BILL ANALYSIS Ó 1 SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE ALEX PADILLA, CHAIR AB 1255 - V.M. Pérez Hearing Date: August 31, 2012 A As Amended: August 23, 2012 FISCAL B 1 2 5 5 DESCRIPTION Current law requires the California Energy Commission (CEC) to provide up to seven million dollars in grants to 15 qualified counties for the development or revision of rules and policies, including general plan elements, zoning ordinances, and natural community conservation plan (NCCP) that facilitate the development of eligible renewable energy resources, and their associated electric transmission facilities, and the processing of permits for eligible renewable energy resources. Funding is to be made available only upon appropriation by the Legislature. Current law prohibits the award of a grant to a county within the Desert Renewable Energy Conservation Plan (DRECP) if the county is not participant in the plan. This bill broadens eligibility for the planning grants to also include counties that enter into a memorandum of understanding with the CEC agreeing to participate in the development of a NCCP. BACKGROUND Desert Renewable Energy Conservation Plan - The DRECP is a component of California's renewable energy planning efforts that is to result in a biological mitigation and conservation program providing renewable project developers with permit timing and cost certainty under the federal and California Endangered Species Acts while at the same time preserving, restoring and enhancing natural communities and related ecosystems. Approximately 22.5 million acres of federal and non-federal California desert land are in the DRECP Plan Area. The DRECP is focused on the desert regions and adjacent lands of seven California counties - Imperial, Inyo, Kern, Los Angeles, Riverside, San Bernardino, and San Diego. It is being prepared through a collaborative effort between the CEC, Department of Fish and Game (DFG), the U.S. Bureau of Land Management, and the U.S. Fish and Wildlife Service also known as the Renewable Energy Action Team. Natural Community Conservation Planning (NCCP) - This DFG program includes private and public partners and takes a broad-based ecosystem approach to planning for the protection and perpetuation of biological diversity. An NCCP identifies and provides for the regional or area-wide protection of plants, animals, and their habitats, while allowing compatible and appropriate economic activity. The NCCP program is a cooperative effort to protect habitats and species. It began in 1991 under the State's Natural Community Conservation Planning Act, legislation broader in its orientation and objectives than the California and Federal Endangered Species Acts. The primary objective of the NCCP program is to conserve natural communities at the ecosystem level while accommodating compatible land use. The program seeks to anticipate and prevent the controversies and gridlock caused by species' listings by focusing on the long-term stability of wildlife and plant communities and including key interests in the process. Working with landowners, environmental organizations, and other interested parties, a local agency oversees the numerous activities that compose the development of a conservation plan. The DFG and the U.S. Fish and Wildlife Service provide the necessary support, direction, and guidance to NCCP participants. The NCCP approach to conservation is available statewide and planning efforts are underway in Butte, Santa Clara, Placer, Yolo, Sutter, and Yuba Counties, as well as with the Mendocino Redwood Company. There are currently 23 active NCCPs covering more than 11 million acres. COMMENTS 1. Author's Purpose . To broaden eligibility for county plan grants that facilitate the development of renewable resources to meet the goals for the Renewables Portfolio Standard which increases the amount of electricity generated from eligible renewable energy resources per year, so that amount equals at least 33% of total retail sales of electricity in California per year by 2020. 2. Program Status . This program was authorized by the Legislature in 2011 but implementation was contingent on an appropriation by the Legislature. The Governor's proposed budget for the 2012-13 fiscal year requested two limited-term positions for one year to develop and administer the grants. Grants would be issued to qualified counties for the development or revision of rules and policies that facilitate the development of eligible renewable energy resources and their associated electric transmission facilities, and the processing of permits for eligible renewable energy resources. The resources trailer bill to the Budget Act of 2012 provides the funding necessary for the grants as a result of loan paybacks from the General Fund to the CEC's Renewable Resources Trust Fund. 3. Technical Amendment . The Legislature adopted AB 2161 (Achadjian) this summer which is pending enrollment to the governor which adds an additional county to the list of eligible counties. However, neither bill addresses this issue with the appropriate jointing language to avoid chaptering-out. Consequently, the author and committee may wish to consider amending this bill to add San Luis Obispo County to the list of qualified counties. The author would then need to work with the Governor's office to ensure that AB 1255 is chaptered after AB 2161. ASSEMBLY VOTES * Assembly Floor (72-0) Assembly Appropriations Committee (17-0) Assembly Jobs, Economic Development, and the Economy (5-0) *Prior votes not relevant POSITIONS Sponsor: Author Support: None on file. Oppose: None on file. Kellie Smith AB 1255 Analysis Hearing Date: August 31, 2012