BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 16
                                                                  Page  1


          SENATE THIRD READING
          SB 16 (Rubio)
          As Amended  August 22, 2011
          2/3 vote.  Urgency

           SENATE VOTE  :36-4  
           
           WATER, PARKS & WILDLIFE      10-0                   
          APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Huffman, Bill Berryhill,  |Ayes:|Fuentes, Blumenfield,     |
          |     |Blumenfield, Campos,      |     |Bradford, Charles         |
          |     |Fong, Gatto,              |     |Calderon, Campos, Davis,  |
          |     |Roger Hern�ndez, Hueso,   |     |Gatto, Hall, Hill, Lara,  |
          |     |Jones, Olsen              |     |Mitchell, Solorio         |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Harkey, Donnelly,         |
          |     |                          |     |Nielsen, Norby, Wagner    |
           ----------------------------------------------------------------- 

           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 45 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, unless otherwise 
            requested by the applicant.  Gives DFG an additional 30 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 inform the 
            applicant in writing of the information needed and offer to 
            meet with the applicant, unless otherwise requested in writing 
            by the applicant.

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








                                                                  SB 16
                                                                  Page  2



          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 30 days after the 
            issuance of the federal permit.

          5)Requires DFG by January 1, 2014, to provide an accounting to 
            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 AB 13 
            X1 of the 2011-12 First Extraordinary Session is enacted.  
            Further provides that this bill shall become operative on the 
            effective date of AB 13 X1 of the 2011-12 First Extraordinary 
            Session.

          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  :









                                                                  SB 16
                                                                  Page  3


          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 
            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 Assembly Appropriations 
          Committee, ongoing costs to DFG of an unknown but presumably 
          substantial amount, possibly in the millions of dollars, 
          resulting from compressing DFG's permitting workload into a 
          truncated timeline.  (Fish and Game Preservation Fund.)  These 
          costs should be fully covered by DFG fees.  Given current 
          restrictions on state hiring, it is not clear DFG would be able 
          to add personnel should it need to do so to complete the 
          workload within specified timeframes.

           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 1,000 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 








                                                                  SB 16
                                                                  Page  4


          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 AB 13 X1 (V. Manuel 
          P�rez) of the First Extraordinary Session which would authorize 
          DFG to collect fees to cover the costs of the expedited review 
          required by this bill.  AB 13 X1 would authorize DFG to collect 
          a permit application fee of $25,000 to $75,000, depending on the 
          size of the project, and if the fee is insufficient to cover 
          DFG's costs, would authorize DFG to collect additional permit 
          fees of up to $200,000.  AB 13 X1 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 of fees as an optional method of meeting 
          their mitigation requirements.  AB 13 X1 would extend those 
          provisions to also apply to wind and geothermal power plants in 
          the DRECP.  AB 13 X1 passed the Legislature and is pending 
          approval by the Governor.

          The author of this bill notes that renewable energy industry 
          representatives indicate they are supportive of the fees 
          authorized in AB 13 X1 if it is joined to the reforms in this 
          bill.  In addition to requiring that the permit review be 
          expedited by DFG, this bill 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.


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

                                                               FN:  0002023