BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
376 (Simitian)
Hearing Date: 01/21/2009 Amended: As proposed to be
amended
Consultant: Brendan McCarthy Policy Vote: EU&C 9-2
SB 376 (Simitian)
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BILL SUMMARY: SB 376 requires that projects to construct or
operate a liquefied natural gas (LNG) terminal submit additional
information pursuant to CEQA. The bill requires the Energy
Commission to conduct a needs assessment for LNG as part of its
Integrated Energy Policy Report and requires the Energy
Commission to revise that assessment when new terminal
facilities are being reviewed for permits. The bill also
requires the Energy Commission to publicize certain information
about existing and proposed LNG terminals.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Energy Commission reporting
$50General *
* Energy Resources Program Account
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STAFF COMMENTS: Suspense file.
This bill requires additional disclosure of information, under
the California Environmental Quality Act (CEQA) for proposed
liquefied natural gas terminal projects. For any proposed LNG
terminal project that is not complete by January 2010, the bill
requires that an environmental impact report, pursuant to CEQA,
contain an analysis of all feasible alternative project
technologies, an analysis of the potential impacts on minority
and low-income populations, and a life cycle analysis of the
impacts of greenhouse gasses.
The bill requires that the Energy Commission include a needs
assessment for LNG imports to meet the state's energy needs, as
part of its biennial Integrated Energy Policy Report. The needs
assessment must assess the future demand for natural gas, future
supplies of natural gas from various sources, projections of
future natural gas prices, the impact of reducing the amount of
electricity generated from coal and the potential to increase
energy efficiency and renewable energy, and the potential
impacts of new fossil fuel infrastructure will have on existing
SB 376 (Simitian)
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mandates, including the Renewable Portfolio Standard.
The bill requires the Energy Commission to update the needs
assessment in advance of a hearing held by the State Lands
Commission or the Coastal Commission to consider issuing permits
for proposed LNG terminal projects.
The bill requires the Energy Commission to collect and post on
the internet specified information about existing and proposed
LNG terminals.
By changing the requirements for permitting these projects under
CEQA and by adding additional requirements for project
applications, the bill may impose a state mandate on local
agencies. However, no reimbursement by the state is required
because the measure would provide for offsetting savings to
local agencies.
In 2007, SB 412 (Simitian) would have required the Energy
Commission to conduct a needs assessment for LNG. That bill was
held in the Assembly Appropriations Committee.
The proposed author's amendments eliminate the requirement that
the Energy Commission create a LNG needs assessment. The
amendments also push back implementation of the requirement that
the Energy Commission collect and publicize data on LNG projects
to July 1, 2011.