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. (a) The commission shall approve and establish equitable
charges to be paid by an electrical corporation which purchases
electricity or electrical generating capacity, or both, from any
private energy producer employing other than a conventional power
source for the generation of electricity.
(b) The commission, on its own motion or on application of an
electrical corporation or a private energy producer, may also specify
the prices, terms, and conditions for the purchase or sale of
electricity or electrical generating capacity, or both, between an
electrical corporation and a private energy producer, and these
prices, terms, and conditions, so specified, shall be considered
reasonable and prudent for all purposes. The commission may act to
specify these prices, terms, and conditions on its own motion or on
application of an electrical corporation or a private energy
producer.
(c) Every private energy producer employing hydroelectric
facilities, who executes a contract with an electrical corporation on
or after January 1, 1988, or prior to that date, for the purchase of
electricity or electrical generating capacity, or both, shall obtain
and provide proof of compliance by the private energy producer with
all state laws relating to the control, appropriation, use, and
distribution of water, including, but not limited to, the obtaining
of applicable licenses and permits. The private energy producer shall
also provide proof of compliance with the federal Clean Water Act.
(d) (1) For the purpose of providing proof of compliance with all
state laws relating to the control, appropriation, use, and
distribution of water, the electrical corporation shall require the
private energy producer to provide either of the following:
(A) Certification from the State Water Resources Control Board
that a water right permit has been issued for the operation of the
hydroelectric facility.
(B) Certification from the State Water Resources Control Board
that, in the opinion of the board, the private energy producer
possesses riparian rights or other water rights which authorize the
operation of the hydroelectric facility.
(2) The requirements of paragraph (1) shall apply only to
contracts involving hydroelectric projects which have not been
accepted by the electrical corporation for commercial operation prior
to May 18, 1987.
(3) Every contract executed by a private energy producer who is in
violation of paragraph (1) is void and unenforceable on and after
whichever of the following dates applies:
(A) February 29, 1988, for contracts involving hydroelectric
projects which have been accepted by the electrical corporation for
commercial operation on or after May 18, 1987, and prior to January
1, 1988.
(B) The 60th day after a project has been accepted by the
electrical corporation for commercial operation, for contracts
involving hydroelectric projects which are accepted by the electrical
corporation for commercial operation on or after January 1, 1988.
(4) The commission shall disallow, for purposes of establishing
rates for an electrical corporation, all amounts expended for the
purchase of electricity pursuant to a contract that is void and
unenforceable under this subdivision.
(e) (1) For the purposes of providing proof of compliance with the
federal Clean Water Act, the electrical corporation shall require
the private energy producer to provide a statement from the State
Water Resources Control Board that certification pursuant to Section
401 of the federal Clean Water Act has either been granted or waived
by the board for operation of the hydroelectric facility. The board
shall not waive certification unless the board finds that there is
reasonable assurance that the project shall comply with all
applicable requirements of the federal Clean Water Act and state
water quality laws. If the board cannot make this finding within the
period provided for certification, the board shall either certify
upon conditions that provide reasonable assurance of compliance or
deny certification.
(2) The requirements of paragraph (1) shall apply only to
contracts involving hydroelectric projects which have not been
accepted by the electrical corporation for commercial operation prior
to January 1, 1992.
(3) Every contract executed by a private energy producer who is in
violation of paragraph (1) is void and unenforceable on and after
whichever of the following dates applies:
(A) March 1, 1993, for contracts involving hydroelectric projects
which are accepted by the electrical corporation for commercial
operation between January 1, 1992, and December 31, 1992.
(B) The 60th day after having been accepted by the electrical
corporation for commercial operation, for contracts involving
hydroelectric projects which are accepted by the electrical
corporation for commercial operation on or after January 1, 1993.
(4) The commission shall disallow, for purposes of establishing
rates for an electrical corporation, all amounts expended for the
purchase of electricity pursuant to a contract that is void and
unenforceable under this subdivision.
(f) Subdivision (d) does not apply to any private energy producer
if all of the following conditions are met:
(1) The electrical corporation did not make timely written demand
for the proof of compliance required by paragraph (1) of subdivision
(d).
(2) On or before the date the project was accepted by the
electrical corporation for commercial operation, the private energy
producer was in fact in compliance with all applicable state laws
relating to the control, appropriation, use, and distribution of
water, including, but not limited to, those laws that require the
obtaining of all applicable entitlements.
(3) Prior to October 14, 1991, the private energy producer has
provided proof of the applicable certification from the State Water
Resources Control Board pursuant to subparagraph (A) of paragraph (1)
of subdivision (d), which proof contains further certification from
the State Water Resources Control Board of the existence of the
condition identified in paragraph (2) of subdivision (f).
(g) For purposes of meeting the requirements of subdivision (d) or
(e), or of providing certification required under Section 26013 of
the Public Resources Code, the private energy producer shall furnish
information as is reasonably required by the State Water Resources
Control Board to document a claim of right, a certification, or a
waiver. Every private energy producer requesting certification and a
statement from the board pursuant to subdivisions (d) and (e), or to
Section 26013 of the Public Resources Code, shall pay to the board at
the time of filing the request, a fee of two hundred fifty dollars
($250) to cover the reasonable cost of the board in evaluating and
processing the certification request.
(h) As used in this section, "Federal Clean Water Act" means the
federal Water Pollution Control Act (Sections 1251 et seq. of Volume
33 of the United States Code) and acts amendatory thereof or
supplementary thereto.