BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1351
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1351 (Blakeslee)
          As Amended  July 23, 2009
          Majority vote
           
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          |ASSEMBLY:  |76-0 |(May 8, 2009)   |SENATE: |35-0 |(September 3,  |
          |           |     |                |        |     |2009)          |
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           Original Committee Reference:   U. & C.  

           SUMMARY  :   Amends current law that allows for incremental  
          increases in electricity production from hydroelectric  
          facilities to count toward a retail seller's Renewable Portfolio  
          Standard (RPS) obligation if the hydroelectric facilities are  
          certified by the of the California State Water Resources Control  
          Board (SWRCB) to allow out-of-state facilities to be certified  
          by the appropriate board in that state.

           The Senate amendments  are technical and clarifying amendments. 

           EXISTING LAW  :   

          1)Requires investor-owned utilities (IOUs) and other retail  
            sellers to meet the California RPS by procuring at least 20%  
            of electricity delivered to their retail customers from  
            eligible renewable resources by 2010.  

          2)Defines eligible renewable resources technologies to include  
            biomass, solar thermal, photovoltaic, wind, geothermal, fuel  
            cells using renewable fuels, small hydroelectric (30 megawatts  
            ((MW) or less), digester gas, municipal solid waste  
            conversion, landfill gas, ocean wave, ocean thermal, and tidal  
            current. 

          3)Allows an incremental increase in the amount of electricity  
            produced at a hydroelectric facility to count toward an RPS  
            obligation if the increase is the result of efficiency  
            improvements to the facility and the facility has received  
            certification from the Water Board. 

           AS PASSED BY THE ASSEMBLY,  this bill was substantially similar  
          to the version passed by the Senate.
           








                                                                  AB 1351
                                                                  Page  2

           FISCAL EFFECT  :   None

           COMMENTS  :   According to the author, the purpose of this bill is  
          to remedy a drafting error from AB 809 (Blakeslee), Chapter 684,  
          Statute of 2007.  AB 1351 clarifies that the Clean Water Act  
          certification, which is required under AB 809, does not have to  
          come specifically from the SWRCB, but can come from the state  
          agency authorized to certify under the Clean Water Act.

          In 2007, the Legislature approved AB 809, which allowed for  
          incremental increase in electricity production that resulted  
          from efficiency improvements at hydroelectric facilities to  
          count toward a retail seller's RPS obligation if the  
          improvements met specified environmental standards.  The  
          hydroelectric facility also has to be certified by the SWRCB  
          under the Federal Clean Water Act.  At the time AB 809 was  
          moving through the Legislature, the multi-jurisdictional  
          utilities that served electric customers in multiple states  
          noted that by requiring certification by a California agency it  
          prohibited them from counting improvements to their own  
          hydroelectric facilities located outside of California.  This  
          bill corrects that problem by eliminating the specific reference  
          to the SWRCB and instead allowing for certification by the  
          appropriate state agency. 


           Analysis Prepared by  :    Edward Randolph / U. & C. / (916)  
          319-2083 

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