BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 23
                                                                  Page  1

          SENATE THIRD READING
          SB 23 (Simitian)
          As Amended  September 2, 2011
          Majority vote

           SENATE VOTE  :31-4  
           
           UTILITIES & COMMERCE           10-2                 NATURAL 
          RESOURCES       5-2 
           
           ----------------------------------------------------------------- 
          |Ayes:|Bradford, Buchanan, Fong, |Ayes:|Chesbro, Brownley,        |
          |     |Fuentes, Furutani, Roger  |     |Dickinson, Huffman,       |
          |     |Hern�ndez, Huffman, Ma,   |     |Monning                   |
          |     |Nestande, Swanson         |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Knight, Valadao           |Nays:|Knight, Grove             |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      12-5                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fuentes, Blumenfield,     |     |                          |
          |     |Bradford, Charles         |     |                          |
          |     |Calderon, Campos, Davis,  |     |                          |
          |     |Gatto, Hall, Hill, Lara,  |     |                          |
          |     |Mitchell, Solorio         |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Harkey, Donnelly,         |     |                          |
          |     |Nielsen, Norby, Wagner    |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Makes a number of substantive and technical changes to 
          the recently signed SB 2 X1 (Simitian) in the First 
          Extraordinary Session, Chapter 1, Statutes of 2011 which 
          increased California's renewable portfolio standard (RPS) from 
          20% by 2010 to 33% by 2020.  Specifically,  this bill  :   

          1)Extends the deadline for the California Energy Commission 
            (CEC) to study and report to the Legislature on run-of-river 
            hydroelectric generating facilities in British Columbia for 
            one year to June 30, 2012.









                                                                  SB 23
                                                                  Page  2

          2)Extends the deadline for the California Public Utilities 
            Commission (PUC) to determine resource adequacy standards for 
            wind and solar energy resources for one year to no later than 
            July 1, 2012.

          3)Extends the deadline for CEC to adopt regulations for 
            enforcement of RPS requirements of the publicly owned 
            utilities (POUs) for one year to July 1, 2012.

          4)Specifies that a small hydroelectric generation unit is an 
            eligible renewable energy resource if it supplies or conveys 
            water to its customers.

          5)Eliminates the requirement for the PUC to prepare annual 
            procurement plans.

          6)Authorizes the PUC to require more frequent compliance 
            reports.

          7)Eliminates all deficits accumulated by retails sellers prior 
            to December 31, 2010, not just the deficits of those retail 
            sellers who are at 14%

          8)Extends the deadline for the PUC to establish minimum 
            procurement quantities in each compliance period from January 
            1, 2012 to July 1, 2012.

          9)Clarifies PUC enforcement provisions against IOUs.

          10)Permits local publically owned utilities that have met the 
            20% requirement by 2010 to bank its excess procurement.

          11) Changes effective load carrying capacity deadline from July 
            1, 2012 to January 1, 2013.

          12) Allows PUC to report to Legislature on RPS progress in 
            existing AB 67 report.

          13) Specifies that California Air Resources Board (CARB) cannot 
            adopt any state renewable energy goals.

          14) Makes a number code clean up changes.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, by establishing more realistic deadlines, CEC and PUC 








                                                                  SB 23
                                                                  Page  3

          will realize minor administrative cost savings in completing the 
          required tasks.

           COMMENTS  :  The Governor signed SB 2 X1 (Simitian) on April 12, 
          2011.  The bill will take effect 90 days after the adjournment 
          of the First Extraordinary Session which has not yet occurred.  
          Thus, various state agencies providing reports or promulgating 
          regulations in 2011.  The delay in enactment of SB 2 X1 and the 
          delay in adjournment of the special session require that the 
          deadlines be extended by one year for these agencies to complete 
          their work.

          The author seeks to extend deadlines for specified rules and 
          reports to provide sufficient time for CEC and CPUC.  

          In addition, this bill addresses compliance requirements 
          applicable to entities other than the investor owned utilities 
          that are required to meet the RPS requirements.  It also expands 
          the applicability of the provision to all retail sellers who 
          accumulate deficits prior to December 31, 2010, and not just the 
          deficits of those retail sellers who are at 14%.


           Analysis Prepared by  :    DaVina Flemings / U. & C. / (916) 
          319-2083 


                                                                FN: 0002706