BILL ANALYSIS AB 1351 Page 1 Date of Hearing: April 13, 2009 ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE Felipe Fuentes, Chair AB 1351 (Blakeslee) - As Amended: April 13, 2009 SUBJECT : Renewable Energy Resources. SUMMARY : Allows for incremental increases in electricity production from hydroelectric facilities to count toward a retail seller's Renewable Portfolio Standard (RPS) obligation if the hydroelectric facilities are certified by the appropriate state agency instead of the State Water Resources Control Board (Water Board). EXISTING LAW : 1)Requires investor-owned utilities (IOUs) and other retail sellers to meet the California RPS by procuring at least 20% of electricity delivered to their retail customers from eligible renewable resources by 2010. 2)Defines eligible renewable resources technologies to include biomass, solar thermal, photovoltaic, wind, geothermal, fuel cells using renewable fuels, small hydroelectric (30 megawatts ((MW) or less), digester gas, municipal solid waste conversion, landfill gas, ocean wave, ocean thermal, and tidal current. 3)Allows an incremental increase in the amount of electricity produced at a hydroelectric facility to count toward an RPS obligation if the increase is the result of efficiency improvements to the facility and the facility has received certification from the Water Board. FISCAL EFFECT : Unknown. COMMENTS : According to the author, the purpose of this bill is to remedy a drafting error from AB 809 (Blakeslee), Chapter 684, Statute of 2007. AB 1351 clarifies that the Clean Water Act certification, which is required under AB 804, does not have to come specifically from the Water Board, but can come from the state agency authorized to certify under the Clean Water Act. Background : In 2007, the Legislature approved AB 809, which AB 1351 Page 2 allowed for incremental increase in electricity production that resulted from efficiency improvements at hydroelectric facilities to count toward a retail seller's RPS obligation if the improvements met specified environmental standards. The hydroelectric facility also has to be certified by the Water Board under the Federal Clean Water Act. At the time AB 809 was moving through the Legislature, the multi-jurisdictional utilities that served electric customers in multiple states noted that by requiring certification by a California agency it prohibited them from counting improvements to their own hydroelectric facilities located outside of California. This bill corrects that problem by eliminating the specific reference to the Water Board and instead allowing for certification by the appropriate state agency. REGISTERED SUPPORT / OPPOSITION : Support Pacific Power Sierra Pacific Power Company Opposition None on file. Analysis Prepared by : Edward Randolph / U. & C. / (916) 319-2083