BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1351
                                                                  Page 1

          Date of Hearing:  April 27, 2009

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Nancy Skinner, Chair
                  AB 1351 (Blakeslee) - As Amended:  April 13, 2009
           
          SUBJECT  :  Renewable energy resources

           SUMMARY  :  Revises certification conditions for hydroelectric  
          facilities eligible for the Renewables Portfolio Standard (RPS)  
          to permit certification from an agency other than the State  
          Water Resources Control Board (SWRCB), such as if the facility  
          is located in another state.

           EXISTING LAW  generally limits RPS eligibility of hydroelectric  
          facilities to facilities 30 megawatts or less, but permits new  
          incremental increases in electricity production from facilities  
          over 30 megawatts, if the increase results from efficiency  
          improvements and meets specified water quality criteria,  
          including that the facility has, with the last 15 years,  
          received an exemption or certification from the SWRCB pursuant  
          to Section 401 of the federal Clean Water Act (water quality  
          standards applicable to hydroelectric facilities).  The  
          requirement for SWRCB certification acts as a prohibition on out  
          of state facilities, which are not under SWRCB jurisdiction.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

          This bill is intended to accommodate RPS eligibility for  
          efficiency improvement at large hydroelectric facilities located  
          outside California, which can't meet the existing requirement  
          for SWRCB certification because they lie outside SWRCB's  
          jurisdiction.  This may provide an additional incentive for  
          facilities to undertake efficiency improvement and increase the  
          availability of resources for compliance with California's RPS.   
          However, it may also attract "free riders" i.e., facilities in  
          the Northwest that may already undertake routine efficiency  
          improvements for other reasons.  An influx of RPS-eligible  
          hydropower from out-of-state would diminish development of new  
          renewable energy facilities in California.  In addition,  
          out-of-state facilities present a problem regarding the ability  
          to enforce California (or comparable) water quality standards  
          because other states may not have comparable standards.  If it  








                                                                  AB 1351
                                                                  Page 2

          is intended to permit eligibility only for facilities owned by  
          utilities subject to the RPS,  the author and the committee may  
          wish to consider  adopting a clarifying amendment to that effect  
          to limit the scope of the bill.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           Pacific Power
          Sierra Pacific Power

           Opposition 
           None on file
           
          Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092