  
          of the Desert Renewable Energy Conservation Plan.

                                                           CONTINUED





                                                               AB 1012
                                                                Page  
          3


          Existing law requires DFG to collect, and requires the  
          owner or developer of certain solar thermal powerplants or  
          photovoltaic powerplants to pay, a one-time permit  
          application fee of $75,000.  Existing law requires DFG to  
          utilize the permit application fee to pay for all or a  
          portion of DFG's cost of processing incidental take permit  
          applications pursuant to CESA. 

          This bill requires 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 defines "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. 

           Background
           
          Earlier this year, the Legislature passed and the Governor  
          approved SB 8X 34 (Padilla), a measure which, among other  
          provisions, allows the DFG to collect a fee of $75,000 for  
          specified renewable energy projects in the area included  
          within the 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 intendeds 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 DFG's costs in processing  
          incidental take permit applications that may be needed  
          depending on the circumstances of each proposed renewable  
          energy development. 

                                                           CONTINUED





                                                               AB 1012
                                                                Page  
          4


          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 order to retain  
          their ARRA funding and their federal tax credits.  ARRA  
          requires projects to begin construction by December 31,  
          2010. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

                          Fiscal Impact (in thousands)

           Major Provisions             2010-11             2011-12          
              2012-13            Fund

           Fee revenues                  About ($2,250) per year        
                                   Special*

          *Fish and Game Preservation Fund


          CTW:do  8/27/10   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

                                ****  END  ****














                                                           CONTINUED