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