BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1143
                                                                  Page  1

          Date of Hearing:   July 18, 2001

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Carole Migden, Chairwoman

                     SB 1143 (Bowen) - As Amended:  June 4, 2001 

          Policy Committee:                             Natural  
          ResourcesVote:11-0
                       Utilities & Commerce                   11-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the California Energy Commission (CEC) to  
          take two actions related to energy resources.  Specifically,  
          this bill requires the CEC to:

          1)Submit, by December 31, 2002 and annually thereafter, to the  
            Legislature and the governor, a needs assessment for energy  
            resource additions that reasonably balance the requirements of  
            state and regional growth and development, protections for  
            public health and safety, preservation of environmental  
            quality, maintenance of a sound economy, and conservation of  
            resources.

          2)Prepare an energy diversity plan to achieve the goals of 15%  
            and 20% of energy in California being generated from renewable  
            resources by the end of 2006 and 2010, respectively.

           FISCAL EFFECT  

          1)Moderate costs, about $1.1 million in FY 2001-02 and $400,000  
            annually thereafter, to the CEC to prepare the annual needs  
            assessment.  (Energy Resources Programs Account (ERPA).)

          2)Minor one-time costs, less than $120,000 probably in FY  
            2002-03, to the CEC to prepare the energy diversity plan.   
            (ERPA.) 

          The bill specifies these functions are to be performed by the  
          CEC using its existing resources.  However, the costs are  
          nevertheless incurred by the CEC.








                                                                  SB 1143
                                                                  Page  2


           COMMENTS  

           Rationale  .  The author argues for reinstatement of an energy  
          resources needs assessment, a CEC function that was eliminated  
          by SB 110 (Peace) - Chapter 581, Statutes of 1999.  The former  
          biennial report, known as the Integrated Assessment of Need,  
          provided the governor and the Legislature with a framework for  
          considering power plant needs and other energy resource issues.   
          With regard to the energy diversity plan, the CEC is currently  
          working to increase the amount of energy generated from  
          renewable resources and has set a goal of 17% to be achieved by  
          2006. 

           Analysis Prepared by  :    Steve Archibald / APPR. / (916)  
          319-2081