BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1143|
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THIRD READING
Bill No: SB 1143
Author: Bowen (D)
Amended: 6/4/01
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 7-0, 4/24/01
AYES: Bowen, Morrow, Alarcon, Battin, Murray, Speier,
Vincent
SENATE APPROPRIATIONS COMMITTEE : 13-0, 5/31/01
AYES: Alpert, Battin, Bowen, Burton, Escutia, Johannessen,
Johnson, Karnette, McPherson, Murray, Perata, Poochigian,
Speier
SUBJECT : Energy
SOURCE : Author
DIGEST : This bill requires the California Energy
Commission to (1) submit to the Legislature an assessment
of the states need for additional energy resources, as
specified, and (2) prepare a plan to increase renewable
generation to 15% of the state's total generation by 2006
and to 20% by 2010.
ANALYSIS : The Warren-Alquist Act (Act) established
integrated planning and siting processes intended to guard
against under or overbuilding of power plants. The Act
required the California Energy Commission to develop
long-term forecasts of state energy needs, which served as
the basis for planning and certification of individual
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power plants. These forecasts were known as the Integrated
Assessment of Need. Since the advent of electrical
restructuring, the planning and siting functions have been
de-coupled.
In recent years, between 11 and 12 percent of the
electricity sold in California has come from renewable
resources, such as biomass, geothermal, small
hydroelectric, solar and wind. Geothermal is the biggest
contributor to existing renewable resources, providing
about five percent of the state's electricity.
This bill requires the CEC to submit to the Legislature and
the Governor an assessment of the need for new energy
resources. The first assessment is due December 31, 2002,
and annually thereafter.
This bill also requires the CEC to prepare a plan to
increase renewable generation to 15 percent of the state's
total generation by 2006, and 20 percent by 2010.
The bill specifies that the assessment is to be done with
existing resources.
Comments
Link to SB 110 . SB 110 (Peace), Chapter 581, Statutes of
1999, eliminated the requirement that proposed power plants
comply with the CEC's integrated assessment of need, and
repealed the assessment of need itself.
This bill reestablishes the assessment of need as it
relates to electrical generation resources, but it would
not make CEC siting decisions contingent on conformance
with the assessment of need.
While an evaluation of overall energy needs may not be
needed as a benchmark upon which to judge proposed power
plants which rely on private capital, it may be useful to
ensure a wise investment of public dollars in projects
financed by a public power authority. According to the
author's office, this is one of the primary arguments in
favor of restoring a pro-active assessment of generation
needs.
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Significant Expansions, All Natural Gas . For many years,
every major power plant proposed in California has been
fueled by natural gas. Some attribute the severity of the
current energy crisis to an over-reliance on natural gas.
If the trend in private development of power plants
continues as expected, the state's reliance on natural gas
will increase in the coming years.
Given this trend, the renewable share of total generation,
currently hovering around 12 percent, may decrease. This
may make it harder to achieve the 15 and 20 percent
renewable levels called for in the bill. However, relative
scarcity, and high prices, of natural gas may make it more
important to achieve greater diversity in generation
resources.
Existing Renewables Faltering . Much of the existing, and
potential for future, renewable generation is from biomass,
solar and wind resources. Existing projects powered by
these sources are typically non-utility Qualifying
Facilities (QFs). Many of these QFs have shut down in
recent months due to the failure of the state's insolvent
investor-owned utilities to pay them. The expanded
investment in renewable resources contemplated by this bill
relies on first ensuring that existing investments are
returned to financial health.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/31/01)
Clean Power Campaign
NC:cm 6/4/01 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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