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