BILL ANALYSIS                                                                                                                                                                                                    Ó
                                                                  AB 1406
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          Date of Hearing:   May 6, 2013
                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
           AB 1406 (Utilities and Commerce Committee) - As Amended:  April  
                                      16, 2013
           
          SUBJECT  :   Energy: renewable energy resources
           SUMMARY  :   This bill would eliminate two obsolete requirements  
          in the California Renewables Portfolio Standard (RPS) statutes.
           EXISTING LAW  : 
          1)Requires the California Energy Commission (CEC) to provide a  
            report on run-of-river hydroelectric generation facilities by  
            June 30, 2011.
          2)Requires that the RPS complement the Renewable Energy  
            Resources Program administered by the CEC.
           THIS BILL  :  
          1)Deletes a requirement that the California Energy Commission  
            (CEC) provide a report on run-of-river hydroelectric  
            generation facilities by June 30, 2011.
          2)Delete a requirement that the RPS is intended to complement  
            the Renewable Energy Resources Program.
           
          FISCAL EFFECT  :   Non-fiscal
           COMMENTS  :  
           1)Run-of- River Report.   A run-of-river hydroelectric generation  
            facility is a facility that diverts a portion of a river's  
            water to a channel, pipeline or pressurized pipeline  
            (penstock) that delivers the water to a waterwheel or turbine.  
             These facilities typically return the water to the channel  
            downstream of the turbine.  A runofriver projec2)t is  
            generally, but not always, less than 30 megawatts.
            Senate Bill X1 2 (Simitian), Chapter 1, Statutes of 201112  
            First Extraordinary Session, required the CEC to report to the  
            Legislature on runofriver hydroelectric resources in British  
                                                                  AB 1406
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            Columbia and on whether those facilities are or should be  
            included as eligible facilities for California's RPS.  
            As indicated in the CEC report, which was completed in March  
            2013, to be considered eligible for California's RPS, projects  
            located outside the United States must be developed and  
            operated in a manner that is as protective of the environment  
            as a similar facility located in California.  Facilities going  
            through the full environmental assessment in British Columbia  
            must adhere to similar regulatory requirements as those in  
            California; however, a runofriver hydroelectric project would  
            have to meet additional requirements to be considered eligible  
            for Californias RPS.
            The CEC report concluded that runofriver hydroelectric  
            facilities in British Columbia may have the potential to bring  
            additional environmental benefits to California; however,  
            those benefits do not warrant changing existing statutory  
            requirements to categorically allow all runofriver  
            hydroelectric projects in British Columbia to become eligible  
            for Californias RPS.
            According to the report, the CEC is considering a number of  
            environmental requirements for a British Columbia runofriver  
            project requesting eligibility for RPS.  
           3)Renewable Energy Resources Program.   Under prior law, the CEC  
            was charged with administering the Renewable Energy Resources  
            Program.  This program was funded via the ratepayer-funded  
            public goods charge.  As of 2012, the public goods charge  
            expired because it was not reauthorized by the Legislature.    
            Therefore, the Renewable Energy Resources Program no longer  
            receives these funds and the program has been closed out  
            following the enactment of the 2012-13 Budget Act. 
           REGISTERED SUPPORT / OPPOSITION  :   
           Support 
           
          None on file
           Opposition 
           
          None on file
                                                                  AB 1406
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          Analysis Prepared by  :    Mario DeBernardo / NAT. RES. / (916)  
          319-2092