BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1143
                                                                  Page  1

          Date of Hearing:  July 9, 2001

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                              Roderick D. Wright, Chair
                     SB 1143 (Bowen) - As Amended:  June 4, 2001

           SENATE VOTE  :  40-0
           
          SUBJECT  :  Energy.

           SUMMARY  :  This bill requires the California Energy Resources  
          Conservation and Development Commission (CEC) to submit to the  
          legislature and the Governor an assessment by December 31, 2002  
          and annually thereafter of the need for resource additions.   
          This bill also requires CEC to prepare an energy diversity plan  
          to achieve 15% renewable energy generation by 2006 and 20%  
          renewable energy generation by 2010 in California.

           EXISTING LAW  :  Establishes CEC and specifies the powers and  
          duties of CPUC.

           FISCAL EFFECT  :  Unknown.

           COMMENTS  :   

          According to the author, a coordinated, statewide assessment of  
          the need for energy resources is necessary to inform decisions  
          regarding investment of public capital in generation projects.    
          The author also contends that preparation of an energy diversity  
          plan is necessary to guide decisions regarding investment in  
          renewable sources to mitigate increasing dependence on natural  
          gas.

          The purpose of this bill is to achieve a more stable energy  
          supply through appropriate planning of new generation resources.  
           The annual assessment this bill requires CEC to prepare will  
          provide decision makers with information about what new energy  
          resources the state requires specifically with regard to  
          decision making about investment of public dollars in new  
          generation projects.  It is also anticipated that the assessment  
          will help prevent the sort of supply crisis the state is  
          currently experiencing through forward planning.

          Similarly, the diversity plan will help move the state away from  
          its heavy reliance on natural gas as a fuel for electric  








                                                                  SB 1143
                                                                  Page  2

          generation by building a renewable profile of 20% of generation  
          assets in the state by 2010.  The increased emphasis on  
          renewable generation is intended to lay the groundwork for  
          additional private and public investment renewable generation. 

           Staff recommends:

           Both of the provisions of this bill are prudent measures to  
          ensure adequate generation supply and a responsible generation  
          mix for California going forward.  The goals of a 20% renewable  
          generation contribution by 2010 should help mitigate the long  
          term problems associated with the state's existing reliance for  
          one third of its generated electricity on natural gas fueled  
          sources.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Clean Power Campaign
           
            Opposition 
           
          None on file.


           Analysis Prepared by  :    Kelly Boyd / U. & C. / (916) 319-2083