BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1351| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1351 Author: Blakeslee (R) Amended: 7/23/09 in Senate Vote: 21 SENATE ENV. QUALITY COMMITTEE : 7-0, 7/13/09 AYES: Simitian, Runner, Ashburn, Corbett, Hancock, Lowenthal, Pavley SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 76-0, 5/28/09 (Consent) - See last page for vote SUBJECT : Renewable energy resources SOURCE : Author DIGEST : This bill, for a hydroelectric general facility that is not located in California, authorizes the applicable state board, agency, or regional board having that authority, to issue the certification for the facility pursuant to the federal Clean Water Act. This bill adds a requirement that the facility be owned by a retail seller or local publicly owned electric utility. ANALYSIS : Current law requires retail sellers of electricity to meet 20 percent of sales from eligible renewable resources by December 31, 2010, the definition of which includes hydroelectric generation less than 30 CONTINUED AB 1351 Page 2 megawatts (MW), conduit hydroelectric and incremental generation from efficiency improvements in any hydroelectric facility. This bill counts as Renewables Portfolio Standard (RPS) eligible incremental generation from efficiency improvements in hydroelectric facilities that are located out of state but serve customers in state by out of state investor-owned utilities (IOUs). Background With exceptions for eligible efficiency improvements, an RPS-eligible small hydroelectric facility or conduit hydroelectric facility must not exceed 30 MW. However, the law allows such a facility to retain its RPS eligibility if efficiency improvements cause the facility to exceed 30 MW. The Energy Commission interprets the 30 MW size limit such that if a 30 MW small hydroelectric or conduit hydroelectric facility had an eligible 5 MW energy efficiency increase, energy from the 35 MW capacity would be RPS eligible. Energy efficiency improvements in large hydroelectric facilities are also eligible even though the original large hydroelectric generation is not. For example, a 300 MW facility would not be RPS eligible but if efficiency improvements were made to the facility to bring the capacity up to 320 MW then the 20 MW difference would be RPS eligible. All facilities are required to get certification from the State Water Resources Control Board (SWRCB). Comments Problem addressed . Legislation adopted in prior years which counted as RPS eligible efficiency improvements in small, small conduit or large hydroelectric facilities did not address the case of facilities located out of state which serve California customers by an out of state IOU. Current law requires certification by SWRCB which has no jurisdiction over an out-of-state hydroelectric facility. This bill allows that certification to be accomplished by the state agency or board of the state in which the facility is located or the agency designated by the federal Clean Water Act. AB 1351 Page 3 FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 8/18/09) Pacific Power Sierra Pacific Power Company ASSEMBLY FLOOR : AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley, Buchanan, Caballero, Charles Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore, Emmerson, Eng, Feuer, Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie Lowenthal, Ma, Miller, Monning, Nava, Niello, Nielsen, John A. Perez, V. Manuel Perez, Portantino, Price, Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra Strickland, Swanson, Torlakson, Torres, Torrico, Tran, Villines, Yamada, Bass NO VOTE RECORDED: Duvall, Evans, Mendoza, Nestande DLW:mw 8/19/09 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****