BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 13 X1
                                                                  Page 1

          (  Without Reference to File  )


          CONCURRENCE IN SENATE AMENDMENTS
          AB 13 X1 (V. Manuel P�rez, et al.)
          As Amended  July 7, 2011
          Majority vote
           
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          |ASSEMBLY:  |58-15|(March 7, 2011) |SENATE: |29-11|(July 14,      |
          |           |     |                |        |     |2011)          |
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           Original Committee Reference:   NAT. RES.  

          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 support permitting of 
          renewable energy projects in the San Joaquin Valley.  
           
           The Senate amendments  :

          1)Revise permit application fee for Department of Fish and Game 
            (DFG) review of incidental take permits to sunset the fee 
            provisions January 1, 2016, and provide the following 
            alternative fees:

               a)     $25,000 for a project less than 50 megawatts (MW) 
                 and for a project of any size that is subject only to 
                 Fish and Game Code Section 2080.1 �which applies when a 
                 federal permit has been obtained for a federally-listed 
                 species that is also listed under the California 
                 Endangered Species Act (CESA)];

               b)     $50,000 for a project between 50 MW and 250 MW; and,

               c)     $75,000 for a project over 250 MW.

          2)Delete a provision requiring DFG to enter into one or more 
            planning agreements with appropriate participants to develop a 
            natural community conservation plan (NCCP) for renewable 
            energy development in the San Joaquin Valley.








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          3)Revise a provision requiring the California Energy Commission 
            (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 to 
            facilitate renewable energy development.

          4)Delete a provision making the bill contingent on enactment of 
            SB 2 X1 (Simitian) of 2011, and add a provision making Section 
            3 of the bill (permit application fee) contingent on enactment 
            of SB 16 (Rubio) of 2011.

          5)Make other technical and clarifying changes.



           EXISTING LAW  :

          1)Prohibits, pursuant to CESA, the take of any endangered or 
            threatened species unless the take is authorized by 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)Authorizes, pursuant to the NCCP Act, DFG to permit the taking 
            of any covered species whose conservation and management is 
            provided for in a NCCP approved by DFG.

          3)SB 34 X8 (Padilla), Chapter 9, Statutes of 2009-10 Eighth 
            Extraordinary Session: 

             a)   Authorizes DFG, in consultation with the 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 (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 








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               mitigation obligations by voluntarily paying fees for 
               deposit into a fund which would be used by DFG to complete 
               the mitigation actions; and,

             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 MW 
            and the plant's related facilities including fuel supply 
            lines, water pipelines, and transmission lines that tie the 
            facility to the grid.

           AS PASSED BY THE ASSEMBLY  , this bill:

          1)Expanded 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)Expanded a $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)Required DFG, consistent with the NCCP Act and to the extent 
            practicable, to enter into one or more planning agreements 
            with appropriate participants to develop a NCCP for renewable 
            energy development in the San Joaquin Valley.

          4)Expanded an 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.

          5)Required 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.








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          6)Provided that this bill is contingent on enactment of SB 2 X1 
            (Simitian) of 2011. 

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, at least $6 million over the next few years in new 
          fee revenues, $6 million appropriated to DFG to review permit 
          applications, likely costs in the hundreds of thousands for 
          interagency transfer of permit review, and $7 million for 
          planning grants.

           COMMENTS  :  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.

          SB 34 X8 (Padilla), Chapter 9, Statutes of 2009-10 Eighth 
          Extraordinary Session, 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.  SB 34 X8 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.

          Projects eligible pursuant to SB 34 X8 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.

          This bill would expand the basic provisions of SB 34 X8, in 
          light of the federal extension of ARRA deadlines, to include 
          wind and geothermal energy projects, which may enable additional 








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          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 renewable energy projects in the San 
          Joaquin Valley by directing the CEC to provide grants for local 
          government participation.  The bill would also expand and revise 
          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.


           Analysis Prepared by  :    Lawrence Lingbloom / NAT. RES. / (916) 
          319-2092                                          FN: 0001611