BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1153 (Hancock)
Hearing Date: 05/10/2010 Amended: 04/27/2010
Consultant: Brendan McCarthy Policy Vote: EU&C 8-2
SB 1153 (Hancock), Page 2
_________________________________________________________________
____
BILL SUMMARY: SB 1153 authorizes the California Energy
Commission to designate sustainable energy zones that are
suitable for the development of renewable energy projects. The
bill makes the adoption of sustainable energy zones subject to
the CEQA-equivalent review process of the Energy Commission.
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Identification of sustainable $720 General
*
energy zones
Environmental review $920 $920 General
*
* Energy Resources Program Account.
_________________________________________________________________
____
STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Under current law, the California Energy Commission is required
to license thermal power plants over 50 megawatts. The licensing
process is supposed to take less than twelve months and
functions as an equivalent process to the California
Environmental Quality Act.
Under executive order, the Energy Commission has participated in
the Renewable Energy Transmission Initiative. The Renewable
Energy Transmission Initiative brought together a variety of
state agencies, local governments, utilities, and other
stakeholders to identify areas of the state where additional
electricity transmission infrastructure is needed to facilitate
the state's renewable energy goals. This effort has been
completed and a new process, led by the Independent System
Operator and the utilities, is now further studying future
transmission needs.
Also under executive order, the Energy Commission has
participated in the development of the California Desert
SB 1153 (Hancock), Page 2
Renewable Energy Conservation Plan. This Plan focuses on the
Mojave and Colorado Desert regions of the state. The Plan is a
Natural Communities Conservation Plan, which is a regulatory
device used to ensure the protection of threatened and
endangered species over the long term. The purpose of the Plan
is to designate areas of the Mojave and Colorado Desert regions
that are most appropriate for renewable energy projects while at
the same time protecting the natural environment.
SB 1153 authorizes the Energy Commission to designate
sustainable energy zones that are economically and
environmentally suitable for the development of renewable energy
projects. The bill makes the designation of sustainable energy
zones subject to the CEQA-equivalent environmental review
performed by the Energy Commission.
The bill requires the Energy Commission to report to the
Legislature by January 1, 2012 on its designation of sustainable
energy zones.
Staff notes that the process for selecting appropriate areas for
the development of renewable energy generation and transmission
infrastructure has proved to be a very time consuming and
complicated process. While the Energy Commission will be able to
draw upon information developed in the previously mentioned
processes, those processes focused mostly on the southeastern
portion of the state. To the extent that the Energy Commission
seeks to identify sustainable energy zones in other areas of the
state, it will have to develop new information and perform new
analyses.
Staff estimates that in order to identify potential sustainable
energy zones, the Energy Commission will need at least three
additional positions and will likely need to hire outside
consultants to assist with environmental analysis. In addition,
in order to perform the required environmental review, the
Energy Commission will likely need to hire additional outside
consultants. The cost for the environmental review is likely to
be more than $1 million.