BILL ANALYSIS
SB 28 X1
Page 1
Without Reference to File
SENATE THIRD READING
SB 28 X1 (Sher)
As Amended April 23, 2001
2/3 vote. Urgency
SENATE VOTE :37-1
ENERGY 17-0 APPROPRIATIONS 14-0
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|Ayes:|Wright, Pescetti, Briggs, |Ayes:|Migden, Daucher, Aroner, |
| |John Campbell, | |Ashburn, Cedillo, Keeley, |
| |Canciamilla, Diaz, | |Correa, Goldberg, |
| |Dickerson, Dutra, | |Shelley, Simitian, |
| |Jackson, Keeley, Leonard, | |Wesson, Wiggins, Wright, |
| |Migden, Richman, | |Zettel |
| |Steinberg, Vargas, | | |
| |Wesson, Zettel | | |
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SUMMARY : Contains a number of provisions intended to
accommodate increased construction and operation of power
plants, and provides a 10-year waiver of standby charges for
specified distributed generation facilities. Specifically, this
bill :
1)Limits to 45 days and 100 days, until January 1, 2004, a local
jurisdiction's time for initial review and final review,
respectively, of an application submitted to the California
Energy Commission (CEC) for a power plant project.
2)Requires CEC, as part of its written decision of a power plant
application, to discuss the project's public benefits, and, as
part of its final report, to address whether property tax
revenue generated from the project is sufficient to support
related local infrastructure and services.
1)Specifies that CEC siting decisions are subject only to
California Supreme Court review and not to the appellate court
review process to which California Public Utilities Commission
(CPUC) decisions are subject.
1)Requires CEC to issue its final decision for certifying
SB 28 X1
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"repowering" projects within 180 days instead of the 12 months
allowed for power plant modifications.
1)Extends, from August 1, 2001 to December 31, 2002, the date by
which temporary "peaker" power plants must be in service so as
to qualify for the four-month siting process.
1)Requires, until January 1, 2004, the California Air Resources
Board (ARB) and local air districts to take various actions,
including the following:
a) Requires ARB to implement a program for "expedited
retrofit" of power plant pollution controls for all
generating facilities already subject to retrofit
requirements;
b) Requires ARB to implement an expedited statewide program
for "identification and banking" of emission reduction
credits for power plants and natural gas transmission
facilities;
c) Requires each air district to adopt an expedited program
for permitting of standby or distributed generation
facilities and natural gas transmission facilities;
d) Authorizes payment to air districts of mitigation fees
for a new power plant in lieu of obtaining actual emissions
offsets, when the owner or operator of the plant has shown
that offsets are not available. Mitigation fees are to be
used first to secure emission reductions from comparable
stationary sources; and,
7)Waives conditionally, for a period of 10 years, standby
charges imposed by electrical corporations on customers who
have installed non-gas-fired distributed generation equipment
five megawatts or smaller that commence operation by September
1, 2002. Provides that the waiver for gas-fired units shall
only apply until June 1, 2006.
8)Allocates up to $250,000 from the General Fund (GF) to CEC to
study, in consultation with the Orange County Sanitation
District, remedies to mitigate the effect of shoreline water
consumption in Huntington Beach.
1)Requires workers, unemployed in any week as a result of
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unscheduled power outages resulting from lack of supply, to be
paid an unemployment compensation benefit. In addition,
unemployment insurance benefits paid to a claimant who was
unemployed as a result of such outages are prohibited from
being charged to the account of the employer.
2)Permits a gas corporation, until June 1, 2002, to exercise the
power of eminent domain to condemn any property for the
purpose of competing with another entity in the offering of
natural gas and services related to natural gas.
Additionally, until June 1, 2002, prohibits CPUC from making a
finding on a petition or complaint filed pursuant to Section
625 of the Public Utilities Code, and requires CPUC to dismiss
the petition or complaint.
EXISTING LAW :
1)Grants CEC exclusive authority to certify power plants.
1)Authorizes CEC to establish a process for the expedited review
of applications to construct and operate power plants and
thermal power plants and related facilities.
FISCAL EFFECT : Appropriates $3.25 million from the GF to CEC.
COMMENTS : The purpose of this bill, according to the author, is
to create a framework that accelerates the development of
electrical generation in California while maintaining
environmental protections against degradation of air quality.
The author notes that the package of proposals contained in this
bill are similar to many proposals put forward by the Governor's
office, generators, and other parties to address the need for
clean new generation in the state.
Current law provides CEC with exclusive authority to certify
thermal power plants 50 megawatts and larger. CEC's siting
process is intended to provide comprehensive environmental
review and predictable, one-stop permitting of applications.
This bill contains a number of provisions intended to
accommodate increased construction and operation of power
plants, including an expedited process for certifying
"repowering projects" and temporary "peaker" power plants, and a
reduced time frame for local jurisdiction's review of power
plant applications.
SB 28 X1
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This bill additionally requires ARB and local air districts to
take various actions regarding expedited retrofit of power plant
pollution controls, emission reduction credits, and the payment
of emission offset fees and the posting of bonds in lieu of
obtaining actual offsets.
DG is on-site generation owned by the customer and used to meet
some or all of that customer's energy needs. DG can be used as
backup power, to meet base or peak load needs, or to sell to
adjacent sites in an "over-the-fence" transaction." For a
customer that owns a DG unit that is connected to the utility
distribution system, on-site generation is complemented by power
purchased through, and delivered by, the utility. Under current
law, grid-connected DG customers pay a standby charge to the
utility to reserve the capacity need to serve that customer.
The standby charges are based on the installed capacity of the
DG unit. This bill waives conditionally, for a period of 10
years, standby charges imposed by electrical corporations on
customers who have installed non-gas-fired distributed
generation equipment five megawatts or smaller that commence
operation by September 1, 2002. This bill provides a five-year
for gas-fired generation units.
Analysis Prepared by : Joseph Lyons / U. & C. / (916) 319-2083
FN: 0000419