BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1143
                                                                  Page  1

          Date of Hearing:  July 2, 2001

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                 Howard Wayne, Chair
                     SB 1143 (Bowen) - As Amended:  June 4, 2001

           SENATE VOTE  :  40-0
           
          SUBJECT  :  Energy.

           SUMMARY  :  This bill requires the California State Energy  
          Resources and Conservation Commission (CEC) to submit to the  
          Legislature, on or before January 1, 2002 and each year  
          thereafter, an assessment of the state's need for additional  
          energy resources and to prepare a plan to increase renewable  
          generation to 15% of the state's total generation by 2006 and  
          20% by 2010.

           EXISTING LAW  :  Under the Warren-Alquist Act (Public Resources  
          Code 25000, et seq.):

          1)Requires the CEC to certify sites and related facilities that  
            provide a supply of electric power in California.

          2)Grants to the CEC exclusive jurisdiction over siting of  
            powerplants in California.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, there will be $1 million one-time costs for data  
          procurement, consulting, and computer modeling, and on going  
          staff costs of about $400,000 to prepare the annual assessment. 

           COMMENTS  :

           1)Background  

          The Warren-Alquist Act (Act) established integrated planning and  
          siting processes intended to guard against under or overbuilding  
          of powerplants.  The Act formerly required the CEC to develop  
          long-term forecasts of state energy needs, which served as the  
          basis for planning and certification of individual power plants.  
           These forecasts were known as the Integrated Assessment of Need  
          (IAN).

          The Act also formerly required the CEC to biennially determine  








                                                                  SB 1143
                                                                  Page  2

          the IAN for new power plants in California.  In that assessment,  
          the CEC would determine the effects of various public policy  
          goals that resulted from the building or purchase of new power  
          resources.  In addition, the Act required that any certification  
          of a powerplant by the CEC had to be in conformance with the  
          CEC's IAN.

          SB 110 (Peace), Chapter 581, Statutes of 1999, eliminated the  
          requirement that proposed power plants comply with the CEC's  
          IAN, and repealed the IAN itself.   Among other things, the IAN  
          was repealed because of the conformance requirement that any new  
          powerplant had to be in conformance with the CEC's IAN.

          This bill will replace the IAN as it relates to electrical  
          generation resources, but it would not make CEC siting decisions  
          contingent on conformance with the IAN as it existed prior to SB  
          110.

           2)Natural gas reliance  

          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.

          The CEC is currently working on increasing the amount of  
          renewable energy on-line throughout the state and has a set goal  
          of 17 percent by 2006.  This bill would mandate 15 percent by  
          2006 and 20 percent by 2010.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Clean Power Campaign
           
            Opposition 
           
          None on file


           Analysis Prepared by  :  Kyra Emanuels Ross / NAT. RES. / (916)  
          319-2092