BILL ANALYSIS
SB 1776
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Date of Hearing: June 21, 2004
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Hannah-Beth Jackson, Chair
SB 1776 (Bowen) - As Introduced: February 20, 2004
SENATE VOTE : 37-0
SUBJECT : Electrical energy: thermal powerplants.
SUMMARY : This bill requires the California Energy Commission
(CEC) to re-establish a process for expedited review for the
certification of thermal powerplants or related facilities.
EXISTING LAW :
1)Establishes that CEC has the exclusive power to certify all
thermal powerplant sites over 50 megawatts and related
facilities in the state, whether a new site and related
facility or a change or addition to an existing facility.
2)Establishes that California Public Utilities Commission (CPUC)
is responsible to ensure that all utility customers receive
reliable service at just and reasonable rates and giving CPUC
the power to undertake all necessary actions to properly
regulate and supervise California's investor-owned utilities
(IOUs).
3)Requires CEC to develop an Integrated Energy Policy Report at
least every two years, to assess and forecast all aspects of
energy industry supply, production, transportation, delivery
and distribution, demand and prices.
4)Establishes a process whereby CPUC can approve long term
procurement plans filed by the IOUs. The plans are to include
price risk assessments, definition of electricity product,
duration of plan, and a competitive procurement process, an
incentive mechanism if one is proposed and up front standards
and criteria to be known by the utility prior to execution of
any contract.
5)Specifies that the electrical corporations will create or
maintain a diversified procurement portfolio consisting of
both short-term and long-term electricity and electricity
related and demand reduction programs.
SB 1776
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THIS BILL :
1)Requires CEC to establish a process for expedited review and
issuance of its final decision on applications for
certification of thermal powerplants and related facilities
within six months upon the filing of the application.
2)Specifies that CEC has the discretion not to issue a final
decision within six months if it determines that the applicant
does not comply with applicable standards, ordinances,
regulations, or statutes and proposed facility will not cause
significant adverse impact on the environment or electrical
system.
3)Specifies that comments filed by any local, regional, or state
agency regarding the repowering application to be filed 100
days after the filing of the application.
4)Specifies that for purposes of this bill "repowering" means:
a) The project complies with all applicable requirements of
federal, state and local laws;
b) The project is located on the site of, and within the
existing boundaries of, an existing thermal facility;
c) The project will not require significant additional
rights-of-way for electrical or fuel-related transmission
facilities;
d) The project will result in significant and substantial
increases in the efficiency of the production of
electricity, including, reducing the heat rate, achieving
greater efficiency in the use of natural gas, achieving
greater efficiency in the use and discharge of water, and
reducing air pollutants emitted by the project.
5)Provides a sunset of January 1, 2007.
FISCAL EFFECT : Minor. (This bill was reported from the Senate
Appropriations Committee pursuant to Senate Rule 28.8.)
COMMENTS :
SB 1776
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According to the author's office, in 2001, in response to
rapidly rising energy costs, the CEC developed and instituted an
expedited review process for thermal powerplants and related
facilities in California. That process sunset in 2004 with
mixed reviews. During the 3-year stretch, twelve applications
were submitted under the process. Two of those projects were
successfully completed, five were sited using the traditional
12-month process and five were discontinued.
Given the recent forecasts from both the CEC and the California
Independent System Operator citing potential energy supply
problems as early as 2006, reinstating the expedited review
process may be another helpful step to balancing energy needs in
California.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Kyra Emanuels Ross / NAT. RES. / (916)
319-2092