BILL ANALYSIS AB 48 X2 Page 1 ASSEMBLY THIRD READING AB 48 X2 (Wright) As Introduced May 22, 2001 2/3 vote. Urgency SUMMARY : Includes repowering projects within the process by which the State Energy Resources Conservation and Development Commission (Energy Commission) issues final certification for any thermal powerplant. Alters the circumstances under which an application for a repowering project is deemed complete, for purposes of beginning the timeline toward issuance of final certification. Specifically, this bill : 1)Includes repowering projects within the six-month certification process for thermal powerplants. 2)Requires that an application for certification include information indicating that emission offsets will be obtained early enough in the Energy Commission's review process to enable the Energy Commission to fully evaluate the application. 3)Provides that, for purposes of the certification process, the Energy Commission shall deem an application complete if it substantially complies with applicable data requirements regarding impacts to the environment or electrical system. EXISTING LAW requires the Energy Commission to establish a process to issue final certification for a thermal powerplant within six months after the filing of the application for certification, provided that there is substantial evidence based upon initial review to show that no significant adverse impacts to the environment or electrical system will occur and that the powerplant will comply with all applicable standards, ordinances, and laws. FISCAL EFFECT : According to the Appropriations Committee, minor, absorbable costs to the Energy Commission. COMMENTS : According to the author's office, this bill is designed to include repowering projects within the expedited process established last session for certification of thermal powerplants that have not demonstrated significant adverse effects on the environment or the electrical system [AB 970 (Ducheny), Chapter 329, Statutes of 2000]. The expedited AB 48 X2 Page 2 process was established in order to address the growing need for in-state power supplies, particularly in light of the current energy crisis. There are several older plants that can be upgraded and repowered that could benefit from the expedited process and contribute to the state's power supply. As part of the permitting process for a new plant or a repowering project, offsets for the increased pollution will have to be obtained. There are a variety of creative methods for doing this and both the Air Resources Board (ARB) and local air districts have been able to develop offset packages for every plant that will be coming on line in the near future. Offsets are a necessary part of the program to ensure that there will be no new emissions within a particular air basin, in order to comply with state and federal air laws. This bill contains language that reflects existing emergency regulations that were developed by the Energy Commission upon passage of AB 970 and that are currently in the process of becoming adopted as permanent regulations. The language is also consistent with the Governor's executive orders requiring ARB to provide offsets as needed and for the Energy Commission to expedite the siting process. Analysis Prepared by : Scott H. Valor / NAT. RES. / (916) 319-2092 FN: 0001042