BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1214
                                                                  Page  1

          Date of Hearing:   May 18, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 1214 (Skinner) - As Amended:  May 10, 2011 

          Policy Committee:                              
          UtilitiesVote:14-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill requires the Public Utilities Commission (PUC) and the 
          Independent System Operator (ISO) to coordinate the planning and 
          approval of transmission facilities serving solar development. 
          Specifically, this bill:

          1)Requires the PUC and ISO to review all new and upgraded 
            transmission facilities identified in the ISO's planning 
            process as being facilities serving solar development areas, 
            and to publish a report, by March 31, 2012, identifying these 
            new or upgraded transmission facilities that can be placed in 
            service by December 31, 2016 in order to take maximum 
            advantage of available federal investment tax credits.

          2)Requires the report to include timeframes for obtaining 
            government approvals, construction, and placing each 
            transmission project into service, and an analysis to any 
            barriers in meeting these milestones and means to eliminate 
            those barriers.

          3)Requires the PUC and ISO to:

             a)   Coordinate the ISO's transmission planning process with 
               the commission's issuance of certificates for transmission 
               facilities.

             b)   Evaluate alternatives for building and upgrading 
               transmission facilities that may enhance achievement of the 
               state's Renewable Portfolio Standard (RPS) and AB 32 goals.

           FISCAL EFFECT  








                                                                  AB 1214
                                                                  Page  2


          Annual special fund costs of $175,000 for 1.5 positions, for at 
          least two years, regarding enhanced transmission planning and 
          coordination with the ISO, including examination of alternatives 
          to meet RPS and AB 32 goals. �Public Utilities Reimbursement 
          Account]

           COMMENTS  

           Purpose  . The ISO is a non-profit public benefit corporation that 
          manages the state's electricity grid and consults and 
          coordinates with state and local agencies. The ISO, through its 
          transmission planning process, identifies those facilities 
          necessary to interconnect renewable generators to, and deliver 
          renewable power on, the ISO-controlled grid. According to the 
          author, while there has been some progress in streamlining the 
          ISO planning process, there is no link between the ISO's 
          transmission plan and the ability of the investor-owned 
          utilities (IOUs) and/or other transmission owners to obtain the 
          necessary permits for the construction of those transmission 
          facilities.

          AB 1214 is intended to promote the timely construction of those 
          transmission facilities necessary to interconnect renewable 
          generation in order to meet the state's RPS goal of 33% by 2020. 
          The bill requires the parties responsible for planning, 
          permitting, and constructing transmission to collaborate and 
          prepare a report explaining the barriers to, and potential 
          solutions for, constructing sufficient transmission by the end 
          of 2016, when solar energy projects must be in operation in 
          order to qualify for a federal investment tax credit.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081