BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                    SB 16|
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                              UNFINISHED BUSINESS


          Bill No:  SB 16
          Author:   Rubio (D)
          Amended:  8/25/11
          Vote:     27 - Urgency

           
           SENATE NATURAL RES. AND WATER COMMITTEE :  6-1, 3/22/11
          AYES:  Pavley, Evans, Kehoe, Padilla, Simitian, Wolk
          NOES:  La Malfa
          NO VOTE RECORDED:  Cannella, Fuller

           SENATE APPROPRIATIONS COMMITTEE  :  5-3, 4/11/11
          AYES:  Kehoe, Alquist, Pavley, Price, Steinberg
          NOES:  Walters, Emmerson, Runner
          NO VOTE RECORDED:  Lieu

           SENATE FLOOR  :  36-4, 6/1/11
          AYES:  Alquist, Berryhill, Blakeslee, Calderon, Cannella, 
            Corbett, Correa, De Le�n, DeSaulnier, Emmerson, Evans, 
            Fuller, Gaines, Hancock, Harman, Hernandez, Kehoe, La 
            Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod, 
            Padilla, Pavley, Price, Rubio, Runner, Simitian, 
            Steinberg, Strickland, Vargas, Wolk, Wright, Wyland, Yee
          NOES:  Anderson, Dutton, Huff, Walters

           ASSEMBLY FLOOR  :  57-17, 9/1/11 - See last page for vote


            SUBJECT  :    Renewable energy:  Department of Fish and 
                      Game:  expedited permitting

           SOURCE  :     Kern County

                                                           CONTINUED





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           DIGEST  :    This bill requires the Department of Fish and 
          Game (DFG) to take steps to expedite the processing of 
          renewable energy permits.  

           Assembly Amendments  (1) require, with regard to 
          applications for California Endangered Species Act 
          incidental take permits for renewable energy projects, DFG, 
          if it determines an application is complete more than 60 
          days before a project is certified under the California 
          Environmental Quality Act (CEQA) by an agency other than 
          DFG, to reject or approve the application within 30 days 
          after the CEQA certification, unless a longer period of 
          time is agreed to by DFG and the applicant, (2) require DFG 
          if it is the lead agency for the project under CEQA to 
          reject or approve the incidental take permit application 
          concurrently with the CEQA certification, (3) make other 
          clarifying technical changes with regard to the time frames 
          for federally permitted projects that are eligible to 
          obtain a consistency determination, requiring DFG to 
          approve or reject an application for a consistency 
          determination within 30 days after the director receives 
          notice that a federal permit has been issued, and (4) make 
          the measure operative on the effective date of AB 13X1 (V. 
          Manuel P�rez), 2011-12 Session, First Extraordinary 
          Session.

           ANALYSIS  :    Under current law, thermal power plants with a 
          capacity over 50 megawatts are licensed by the Energy 
          Commission.

          Under the California Endangered Species Act (CESA), certain 
          species are listed as endangered, threatened, or candidates 
          for protected under the law.  The "take" of those listed 
          species is prohibited without an incidental take permit, 
          which typically includes stringent mitigation requirements. 
           The DFG is required to review project applications for 
          incidental take permits.  The DFG spends about $4 million 
          per year reviewing incidental take permit applications. The 
          DFG generally does not charge fees for this review.  Under 
          current regulation, the DFG is required to complete an 
          initial review of an incidental take permit application for 
          completeness within 30 days.








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          Depending on whether the DFG is designated a "lead agency" 
          or a "responsible agency" under the CEQA, the DFG must act 
          to approve or deny and incidental take permit within 90 
          days (with the potential for a 60 day extension) or 120 
          days (with a potential 60 day extension).

          Current law requires the state's investor owned electricity 
          utilities and load serving entities to increase their 
          procurement of renewable energy by one percent per year, 
          such that 20 percent of their total electricity load comes 
          from renewable resources by December 31, 2010.  This 
          requirement is referred to as the Renewables Portfolio 
          Standard (RPS).

          This bill:

          1. Requires DFG within 45 days after it receives an 
             application for an incidental take permit under the 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 RPS Program.

          3. Requires, except as otherwise provided, 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 to reject or approve such an application 
             within 45 days after deeming it complete to offer to 
             meet with the applicant to review the status of the 
             application.







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          4. Requires DFG, if it deems an application complete more 
             than 60 days before the project is certified under CEQA 
             by an agency other than DFG, to reject or approve the 
             incidental take permit application within 30 days after 
             the CEQA certification, unless a longer period is agreed 
             to by DFG and the applicant.  Requires DFG if it is the 
             lead agency under CEQA, to reject or approve the 
             incidental take permit application concurrently with the 
             CEQA certification. 

          5. Requires DFG to approve or reject an application for a 
             consistency determination for projects which have 
             received a federal incidental take statement or permit 
             within 30 days after the DFG director receives notice 
             that a federal permit has been issued.

          6. 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.

          7. Provides that this bill shall become operative only if 
             AB 13X1 of the 2011-12 First Extraordinary Session is 
             enacted.  Further provides that this bill shall become 
             operative on the effective date of AB 13X1 of the 
             2011-12 First Extraordinary Session.

          8. 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.

          9. 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 







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             DFG fails to meet the deadlines in this bill.

          Background
           
          The DFG has the responsibility to administer the CESA, 
          among other duties. This law authorizes, in specified 
          circumstances, DFG to issue "incidental take" permits to 
          enable a development project to harm one or more protected 
          species or their habitat.  In the absence of such a permit, 
          CESA prohibits the take of any endangered or threatened 
          species.  DFG may issue an incidental take permit 
          authorizing the take of endangered or threatened species if 
          certain conditions are met, including that the take is 
          incidental to an otherwise lawful activity, and the impacts 
          of the authorized take are minimized and fully mitigated.  
          CESA requires applicants to ensure adequate funding to 
          implement mitigation and monitoring measures.

          Last year, in SB 34 X8 (Padilla), Chapter 9, Statutes of 
          2009-10, Eighth Extraordinary Session, the Legislature 
          passed and Governor Schwarzenegger signed into law several 
          amendments to CESA that were intended to expedite the 
          regulatory approval of solar thermal and photovoltaic 
          energy projects in parts of the southern California desert 
          within the Desert Renewable Energy Conservation Program 
          (DRECP) planning area.  The DRECP effort will identify the 
          best sites for renewable projects and the best lands that 
          should be reserved for mitigation.  Among other provisions, 
          that new statute provides for the in lieu payment of funds 
          that would allow DFG to purchase mitigation lands in 
          advance for eligible renewable energy projects in the 
          desert that were to receive funds from the federal 
          government's stimulus funds.  That new law also created a 
          $75,000 fee that developers would pay to DFG to cover its 
          costs in reviewing the endangered species implications of 
          these projects.

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

           SUPPORT  :   (Verified  8/22/11)

          Kern County (source)
          California Wind Energy Producers







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          Iberdrola
          Independent Energy Producers
          Large-Scale Solar Association
          Terra-Gen Power

           ARGUMENTS IN SUPPORT  :    According to the author:

             "SB 16 is needed because there is currently no timeframe 
             under which DFG must adhere to in the review of 
             incidental take permits for siting renewable energy 
             permits already approved by the county.  Applicants 
             often wait long periods of time and the project is 
             delayed.

             "Kern County has approved and moved into the 
             construction phase over 1000 megawatts of wind and solar 
             energy projects.  The average timeline for DFG to issue 
             incidental take permits was six months.  The processing 
             times varied greatly and there is no specific timeframe 
             under which applicants can rely.

             "It is anticipated that DFG will be inundated with more 
             than 300 applicants for renewable energy projects this 
             year because of the increasing interest in renewable 
             energy projects and because of the investment and tax 
             provisions contained in state and federal law.  SB 16 is 
             essential to ensuing these projects are approved in a 
             reasonable frame."


           ASSEMBLY FLOOR  :  57-17, 9/1/11
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bradford, Brownley, 
            Buchanan, Butler, Charles Calderon, Campos, Carter, 
            Cedillo, Chesbro, Conway, Dickinson, Eng, Feuer, 
            Fletcher, Fong, Fuentes, Furutani, Galgiani, Gatto, 
            Gordon, Grove, Hagman, Hall, Hayashi, Roger Hern�ndez, 
            Hill, Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma, 
            Mendoza, Mitchell, Monning, Olsen, Pan, Perea, V. Manuel 
            P�rez, Portantino, Skinner, Solorio, Swanson, Torres, 
            Valadao, Wieckowski, Williams, John A. P�rez
          NOES:  Cook, Donnelly, Beth Gaines, Garrick, Halderman, 
            Harkey, Jeffries, Jones, Knight, Logue, Mansoor, Miller, 
            Morrell, Nielsen, Norby, Silva, Wagner







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          NO VOTE RECORDED:  Bonilla, Davis, Gorell, Nestande, Smyth, 
            Yamada


          CTW:kc  9/1/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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