BILL ANALYSIS                                                                                                                                                                                                    Ó





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2011-2012 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 16                     HEARING DATE: March 22, 2011  

          AUTHOR: Rubio                      URGENCY: Yes  
          VERSION: February 15, 2011         CONSULTANT: Bill Craven  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Renewable energy: Department of Fish and Game: 
          expedited permitting.  
          
          BACKGROUND AND EXISTING LAW

          Note--SB 16 is presented in mock-up form for purposes of this 
          hearing. 

        1.The California Department of Fish and Game (DFG) has the 
          responsibility to administer the California Endangered Species 
          Act (CESA), among other duties. This law authorizes, in 
          specified circumstances, DFG to issue "incidental take" permits 
          to enable a development project to harm one or more protected 
          species or their habitat. In the absence of such a permit, CESA 
          prohibits the take of any endangered or threatened species. DFG 
          may issue an incidental take permit authorizing the take of 
          endangered or threatened species if certain conditions are met, 
          including that the take is incidental to an otherwise lawful 
          activity, and the impacts of the authorized take are minimized 
          and fully mitigated. CESA requires applicants to ensure adequate 
          funding to implement mitigation and monitoring measures. 

        2.The incidental take of listed species is also authorized 
          pursuant to the Natural Community Conservation Planning Act, 
          generally a voluntary, large-scale plan that allocates lands 
          both for development projects and conservation reserves. 

        3.In the context of renewable energy developments mainly in the 
          southern California desert regions, DFG is one of several state 
          and federal agencies that are collaborating on siting desert 
          renewable facilities on both private and public lands and 
          requiring mitigation for these projects when necessary to offset 
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          impacts on protected species. This effort is part of a 
          multi-species habitat plan called the California Desert 
          Renewable Energy Conservation Program (DRECP). 

         4.Last year, in SB 34 8X (Padilla), the Legislature passed and 
           the Governor signed into law several amendments to CESA that 
           were intended to expedite the regulatory approval of solar 
           thermal and photovoltaic energy projects in parts of the 
           southern California desert within the DRECP planning area. The 
           DRECP effort will identify the best sites for renewable 
           projects and the best lands that should be reserved for 
           mitigation. Among other provisions, that new statute provides 
           for the in lieu payment of funds that would allow DFG to 
           purchase mitigation lands in advance for eligible renewable 
           energy projects in the desert that were to receive funds from 
           the federal government's stimulus (ARRA) funds. That new law 
           also created a $75,000 fee that developers would pay to DFG to 
           cover its costs in reviewing the endangered species 
           implications of these projects. 

         5.The California Energy Commission (CEC) is required to license 
           thermal power plants over 50 megawatts and the plant's related 
           facilities including fuel supply lines, water pipelines, and 
           transmission lines that tie the facility to the grid. The CEC 
           has authority to administer CESA for specified projects. 

         6.According to the California Code of Regulations, DFG must 
           complete an initial review of an incidental take permit 
           application within 30 days to determine that the application is 
           complete. If the application is not complete, the applicant 
           then has 30 days to re-submit a complete application. 

         7.Most often, DFG is a responsible agency under CEQA for a 
           project for which a local government or other entity is the 
           lead agency. In these cases, DFG is required to approve or deny 
           a permit application with 90 days of when the lead agency 
           approved the project or within 90 days of when the application 
           was accepted as complete by DFG. In more complex cases, the 
           department may notify the applicant that the time limit may be 
           extended an additional 60 days. 

         8.In circumstances in which DFG is the lead agency, regulations 
           require the department to approve or deny a permit within 120 
           days after a completed application is submitted. The 
           regulations allow a 60 day extension for complex cases.


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          PROPOSED LAW
        1.In findings, the bill declares the importance of the Renewable 
          Portfolio Standard (RPS) program and of the scientific 
          evaluation of project effects on species by DFG. The findings 
          also note that existing timelines allow for applications to be 
          routinely amended or resubmitted, thereby delaying decisions on 
          whether a permit should or should not be granted. The author, 
          relying on information provided by DFG, is concerned that the 
          sheer number of proposed renewable projects in the desert region 
          of the state and in the southern San Joaquin Valley could 
          literally overwhelm DFG's ability to process applications and to 
          meet a reasonable deadline for approving or rejecting 
          applications. Perhaps as many as 320 projects will be considered 
          in the upcoming two year period, according to DFG. Unnecessary 
          delays in approving these projects would have adverse economic 
          consequences in the region. 

        2.SB 16 would impose a requirement that DFG notify applicants when 
          an application for an incidental take permit is complete. The 
          bill requires that notification within 10 days. 

        3.The bill would also impose a requirement that DFG approve or 
          reject an incidental take application within 90 days after the 
          application is complete, if the permit involves only the state 
          endangered species act. 

        4.The bill would impose a requirement that DFG approve or reject 
          an incidental take application within 150 days after the 
          application is complete where the permit involves species listed 
          pursuant to both the state and federal endangered species act. 
          This provision would mirror  the same applicable timeline that 
          is in federal regulations. 
           
        5.The bill would extend the $75,000 developer fee provision that 
          applies to certain renewable projects to all RPS projects, 
          except for projects for which a consistency determination may be 
          issued by DFG which takes much less agency time to approve. For 
          complex projects, additional fees could be required to pay for 
          the department's actual costs, but could not exceed an 
          additional $75,000. 

        6.For projects that are eligible for a consistency determination 
          pursuant to Sec. 2080.1 of the Fish and Game Code, the fee would 
          not be $75,000 but instead would be the department's actual 
          costs of reviewing the application, an amount that would be 
          considerably lower. 

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        7.The department would be required to produce a full accounting of 
          its expenditures of fee revenues for all of the factors listed 
          in the bill. 
           
          ARGUMENTS IN SUPPORT
          The author's intention is twofold: He wants to impose a set of 
          deadlines on the Department of Fish and Game for considering 
          applications for renewable energy projects that are a part of 
          the state's renewable portfolio standard program. He also wants 
          to ensure that the department has adequate resources to review 
          the biological effects of these proposed projects within those 
          deadlines. The bill is intended to help implement the California 
          renewable energy portfolio standard in SB 2X (Simitian), an 
          effort to obtain 33 percent of California's total energy from 
          renewable energy sources by 2020 and to recognize the economic 
          importance of these projects in the southern San Joaquin valley 
          and other parts of the state

          ARGUMENTS IN OPPOSITION
          None received. 

          COMMENTS 
          The mockup is the work product of considerable discussion 
          involving several parties. 

          The fee language is the same as that contained in ABX1 13(V. 
          Manuel Perez). If both bills are adopted, this identical 
          language would avoid a chaptering out problem for both bills. 

          The author has indicated he may want to consider additional 
          items for this bill as it moves forward and he plans discussions 
          with renewable energy and environmental advocates. The Committee 
          should be kept apprised of those discussions and the author has 
          agreed to that request, which may also include a request to 
          re-hear the bill at a later time. 

          SUPPORT
          None received

          OPPOSITION
          None Received






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