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
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              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