BILL ANALYSIS
SB 1247
Page 1
Date of Hearing: August 12, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1247 (Dutton) - As Amended: August 11, 2010
Policy Committee: Utilities and
Commerce Vote: 15-0
Urgency: Yes State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill:
1)Provides that hydroelectric facilities qualify toward meeting
renewable portfolio standard (RPS) compliance regardless of
whether the facilities cause a change in the volume or timing
of streamflow pursuant to a Federal Energy Regulatory
Commission (FERC) license condition for licenses issued after
January 1, 2010.
2)Provides that efficiency improvements, and the resulting
increased generating capacity at the Rock Creek hydroelectric
facility, qualify toward meeting RPS compliance pursuant to a
settlement agreement with the FERC.
FISCAL EFFECT
Negligible fiscal impact.
COMMENTS
1)Background . Under current law, new hydroelectric generation of
30 megawatts (MW) or less is eligible to qualify toward RPS
compliance. In addition, efficiency improvements to an
existing hydroelectric generating facility can be considered
an eligible renewable resource, for purposes of the RPS, if
the facility received a water quality certification from the
State Water Resources Control Board within the immediately
preceding 15 years. Current law, however, precludes an
efficiency improvement from qualifying as a renewable resource
if it changes streamflow.
SB 1247
Page 2
2)Purpose . This bill addresses RPS compliance issues regarding
two hydroelectric facilities. First, the Rock Creek facility,
operated by PG&E, is located on the North Fork of the Feather
River. A $37 million upgrade to the facility will add about 11
MW of capacity. This facility did not receive its
certification from the Water Board, but rather from FERC
through a settlement agreement in 2001. SB 1247 specifically
allows the increased capacity of the Rock Creek facility to
count toward the RPS pursuant to this agreement.
Second, the Sacramento Municipal Utilities District (SMUD)
owns and operates the Upper American River Project, located on
the western slope of the Sierra Nevada. This project, which is
composed of several reservoirs and powerhouses, including
three generating facilities under 30 MW, recently went through
a relicensing process and is currently awaiting final FERC
approval.
Pursuant to SMUD's relicensing agreement and the expected
Water Board water quality certification, SMUD will increase
the volume of water released into the natural stream channel
from dams that deliver water to the three powerhouses. The
increased releases, however, will provide an environmental
benefit by increasing aquatic resource habitat and recreation.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081
SB 1247
Page 1
Date of Hearing: August 12, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1247 (Dutton) - As Amended: August 11, 2010
Policy Committee: Utilities and
Commerce Vote: 15-0
Urgency: Yes State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill:
1)Provides that hydroelectric facilities qualify toward meeting
renewable portfolio standard (RPS) compliance regardless of
whether the facilities cause a change in the volume or timing
of streamflow pursuant to a Federal Energy Regulatory
Commission (FERC) license condition for licenses issued after
January 1, 2010.
2)Provides that efficiency improvements, and the resulting
increased generating capacity at the Rock Creek hydroelectric
facility, qualify toward meeting RPS compliance pursuant to a
settlement agreement with the FERC.
FISCAL EFFECT
Negligible fiscal impact.
COMMENTS
1)Background . Under current law, new hydroelectric generation of
30 megawatts (MW) or less is eligible to qualify toward RPS
compliance. In addition, efficiency improvements to an
existing hydroelectric generating facility can be considered
an eligible renewable resource, for purposes of the RPS, if
the facility received a water quality certification from the
State Water Resources Control Board within the immediately
preceding 15 years. Current law, however, precludes an
efficiency improvement from qualifying as a renewable resource
if it changes streamflow.
SB 1247
Page 2
2)Purpose . This bill addresses RPS compliance issues regarding
two hydroelectric facilities. First, the Rock Creek facility,
operated by PG&E, is located on the North Fork of the Feather
River. A $37 million upgrade to the facility will add about 11
MW of capacity. This facility did not receive its
certification from the Water Board, but rather from FERC
through a settlement agreement in 2001. SB 1247 specifically
allows the increased capacity of the Rock Creek facility to
count toward the RPS pursuant to this agreement.
Second, the Sacramento Municipal Utilities District (SMUD)
owns and operates the Upper American River Project, located on
the western slope of the Sierra Nevada. This project, which is
composed of several reservoirs and powerhouses, including
three generating facilities under 30 MW, recently went through
a relicensing process and is currently awaiting final FERC
approval.
Pursuant to SMUD's relicensing agreement and the expected
Water Board water quality certification, SMUD will increase
the volume of water released into the natural stream channel
from dams that deliver water to the three powerhouses. The
increased releases, however, will provide an environmental
benefit by increasing aquatic resource habitat and recreation.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081
SB 1247
Page 1
Date of Hearing: August 12, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1247 (Dutton) - As Amended: August 11, 2010
Policy Committee: Utilities and
Commerce Vote: 15-0
Urgency: Yes State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill:
1)Provides that hydroelectric facilities qualify toward meeting
renewable portfolio standard (RPS) compliance regardless of
whether the facilities cause a change in the volume or timing
of streamflow pursuant to a Federal Energy Regulatory
Commission (FERC) license condition for licenses issued after
January 1, 2010.
2)Provides that efficiency improvements, and the resulting
increased generating capacity at the Rock Creek hydroelectric
facility, qualify toward meeting RPS compliance pursuant to a
settlement agreement with the FERC.
FISCAL EFFECT
Negligible fiscal impact.
COMMENTS
1)Background . Under current law, new hydroelectric generation of
30 megawatts (MW) or less is eligible to qualify toward RPS
compliance. In addition, efficiency improvements to an
existing hydroelectric generating facility can be considered
an eligible renewable resource, for purposes of the RPS, if
the facility received a water quality certification from the
State Water Resources Control Board within the immediately
preceding 15 years. Current law, however, precludes an
efficiency improvement from qualifying as a renewable resource
if it changes streamflow.
SB 1247
Page 2
2)Purpose . This bill addresses RPS compliance issues regarding
two hydroelectric facilities. First, the Rock Creek facility,
operated by PG&E, is located on the North Fork of the Feather
River. A $37 million upgrade to the facility will add about 11
MW of capacity. This facility did not receive its
certification from the Water Board, but rather from FERC
through a settlement agreement in 2001. SB 1247 specifically
allows the increased capacity of the Rock Creek facility to
count toward the RPS pursuant to this agreement.
Second, the Sacramento Municipal Utilities District (SMUD)
owns and operates the Upper American River Project, located on
the western slope of the Sierra Nevada. This project, which is
composed of several reservoirs and powerhouses, including
three generating facilities under 30 MW, recently went through
a relicensing process and is currently awaiting final FERC
approval.
Pursuant to SMUD's relicensing agreement and the expected
Water Board water quality certification, SMUD will increase
the volume of water released into the natural stream channel
from dams that deliver water to the three powerhouses. The
increased releases, however, will provide an environmental
benefit by increasing aquatic resource habitat and recreation.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081