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  JUNE 5, 2013
	AMENDED IN ASSEMBLY  APRIL 9, 2013
	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly  Members   V.
Manuel Pérez     and Bradford
  Member   V. Manuel Pérez 

                        JANUARY 24, 2013

   An act to amend Sections 345.5 and 454.55 of, and to add 
Section   Sections  399.23  and 636  to,
the Public Utilities Code, relating to renewable energy resources.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 177, as amended, V. Manuel Pérez. Renewable resources.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
as defined. The Public Utilities Act requires the 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, referred to as the portfolio content
requirements. The RPS program requires the 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 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 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. The bill would
require that procurement not be limited by any targets established
for these resources by statute or regulatory decision. 
   The existing restructuring of the electrical industry within the
Public Utilities Act provides for the establishment of an Independent
System Operator as a nonprofit public benefit corporation. Existing
law requires the Independent System Operator to manage the
transmission grid and related energy markets in a manner that is
consistent with (1) making the most efficient use of available energy
resources, (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, and (4) maximizing
the availability of existing electric generation resources necessary
to meet the needs of the state's electricity consumers.  
   This bill would add a requirement that in managing the
transmission grid and related energy markets, the Independent System
Operator do so consistent with achieving a continuous reduction in
emissions of greenhouse gases associated with California's electrical
system sufficient to achieve the state policy goal for 2050 adopted
by the State Air Resources Board. The bill would revise the 4th
requirement described above to require that in managing the
transmission grid and related energy markets, the Independent System
Operator do so consistent with maximizing utilization of existing
electrical resources, including all cost-effective demand-side and
clean renewable energy resources, that are connected to the
distribution or transmission grid, as are necessary for reliable
operation of the grid and sufficient to meet the needs of the state's
electricity consumers. The bill would require the Independent System
Operator, in its annual transmission planning process, to identify
the maximum amount of preferred resources capable, in conjunction
with installation of nongenerating electrical equipment, of meeting
local resource adequacy and system operating needs. 
   The Public Utilities Act requires the 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 Public Utilities Commission, in consultation
with the State Energy Resources Conservation and Development
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. 
   Existing law requires that each local publicly owned electric
utility, as defined, serving end-use customers prudently plan for and
procure resources that are adequate to meet its planning reserve
margin and peak demand and operating reserves, sufficient to provide
reliable electric service to its customers. Existing law additionally
requires the local publicly owned electric utility, upon request, to
provide the State Energy Resources Conservation and Development
Commission with any information the State Energy Resources
Conservation and Development Commission determines is necessary to
evaluate the progress made by the local publicly owned electric
utility in meeting those planning requirements, and requires the
State Energy Resources Conservation and Development Commission to
report the progress made by each local publicly owned electric
utility to the Legislature, to be included in an integrated energy
policy report, as specified. Existing law requires an electrical
corporation or local publicly owned electric utility, as defined, to
adopt certain strategies in a long-term plan or a procurement plan,
as applicable, to achieve efficiency in the use of fossil fuels and
to address carbon emissions, as specified. 
   This bill would require 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.  The bill would require an electrical
corporation, in a long-term plan, or local publicly owned electric
utility, in a procurement plan, to adopt a long-term procurement
strategy to achieve a target of procuring 51% of its electricity
products from eligible renewable energy resources by December 31,
2030, and to achieve the 2050 goal for reducing emissions of
greenhouse gases adopted by the State Air Resources Board, consistent
with the potentially achievable cost-effective electricity
efficiency savings and efficiency targets established for an
electrical corporation by the Public Utilities Commission. The bill
would require that each long-term plan adopted by an electrical
corporation or procurement plan implemented by a local publicly owned
electric utility be updated not less than   every 3 years
and released to the public, the Governor, and the Legislature and
would require that each plan update include estimated emissions of
greenhouse gases that are expected to result from implement 
 ation of the procurement plan for each 5-year period through
December 31, 2050. 
   Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
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) Achieving a continuous reduction in emissions of greenhouse
gases associated with California's electrical system sufficient to
achieve the state policy goal for 2050 adopted by the State Air
Resources Board.  
   (1) 
    (2)  Making the most efficient use of available energy
resources. For purposes of this section, "available energy resources"
include energy  efficiency savings  , capacity, ancillary
services, and demand  response and flexibility services  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) 
    (3)  Reducing, to the extent possible, overall economic
cost to the state's consumers. 
   (3) 
    (4)  Applicable state law intended to protect the public'
s health and the environment. 
   (4) 
    (5)  Maximizing  availability  
utilization  of existing  electric generation 
 electrical  resources, including all  available
demand side   cost-effective demand-side  and
 clean, eligible   clean  renewable energy
resources  , that are connected to the distribution or
transmission grid, as are  necessary  for reliable operation
of the grid and sufficient  to meet the needs of the state's
electricity consumers. 
   (5) 
    (6)  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 
    (7)     Coordinating operations and sharing
operating data and resources  with all balancing area
authorities in California in a manner that  supports
  reduces the cost of maintaining or improving 
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.  
   (1) In its annual transmission planning process, identify the
maximum amount of preferred resources capable, in conjunction with
installation of nongenerating electrical equipment, of meeting local
resource adequacy and system operating needs. For these purposes,
"nongenerating electrical equipment" includes, but is not limited to,
synchronous condensers or similar devices and transmission grid
additions or upgrades, and "referred resources" include, but are not
limited to, location-specific energy efficiency, demand resources,
location-specific renewable generation, and geographically dispersed
generation. The Independent System Operator shall publish and
communicate these estimates to the commission, the Energy Commission,
and the State Air Resources Board to facilitate joint consideration
of amounts of preferred resources available to be included in the
commission's establishment of procurement targets. 
   (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) 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 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.  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.    Section 636 is added to the  
Public Utilities Code  , to read:  
   636.  (a) In a long-term plan adopted by an electrical corporation
or in a procurement plan implemented by a local publicly owned
electric utility, the electrical corporation or local publicly owned
electric utility shall adopt a long-term procurement strategy to
achieve a target of procuring 51 percent of its electricity products
from eligible renewable energy resources by December 31, 2030, and to
achieve the 2050 goal for reducing emissions of greenhouse gases
adopted by the State Air Resources Board, consistent with Section
454.55.
   (b) Each long-term plan adopted by an electrical corporation or
procurement plan implemented by a local publicly owned electric
utility shall be updated not less than every three years and released
to the public, the Governor, and the Legislature. Each procurement
plan update shall include estimated emissions of greenhouse gases
that are expected to result from implementation of the procurement
plan for each five-year period through December 31, 2050. 
   SEC. 4.   SEC. 5.   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.