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