BILL NUMBER: AB 1351	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 6, 2009
	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Blakeslee

                        FEBRUARY 27, 2009

   An act to amend Section 399.12.5 of the Public Utilities Code,
relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1351, as amended, Blakeslee. Renewable energy resources.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations.
The Public Utilities Act imposes various duties and responsibilities
on the commission with respect to the purchase of electricity and
requires the commission to review and adopt a procurement plan and a
renewable energy procurement plan for each electrical corporation
pursuant to the California Renewables Portfolio Standard Program. The
program requires that a retail seller of electricity, including
electrical corporations, community choice aggregators, and electric
service providers, purchase a specified minimum percentage of
electricity generated by eligible renewable energy resources, as
defined, in any given year as a specified percentage of total
kilowatthours sold to retail end-use customers each calendar year.
   Under existing law, the incremental increase in the amount of
electricity generated from a hydroelectric generation facility as a
result of efficiency improvements at the facility is electricity from
an eligible renewable resource for purposes of the California
Renewables Portfolio Standard Program if certain requirements are
met. One of these requirements is that the hydroelectric generation
facility has been certified by the State Water Resources Control
Board pursuant to the federal Clean Water Act or by a regional board
to which the board has delegated authority.
   This bill would delete the requirement that a hydroelectric
generation facility be certified by the board pursuant to the federal
Clean Water Act and would instead allow a facility to meet the
certification requirement if it is certified by any state board or
agency pursuant to the federal Clean Water Act.  The bill would
add a requirement that the facility be owned by a retail  
seller or local publicly owned electric utility. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 399.12.5 of the Public Utilities Code is
amended to read:
   399.12.5.  (a) Notwithstanding subdivision (c) of Section 399.12,
a small hydroelectric generation facility that satisfies the criteria
for an eligible renewable energy resource pursuant to Section 399.12
shall not lose its eligibility if efficiency improvements undertaken
after January 1, 2008, cause the generating capacity of the facility
to exceed 30 megawatts, and the efficiency improvements do not
result in an adverse impact on instream beneficial uses or cause a
change in the volume or timing of streamflow. The entire generating
capacity of the facility shall be eligible.
   (b) Notwithstanding subdivision (c) of Section 399.12, the
incremental increase in the amount of electricity generated from a
hydroelectric generation facility as a result of efficiency
improvements at the facility, is electricity from an eligible
renewable energy resource, without regard to the electrical output of
the facility, if all of the following conditions are met:
   (1) The incremental increase is the result of efficiency
improvements from a retrofit that do not result in an adverse impact
on instream beneficial uses or cause a change in the volume or timing
of streamflow.
   (2) The hydroelectric generation facility has, within the
immediately preceding 15 years, received certification from a state
board or agency pursuant to Section 401 of the Clean Water Act (33
U.S.C. Sec. 1341), or has received certification from a regional
board to which the state board has delegated authority to issue
certification, unless the facility is not subject to certification
because there is no potential for discharge into waters of the United
States.
   (3) The hydroelectric generation facility  is owned by a
retail seller or a local publicly owned electric utility,  was
operational prior to January 1, 2007, the efficiency improvements are
initiated on or after January 1, 2008, the efficiency improvements
are not the result of routine maintenance activities, as determined
by the Energy Commission, and the efficiency improvements were not
included in any resource plan sponsored by the facility owner prior
to January 1, 2008.
   (4) All of the incremental increase in electricity resulting from
the efficiency improvements are demonstrated to result from a
long-term financial commitment by the retail seller or local publicly
owned electric utility. For purposes of this paragraph, "long-term
financial commitment" means either new ownership investment in the
facility by the retail seller or local publicly owned electric
utility or a new or renewed contract with a term of 10 or more years,
which includes procurement of the incremental generation.
   (c) The incremental increase in the amount of electricity
generated from a hydroelectric generation facility as a result of
efficiency improvements at the facility are not eligible for
supplemental energy payments pursuant to the Renewable Energy
Resources Program (Chapter 8.6 (commencing with Section 25740) of
Division 15 of the Public Resources Code), or a successor program.