BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2685
                                                                  Page  1

          Date of Hearing:  April 19, 2004

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                             Hannah-Beth Jackson, Chair
                   AB 2685 (Oropeza) - As Amended:  April 14, 2004
           
          SUBJECT  :  Energy resources.

           SUMMARY  :  This bill allows the State Clearinghouse (SCH) the  
          ability to facilitate the development of renewable electricity  
          generation facilities by coordinating the orderly evaluation of  
          the impact of public and private actions on the environmental  
          quality of the state.

           EXISTING LAW  :

          1)Establishes the Office of Planning and Research (OPR) within  
            the Office of the Governor that serves the Governor and his  
            cabinet as staff for long-range planning and research and  
            constitutes the comprehensive state planning agency.  In this  
            capacity, OPR formulates, evaluates, and updates long-range  
            goals and policies for land use, population growth, urban  
            expansion, development, open space, resource preservation and  
            utilization, and air and water quality. 

          2)Establishes the State Clearinghouse (SCH) within OPR, which  
            coordinates the state level review of environmental documents  
            pursuant to the California Environmental Quality Act (CEQA)  
            and provides technical assistance on land use planning and  
            CEQA matters. 

          3)Grants the California Energy Commission (CEC) exclusive  
            permitting authority for thermal power plants 50 megawatts  
            (MW) or greater and related facilities.

          4)Grants local agencies permitting authority for thermal power  
            plants under 50 MW and non-thermal electrical generating  
            facilities (including renewable electricity generation  
            facilities).

           THIS BILL  :

          1)Defines renewable electricity generation facilities to include  
            all renewable energy facilities except geothermal energy  
            facilities.








                                                                  AB 2685
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          2)Provides that the SCH shall, upon request, facilitate the  
            development of renewable electricity generation facilities  
            convene appropriate federal, state, regional, or local  
            agencies for the purpose of streamlining regulatory  
            requirements and processes. 

           FISCAL EFFECT  :  Unknown.

           COMMENTS  :

           1)Background  

          The CEC has authority to license all thermal powerplants 50 MW  
          or greater.  The CEC acts as a one-stop shop for permitting  
          these larger thermal projects.  Alternatively, proposals to  
          build generation facilities that do not fall within the CEC's  
          jurisdiction may require approval and permitting from local city  
          or county planning agencies.  Local agencies generally issue  
          land use and building permits and will act as the lead agencies  
          for any work required under the CEQA.  Many of these projects  
          also require approval from the local air board and may require  
          water discharge permits.

          According to the author's office, Californians consume 273,000  
          gigawatt-hours of electricity per year.  The primary consumers  
          of electricity in California are commercial, residential,  
          industrial, and agricultural users.  Peak electricity demand is  
          growing at about 2.4% (1,400 MW) per year, primarily driven by  
          the use of air conditioning and other cooling devices.  To meet  
          this increased demand, the CEC estimates that it will take the  
          equivalent of three new 500 MW powerplants each year to meet the  
          growing need.

          One of the top three problems identified in the development of  
          new energy facilities in California is the morass of regulations  
          at the state and local levels.  Under existing law, assistance  
          is provided to large energy facilities through the CEC and their  
          permitting process.  According to the author's office, this bill  
          will provide a better-coordinated effort to assist with the  
          siting and permitting of renewable energy generation facilities  
          in California while assisting the state in furthering our use of  
          alternative and renewable sources of energy.

           2)Double Referral  








                                                                  AB 2685
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          This bill was double referred to this committee and Assembly  
          Utilities and Commerce Committee.  The bill passed out of that  
          committee on a vote of 12-0.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file

           Opposition 
           
          None on file
           

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