BILL ANALYSIS AB 1351 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator S. Joseph Simitian, Chairman 2009-2010 Regular Session BILL NO: AB 1351 AUTHOR: Blakeslee AMENDED: May 6, 2009 FISCAL: Yes HEARING DATE: July 13, 2009 URGENCY: No CONSULTANT: Randy Pestor SUBJECT : RENEWABLE ENERGY RESOURCES SUMMARY : Existing law authorizes the incremental increase in the amount of electricity generated from a hydroelectric generation facility as a result of efficiency improvements at the facility to be electricity from an eligible energy resource if four conditions are met, including: 1) The facility has within the previous 15 years received certification from the State Water Resources Control Board (SWRCB) pursuant to the federal Clean Water Act. 2) The hydroelectric generation facility was operational before January 1, 2007, the efficiency improvements are initiated on or after January 1, 2008, and certain conditions are met. This bill : 1) Authorizes the Clean Water Act certification to be received by a state board or agency, rather than SWRCB. 2) Provides that the facility is owned by a retail seller or a local publicly owned electric utility. COMMENTS : 1) Purpose of Bill . According to the author, "The bill makes technical amendments to certification conditions for hydroelectric facilities eligible for the Renewables Portfolio Standard (RPS) to permit certification for AB 1351 Page 2 federal law by the appropriate state agency or board. Specifically, the bill clarifies that multi-jurisdictional utilities serving electric customers in multiple states, and therefore outside the jurisdiction of the State Water Resources Control Board, may count efficiency improvements at their existing out-of-state facilities towards their RPS requirements if they receive Clean Water Act certification by the appropriate state agency or board in the state where the facility is located." AB 1351 was approved by the Senate Energy, Utilities and Communications Committee July 7, 2009 (11-0). 2) Clarification needed . Amendments are needed to ensure a hydroelectric facility in California received certification from SWRCB, and an applicable state board or agency for facilities in other states. The most recent amendments to AB 1351 reference "local publicly owned electric utility" (page 3, line 10). Public Utilities Code 399.12 defines this term as having the same meaning as provided in 9604(d). However, AB 3048 (Committee on Utilities and Commerce) Chapter 558, Statutes of 2008, repealed 9604(d) and added the definition as 224.3. Amendments are therefore needed to correct the cross reference in 399.12. SOURCE : Assemblymember Blakeslee SUPPORT : Pacific Power Sierra Pacific Power Company OPPOSITION : None on file