BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1351|
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                                 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  
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                                                               AB 1351
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          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.







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           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

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