BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1255| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1255 Author: V. Manuel Pérez (D) and Achadjian (R) Amended: 8/31/12 in Senate Vote: 27 - Urgency PRIOR VOTES NOT RELEVANT SENATE ENERGY, UTIL. & COMMUNIC. COMMITTEE : 8-0, 8/31/12 (pursuant to Senate Rule 29.10) AYES: Padilla, Fuller, Berryhill, Corbett, DeSaulnier, Emmerson, Simitian, Strickland NO VOTE RECORDED: De León, Kehoe, Pavley, Rubio, Wright ASSEMBLY FLOOR : Not available SUBJECT : Energy: renewable energy resources SOURCE : Author DIGEST : This bill broadens eligibility for the planning grants to also include counties that enter into a memorandum of understanding with the California Energy Commission (CEC) agreeing to participate in the development of a natural community conservation plan (NCCP). Senate Floor Amendments of 8/23/12 delete the Assembly version of this bill relating to corporate boards of directors and instead relates to grant qualification for counties within the Desert Renewable Energy Conservation Plan (DRECP). CONTINUED AB 1255 Page 2 ANALYSIS : Existing law requires the 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 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. Existing law prohibits the award of a grant to a county within the DRECP if the county is not participant in the plan. This bill: 1.Allows a county within the DRECP to qualify for grants by either being a signatory to the planning agreement associated with the DRECP or by entering into a memorandum of understanding with the commission in which the county agrees to participate in the development of the DRECP for the purpose of ensuring that the Plan can achieve the goals set forth in the planning agreement consistent with relevant county policies. 2.Authorizes the Energy Commission to award a grant to such a county if the county enters into a specified memorandum of understanding with the commission in which the county agrees to participate in the development of the natural community conservation plan. 3.Requires the Energy Commission to provide up to $7 million in grants to 14 "qualified" counties for the development or revision of rules and policies, including, but not limited to, general plan elements, zoning ordinances, and a natural community conservation plan as a plan participant, 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. 4.Requires the Energy Commission in its initial round of grant funding, to establish a preference for a grant to a CONTINUED AB 1255 Page 3 qualified county in an amount that is adequate to develop a renewable energy element in its general plan that will facilitate the development and siting of eligible renewable energy resources that utilize multiple renewable energy technologies. Requires the Energy Commission shall also establish a preference for a grant for those counties that have experience in geothermal energy development and have adopted a geothermal element, as defined, to its general plan. 5.Defines qualified counties as the Counties of Fresno, Imperial, Inyo, Kern, Kings, Los Angeles, Madera, Merced, Riverside, San Bernardino, San Diego, San Luis Obispo, San Joaquin, Stanislaus, and Tulare. For counties within the Desert Renewable Energy Conservation Plan planning area, the commission shall not award a grant to a county that is not a "plan participant," as defined, in the Desert Renewable Energy Conservation Plan. 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 . 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 CONTINUED AB 1255 Page 4 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 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. Related Legislation AB 13 X1 (Perez), Chapter 10, Statutes of 2011-12 First Extraordinary Session, was signed into law in August 2011 and adds Section 25619 to the Public Resources Code, which specifies that the Energy Commission can only implement CONTINUED AB 1255 Page 5 Section 25619 upon receiving an appropriation from the legislature from either the Renewable Resources Trust Fund or other funds from the Energy Resources Program Account. This appropriation was made in item 3360-001-0382 of the 2012 Budget Act (AB 1464). FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee, uncertain cost pressures, possibly in the hundreds of thousands of dollars, from the Renewable Resource Trust Fund (General Fund) from additional applications for local assistance grants. SUPPORT : (Verified 8/30/12) California Energy Commission RM:nd 8/31/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED