BILL ANALYSIS AB 1351 Page 1 Date of Hearing: May 20, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 1351 (Blakeslee) - As Amended: May 6, 2009 Policy Committee: UtilitiesVote:13-0 (Consent) Natural Resources 8-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill revises certification conditions for hydroelectric facilities eligible for the Renewables Portfolio Standard (RPS) to permit certification from an agency other than the State Water Resources Control Board (SWRCB), such as if the facility is located in another state, as long as the facility is owned by a retail seller of electricity to end-use California customers or a publicly owned electric utility. FISCAL EFFECT Negligible fiscal impact to the Public Utilities Commission and the California Energy Commission. COMMENTS Background and Purpose . Current law generally limits RPS eligibility of hydroelectric facilities to facilities of 30 megawatts or less, but permits increases in electricity production from facilities over 30 megawatts, if the increase results from efficiency improvements and meets specified water quality criteria, including that the facility, within the last 15 years, has received an exemption or certification from the SWRCB pursuant to the federal Clean Water Act. This requirement for SWRCB certification acts as a prohibition on out of state facilities, which are not under SWRCB jurisdiction. This bill is intended to accommodate RPS eligibility for efficiency improvement at large, out-of-state hydroelectric facilities, which may provide an additional incentive for AB 1351 Page 2 facilities to undertake efficiency improvement and increase the availability of resources for compliance with California's RPS. The bill is limited to those out-of-state facilities owned by public and private entities that sell electricity to California customers. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081