BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 16
                                                                  Page  1

          Date of Hearing:   June 28, 2011

                   ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
                                Jared Huffman, Chair
                      SB 16 (Rubio) - As Amended:  May 27, 2011

           SENATE VOTE  :   36-4
           
          SUBJECT  :   Renewable Energy: Department of Fish and Game: 
          Expedited Permitting

           SUMMARY  :   Requires the Department of Fish and Game (DFG) to 
          take steps to expedite the processing of renewable energy 
          permits.  Specifically,  this bill :   

          1)Requires DFG within 30 days after it receives an application 
            for an incidental take permit under the California Endangered 
            Species Act (CESA) for an eligible renewable energy project, 
            as defined, to determine whether the application is complete 
            and notify the applicant.  If the application is incomplete, 
            requires DFG to inform the applicant of the information that 
            is needed to complete the application.  Gives DFG an 
            additional 15 days after receipt of the additional information 
            requested to determine if the application is complete, and if 
            the application is still incomplete, requires DFG to offer to 
            meet with the applicant.

          2)Defines eligible project to include an eligible renewable 
            energy resource as defined in California's Renewables 
            Portfolio Standard (RPS) Program.

          3)Requires DFG to approve or reject an incidental take permit 
            application for an eligible renewable energy project within 60 
            days or less from the date the application is deemed complete, 
            unless a longer period of time is agreed upon by DFG and the 
            applicant.  Additionally requires DFG if it has not made a 
            determination within 45 days to offer to meet with the 
            applicant regarding the status of the application.

          4)Requires DFG to approve or reject an incidental take permit 
            application for projects which have received a federal 
            incidental take statement or permit within 150 days after the 
            application is deemed complete.

          5)Requires DFG by January 1, 2014 to provide an accounting to 








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            the Legislature on incidental take permit applications for 
            eligible renewable energy projects.  Also requires DFG by 
            January 1, 2012 and annually thereafter until 2014, to report 
            to the Legislature on the extent to which it arranges for 
            entities other than itself to provide all or part of the 
            environmental review of eligible projects.

          6)Provides that this bill shall become operative only if ABx1 13 
            of the 2011-12 First Extraordinary Session is enacted and 
            takes effect on or before January 1, 2012.  Further provides 
            that this bill shall either become operative 30 days after the 
            effective date of 
          ABx1 13, or 30 days after the effective date of this bill, 
            whichever is later.

          7)Contains an urgency clause stating that it is necessary this 
            bill become effective immediately in order to expedite 
            permitting of needed renewable energy projects as soon as 
            possible.

          8)States legislative findings and declarations regarding the 
            importance of facilitating permitting of renewable energy 
            projects, including scientific evaluation by DFG of the 
            wildlife impacts of such projects and particularly on 
            threatened and endangered species, and the Legislature's 
            intent to evaluate the performance of DFG and consider 
            refunding a portion of permit fees if DFG fails to meet the 
            deadlines in this bill.

           EXISTING LAW  :

          1)Provides for the listing of threatened and endangered species 
            under CESA.  Requires a project proponent to obtain an 
            incidental take permit for any project which would impact 
            threatened or endangered species.

          2)Authorizes DFG, in consultation with other state and federal 
            agencies, to design and implement actions to protect, restore, 
            and enhance habitat that can be used to fully mitigate the 
            impacts of take of endangered or threatened species resulting 
            from solar thermal or photo voltaic power plants in the 
            planning area of the Desert Renewable Energy Conservation Plan 
            (DRECP).

          3)Authorizes developers of eligible renewable energy projects to 








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            voluntarily pay fees into the Renewable Energy Resources 
            Development Fee Trust Fund sufficient to complete mitigation 
            actions developed by DFG as a method of meeting their 
            mitigation requirements.

           FISCAL EFFECT :   According to the Senate Appropriations 
          Committee, unknown costs covered by new revenues.

           COMMENTS  :  This bill would require DFG to undertake expedited 
          review of applications for CESA incidental take permits for 
          renewable energy projects.  The author asserts this bill is 
          needed because there is currently no timeframe under which DFG 
          must review an incidental take permit for renewable energy 
          permits, and applicants often must wait long periods of time 
          which results in project delays.  Kern County in support of this 
          bill indicates that the county has approved and moved into the 
          construction phase for over 1000 megawatts of wind and solar 
          energy projects, and that the average time it took DFG to issue 
          incidental take permits was six months.  Information provided by 
          the author indicates that it is anticipated DFG will receive 
          more than 300 applications for renewable energy projects this 
          year because of the increasing interest in renewable energy 
          projects and the investment and tax provisions contained in 
          state and federal law.  However, DFG also needs significant 
          staff resources to handle the required review of these projects 
          within an expedited time frame. 

          This bill is contingent on enactment of ABx1 13 (M. Perez) of 
          the First Extraordinary Session which would authorize DFG to 
          collect fees to cover the costs of the expedited review required 
          by this bill.  ABx1 13 would authorize DFG to collect a permit 
          application fee of $50,000, and if $50,000 is insufficient to 
          cover DFG's costs, would authorize DFG to collect additional 
          permit fees of up to $200,000.  ABx1 13 also expands provisions 
          of law enacted last year which authorized DFG to design and 
          implement mitigation actions for solar thermal and photo-voltaic 
          power plants, and authorized developers of such projects to 
          voluntarily pay in lieu fees as an optional method of meeting 
          their mitigation requirements.  ABx1 13, as amended on April 26, 
          2011, would extend those provisions to also apply to wind and 
          geothermal power plants in the DRECP.

          As currently worded, ABx1 13 applies to a subset of renewable 
          energy projects, namely solar thermal, photo-voltaic, wind and 
          geothermal, whereas SB 16 applies to all renewable energy 








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          resources in the California RPS Program.  However, staff is 
          informed that the intent of the author is to amend ABx1 13 to 
          also apply to all renewable resources in the RPS.  It is 
          important that the definitions of eligible project in both bills 
          be consistent so that DFG's costs of expedited review are 
          covered.

          The author of this bill notes that renewable energy industry 
          representatives indicate they are supportive of the fees 
          authorized in ABx1 13 if it is joined to the reforms in SB 16.  
          In addition to requiring that the permit review be expedited by 
          DFG, SB 16 also requires that DFG provide an accounting to the 
          Legislature by January 1, 2014, including but not limited to: 
          the number of incidental take applications received; the number 
          of permits approved, rejected or withdrawn; details regarding 
          the projects; the time that elapsed between when a permit was 
          deemed complete and when it was approved; the staff time spent 
          on each permit; and other information DFG determines to be 
          relevant.

           Suggested Technical Amendments  :  Committee staff recommends that 
          the following technical feasibility amendments, which are 
          acceptable to the author, be adopted: 

          On page 4, line 35, strike "30 days" and insert "  45 days  ".
          On page 5, line 5, strike "15 business days" and insert "  30 
          days  ".

          On page 5, line 10:  after "application" insert  the department 
          shall inform the applicant in writing of what information and/or 
          supporting material is needed by the department and?  ".  

          On page 5, line 11 and again on line 19, after "director" insert 
          "  or his/her designee, reporting directly to the director.  "
          .
          On page 5, line 25, strike "150 days after the application is 
          deemed complete" and insert "  30 days after the issuance of the 
          federal permit  ."

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Kern County (sponsor)
           








                                                                 SB 16
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            Opposition 
           
          None on file.

           Analysis Prepared by  :    Diane Colborn / W., P. & W. / (916) 
          319-2096