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  JANUARY 15, 2014
	AMENDED IN ASSEMBLY  JANUARY 8, 2014
	AMENDED IN ASSEMBLY  JANUARY 6, 2014
	AMENDED IN ASSEMBLY  JUNE 5, 2013
	AMENDED IN ASSEMBLY  APRIL 9, 2013
	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Member V. Manuel Pérez

                        JANUARY 24, 2013

   An act to  amend Section 38550 of the Health and Safety
Code, and to add Section 399.23 to, and to repeal and add Section
454.55 of, the Public Utilities Code,    add Section
25328 to the Public Resources Code,   relating to 
public utilities.   energy. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 177, as amended, V. Manuel Pérez.  Public utilities:
greenhouse gas emissions reduction: renewable resources. 
 Renewable energy resources: Salton Sea.  
   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,
including electrical corporations, in accordance with specified
objectives. 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 Warren-Alquist State Energy Resources Conservation and
Development Act establishes the State Energy Resources Conservation
and Development Commission. The act requires the State Energy
Resources Conservation and Development Commission, beginning November
1, 2003, and by November 1 of every odd year thereafter, to adopt an
integrated energy policy report which includes an overview of major
energy trends and issues facing the state, an assessment and forecast
of system reliability, and the need for resource additions,
efficiency, and conservation. The act requires the State Energy
Resources Conservation and Development Commission, beginning November
1, 2004, and by November 1 of each even year thereafter, to prepare
an energy policy review to update the analyses from the integrated
energy policy report or to raise energy issues that have emerged
since the release of the integrated energy policy report. 
   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 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 matters 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, reliable, and feasible
energy efficiency, demand response, and renewable resources, so as to
achieve grid reliability and greenhouse gases emission reductions
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.   require the State Energy
Resources Conservation and Development Commission, in cooperation and
consultation with the Public Utilities Commission, the Natural
Resources Agency, and the Salton Sea Authority, to convene a
stakeholders group to advise the commission on the steps that should
be taken to properly develop, integrate, and transmit the electricity
generated by eligible renewable energy resources located in and
around the Salton Sea. The bill would require the State Energy
Resources Conservation and Development Commission to hold workshops
and public hearings   and to include its evaluations and
  recommendations in the next integrated energy policy
report or energy policy review update.  
   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, reliable, and feasible energy efficiency,
demand response, and renewable energy resources, and to consider
procuring available cost-effective energy storage technologies. 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
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 Global Warming Solutions Act of 2006 requires the
State Air Resources Board to adopt a statewide greenhouse gas
emissions limit to be achieved by 2020.  
   This bill would require the state board, by January 1, 2016, to
adopt a statewide greenhouse gas emissions limit for electrical
corporations and local publicly owned electric utilities to be
achieved by 2030.  
   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   no  .


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

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) There are substantial high-quality eligible renewable energy
resources located in and around the Salton Sea that can generate
electricity in a manner that will simultaneously do all of the
following:  
   (1) Assist in maintaining grid reliability.  
   (2) Provide lower costs for integrating eligible renewable energy
resources into the electrical grid.  
   (3) Help meet California's renewables portfolio standard
procurement requirements and requirements for reducing emissions of
greenhouse gases.  
   (4) Provide significant local and regional environmental and
economic development benefits.  
   (b) There are similar high-quality eligible renewable energy
resources located in northern California that can generate
electricity in a manner that will simultaneously achieve the same
benefits as would be achieved by developing those resources near the
Salton Sea.  
   (c) The County of Imperial and the Imperial Irrigation District
have signed a memorandum of understanding that pledges their mutual
efforts to advance the development of eligible renewable energy
resources and precious minerals extraction in the Imperial Irrigation
District balancing authority area and thereby provide a funding
source that will assist the state in meeting its mitigation and
restoration obligations pursuant to the Quantification Settlement
Agreement, as defined in subdivision (a) of Section 1 of Chapter 617
of the Statutes of 2002, and related and implementing agreements.
 
   (d) The Natural Resources Agency, in cooperation and consultation
with the Salton Sea Authority, is conducting a feasibility study that
will serve as the blueprint to guide future efforts to restore the
Salton Sea, develop the eligible renewable energy resources located
there, and provide direction to local, regional, and state agencies
responsible for the protection of the health of those who could
otherwise be subjected to the detrimental air quality effects from an
exposed lake bed. 
   SEC. 2.    Section 25328 is added to the  
Public Resources Code   , to read:  
   25328.  (a) The commission, in cooperation and consultation with
the Public Utilities Commission, the Natural Resources Agency, and
the Salton Sea Authority, shall convene a stakeholders group to
advise the commission on the steps that should be taken to properly
develop, integrate, and transmit the electricity generated by
eligible renewable energy resources, as defined in Section 399.12 of
the Public Utilities Code, located in and around the Salton Sea. The
commission shall hold workshops and public hearings to consider the
recommendations of the stakeholders group. At a minimum, the
commission and stakeholders shall do all of the following:
   (1) Consider methods to expedite transmission line development
from the Imperial Irrigation District balancing authority area to
utilities and regional independent system operators.
   (2) Analyze whether state loan guarantees, loans, or state funds
could be made available to assist developers of geothermal and other
eligible renewable energy resources to access capital and long-term
financing.
   (3) Identify permitting issues and agencies responsible for
issuing those permits.
   (4) Analyze the feasibility of granting blanket permits to
multiple geothermal project developments located near or under the
existing Salton Sea.
   (5) Analyze the effectiveness of the value for assessing
procurement contracts for eligible renewable energy resources that
includes integration of those resources into the operation of the
electrical grid, analyze whether the value has resulted in
development of new eligible renewable energy resources located in and
around the Salton Sea, and make recommendations on whether other
measures are appropriate to ensure that eligible renewable energy
resources are appropriately developed in and around the Salton Sea.
   (6) Analyze the costs and the value provided by eligible renewable
energy resource projects located in and around the Salton Sea that
provide baseload generation.
   (7) Assist in the framing of a pilot project to evaluate algae and
solar energy facilities located on or near Salton Sea playa areas.
   (8) Analyze the benefits and costs of rare earth extraction in
consultation with the relevant state and federal agencies.
   (b) The commission shall include its evaluations and
recommendations in the next integrated energy policy report adopted
pursuant to subdivisions (a), (b), and (c) of, or energy policy
review update adopted pursuant to subdivision (d) of, Section 25302.
 
  SECTION 1.    Section 38550 of the Health and
Safety Code is amended to read:
   38550.  (a) By January 1, 2008, the state board shall, after one
or more public workshops, with public notice, and an opportunity for
all interested parties to comment, determine what the statewide
greenhouse gas emissions level was in 1990, and approve in a public
hearing, a statewide greenhouse gas emissions limit that is
equivalent to that level, to be achieved by 2020. In order to ensure
the most accurate determination feasible, the state board shall
evaluate the best available scientific, technological, and economic
information on greenhouse gas emissions to determine the 1990 level
of greenhouse gas emissions.
   (b) By January 1, 2016, the state board, after conducting one or
more public workshops with public notice and an opportunity for all
interested parties to comment, and performing an analysis of the
progress being made to achieve the 2020 statewide greenhouse gas
emissions limit, shall adopt in a public hearing a statewide
greenhouse gas emissions limit for electrical corporations, as
defined in Section 218 of the Public Utilities Code, and local
publicly owned electric utilities, as defined in Section 224.3 of the
Public Utilities Code, to be achieved by 2030.  
  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, as well as
the state's ability to reduce greenhouse gas emissions beyond the
target established for 2020, creating the need for both increased
electrical generation from renewable energy resources and reduced
demand through energy efficiency and demand response.
   (2) It is in the best interest of the electricity consumers of
this state that sufficient renewable energy generation supply and
demand-side resources are procured to meet electricity demand, and
that this supply and these resources 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) Renewable energy generation from renewable energy resources
that qualify as local capacity resources are essential to maintaining
reliable electricity deliveries.
   (4) There are substantial high-quality renewable energy resources
in the County of Imperial near the Salton Sea with the ability to
reduce greenhouse gas emissions that can generate electricity in a
manner that will simultaneously meet local capacity requirements,
maintain grid reliability, and provide significant local and regional
environmental and economic development benefits.
   (5) The commitment to a loading order of preferred resources in
the manner prescribed in Section 454.55 is necessary to the continued
health and safety of California electric consumers.
   (b) Consistent with the loading order adopted by the Energy
Commission and the commission that 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, reliable, and feasible energy
efficiency, demand response, and renewable energy resources, so as to
achieve grid reliability and greenhouse gases emission reductions
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 repealed.  
  SEC. 4.    Section 454.55 is added to the Public
Utilities Code, to read:
   454.55.  Pursuant to a loading order of preferred resources to
meet electricity demand in a manner that improves the state's air
quality, reduces greenhouse gas emissions, and preserves electric
grid reliability, electrical corporations shall procure all available
cost-effective, reliable, and feasible energy efficiency, demand
response, and renewable energy resources, and shall consider
procuring available cost-effective energy storage technologies.
Procurement of conventional or gas-fired generation shall only be
undertaken to meet residual need forecasted for the long-term
planning period that is not otherwise met by preferred resources. In
measuring the cost-effectiveness of the procurement of preferred
resources, the commission shall determine and include the value of
grid reliability, including the value of grid reliability of
diversity in renewable electric generation by resource type, size,
and location, both alone and in combination with nontransmission
alternatives, and local environmental benefits provided by each
renewable energy resource type technology in disadvantaged
communities that have been identified by the California Environmental
Protection Agency pursuant to Section 39711 of the Health and Safety
Code. 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. 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.