Bill Text: CA AB177 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Renewable energy resources: electrical corporations: procurement plans.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-02-03 - Died on inactive file. [AB177 Detail]

Download: California-2013-AB177-Amended.html

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BILL NUMBER: AB 177	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Members V. Manuel Pérez and Bradford

                        JANUARY 24, 2013

   An act to  amend Sections 345.5 and 454.55 of, and to 
add Section 399.23 to  ,  the Public Utilities Code,
relating to renewable  energy.   energy
resources. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 177, as amended, V. Manuel Pérez. Renewable  energy.
  resources. 
   Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations, as defined. The Public Utilities Act requires the PUC,
in consultation with the Independent System Operator  (ISO)
 , to establish resource adequacy requirements for all
load-serving entities, as defined, in accordance with specified
objectives. The definition of a "load-serving entity" includes an
electrical corporation. That law further requires each load-serving
entity to maintain physical generating capacity adequate to meet its
load requirements, including peak demand and planning and operating
reserves, deliverable to locations and at times as may be necessary
to provide reliable electric service.
   The California Renewables Portfolio Standard Program  (RPS
program)   , also known as the RPS program, 
requires a retail seller of electricity, as defined, and local
publicly owned electric utilities to purchase specified minimum
quantities of electricity products from eligible renewable energy
resources, as defined, for specified compliance periods, sufficient
to ensure that the procurement of electricity products from eligible
renewable energy resources achieves 20% of retail sales for the
period January 1, 2011, to December 31, 2013, inclusive, 25% of
retail sales by December 31, 2016, and 33% of retail sales by
December 31, 2020, and in all subsequent years. The RPS program,
consistent with the goals of procuring the least-cost and best-fit
eligible renewable energy resources that meet project viability
principles, requires that all retail sellers procure a balanced
portfolio of electricity products from eligible renewable energy
resources, as specified (portfolio content requirements). The RPS
program requires the PUC to direct each electrical corporation, which
are included within the definition of a retail seller, to annually
prepare a renewable energy procurement plan containing specified
matter and an annual compliance report. The RPS program requires the
PUC to adopt, by rulemaking, a process that provides criteria for the
rank ordering and selection of least-cost and best-fit eligible
renewable energy resources by electrical corporations to comply with
the RPS program procurement obligations, on a total cost basis, that
take specified matter into account.
   This bill would state the policy of the state to require all
retail sellers of electricity, including  investor 
 investor   -owned electrical corporations  and
 local  publicly owned  electric  utilities, to
procure  new   all available  demand-side
and clean  , eligible renewable  energy  generation
  resources  to achieve  reductions in the
emissions of  greenhouse  gas emissions reduction,
  gases and the state's  resource adequacy 
, and renewable  goals simultaneously  ,  in the
most cost-effective manner practicable. 
   The Public Utilities Act requires the PUC to review and adopt a
procurement plan for each electrical corporation in accordance with
specified elements, incentive mechanisms, and objectives. The act
requires that an electrical corporation's proposed procurement plan
include certain elements, including a showing that the electrical
corporation will first meet its unmet needs through all available
energy efficiency and demand reduction resources that are cost
effective, reliable, and feasible. The act requires the PUC, in
consultation with the State Energy Resources Conservation and
Development Commission (Energy Commission), to identify all
potentially achievable cost-effective electricity efficiency savings
and to establish efficiency targets for electrical corporations to
achieve pursuant to their procurement plan.  
   This bill would require the PUC, in consultation with the Energy
Commission, to identify all potentially achievable cost-effective
electricity efficiency savings, demand response resources, and
eligible renewable energy resources and establish procurement targets
to be met by an electrical corporation to achieve pursuant to its
procurement plan, over-and-above any separate procurement targets or
mandates for these resources established in the Public Utilities Code
or by PUC action. 
   Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime.
   Because the provisions of this bill are within the act, a
violation of above requirement would impose a state-mandated local
program by expanding the definition of a crime.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

   SECTION   1.    Section 345.5 of the 
   Public Utilities Code   is amended to read:

   345.5.  (a) The Independent System Operator, as a nonprofit,
public benefit corporation, shall conduct its operations consistent
with applicable state and federal laws and consistent with the
interests of the people of the state.
   (b) To ensure the reliability of electric service and the health
and safety of the public, the Independent System Operator shall
manage the transmission grid and related energy markets in a manner
that is consistent with all of the following:
   (1) Making the most efficient use of available energy resources.
For purposes of this section, "available energy resources" include
energy, capacity, ancillary services, and demand bid into markets
administered by the Independent System Operator. "Available energy
resources" do not include a schedule submitted to the Independent
System Operator by an electrical corporation or a local publicly
owned electric utility to meet its own customer load.
   (2) Reducing, to the extent possible, overall economic cost to the
state's consumers.
   (3) Applicable state law intended to protect the public's health
and the environment.
   (4) Maximizing availability of existing electric generation
resources  , including all available demand side and clean,
eligible renewable energy resources  necessary to meet the needs
of the state's electricity consumers.
   (5) Conducting internal operations in a manner that minimizes cost
impact on ratepayers to the extent practicable and consistent with
the provisions of this chapter.
   (6) Communicating with all balancing area authorities in
California in a manner that supports electrical reliability.
   (c) The Independent System Operator shall do all of the following:

   (1) Consult and coordinate with appropriate state and local
agencies to ensure that the Independent System Operator operates in
furtherance of state law regarding consumer and environmental
protection.
   (2) Ensure that the purposes and functions of the Independent
System Operator are consistent with the purposes and functions of
nonprofit, public benefit corporations in the state, including duties
of care and conflict-of-interest standards for officers and
directors of a corporation.
   (3) Maintain open meeting standards and meeting notice
requirements consistent with the general policies of the Bagley-Keene
Open Meeting Act (Article 9 (commencing with Section 11120) of
Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code)
and affording the public the greatest possible access, consistent
with other duties of the corporation. The Independent System Operator'
s Open Meeting Policy, as adopted on April 23, 1998, and in effect as
of May 1, 2002, meets the requirements of this paragraph. The
Independent System Operator shall maintain a policy that is no less
consistent with the Bagley-Keene Open Meeting Act than its policy in
effect as of May 1, 2002.
   (4) Provide public access to corporate records consistent with the
general policies of the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code) and affording the public the greatest possible
access, consistent with the other duties of the corporation. The
Independent System Operator's Information Availability Policy, as
adopted on October 22, 1998, and in effect as of May 1, 2002, meets
the requirements of this paragraph. The Independent System Operator
shall maintain a policy that is no less consistent with the
California Public Records Act than its policy in effect as of May 1,
2002.
   SECTION 1.   SEC. 2.   Section 399.23 is
added to the Public Utilities Code, to read:
   399.23.  (a) The Legislature finds and declares all of the
following:
   (1) There is increasing uncertainty with regard to the
availability of California's fleet of older powerplants, creating the
need for increased reduction in demand for electricity through
energy efficiency, demand response, and adding new sources of clean
energy generation.
   (2) It is in the best interest of the electricity consumers of
this state that sufficient clean energy generation supply and
demand-side resources are procured to meet electricity demand that
provide the highest value, including providing safe, reliable, and
affordable electricity supplies and minimizing air quality impacts to
consumers in the most cost-effective manner practicable.
   (3) Clean energy generation with flexible delivery characteristics
are essential to maintaining reliable electricity deliveries.
   (4) There are substantial high-quality renewable resources in the
County of Imperial near the Salton Sea, which can help provide
cost-effective renewable resources that can reduce greenhouse gas
emissions while simultaneously contributing to resources adequacy and
reliability needs and providing significant local and regional
environmental and economic development benefits.
   (b)  Notwithstanding other laws,   Without
  limitation imposed by any existing procurement targets or
requirements, and consistent with the loading order adopted by the
Energy Commission and the commission which sets forth state policy
for preferred resources to meet electrical load needs,  it is
the intent of the  Legislature   Legislature,
 and the policy of the  state   state,
 that all retail sellers of electricity, including 
investor   investor   -owned  
electrical corporations  and  local  publicly owned
 electric  utilities, shall procure  new 
 all available  demand side and  clean 
clean, eligible renewable  energy  generation 
resources to achieve  reductions in the emissions of 
greenhouse  gas reduction,   gases and the state'
s  resource adequacy  , and renewable  goals
 simultaneously   simultaneously,  in the
most cost-effective manner practicable.
   SEC. 3.    Section 454.55 of the   Public
Utilities Code   is amended to read: 
   454.55.   The   In furtherance of the loading
order adopted by the Energy Commission and the commission that sets
forth state policy for preferred resources to meet long-term
electrical load needs pursuant to Section 454.5, the 
commission, in consultation with the  State  Energy
 Resources Conservation and Development  Commission,
shall identify all potentially achievable cost-effective electricity
efficiency savings  ,   demand response resources, and
eligible renewable energy resources  and establish 
efficiency   procurement  targets  for
  to be met by  an electrical corporation 
to achieve pursuant to Section 454.5   pursuant to this
section, over-and-above any separate procurement targets or mandates
for these resources established in this code or by commission action
 .
   SEC. 2.   SEC. 4.   No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.