BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 13 X1
                                                                  Page  1

          Date of Hearing:  February 24, 2011

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
            AB 13 X1 (V. Manuel Perez) - As Introduced:  February 7, 2011
           
          SUBJECT  :  Energy:  renewable resources:  endangered species:  �
          environmental impact reports

           SUMMARY  :  Expands existing provisions, enacted to facilitate �
          permitting of solar energy projects in a specified desert �
          region, to include a broader range of renewable energy projects �
          in the desert and, for specified provisions, other regions of �
          the state.  Establishes new provisions to govern review of �
          renewable energy projects under the California Environmental �
          Quality Act (CEQA) and to support planning and permitting of �
          renewable energy projects in the San Joaquin Valley.

           EXISTING LAW  :

          1)Pursuant to the California Endangered Species Act (CESA), �
            prohibits the take of any endangered or threatened species �
            unless the take is authorized by the Department of Fish and �
            Game (DFG).  DFG may issue an incidental take permit �
            authorizing the take of endangered or threatened species if �
            certain conditions are met, including that the take is �
            incidental to an otherwise lawful activity, and the impacts of �
            the authorized take are minimized and fully mitigated.  CESA �
            requires applicants to ensure adequate funding to implement �
            mitigation measures, including for monitoring.

          2)Pursuant to the Natural Community Conservation Planning Act, �
            authorizes DFG to permit the taking of any covered species �
            whose conservation and management is provided for in a natural �
            community conservation plan (NCCP) approved by DFG.

          3)SBX8 34 (Padilla), Chapter 9, Statutes of 2009-10 Eighth �
            Extraordinary Session: 

             a)   Authorizes DFG, in consultation with the California �
               Energy Commission (CEC), to develop mitigation actions, �
               including advance mitigation and interim mitigation �
               strategies, to fully mitigate the impacts on endangered and �
               threatened species of solar energy projects that are �
               eligible for federal American Recovery and Reinvestment Act �








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               (ARRA) funding, and are proposed for siting within the �
               Desert Renewable Energy Conservation Plan (DRECP) planning �
               area.

             b)   Authorizes eligible project developers to meet their �
               mitigation obligations by voluntarily paying fees for �
               deposit into a fund which would be used by DFG to complete �
               the mitigation actions.

             c)   Requires eligible project developers to pay and DFG to �
               collect a one-time permit application fee of $75,000 to �
               cover DFG's costs of processing incidental take permit �
               applications.  Authorizes DFG, if the fee is insufficient �
               to cover the actual costs of completing the permitting, to �
               collect an additional fee of up to $75,000.

          4)Requires the CEC to license thermal power plants over 50 �
            megawatts and the plant's related facilities including fuel �
            supply lines, water pipelines, and transmission lines that tie �
            the facility to the grid.

          5)Pursuant to CEQA, requires a lead agency with the principal �
            responsibility for carrying out or approving a proposed �
            discretionary project to evaluate the environmental effects of �
            its action and prepare a negative declaration, mitigated �
            negative declaration, or environmental impact report (EIR).  �
            If an initial study shows that the project may have a �
            significant effect on the environment, the lead agency must �
            prepare an EIR.  A lead agency must base its determination of �
            significant effects on substantial evidence.

           THIS BILL  :

          1)Expands SBX8 34's CESA mitigation provisions, currently �
            limited to ARRA-eligible solar thermal and photovoltaic �
            projects, to include ARRA-eligible wind and geothermal �
            projects within the DRECP.

          2)Expands SBX8 34's $75,000 permit application fee for DFG �
            review of incidental take permits, currently limited to �
            ARRA-eligible solar thermal and photovoltaic projects within �
            the DRECP, to apply to any eligible renewable energy project �
            in the state

          3)Requires DFG, consistent with the NCCP Act and to the extent �








                                                                  AB 13 X1
                                                                  Page  3

            practicable, to enter into one or more planning agreements �
            with appropriate participants to develop an NCCP for renewable �
            energy development in the San Joaquin Valley.

          4)States that the EIR for a proposed renewable energy project is �
            not required to analyze, or mitigate where feasible, an �
            environmental effect if the effect is found not to be �
            significant.  This provision sunsets January 1, 2014.

          5)Authorizes the applicant for a proposed renewable energy �
            project to provide information regarding the environmental �
            benefits of the project to the lead agency reviewing the �
            project under CEQA.  Authorizes the lead agency to consider �
            this information when making findings regarding significant �
            effects in approving the project.  This provision sunsets �
            January 1, 2014.

          6)Expands SBX8 34's optional applicant fee, allowing the CEC to �
            contract for third party review of the applicant's project, to �
            apply to any eligible renewable energy project in the state.  �
            This fee is currently limited to ARRA-eligible solar thermal �
            projects within the DRECP.

          7)Requires the CEC to provide, upon appropriation by the �
            Legislature, up to $7 million in grants to qualified counties �
            in the San Joaquin Valley and desert regions to revise rules �
            and policies, including general plans, zoning ordinances, and �
            NCCPs, to facilitate renewable energy development on �
            "disturbed lands," as defined.

          8)Provide that this bill is contingent on enactment of an �
            unspecified bill in the First Extraordinary Session.

           FISCAL EFFECT  :  Unknown

           
          COMMENTS  :

           1)Background.   The DRECP, which covers renewable resource lands �
            in the Colorado and Mojave deserts, is intended to serve as a �
            NCCP for development of renewable energy projects in the �
            region.  As such, lands designated for development and lands �
            designated for conservation purposes will be identified and �
            dedicated to those purposes consistent with the terms of the �
            NCCP Act and other applicable provisions of law.








                                                                  AB 13 X1
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             a)   SB 8X 34 allowed solar energy developers to pay in-lieu �
               fees that would be used by DFG to acquire and restore �
               habitat lands for species affected by projects within the �
               DRECP.  This provision is an alternative to developers' �
               mitigating the impacts of each of these projects on an �
               individual, per project basis.  This approach also allows �
               DFG to coordinate the mitigation and to avoid piecemeal �
               mitigation.  DFG received a loan of $10 million for this �
               purpose.  SB8X 34 also required DFG to develop an interim �
               mitigation strategy that would establish conservation �
               benchmarks for the DRECP and to identify high priority �
               lands that should be acquired.  The bill required DFG to �
               collect a fee of $75,000 for solar energy projects in the �
               area included within the DRECP.

             b)   Projects eligible pursuant to SB 8X 34 were limited to �
               solar power plants within the DRECP, receiving ARRA �
               funding, and therefore required to be permitted and begin �
               construction in 2010.  These limitations focused the bill �
               on about 15 projects that were pending review in the DRECP �
               region that needed to have permits issued in 2010 in order �
               to retain their ARRA funding and their federal tax credits.

             c)   This bill would expand the basic provisions of SB8X 34, �
               in light of the federal extension of ARRA deadlines, to �
               include wind and geothermal energy projects, which may �
               enable additional renewable energy projects within the �
               DRECP to take advantage of DFG's in-lieu mitigation �
               program.  The bill is also intended to facilitate �
               development of a renewable energy NCCP for the San Joaquin �
               Valley by directing DFG to work with local governments and �
               developers, as well as directing the CEC to provide grants �
               for local government participation.  The bill would also �
               expand fee provisions, which support DFG and CEC review of �
               renewable energy projects, to apply to all eligible �
               renewable energy projects developed to achieve the �
               Renewables Portfolio Standard.  Finally, the bill makes �
               modest clarifications to CEQA to support efficient �
               consideration of the environmental impacts of proposed �
               renewable energy projects subject to review by local lead �
               agencies.

           2)Suggested amendments.    The author and the committee may wish �
            to consider  clarifying amendments (to be adopted in �








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            Appropriations) on the following points.

             a)   SB8X 34 required DRECP renewable energy projects to have �
               applications complete by February 1, 2010.  This bill �
               should extend that date (on page 6, lines 2 and 7) for a �
               year or more to permit additional projects to participate.

             b)   The bill should be amended (on page 8, line 12 and page �
               10, lines 9, 28 and 39) to clarify the proper division of �
               jurisdiction between the CEC (thermal power plants 50 �
               megawatts or greater, including solar thermal and �
               geothermal) and local government (non-thermal, including �
               photovoltaic and wind, and all plants under 50 megawatts).

             c)   An exception to the $75,000 permit application fee may �
               be appropriate for DFG review of incidental take permits �
               under Section 2080.1 (which applies when a federal permit �
               has been obtained for a federally-listed species that is �
               also listed under CESA), if DFG's actual costs are less �
               than $75,000.

             d)   The blanks on page 16 should be filled in to specify �
               which bill this bill's enactment is contingent upon.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file

           Opposition 
           
          None on file

           
            Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916) �
          319-2092