BILL ANALYSIS                                                                                                                    �



                                                                      



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                                 THIRD READING


          Bill No:  AB 1073
          Author:   Fuentes (D)
          Amended:  2/23/12 in Senate
          Vote:     27 - Urgency

           
           SENATE ENERGY, UTIL. & COMMUNICATIONS COMM.  : 8-0, 3/12/12
          AYES:  Padilla, Fuller, Berryhill, De Le�n, DeSaulnier, 
            Emmerson, Rubio, Wright
          NO VOTE RECORDED:  Corbett, Kehoe, Pavley, Simitian, 
            Strickland
           
          SENATE APPROPRIATIONS COMMITTEE  :  7-0, 3/19/12
          AYES:  Kehoe, Walters, Alquist, Dutton, Lieu, Price, 
            Steinberg

           ASSEMBLY FLOOR  :  Not relevant


            SUBJECT  :    Energy:  solar thermal powerplants:  
                      conversion to solar photovoltaic technology

           SOURCE  :     Author


           DIGEST  :    This bill specifies that the California Energy 
          Commission (CEC) may retain jurisdiction over the siting of 
          specific solar thermal powerplants that seek to convert to 
          solar photovoltaic (PV) technology, even if the siting of 
          that powerplant has been challenged in court, so long as 
          that challenge has been dismissed by the California Supreme 
          Court.

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           ANALYSIS  :    The CEC has exclusive jurisdiction over the 
          certification (siting) of thermal powerplants, including 
          solar thermal, but not solar PV facilities.  Last year, the 
          passage of SB 226 (Simitian), Chapter 469, Statutes of 
          2011, allows the CEC to retain jurisdiction over certain 
          powerplants that were originally designed as a solar 
          thermal facility, but now the applicant wishes to convert 
          the facility to PV technology.  The bill explicitly 
          excludes projects whose CEC certification has been 
          challenged in court.  This exclusion affected one proposed 
          facility, K Road Calico Solar.  While there was a legal 
          challenge filed against the Calico facility, the Supreme 
          Court dismissed the challenge.
           
          This bill specifies that certain facilities are eligible to 
          be permitted by the CEC as a PV facility even if there was 
          a legal challenge to the certification, so long as the 
          California Supreme Court subsequently dismissed the 
          challenge.

           Related Legislation  :  SB 226 (Simitian), Chapter 469, 
          Statutes of 2011.

           FISCAL EFFECT :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          Likely one-time costs of at least $150,000 for additional 
          project application review due to project design changes, 
          from the Energy Resources Programs Account (ERPA), which 
          can be used for General Fund purposes.

           SUPPORT  :   (Verified  3/19/12)

          K Road Calico Solar

           OPPOSITION  :    (Verified  3/19/12)

          Audubon California
          Defenders of Wildlife
          NRDC
          The Nature Conservancy
          The Wilderness Society

           ARGUMENTS IN SUPPORT  :    The proponent states, "Last year, 

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          SB 226 (Simitian) authorized a small group of solar 
          projects that were certified by the California Energy 
          Commission (CEC) to petition to the CEC for an amendment to 
          their certificate if they switched their technology from 
          solar thermal to solar photovoltaic (PV).  The change from 
          solar thermal to PV can lessen environmental impacts, is 
          cost-effective for ratepayers and still creates significant 
          new jobs.  The bill prescribed criteria for those projects 
          that could participate in this process and K Road's Calico 
          project was initially thought to be among them.  However, 
          the legislation contained a phrase that specifically barred 
          projects whose CEC Certificate was timely challenged in 
          court from participating, regardless of the outcome of that 
          challenge.  Given that the bill was passed on the last day 
          of session there was not time to amend the bill.  However, 
          in his letter to the Senate Journal, Senator Simitian 
          clarified the intent relative to the language that barred 
          projects stating it was not his intent to bar projects 
          '?whose certificate was challenged and subsequently 
          dismissed by the California Supreme Court.'  This spoke 
          directly to the situation that K Road was in with their 
          project.  The project certification had been challenged but 
          was dismissed by the Supreme Court.  AB 1073 simple seeks 
          to clarify this point in statute to ensure there is no 
          ambiguity.  The bill uses the same language as the letter 
          submitted to the Senate Journal and further clarifies that 
          nothing in the new law abrogates a party's right to 
          continue existing legal proceedings in any venue or to 
          challenge projects going forward."

           ARGUMENTS IN OPPOSITION  :    The opponents are opposed to 
          the bill's exemption for the Calico Solar Project.  They 
          are concerned that if the Legislature grants a special 
          exemption to this highly controversial project, it will 
          undermine the incentives for establishing a strong 
          framework of good planning, siting and permitting.  
           

          RM:kc  3/20/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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