BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1180
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          Date of Hearing:   May 11, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 1180 (Bradford) - As Amended:  April 28, 2011 

          Policy Committee:                              Water, Parks and 
          Wildlife     Vote:                            12-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the State Water Resource Control Board, no 
          later than January 1, 2012, to consider an implementation plan 
          submitted by a municipally owned power plant in compliance with 
          the Statewide Water Quality Control Policy on the Use of Coastal 
          and Estuarine Water for Power Plant Cooling, adopted May 4, 
          2010, and recommendations made by the Statewide Advisory 
          Committee on Cooling Water Intake Structures (SACCWIS), if any, 
          and direct staff to make modifications to the policy, if 
          appropriate.

           FISCAL EFFECT  

          Negligible costs to the board, whose OTC policy already requires 
          consideration of such an implementation plan.

           COMMENTS  

           1)Rationale.   The author is concerned about the cost to 
            ratepayers, especially ratepayers of the Los Angeles 
            Department of Water and Power (LADWP), of having to comply 
            with board policy that requires the phase out of technology 
            known as once-through cooling (OTC) used by powerplants.  This 
            bill is intended to require the board to consider an 
            implementation plan by LADWP that would provide the department 
            additional time or otherwise flexibility in replacing its 
            existing OTC facilities.

           2)Background.   The Federal Clean Water Act requires the 
            location, design, construction and capacity of new and 
            existing cooling water intake structures on power plants 








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            reflect the best technology available to minimize the harm or 
            killing of fish, shellfish and other aquatic organisms.  In 
            California, the board implements provisions of the act.

            Once-through cooling is a cooling technique used at many 
            California powerplants whereby cold ocean water is flushed 
            through the powerplant system and returned to the sea as warm 
            water.  On May 4, 2010 the board adopted its Policy on the Use 
            of Coastal and Estuarine Waters for Power Plant Cooling, which 
            asserted the significant adverse effects of OTC on marine life 
            and ecosystems and declared closed-cycle wet cooling as the 
            best technology available for powerplant cooling. In contrast 
            to OTC, closed-cycle wet cooling draws cool water from the 
            ocean and then recirculates it, using the same water to cool 
            the system repeatedly. 

            As a consequence of the board's OTC policy, many California 
            powerplants will need to phase out use of OTC, oftentimes at 
            great cost.  The board's decision has proven especially 
            controversial in the view of LADWP, which contends, among 
            other things, that the effects of the policy will fall 
            especially hard on its ratepayers, who are less wealthy, on 
            average, that the ratepayers of other California utilities. 

           3)Related Legislation.
             
              a)   AB 1552 (Committee on Utilities and Commerce, 2009)  , 
               which would have required the board to extend 
               implementation of its phase out of OTC to December 31, 
               2031, was held by this committee.

              b)   SB 42 (Corbett, 2009)  would have required the board, by 
               March 1, 2010, to adopt and implement a statewide policy on 
               OTC at coastal and estuarine power plants and to set a 
               per-gallon OTC fee, to be collected from each power plant 
               using OTC.  The bill failed to pass the Senate Committee on 
               Energy Utilities and Commerce.

           4)Support  .  This bill is supported by the California Chamber of 
            Commerce, See's Candies and several other commercial 
            interests.

           5)Opposition.   The bill is opposed by several environmental 
            organizations, including the Natural Resources Defense Council 
            and the Planning and Conservation League, as well as the 








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            Pacific Coast Federation of Fishermen's Associations.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081