BILL NUMBER: SB 1776	ENROLLED
	BILL TEXT

	PASSED THE ASSEMBLY  AUGUST 4, 2004
	PASSED THE SENATE  MAY 24, 2004

INTRODUCED BY   Senator Bowen

                        FEBRUARY 20, 2004

   An act to add and repeal Sections 25550 and 25550.5 of the Public
Resources Code, relating to energy resources.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1776, Bowen.  Electrical energy:  thermal powerplants.
   Existing law provides for the restructuring of California's
electric power industry so that the price for the generation of
electricity is determined by a competitive market.  Existing law,
until January 1, 2004, required the State Energy Resources
Conservation and Development Commission (Energy Commission) to
establish a process for the expedited review of applications to
construct and operate thermal powerplants and related facilities and
for the expedited review of repowering projects.
   This bill would, until January 1, 2007, reinstate those provisions
for establishing a process for the expedited review of applications
to construct and operate thermal powerplants and related facilities
and for the expedited review of repowering projects.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 25550 is added to the Public Resources Code, to
read:
   25550.  (a) Notwithstanding subdivision (a) of Section 25522 and
Section 25540.6, the commission shall establish a process to issue
its final certification for any thermal powerplant and related
facilities within six months after the filing of the application for
certification that, on the basis of an initial review, shows that
there is substantial evidence that the project will not cause a
significant adverse impact on the environment or electrical system
and will comply with all applicable standards, ordinances, or laws.
For purposes of this section, filing has the same meaning as in
Section 25522.
   (b) Thermal powerplants and related facilities reviewed under this
process shall satisfy the requirements of Section 25520 and other
necessary information required by the commission, by regulation,
including the information required for permitting by each local,
state, and regional agency that would have jurisdiction over the
proposed thermal powerplant and related facilities, but for the
exclusive jurisdiction of the commission, and the information
required for permitting by each federal agency that has jurisdiction
over the proposed thermal powerplant and related facilities.
   (c) After acceptance of an application under this section, the
commission shall not be required to issue a six-month final decision
on the application if it determines there is substantial evidence in
the record that the thermal powerplant and related facilities may
result in a significant adverse impact on the environment or
electrical system or does not comply with an applicable standard,
ordinance, or law.  Under this circumstance, the commission shall
make its decision in accordance with subdivision (a) of Section 25522
and Section 25540.6, and a new application shall not be required.
   (d) For an application that the commission accepts under this
section, all local, regional, and state agencies that would have had
jurisdiction over the proposed thermal powerplant and related
facilities, but for the exclusive jurisdiction of the commission,
shall provide their final comments, determinations, or opinions
within 100 days after the filing of the application.  The regional
water quality control boards, as established pursuant to Chapter 4
(commencing with Section 13200) of Division 7 of the Water Code,
shall retain jurisdiction over any applicable water quality standard
that is incorporated into any final certification issued pursuant to
this chapter.
   (e) Thermal powerplants and related facilities that demonstrate
superior environmental or efficiency performance shall receive
priority in review.
   (f) With respect to a thermal powerplant and related facilities
reviewed under the process established by this chapter, it shall be
shown that the applicant has a contract with a general contractor and
has contracted for an adequate supply of skilled labor to construct,
operate, and maintain the plant.
   (g) With respect to a thermal powerplant and related facilities
reviewed under the process established by this chapter, it shall be
shown that the thermal powerplant and related facilities complies
with all regulations adopted by the commission that ensure that an
application addresses disproportionate impacts in a manner consistent
with Section 65040.12 of the Government Code.
   (h) To implement this section, the commission may adopt emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 2 of Division 3 of Title 2 of the Government Code.
For purposes of that chapter, including without limitation, Section
11349.6 of the Government Code, the adoption of the regulations shall
be considered by the Office of Administrative Law to be necessary
for the immediate preservation of the public peace, health, safety,
and general welfare.
   (i) This section shall remain in effect until January 1, 2007, and
as of that date is repealed unless a later enacted statute, that is
enacted before January 1, 2007, deletes or extends that date.
  SEC. 2.  Section 25550.5 is added to the Public Resources Code, to
read:
   25550.5.  (a) Notwithstanding subdivision (a) of Section 25522 and
Section 25540.6, the commission shall establish a process to issue
its final decision on an application for certification for the
repowering of a thermal powerplant and related facilities within 180
days after the filing of the application for certification that, on
the basis of an initial review, shows that there is substantial
evidence that the project will not cause a significant adverse impact
on the environment or electrical system and that the project will
comply with all applicable standards, ordinances, regulations, and
statutes.  For purposes of this section, filing has the same meaning
as in Section 25522.
   (b) The repowering of a thermal powerplant and related facilities
reviewed under this process shall satisfy the requirements of Section
25520 and other necessary information required by the commission by
regulation, including the information required for permitting by each
local, state, and regional agency that would have jurisdiction over
the proposed repowering of a thermal powerplant and related
facilities, but for the exclusive jurisdiction of the commission, and
the information required for permitting by each federal agency that
has jurisdiction over the proposed repowering of a thermal powerplant
and related facilities.
   (c) After  an application is filed under this section, the
commission shall not be required to issue a final decision on the
application within 180 days if it determines there is substantial
evidence in the record that the thermal powerplant and related
facilities may result in a significant adverse impact on the
environment or electrical system or does not comply with an
applicable standard, ordinance, regulation, or statute. Under this
circumstance, the commission shall make its decision in accordance
with subdivision (a) of Section 25522 and Section 25540.6, and a new
application shall not be required.
   (d) For an application that the commission accepts under this
section, any local, regional, or state agency that would have had
jurisdiction over the proposed thermal powerplant and related
facilities, but for the exclusive jurisdiction of the commission,
shall provide its final comments, determinations, or opinions within
100 days after the filing of the application. The regional water
quality control board, as established pursuant to Chapter 4
(commencing with Section 13200) of Division 7 of the Water Code,
shall retain jurisdiction over any applicable water quality standard
that is incorporated into any final certification issued pursuant to
this chapter.
   (e) The repowering of a thermal powerplant and related facilities
that demonstrate superior environmental or efficiency performance
improvement shall receive first priority in review by the commission.

   (f) With respect to the repowering of a thermal powerplant and
related facilities reviewed under the process established by this
chapter, it shall be shown that the applicant has contracted with a
general contractor and has contracted for an adequate supply of
skilled labor to construct, operate, and maintain the plant.
   (g) With respect to a repowering of a thermal powerplant and
related facilities reviewed under the process established by this
chapter, it shall be shown that the thermal powerplant and related
facilities complies with all regulations adopted by the commission
that ensure that an application addresses disproportionate impacts in
a manner consistent with Section 65040.12 of the Government Code.
   (h) To implement this section, the commission may adopt emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code. For
purposes of that chapter, including, without limitation, Section
11349.6 of the Government Code, the adoption of the regulations shall
be considered by the Office of Administrative Law to be necessary
for the immediate preservation of the public peace, health, safety,
and general welfare.
   (i) For purposes of this section, "repowering" means a project for
the modification of an existing generation unit of a thermal
powerplant that meets all of the following criteria:
   (1) The project complies with all applicable requirements of
federal, state, and local laws.
   (2) The project is located on the site of, and within the existing
boundaries of, an existing thermal facility.
   (3) The project will not require significant additional
rights-of-way for electrical or fuel-related transmission facilities.

   (4) The project will result in significant and substantial
increases in the efficiency of the production of electricity,
including, but not limited to, reducing the heat rate, reducing the
use of natural gas, reducing the use and discharge of water, and
reducing air pollutants emitted by the project, as measured on a per
kilowatthour basis.
   (j) This section shall remain in effect only until January 1,
2007, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2007, deletes or extends
that date.