BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2630 (Salas) - San Joaquin Valley Clean Energy and Jobs Act
          
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          |Version: June 20, 2016          |Policy Vote: E., U., & C. 6 - 0 |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 8, 2016    |Consultant: Narisha Bonakdar    |
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          This bill does not meet the criteria for referral to the  
          Suspense File.


          Bill  
          Summary:  AB 2630 requires consideration of the May 2016 Solar  
          Convening Report, titled "A Path Forward: Identifying Least  
          Conflict Solar PV Development in California's San Joaquin  
          Valley" (Report) and the principles of transmission corridor  
          planning developed by the California Energy Commission (CEC)  
          (Garamendi Principles) when undertaking transmission planning  
          activities and activities as part of the Renewable Energy  
          Transmission Initiative (RETI).


          Fiscal  
          Impact:  
           Minor costs to review and consider the report and principles.  
            (See staff comments)


          Background:  
          Solar's role in meeting renewable energy goals. California is  
          committed to meeting half of its electricity demand by 2030 from  







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          renewable sources. In 2015, SB 350 (De Leon, Chapter 547,  
          Statutes of 2015) mandated that 50 percent of the state's  
          electricity usage come from sources such as solar, wind,  
          geothermal, and biomass.  Solar photovoltaic continues to play a  
          large role in helping the state achieve these goals, with a  
          large focus on solar development in the San Joaquin Valley  
          (Valley) due to its abundant sunshine, geographic proximity to  
          demand and existing transmission, and large parcels of  
          developable land.

          A Path Forward. In 2015, the Conservation Biology Institute,  
          Berkeley Law's Center for Law, Energy and the Environment, and  
          Terrell Watt Planning Associates, with input from the Governor's  
          Office of Planning and Research, undertook a stakeholder-led  
          process, called the "Solar and the San Joaquin Valley  
          Identification of Least-Conflict Lands Project". The resulting  
          Report, among other things, identified 470,000 acres of  
          least-conflict land, amounting to roughly 5 percent of the 9.5  
          million acres in the stakeholder study area.  Stakeholders also  
          identified the lack of adequate transmission serving the Valley  
          as the single largest challenge to achieving the region's solar  
          potential in a way that would minimize impact on sensitive  
          lands. 

          The California Independent System Operator. The California  
          Independent System Operator (CAISO) oversees the operation of  
          California's bulk electric power system, transmission lines, and  
          electricity market generated and transmitted by its member  
          utilities. The CAISO is one of the largest ISOs in the world,  
          delivering 300 million megawatt-hours of electricity each year  
          and managing about 80 percent of California's electric flow.  
          CAISO was created in 1998 when the state restructured its  
          electricity markets following the passage of the federal Energy  
          Policy Act of 1992, which removed barriers to competition in the  
          wholesale generation of the electricity business. 

          The Garamendi Principles.   Senate Bill 2431 (Garamendi, Chapter  
          1457, Statutes of 1988) enacted state transmission siting  
          policies, known as the Garamendi Principle, which (1) encourage  
          the use of existing rights-of-way by upgrading existing  
          transmission facilities where technically and economically  
          justifiable; (2) when construction of new transmission lines is  
          required, encourage expansion of existing rights-of-way, when  
          technically and economically feasible; (3) provide for the  








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          creation of new rights-of-way when justified by environmental,  
          technical, or economic reasons as determined by the appropriate  
          licensing agency; and (4) where there is a need to construct  
          additional transmission capacity, seek agreement among all  
          interested utilities on the efficient use of that capacity. 


          The Renewable Energy Transmission Initiative.  The RETI was  
          established in 2008 to identify the transmission projects needed  
          to support the renewable generation required to meet the 33  
          percent target. The RETI assessed the need for new transmission  
          to connect renewable resource areas to California consumers.



          To facilitate electric transmission coordination and planning,  
          the CEC, California Public Utilities Commission (CPUC), and the  
          CAISO have initiated the RETI 2.0. RETI 2.0 is an open,  
          transparent, and science-based process that will explore  
          renewable generation resources in California and throughout the  
          West, consider critical land use and environmental constraints,  
          and identify potential transmission opportunities that could  
          access and integrate renewable energy with the most  
          environmental, economic, and community benefits.



          RETI 2.0 is not a regulatory proceeding. However, it's intended  
          to inform future transmission planning proceedings with  
          stakeholder-supported strategies to help reach the state's 2030  
          energy and environmental goals. 




          Proposed Law:  
            This bill:
          1)Requires the CAISO, when undertaking transmission planning  
            activities, to consider the Report and Garamendi Principles.


          2)Requires the CEC, CPUC, and CAISO, when undertaking activities  
            as part of the RETI transmission planning activities, to  
            consider the Report and the Garamendi Principles.








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          Staff  
        Comments:  The author is considering amendments that may incorporate  
          language or intent similar to that in previous versions of the  
          bill.  The estimated cost associated with implementation was  
          $200,000 to $500,000.


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