399.35.
(a) (1) Each retail seller and local publicly owned electric utility shall procure, through contracts with a service term of at least 10 years in duration, a proportionate share of electricity products from a statewide total of 5,000 4,250 megawatts of cumulative-rated generating capacity of qualified renewable energy resources that meet the requirements of paragraph (1) of subdivision (b) of Section 399.16. For purposes of this section, “proportionate share” shall be based on the forecast of retail sales for the year
2020.(2) Of the total amount of electricity products procured from geothermal projects pursuant to paragraph (1):
(A) Not less than 500 megawatts of cumulative-rated generation capacity shall be procured from geothermal projects in existence as of January 1, 2018, and operated pursuant to contracts otherwise scheduled to expire between December 31, 2020,
January 1, 2019, and
December 31, 2022.
(B) Not less than an additional 500 megawatts of cumulative-rated generation capacity shall be procured from geothermal projects in existence as of January 1, 2018, and operated pursuant to contracts otherwise scheduled to expire between December 31, 2026, 2025, and December 31, 2028.
(C) Not less than an additional 750 megawatts of cumulative-rated generation capacity shall be procured from geothermal resources that began construction on or after January 1, 2019, with early priority on projects in disadvantaged communities with deliveries of electricity products scheduled to commence
no later than January 1, 2028.
(3)Of the total amount of electricity products procured from bioenergy projects pursuant to paragraph (1):
(A)Not less than 325 megawatts of cumulative-rated generation capacity shall be procured from bioenergy projects in existence as of January 1, 2018, and operated pursuant to contracts otherwise scheduled to expire between December 31, 2020, and December 31, 2022.
(B)(i)Not less than 200 megawatts of cumulative-rated generation capacity shall be procured from bioenergy projects that began construction on or after January 1, 2019, in addition to the procurement required pursuant to paragraph (2) of subdivision (f) of Section 399.20.
(ii)Renewable bioenergy projects procured under this subparagraph shall be limited to facilities constructed for the purpose of healthy forest management with a nameplate generation capacity of less than five megawatts.
(4)
(3) Of the total amount of electricity products procured from geothermal projects pursuant to paragraph (1), not less than 2,500 megawatts shall be procured from tax-advantaged renewable energy resources.
(b) (1) No later than March 31, 2019, the commission shall determine the proportionate share of electricity products from the 5,000 4,250 megawatts of electricity that each retail seller is required to procure
pursuant to subdivision
(a), including a mix of at least 1,675 megawatts of tax-advantaged renewable resources that promotes the achievement of a diverse overall resource portfolio, as determined by the commission in its Decision 18-02-018 to achieve a greenhouse gas emissions target at or below the 42-million-metric-ton goal for 2030 identified in Rulemaking 16-02-007.
(2) The commission shall direct retail sellers to procure sufficient eligible renewable energy resources in consideration of the integrated resource plan requirements adopted by the commission in its Decision 18-02-018.
(A) Contracts executed by an electrical corporation for tax-advantaged renewable resources shall be submitted to the commission for review by no later than September 1, 2019.
(B) Procurement of tax-advantaged renewable resources pursuant to this subdivision shall be on behalf of retail end-use customers of all retail sellers. The commission shall act on all submitted contracts by December 31, 2019.
(c) (1) No later than May 31, 2019, each retail seller shall file with the commission a plan for complying with subdivision (a). Those plans may authorize a retail seller to aggregate its proportionate share with the proportionate share of another retail seller or local publicly owned electric utility in order to minimize administrative and contracting costs. The commission shall, no later than June 30, 2019, review and approve, modify, or reject plans filed by retail sellers.
(2) (A) If a community choice aggregator or electric service provider fails to demonstrate, by June August 1, 2019, that it has secured sufficient enforceable and financeable procurement commitments to meet its procurement requirements, the commission shall order the applicable electrical corporation to procure any shortfall on behalf of the retail end-use customers of the community choice aggregator or electric service provider and shall allow the recovery of any costs associated with the procurement from those end-use customers pursuant to paragraph (3).
(B) If a community choice aggregator or electric service provider elects not to procure the
proportionate share of resources determined by the commission, it shall notify the commission by May 31, 2019.
(3) The commission shall allow for recovery of an electrical corporation’s costs associated with the procurement required by this section from all benefiting consumers on a nonbypassable basis.
(d) (1) No later than June 30, 2019, each local publicly owned electric utility shall adopt, as part of the renewable energy resources procurement plan required by subdivision (f) of Section 399.30, a plan for complying with subdivision (a), including a mix of at least 825 megawatts of tax-advantaged renewable resources that promote achievement of a diverse overall resource portfolio. A local publicly owned electric utility may aggregate its
proportionate share with the proportionate share of another local publicly owned electric utility or retail seller in order to minimize administrative and contracting costs.
(2) Contracts executed by a local publicly owned electric utility for tax-advantaged renewable resources shall be executed no later than December 31, 2019.
(e) Electricity procured by a retail seller or local publicly owned electric utility pursuant to this section shall count toward meeting the requirements specified in subparagraph (B) of paragraph (2) of subdivision (b) of Section 399.15 or subdivision (c) of Section 399.30, as applicable.
(f) The procurement expenditure limitations described in subdivision (c) of Section 399.15
shall apply to procurement by electrical corporations pursuant to this section.
(g) Any cost limitations adopted by the governing board of a local publicly owned electric utility pursuant to subparagraph (B)
of paragraph (2) of subdivision (d) of Section 399.30 shall apply to procurement by the local publicly owned utility pursuant to this section.
(h) For purposes of this section, the following definitions apply:
(1) “Disadvantaged communities” mean communities identified as disadvantaged pursuant to Section 39711 of the Health and Safety Code.
(2) “Qualified renewable energy resources” means either of the following:
(A) Renewable geothermal or bioenergy generation.
(B) Tax-advantaged renewable energy resources.
(3)(A)“Renewable geothermal or bioenergy generation” means generation from a renewable bioenergy or geothermal energy resource that is capable of generating electricity at a capacity factor greater than, or equal to, 80 percent, relative to its capacity, on an annual average basis.
(B)Renewable bioenergy generation facilities contracted pursuant to this section shall adopt best available control technology, as defined in Section 40405 of the Health and Safety Code, and best available control technology for toxic air contaminants, as defined in Section 39666 of the Health and Safety Code. This required technology shall be installed in a generation facility before the facility begins delivery of electricity to the entity that procured that electricity pursuant to this section.
(C)Renewable bioenergy generation shall be sited in a disadvantaged community only if it is consistent with priorities identified by the affected community in a transparent, meaningful public process. The input from the affected community shall be reflected in written documentation submitted to the commission.
(4)
(3) (A) “Tax-advantaged renewable energy resource” means a new or repowered renewable solar or wind energy resource that satisfies all of the following:
(i) Achieves initial commercial operation or initial operation for a repowered resource after January 1, 2019.
(ii) Is eligible for a federal investment tax credit pursuant to Section 48 of Title 26 of the United States Code of at least 22 percent or the federal production tax credit pursuant to Section 45 of Title 26 of the United States Code of at least 60 percent and passes the savings associated with these credits through to retail sellers and their
customers.
(iii) Provides an electricity product meeting the product content category requirements of paragraph (1) of subdivision (b) of Section 399.16 pursuant to contracts of 10 years or more in duration, or in its ownership or ownership agreements, for eligible renewable energy resources.
(iv) Was not delivering electricity under contract to an entity providing electricity to customers inside or outside the state, and was not a part of a request for proposals shortlist of projects approved by the commission, or a similar public entity of another state, as of September 1, 2018, except as set forth in subparagraph (B).
(B) Wind projects under contract before September 1, 2018, to an entity providing electricity
inside or outside the state qualify as a tax-advantaged renewable resource if at least half of the project capacity is repowered and the repowered portion satisfies clause (ii) of subparagraph (A). Only the portion of the resource that is repowered shall count towards the total tax-advantaged renewable energy resources to be procured pursuant to this section.
(i) Failure to comply with this section shall be subject to noncompliance penalties as specified in paragraph (8) of subdivision (b) of Section 399.15.
(j) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.