BILL ANALYSIS Ó AB 2161 Page 1 Date of Hearing: May 2, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 2161 (Achadjian) - As Introduced: February 23, 2012 Policy Committee: Natural ResourcesVote:8-1 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill adds San Luis Obispo (SLO) County to the list of counties eligible for renewable energy planning grants from the California Energy Commission (CEC). FISCAL EFFECT 1)No direct state costs. 2)Cost pressure of an unknown amount, but potentially in the hundreds of thousands of dollars, to make renewable energy grants to San Luis Obispo County. (Special fund.) COMMENTS 1)Rationale. The author and sponsor (SLO County) contend the county is as appropriate a place for renewable energy development as are the other counties authorized by statute to receive renewable energy grants. The author describes SLO County as having demonstrated its commitment to and suitability for large scale and distributed solar projects. According to the author, SLO County would use renewable energy grant awards to update planning documents to achieve a streamlined permitting process for solar projects, in keeping with legislative intent. 2)Background. Recently enacted legislation (Chapter 10, 1st Extraordinary Session of 2011 (AB 13 X1, V.M. Perez)) expanded existing siting and permitting provisions for renewable energy projects and changed planning and permitting of renewable energy projects. One of many provisions was the requirement that CEC provide, upon appropriation, $7 million in grants to AB 2161 Page 2 counties in the San Joaquin Valley and desert areas to revise planning documents to facilitate development of renewable energy resources. The counties made eligible for renewable energy grants by AB 13 X1 were those identified by the author of AB 13 X1 and interested parties as being those being most likely to develop large scale renewable energy projects if local planning and permitting revisions were achieved. The AB 13 X1 list of counties eligible for renewable energy grants does not include SLO County, though it, too, is capable of hosting large scale solar projects. To date, the Legislature has appropriated no funds for AB 13 X1 renewable energy grants. CEC indicates the possibility of an appropriation in the 2012-13 budget and will make grants as funds become available. Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081