BILL ANALYSIS
AB 1350
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Date of Hearing: May 6, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 1350 (Blakeslee) - As Amended: April 2, 2009
Policy Committee: Natural
ResourcesVote:8-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill authorizes the California Energy Commission (CEC) to
communicate, coordinate, and work with other state agencies to
consider and implement regional mitigation measures for
renewable energy projects developed pursuant to the Renewable
Portfolio Standard (RPS). Specifically, this bill:
1)Authorizes CEC to communicate, coordinate, and work with the
Natural Resources Agency (NRA), the Wildlife Conservation
Board (WCB), the Department of Fish and Game (DFG), and other
agencies and stakeholders to consider and implement mitigation
requirements, including those required by CEQA, on a regional
basis for renewable energy projects developed pursuant to the
RPS that may include identification of priority areas for
mitigation and utilization of existing conservation programs.
2)Authorizes CEC to execute an agreement, a memorandum of
understanding, or other similar instrument to memorialize its
understanding of any communication, coordination or
implementation activities with other state agencies for the
purposes of meeting mitigation requirements on a regional
basis.
3)Stipulates that this bill does not interfere with, or prevent,
the existing authority of an agency or department to carry out
its programs, projects or responsibilities to identify,
review, approve, deny or implement any mitigation
requirements.
FISCAL EFFECT
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Minor, absorbable costs to CEC.
COMMENTS
1)Rationale. The author contends achievement of the state's
renewable energy goals will require mitigation on a scale not
seen before in order to comply with the state's other
conservation and environmental goals. Projects that span
acres to square miles will become more common. The author
notes that current mitigation is handled project-by-project
and usually carried out by energy developers whose primary
expertise is the generation of clean, renewable electrons, not
the conservation of sensitive habitats. The author seeks to
encourage a more strategic, coordinated approach to mitigation
that considers regional effects of multiple projects.
2)Background.
a) Renewable Portfolio Standard. Current law requires
investor-owned utilities (IOUs), such as Pacific Gas and
Electric and Southern California Edison, to increase the
amount of electricity they acquire (from their own sources
or purchased from others) that is generated from renewable
resources, such as solar and wind power. This requirement
is known as the renewables portfolio standard (RPS). Each
electricity provider subject to the RPS must increase its
share of electricity generated from eligible renewable
resources by at least 1 % each year so that, by the end of
2010, 20% of its electricity comes from renewable sources.
According to recent data, the IOUs together had 13% of
their electricity generated from renewable resources.
In November 2008, the governor issued Executive Order (EO)
S-14-08 which, among other things, established a 33% RPS
and directed NRA, with the CEC and DFG, to expedite the
development of RPS eligible renewable energy resources.
The EO also required these agencies to finalize a Desert
Renewable Energy Conservation Plan (Plan) by June 1, 2012
that would "provide binding, long-term endangered species
permit assurances, facilitate the RPS desert project
approval process, and provide a process for state and
federal conservation funding to implement the Plan."
The Legislature is currently considering bills that would
codify the 33% RPS goal articulated in the EO.
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b) CEC and Renewable Energy. CEC is responsible for
forecasting energy supply and demand, developing and
implementing energy conservation measures, conducting
energy-related research and development programs, and
siting major power plants, such as certain solar energy
plants envisioned under the RPS. Because of its siting
authority, CEC is intimately involved in mitigation
projects for renewable energy development.
c) CEQA. The California Environmental Quality Act (CEQA)
requires a public agency to prepare an environmental impact
report (EIR) for a project that may have a significant
impact on the environment, such as a renewable energy
project. An EIR must identify mitigation measures proposed
to minimize significant impacts on the environment and
include a monitoring program to ensure compliance with
these measures. CEQA guidelines include cooperative
processes such as early consultation and scoping, which can
bring together and resolve the concerns of affected public
agencies, project applicants, and other interested persons.
However, CEQA's methods for cooperation and coordination
are less comprehensive and detailed than those authorized
in this bill, which specifies certain entities for
coordination, identifies priority mitigation areas, and
provides for agreements regarding certain matters.
3)Other Legislation.
a) AB 64 (Krekorian, 2009) raises the RPS requirement to
33% by 2020 and establishes a new agency, the Renewables
Infrastructure Authority, which is authorized to finance
and permit new renewable energy generation and transmission
projects. AB 64 won passage in the Utilities and Commerce
Committee on a vote of 8-5 and is currently pending before
the Natural Resources Committee.
b) SB 14 (Simitian, 2009) requires, among other things,
IOUs to increase total procurement of electricity generated
by eligible renewable energy resources by at least an
additional 1% of retail sales annually, so that 33% of each
IOU's retail sales are procured from eligible renewable
energy resources by December 31, 2020. SB 14 won passage
in the Senate on a vote of 21-16 and is pending in the
Assembly.
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c) AB 1055 (Blakeslee, Chapter 503, Statutes of 2007),
which addressed Caltrans' planning process for Highway 99
improvement projects authorized by Prop 1B (2006),
authorized an approach similar to the one described in this
bill.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081