BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 793|
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THIRD READING
Bill No: AB 793
Author: Gray (D), et al.
Amended: 7/9/13 in Senate
Vote: 21
SENATE ENERGY, UTILITIES & COMMUNIC. COMM. : 11-0, 7/2/13
AYES: Padilla, Fuller, Cannella, Corbett, De León, DeSaulnier,
Hill, Knight, Pavley, Wolk, Wright
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/30/13
AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg
ASSEMBLY FLOOR : 65-4, 5/23/13 - See last page for vote
SUBJECT : Renewable energy: publicly owned electric utility:
hydroelectric
generation facility
SOURCE : Merced Irrigation District
DIGEST : This bill provides that a local publicly owned
electric utility (POU) is not required to procure additional
eligible renewable energy resources in excess of specified
levels, if it receives 50% or greater of its annual retail sales
from its own hydroelectric generation meeting, as specified.
ANALYSIS : Existing law, the California Renewables Portfolio
Standard Program (RPS program) requires a retail seller of
electricity, as defined, and local publicly owned electric
utilities to purchase specified minimum quantities of
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electricity products from eligible renewable energy resources.
This bill:
1.Prohibits a POU that owns and operates a hydroelectric
facility from being required to procure eligible renewable
energy resources in excess of retail sales not supplied by its
own generation provided that the hydroelectric generation
meets certain requirements.
2.Specifies that the requirements include that the hydroelectric
generation must be from a facility that:
A. Is owned and operated by the utility as of 1967.
B. Serves a utility with a distribution system demand of
less than 150 MW.
C. Is under contract but will revert to ownership and
control of the utility after June 2014.
D. Has a maximum penstock flow capacity of no more than
3,200 cubic feet per second and includes a regulating
reservoir with a small hydroelectric generation facility
producing fewer than 20 megawatts with a maximum penstock
flow capacity of no more than 3,000 cubic feet per second,
in order to qualify.
Background
The New Exchequer Dam . This bill only applies to one POU,
Merced Irrigation District (MID), and one hydroelectric
facility, the New Exchequer Dam, which is part of the Merced
River Hydroelectric Project in Mariposa County, about 23 miles
northeast of the City of Merced. The dam and hydroelectric
facility were originally constructed in 1926, enlarged in the
mid-1960s, and put into service in 1967. The project is a water
supply/flood control/recreation/power project under the
jurisdiction of the Federal Energy Regulatory Commission and
occupies 2,942 acres of federal land under the jurisdiction of
the Bureau of Land Management. The plant capacity is 94.5
megawatts and produces approximately 250,000 megawatt hours of
electricity each year. Although the hydroelectric facility was
constructed by, and is owned and operated by the MID, PG&E has
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had a contractual right to the generation since 1967 which
expires on July 1, 2014.
Implementing Regulations . On March 1st the California Energy
Commission (CEC) released proposed regulations for enforcement
rules and procedures for the RPS for POUs as required by SBX1 2
(Simitian, Statutes of 2011-12, Chapter 1, First Extraordinary
Session). The regulations were adopted in June and establish
the rules and procedures that the CEC will use to assess a POU's
procurement actions and determine compliance with the RPS. If
appropriate, the CEC will issue a notice of violation and
correction for a POU's failure to comply and refer the violation
to the State Air Resources Board for potential penalties.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
According to the Senate Appropriations Committee, one-time costs
of $70,000 from the Energy Resources Programs Account (General
Fund) to update regulations in fiscal year 2013-14.
SUPPORT : (Verified 8/30/13)
Merced Irrigation District (source)
Association of California Water Agencies
California Farm Bureau Federation
Modesto Irrigation District
OPPOSITION : (Verified 8/30/13)
California Hydropower Reform Coalition
California Wind Energy Association
Clean Power Campaign
Large-Scale Solar Association
ARGUMENTS IN SUPPORT : According to the author's office,
"Without this provision, the average family will see a 20
percent rate increase with electric bills increasing from
approximately $225 per month to $270. Businesses would be more
significantly affected by the RPS cost shifting thus causing
further stagnation of the local economy. Rates would remain more
affordable for MID customers under this bill while still
achieving carbon-emission-free energy."
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ARGUMENTS IN OPPOSITION : According to the California
Hydropower Reform Coalition, "If a Publicly Owned Utility (POU)
receives at least 50 percent of its 'consumption loan demand'
from 'hydroelectric generation and other renewable energy
resources,' AB 793 would require it to procure eligible
renewable energy sources only for 33 percent of the
non-hydroelectric percentage of its electricity total. This
apparently would benefit the Merced Irrigation District (MID).
? Exceptions and loopholes should not be permitted which will
result in the weakening of the RPS program. If this bill is
approved, it is more likely that similar exceptions will follow,
which will further weaken our efforts to address climate
change."
ASSEMBLY FLOOR : 65-4, 5/23/13
AYES: Achadjian, Alejo, Allen, Atkins, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,
Dahle, Daly, Dickinson, Donnelly, Eggman, Fox, Frazier, Beth
Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray, Hagman,
Hall, Harkey, Roger Hernández, Jones-Sawyer, Linder, Logue,
Lowenthal, Maienschein, Mansoor, Medina, Melendez, Mitchell,
Morrell, Mullin, Nazarian, Nestande, Olsen, Pan, Patterson,
Perea, Quirk-Silva, Salas, Stone, Ting, Wagner, Weber,
Wieckowski, Wilk, Williams, Yamada, John A. Pérez
NOES: Ammiano, Blumenfield, Muratsuchi, V. Manuel Pérez
NO VOTE RECORDED: Fong, Grove, Holden, Jones, Levine, Quirk,
Rendon, Skinner, Waldron, Vacancy, Vacancy
JG:nl 9/1/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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