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



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