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

California Assembly Bill 177 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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
BILL NUMBER: AB 177	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 9, 2013
	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Members V. Manuel P�rez 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
resources.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 177, as amended, V. Manuel P�rez. Renewable 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   Public Utilities Commission
 , in consultation with the Independent System Operator, 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, 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)   , referred to as the portfolio content
requirements  . The RPS program requires the  PUC
  Public Utilities Commission  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   Public
Utilities Commission  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-owned electrical
corporations and local publicly owned electric utilities, to procure
all available  demand-side and clean, eligible renewable
energy resources to achieve reductions in the emissions of greenhouse
gases and the state's resource adequacy goals  
cost-effective energy efficiency, demand response, and renewable reso
  urces, so as to achieve renewable, reliability, and 
 greenhouse gases emission reduction  simultaneously, in
the most cost-effective  and affordable  manner practicable.
 The bill would require that procurement not be limited by any
targets established for these resources by statute or regulatory
decision. 
   The Public Utilities Act requires the  PUC  
Public Utilities Commission  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 
 Public Utilities Commission  , 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.   electrical
corporations to procure all available cost-effective energy
efficiency, demand response, and renewable energy resources so as to
simultaneously achieve the goals of renewable resource development,
reductions in emissions of greenhouse gases, and sustain system
reliability in the most cost-effective and affordable manner and
would provide that this procurement is not limited by any targets
established for these resources by statute or regulatory decision.
The bill would require the Public Utilities Commission to continue to
establish efficiency targets for an electrical corporation pursuant
to the utility's procurement plan. 
   Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
 commission   Public Utilities 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.
  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)  Without limitation imposed by any existing
procurement targets or requirements, and consistent  
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, and the policy of the state, that all retail
sellers of electricity, including investor-owned electrical
corporations and local publicly owned electric utilities, shall
procure all available  demand side and clean, eligible
renewable energy resources to achieve reductions in the emissions of
greenhouse gases and the state's resource adequacy goals 
 cost-effective energy efficiency, demand response, and renewable
resources, so as to achieve renewable, reliability, and greenhouse
gases emission reduction  simultaneously, in the most
cost-effective  and affordable  manner practicable. 
Procurement shall not be limited by any targets established for these
resources by statute or regulatory decision.  
  SEC. 3.    Section 454.55 of the Public Utilities
Code is amended to read:
   454.55.  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 Energy
Commission, shall 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 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. 3.    Section 454.55 of the   Public
Utilities Code   is amended to read: 
   454.55.   The commission, in consultation with the State
Energy Resources Conservation and Development Commission, shall
identify all potentially achievable cost-effective electricity
efficiency savings and   Electrical corporations shall
procure all available cost-effective energy efficiency, demand
response, and renewable energy resources so as to simultaneously
achieve the goals of renewable resource development, reductions in
emissions of greenhouse gases, and sustain system reliability in the
most cost-effective and affordable manner. This procurement shall not
be limited by any targets established for these resources by statute
or regulatory decision. However, the commission shall  
continue to  establish efficiency targets for an electrical
corporation to achieve pursuant to Section 454.5.
  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.