Bill Text: CA SB14 | 2009-2010 | Regular Session | Enrolled
Bill Title: Utilities: renewable energy resources.
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Vetoed) 2010-01-19 - Stricken from Senate file. [SB14 Detail]
Download: California-2009-SB14-Enrolled.html
BILL NUMBER: SB 14 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 12, 2009
PASSED THE ASSEMBLY SEPTEMBER 12, 2009
AMENDED IN ASSEMBLY SEPTEMBER 10, 2009
AMENDED IN ASSEMBLY SEPTEMBER 4, 2009
AMENDED IN ASSEMBLY AUGUST 18, 2009
AMENDED IN ASSEMBLY JULY 14, 2009
AMENDED IN ASSEMBLY JUNE 23, 2009
AMENDED IN SENATE MARCH 24, 2009
AMENDED IN SENATE MARCH 12, 2009
AMENDED IN SENATE FEBRUARY 17, 2009
AMENDED IN SENATE JANUARY 29, 2009
INTRODUCED BY Senators Simitian, Kehoe, Padilla, and Steinberg
(Principal coauthor: Assembly Member Krekorian)
(Coauthors: Senators Alquist, DeSaulnier, Leno, Lowenthal, Romero,
and Wiggins)
(Coauthors: Assembly Members Jones and Skinner)
DECEMBER 1, 2008
An act to amend Sections 25740 and 25741 of, and to add Section
25741.5 to, the Public Resources Code, and to amend Sections 399.11,
399.12, and 399.17 of, to amend and renumber Sections 399.13 and
399.16 of, to add Sections 399.18, 399.30, and 399.31 to, to add
Article 11 (commencing with Section 910) to Chapter 4 of Part 1 of
Division 1 of, to repeal Section 387 of, and to repeal and add
Section 399.15 of, the Public Utilities Code, relating to energy, and
making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 14, Simitian. Utilities: renewable energy resources.
(1) Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations, as defined. Existing law requires the PUC to require
the state's 3 largest electrical corporations, Pacific Gas and
Electric Company, San Diego Gas and Electric, and Southern California
Edison, to identify a separate electrical rate component to fund
programs that enhance system reliability and provide in-state
benefits. This rate component is a nonbypassable element of local
distribution and collected on the basis of usage. Existing PUC
resolutions refer to the nonbypassable rate component as a "public
goods charge." The public goods charge moneys are collected to
support cost-effective energy efficiency and conservation activities,
public interest research and development not adequately provided by
competitive and regulated markets, and renewable energy resources.
The existing Warren-Alquist State Energy Resources Conservation
and Development Act establishes the State Energy Resources
Conservation and Development Commission (Energy Commission). Existing
law establishes the Renewable Resource Trust Fund as a fund that is
continuously appropriated, with certain exceptions for administrative
expenses, in the State Treasury and requires that certain moneys
collected to support renewable energy resources through the public
goods charge are deposited into the fund and authorizes the Energy
Commission to expend the moneys pursuant to the Renewable Energy
Resources Program. The program states the intent of the Legislature
to increase the amount of electricity generated from eligible
renewable energy resources per year so that amount equals at least
20% of total retail sales of electricity in California per year by
December 31, 2010.
This bill would revise the Renewable Energy Resources Program to
state the intent of the Legislature to increase the amount of
electricity generated from eligible renewable energy resources per
year, so that amount equals at least 33% of total retail sales of
electricity in California per year by December 31, 2020. The bill
would revise certain terms used in the program and revise certain
eligibility criteria for a renewable electrical generation facility,
as defined, pursuant to the program. The bill would require the
Energy Commission, by May 31, 2010, to report to the Legislature
whether out-of-state, run-of-river hydroelectric generating
facilities should be considered renewable electric generating
facilities, as defined.
(2) Existing law expresses the intent of the Legislature, in
establishing the California Renewables Portfolio Standard Program
(RPS program), to increase the amount of electricity generated per
year from eligible renewable energy resources, as defined, to an
amount that equals at least 20% of the total electricity sold to
retail customers in California per year by December 31, 2010.
This bill would express the intent that the amount of electricity
generated per year from eligible renewable energy resources be
increased to an amount that equals at least 20% of the total
electricity sold to retail customers in California per year by
December 31, 2013, and 33% by December 31, 2020.
(3) The Public Utilities Act imposes various duties and
responsibilities on the PUC with respect to the purchase of
electricity and requires the PUC to review and adopt a procurement
plan and a renewable energy procurement plan for each electrical
corporation, as defined, pursuant to the RPS program. The RPS program
requires that a retail seller of electricity, including electrical
corporations, community choice aggregators, and electric service
providers, but not including local publicly owned electric utilities,
purchase a specified minimum percentage of electricity generated by
eligible renewable energy resources in any given year as a specified
percentage of total kilowatthours sold to retail end-use customers
each calendar year. The RPS program requires the PUC to implement
annual procurement targets for each retail seller to increase its
total procurement of electricity generated by eligible renewable
energy resources by at least an additional 1% of retail sales per
year so that 20% of its retail sales of electricity are procured from
eligible renewable energy resources no later than December 31, 2010.
Existing law requires the PUC to make a determination of the
existing market cost for electricity, which PUC decisions call the
market price referent, and to limit an electrical corporation's
obligation to procure electricity from eligible renewable energy
resources, that exceeds the market price referent, to an amount
collected through the renewable energy public goods charge.
This bill would instead require the PUC to require that a retail
seller procure the following percentages of electricity from eligible
renewable energy resources by the following dates: (A) Until
December 31, 2012, the same percentage as actually achieved by the
retail seller during 2009; (B) 20% by December 31, 2013; (C) 25% by
December 31, 2016; and (D) 33% by December 31, 2020. The bill would
authorize the PUC to permit a retail seller to delay compliance with
(B) or (C) procurement levels when specified circumstances are
present, but would not authorize the PUC to permit a retail seller to
delay compliance with the (D) procurement level. The bill would
delete the existing market price referent provisions and instead
require the PUC to establish a methodology to determine the market
price of electricity for terms corresponding to the length of
contracts with eligible renewable energy resources, in consideration
of, and reflecting, certain matters. The bill would require the PUC
to establish a limitation on the annual expenditures made above the
market price, by an electrical corporation, in order to achieve the
procurement levels established by the PUC. The bill would require the
PUC to permit an electrical corporation to limit its procurement of
electricity from eligible renewable energy resources to that quantity
that can be procured at or below the market prices established by
the PUC, up to the limitation. The bill would delete an existing
requirement that the PUC adopt flexible rules for compliance for
retail sellers.
Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the PUC
is a crime.
Because the provisions of this bill are within the act and require
action by the PUC to implement its requirements, a violation of
these provisions would impose a state-mandated local program by
expanding the definition of a crime.
(4) Under existing law, the governing board of a local publicly
owned electric utility is responsible for implementing and enforcing
a renewables portfolio standard for the utility that recognizes the
intent of the Legislature to encourage renewable resources, while
taking into consideration the effect of the standard on rates,
reliability, and financial resources and the goal of environmental
improvement.
This bill would repeal this provision and instead make certain of
the requirements of the RPS program, as discussed below, applicable
to local publicly owned electric utilities. By placing additional
requirements upon local publicly owned electric utilities, the bill
would impose a state-mandated local program.
(5) Existing law requires the Energy Commission to certify
eligible renewable energy resources, to design and implement an
accounting system to verify compliance with the RPS requirements by
retail sellers, and to develop tracking, accounting, verification,
and enforcement mechanisms for renewable energy credits, as defined.
This bill would require the Energy Commission to design and
implement an accounting system to verify compliance with the RPS
requirements by retail sellers and local publicly owned electric
utilities. The bill would require the Energy Commission, among other
things, to adopt regulations specifying procedures for enforcement of
the RPS requirements that include a public process under which the
Energy Commission is authorized to issue a notice of violation and
correction with respect to a local publicly owned electric utility
and for referral to the State Air Resources Board for penalties
imposed pursuant to the California Global Warming Solutions Act of
2006. The bill would require that the RPS established for a local
publicly owned electric utility require it to procure the following
percentages of electricity from eligible renewable energy resources
by the following dates: (A) Until December 31, 2012, the same
percentage as actually achieved by the utility during 2009; (B) 20%
by December 31, 2013; (C) 25% by December 31, 2016; and (D) 33% by
December 31, 2020. The bill would provide that the local publicly
owned electric utility retains discretion with respect to certain
matters in complying with the RPS, would require that certain notices
be given by the utility when adopting and periodically revising its
procurement plan, and would require the utility to report certain
information relative to RPS compliance to the Energy Commission and
its customers.
(6) Existing law requires the PUC to prepare and submit to the
Governor and the Legislature a written report annually before
February 1 of each year on the costs of programs and activities
conducted by an electrical corporation or gas corporation that have
more than a specified number of customers in California.
The bill would require the PUC to prepare and submit to the policy
and fiscal committees of the Legislature, annually before February 1
of each year, a report on (A) all electrical corporation revenue
requirement increases associated with meeting the renewables
portfolio standard, (B) all cost savings experienced, or costs
avoided, by electrical corporations as a result of meeting the
renewables portfolio standard, (C) all costs incurred by electrical
corporations for incentives for distributed and renewable generation,
(D) all cost savings experienced, or costs avoided, by electrical
corporations as a result of incentives for distributed generation and
renewable generation, (E) specified costs for which an electrical
corporation is seeking recovery in rates that are pending
determination or approval by the PUC, (F) the decision number of each
PUC decision in the prior year authorizing an electrical corporation
to recover costs incurred in rates, and (G) any changes in the prior
year in load serviced by an electrical corporation.
(7) This bill would appropriate $322,000 from the Public Utilities
Commission Utilities Reimbursement Account to the PUC for additional
staffing to identify, review, and approve transmission lines
reasonably necessary or appropriate to facilitate achievement of the
renewables portfolio standard.
(8) 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 specified reasons.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25741 of the Public Resources Code is amended
to read:
25741. As used in this chapter, the following terms have the
following meaning:
(a) "Delivered" and "delivery," have the same meaning as defined
in Section 399.12 of the Public Utilities Code.
(b) "Procurement entity" means any person or corporation that
enters into an agreement with a retail seller to procure eligible
renewable energy resources pursuant to subdivision (g) of Section
399.13 of the Public Utilities Code.
(c) "Renewable electrical generation facility" means a facility
that meets all of the following criteria:
(1) The facility uses biomass, solar thermal, photovoltaic, wind,
geothermal, fuel cells using renewable fuels, small hydroelectric
generation of 30 megawatts or less, digester gas, municipal solid
waste conversion, landfill gas, ocean wave, ocean thermal, or tidal
current, and any additions or enhancements to the facility using that
technology.
(2) The facility satisfies one of the following requirements:
(A) The facility is located in the state or near the border of the
state with the first point of connection to the transmission network
of an balancing authority area primarily located within the state.
(B) The facility has its first point of interconnection to the
transmission network outside the state and satisfies all of the
following requirements:
(i) It is connected to the transmission network within the Western
Electricity Coordinating Council (WECC) service territory.
(ii) It commences initial commercial operation after January 1,
2010.
(iii) It will not cause or contribute to any violation of a
California environmental quality standard or requirement.
(iv) It participates in the accounting system to verify compliance
with the renewables portfolio standard once established by the
commission pursuant to subdivision (b) of Section 399.25 of the
Public Utilities Code.
(C) The facility meets the requirements of clauses (i), (iii), and
(iv) of subparagraph (B), but does not meet the requirements of
clause (ii) of subparagraph (B) because it commenced initial
operation prior to January 1, 2010, if the facility satisfies either
of the following requirements:
(i) The electricity is from incremental generation resulting from
expansion or repowering of the facility.
(ii) Electricity generated by the facility was procured by a
retail seller or local publicly owned electric utility as of May 31,
2009.
(3) Any existing landfill gas facility approved by a publicly
owned electric utility prior to September 16, 2009, as a renewable
electric generation facility shall continue to qualify as a renewable
electric generation facility.
(4) If the facility is outside the United States, it is developed
and operated in a manner that is as protective of the environment as
a similar facility located in the state.
(d) "Municipal solid waste conversion," as used in subdivision
(c), means a technology that uses a noncombustion thermal process to
convert solid waste to a clean-burning fuel for the purpose of
generating electricity, and that meets all of the following criteria:
(A) The technology does not use air or oxygen in the conversion
process, except ambient air to maintain temperature control.
(B) The technology produces no discharges of air contaminants or
emissions, including greenhouse gases as defined in Section 38505 of
the Health and Safety Code.
(C) The technology produces no discharges to surface or
groundwaters of the state.
(D) The technology produces no hazardous wastes.
(E) To the maximum extent feasible, the technology removes all
recyclable materials and marketable green waste compostable materials
from the solid waste stream prior to the conversion process and the
owner or operator of the facility certifies that those materials will
be recycled or composted.
(F) The facility at which the technology is used is in compliance
with all applicable laws, regulations, and ordinances.
(G) The technology meets any other conditions established by the
commission.
(H) The facility certifies that any local agency sending solid
waste to the facility diverted at least 30 percent of all solid waste
it collects through solid waste reduction, recycling, and
composting. For purposes of this paragraph, "local agency" means any
city, county, or special district, or subdivision thereof, which is
authorized to provide solid waste handling services.
(e) "Renewable energy public goods charge" means that portion of
the nonbypassable system benefits charge required to be collected to
fund renewable energy pursuant to the Reliable Electric Service
Investments Act (Article 15 (commencing with Section 399) of Chapter
2.3 of Part 1 of Division 1 of the Public Utilities Code).
(f) "Report" means the report entitled "Investing in Renewable
Electricity Generation in California" (June 2001, Publication Number
P500-00-022) submitted to the Governor and the Legislature by the
commission.
(g) "Retail seller" means a "retail seller" as defined in Section
399.12 of the Public Utilities Code.
SEC. 2. Section 25741.5 is added to the Public Resources Code, to
read:
25741.5. By May 31, 2010, the commission shall report to the
Legislature whether out-of-state, run-of-river hydroelectric
generating facilities that are no larger than 50 megawatts should be
considered renewable electrical generating facilities. In making its
report, the commission shall consider the emissions of carbon
dioxide, other air pollutants, impacts on water quality, recreation,
and fisheries, and other environmental impacts of these generating
resources as compared to those of existing electric generating
facilities.
SEC. 3. Section 387 of the Public Utilities Code is repealed.
SEC. 4. Section 399.11 of the Public Utilities Code is amended to
read:
399.11. The Legislature finds and declares all of the following:
(a) In order to attain a target of generating 20 percent of total
retail sales of electricity in California from eligible renewable
energy resources by December 31, 2013, and 33 percent by December 31,
2020, and for the purposes of increasing the diversity, reliability,
public health, and environmental benefits of the energy mix,
reducing emissions of greenhouse gases, and promoting economic
development it is the intent of the Legislature that the commission
and the Energy Commission implement the California Renewables
Portfolio Standard Program described in this article.
(b) Increasing California's reliance on eligible renewable energy
resources may promote stable electricity prices, protect public
health, improve environmental quality, stimulate sustainable economic
development, create new employment opportunities, and reduce
reliance on imported fuels.
(c) The development of eligible renewable energy resources and the
delivery of the electricity generated by those resources to
customers in California may ameliorate air quality problems
throughout the state and improve public health by reducing the
burning of fossil fuels and the associated environmental impacts and
by reducing in-state fossil fuel consumption.
(d) The California Renewables Portfolio Standard Program is
intended to complement the Renewable Energy Resources Program
administered by the Energy Commission and established pursuant to
Chapter 8.6 (commencing with Section 25740) of Division 15 of the
Public Resources Code.
(e) New and modified electric transmission facilities will be
necessary to facilitate the state achieving its renewables portfolio
standard targets.
(f) (1) Delivering genuine renewable electricity to California
end-use customers is necessary to improve California's air quality
and public health, and California end-use customers may be paying
higher rates to achieve the procurement requirements of this article.
This delivered electricity may be generated anywhere in the
interconnected grid that includes many states, and areas of both
Canada and Mexico.
(2) The definition of "delivered" and "delivery" requires
generating resources located outside of California, but able to
deliver that electricity to California end-use customers, to be
treated identically to generating resources located within the state,
without discrimination.
(3) California electrical corporations have already executed, and
the commission has approved, power purchase agreements with eligible
renewable energy resources located outside of California that will
deliver renewable electricity to California end-use customers, and
there are nearly 10,000 megawatts of additional proposed renewable
energy resources located outside of California that are awaiting
interconnection approval from the Independent System Operator. All of
the delivered resources should count as eligible renewable energy
resources under the renewables portfolio standard procurement
requirements.
SEC. 5. Section 399.12 of the Public Utilities Code is amended to
read:
399.12. For purposes of this article, the following terms have
the following meanings:
(a) "Conduit hydroelectric facility" means a facility for the
generation of electricity that uses only the hydroelectric potential
of an existing pipe, ditch, flume, siphon, tunnel, canal, or other
manmade conduit that is operated to distribute water for a beneficial
use.
(b) (1) "Delivered" and "delivery," with respect to electricity,
means that the electricity is used to serve end-use retail customers
or energy storage facilities located within the state, and meets
either of the following conditions:
(A) The electricity is generated at a location within the state.
(B) The electricity is generated at a location outside the state
and scheduled for consumption by California end-use retail customers
or energy storage facilities located within the state. Compliance
with this requirement is demonstrated by one of the following means:
(i) Showing that the generator's first point of interconnection is
with facilities of a Transmission Service Provider, as that term is
defined by North American Electric Reliability Corporation primarily
located in this state.
(ii) Showing that the hourly metered output of the generator
matches the import schedules of electricity flow from the generator,
through the balancing authority area in which the generator is
located, through any intermediate balancing authorities, to the
balancing authority area of the end-use retail customers or energy
storage facility located in this state.
(2) Notwithstanding clause (ii) of subparagraph (B) of paragraph
(1), electricity is not delivered to the extent that either of the
following occurs:
(A) The physical delivery of electricity is scheduled from a
source other than a renewable electrical generation facility, as
defined in Section 27541 of the Public Resources Code.
(B) The electricity output is scheduled for delivery to customers
in a different hour from the time of generation by the renewable
electrical generation facility.
(3) Consistent with subparagraph (A) of paragraph (2), the
physical delivery of electricity from a renewable electrical
generation facility may be accompanied by electricity provided by
another source for purposes of facilitating scheduling. For purposes
of this article, only the portion of electricity provided directly
from the renewable electrical generation facility shall count toward
meeting the renewables portfolio standard procurement requirements of
this article.
(4) For purposes of determining compliance by an intermittent
resource located outside California with the delivery requirements of
this subdivision, any positive imbalance energy provided under
applicable tariffs by the balancing authority in which the facility
is located shall, in an amount not exceeding any negative imbalance
energy provided by the intermittent resource, be included in the
hourly metered output and considered generated by the eligible
renewable energy resource.
(c) "Eligible renewable energy resource" means an electrical
generating facility that meets the definition of a "renewable
electrical generation facility" in Section 25741 of the Public
Resources Code subject to the following:
(1) (A) An existing small hydroelectric generation facility of 30
megawatts or less shall be eligible only if a retail seller or local
publicly owned electric utility owned or procured the electricity
from the facility as of December 31, 2005. A small hydroelectric
generation unit with a nameplate capacity not exceeding 40 megawatts
that is operated as part of a water supply or conveyance system
serving the jurisdiction of a local publicly owned electric utility
is an eligible renewable energy resource if the local publicly owned
electric utility owned or procured the electricity from the facility
as of December 31, 2005. A new hydroelectric facility is not an
eligible renewable energy resource if it will cause an adverse impact
on instream beneficial uses or cause a change in the volume or
timing of streamflow.
(B) Notwithstanding subparagraph (A), a conduit hydroelectric
facility of 30 megawatts or less that commenced operation before
January 1, 2006, is an eligible renewable energy resource. A conduit
hydroelectric facility of 30 megawatts or less that commences
operation after December 31, 2005, is an eligible renewable energy
resource so long as it does not cause an adverse impact on instream
beneficial uses or cause a change in the volume or timing of
streamflow.
(2) A facility engaged in the combustion of municipal solid waste
shall not be considered an eligible renewable resource unless it is
located in Stanislaus County and was operational prior to September
26, 1996.
(d) "Procure" means to acquire through ownership or contract. For
purposes of meeting the renewables portfolio standard procurement
requirements, a retail seller or local publicly owned electric
utility may procure either delivered electricity generated by an
eligible renewable energy resource or renewable energy credits
associated with electricity generated, but not necessarily delivered
by, an eligible renewable energy resource. Nothing in this article is
intended to imply that the purchase of electricity from third
parties in a wholesale transaction is the preferred method of
fulfilling a retail seller's obligation to comply with this article
or the obligation of a local publicly owned electric utility to meet
its renewables portfolio standard implemented pursuant to Section
399.30.
(e) (1) "Renewable energy credit" means a certificate of proof
associated with the generation of electricity from an eligible
renewable energy resource, issued through the accounting system
established by the Energy Commission pursuant to Section 399.25, that
one unit of electricity was generated by an eligible renewable
energy resource.
(2) "Renewable energy credit" includes all renewable and
environmental attributes associated with the production of
electricity from the eligible renewable energy resource, except for
an emissions reduction credit issued pursuant to Section 40709 of the
Health and Safety Code and any credits or payments associated with
the reduction of solid waste and treatment benefits created by the
utilization of biomass or biogas fuels.
(3) (A) No electricity generated by an eligible renewable energy
resource attributable to the use of nonrenewable fuels, beyond a de
minimis quantity, as determined by the Energy Commission for each
renewable energy technology, shall result in the creation of a
renewable energy credit.
(B) No electricity generated by a small hydroelectric generation
facility shall result in the creation of a renewable energy credit
unless the facility meets the requirements of subparagraph (A) of
paragraph (1) of subdivision (c).
(C) No electricity generated by a conduit hydroelectric generation
facility shall result in the creation of a renewable energy credit
unless the facility meets the requirements of subparagraph (B) of
paragraph (1) of subdivision (c).
(D) No electricity generated by a facility engaged in the
combustion of municipal solid waste shall result in the creation of a
renewable energy credit unless the facility meets the requirements
of paragraph (2) of subdivision (c).
(f) "Renewable energy public goods charge" means that portion of
the nonbypassable system benefits charge required to be collected to
fund renewable energy pursuant to the Reliable Electric Service
Investments Act (Article 15 (commencing with Section 399) of Chapter
2.3 of Part 1 of Division 1, for an electrical corporation, and
pursuant to Section 385 for a local publicly owned electric utility.
(g) "Renewables portfolio standard" means the specified percentage
of electricity generated by eligible renewable energy resources that
a retail seller or a local publicly owned electric utility is
required to procure pursuant to this article.
(h) "Retail seller" means an entity engaged in the retail sale of
electricity to end-use customers located within the state, including
any of the following:
(1) An electrical corporation, as defined in Section 218.
(2) A community choice aggregator. The commission shall institute
a rulemaking to determine the manner in which a community choice
aggregator will participate in the renewables portfolio standard
program subject to the same terms and conditions applicable to an
electrical corporation.
(3) An electric service provider, as defined in Section 218.3, for
all sales of electricity to customers beginning January 1, 2006. The
commission shall institute a rulemaking to determine the manner in
which electric service providers will participate in the renewables
portfolio standard program. The electric service provider shall be
subject to the same terms and conditions applicable to an electrical
corporation pursuant to this article. Nothing in this paragraph shall
impair a contract entered into between an electric service provider
and a retail customer prior to the suspension of direct access by the
commission pursuant to Section 80110 of the Water Code.
(4) "Retail seller" does not include any of the following:
(A) A corporation or person employing cogeneration technology or
producing electricity consistent with subdivision (b) of Section 218.
(B) The Department of Water Resources acting in its capacity
pursuant to Division 27 (commencing with Section 80000) of the Water
Code.
(C) A local publicly owned electric utility.
SEC. 6. Section 399.13 of the Public Utilities Code is amended and
renumbered to read:
399.25. The Energy Commission shall do all of the following:
(a) Certify eligible renewable energy resources that it determines
meet the criteria described in subdivision (c) of Section 399.12.
(b) Design and implement an accounting system to verify compliance
with the renewables portfolio standard by retail sellers and local
publicly owned electric utilities, to ensure that electricity
generated by an eligible renewable energy resource is counted only
once for the purpose of meeting the renewables portfolio standard of
this state or any other state, to certify renewable energy credits
produced by eligible renewable energy resources, and to verify retail
product claims in this state or any other state. In establishing the
guidelines governing this accounting system, the Energy Commission
shall collect data from electricity market participants that it deems
necessary to verify compliance of retail sellers and local publicly
owned electric utilities, in accordance with the requirements of this
article and the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code). In seeking data from electrical corporations, the
Energy Commission shall request data from the commission. The
commission shall collect data from electrical corporations and remit
the data to the Energy Commission within 90 days of the request.
(c) Establish a system for tracking and verifying renewable energy
credits that, through the use of independently audited data,
verifies the generation and delivery of electricity associated with
each renewable energy credit and protects against multiple counting
of the same renewable energy credit. The Energy Commission shall
consult with other western states and with the Western Electricity
Coordinating Council in the development of this system.
(d) Certify, for purposes of compliance with the renewables
portfolio standard requirements by a retail seller, the eligibility
of renewable energy credits associated with deliveries of electricity
by an eligible renewable energy resource to a local publicly owned
electric utility, if the Energy Commission determines that all of the
conditions of Section 399.31 have been met.
SEC. 7. Section 399.15 of the Public Utilities Code is repealed.
SEC. 8. Section 399.15 is added to the Public Utilities Code, to
read:
399.15. (a) In order to fulfill unmet long-term resource needs,
the commission shall establish a renewables portfolio standard
requiring all retail sellers to procure a minimum quantity of
electricity generated by eligible renewable energy resources as a
specified percentage of total kilowatthours sold to their retail
end-use customers each compliance period to achieve the targets
established under this article.
(b) The commission shall implement renewables portfolio standard
procurement requirements only as follows:
(1) Each retail seller shall procure the following minimum
percentages of eligible renewable energy resources in the following
years, and continue to procure at least those percentages in
subsequent years:
(A) Until December 31, 2012, the same percentage as actually
achieved by the retail seller during 2009.
(B) Twenty percent by December 31, 2012.
(C) Twenty-five percent by December 31, 2016.
(D) Thirty-three percent by December 31, 2020.
(2) A retail seller with 33 percent of its retail sales of
electricity procured from eligible renewable energy resources in any
year shall not be required to increase its procurement of renewable
energy resources, except to the extent required to maintain a 33
percent renewables portfolio standard. A retail seller may
voluntarily increase its procurement of eligible renewable energy
resources beyond the renewables portfolio standard procurement
requirements.
(3) Only for purposes of establishing the renewables portfolio
standard procurement requirements of paragraph (1), the commission
shall include all electricity sold to retail customers by the
Department of Water Resources pursuant to Section 80100 of the Water
Code in the calculation of retail sales by an electrical corporation.
(4) The commission may only allow a retail seller for a maximum of
two years per request to delay compliance with a renewables
portfolio standard procurement requirement established pursuant to
subparagraph (B) or (C) of paragraph (1), if it finds that the retail
seller has demonstrated that either of the following conditions will
prevent timely compliance:
(A) There is inadequate transmission capacity to allow for
sufficient electricity to be delivered from proposed eligible
renewable energy resource projects using the current operational
protocols of the Independent System Operator (ISO). The commission
shall consult with the ISO in making its findings relative to the
existence of this condition. In making its findings relative to the
existence of this condition with respect to a retail seller that owns
transmission lines, the commission shall consider both of the
following:
(i) Whether the retail seller has undertaken all reasonable
measures to develop and construct new transmission lines or upgrades
to existing lines in a timely fashion.
(ii) Whether the retail seller has taken all reasonable
operational measures, as verified by the ISO, to maximize deliveries
of electricity from eligible renewable energy resources in advance of
transmission availability.
(B) Unanticipated permitting, interconnection, or other delays for
procured eligible renewable energy resource projects, or there is an
insufficient supply of delivered electricity from eligible renewable
energy resources available to the retail seller. In making this
finding, the commission shall consider whether the retail seller has
prudently managed portfolio risks, relied on sufficient viable
projects, sought to develop its own eligible renewable energy
resources, and procured an appropriate minimum margin of procurement
above the minimum procurement level necessary to comply with the
renewables portfolio standard to compensate for foreseeable delays or
insufficient supply.
(5) Prior to granting a delay pursuant to paragraph (4), the
commission shall require a retail seller to demonstrate that it has
presented evidence that it has made material progress in reducing its
compliance deficit and has taken all reasonable measures consistent
with this article to procure cost-effective distributed generation
and renewable energy credits consistent with the restrictions in
paragraph (6) of subdivision (a) of Section 399.21.
(6) The commission may not approve any request to delay a
compliance obligation for which it has already granted a delay unless
a retail seller presents evidence that it has made material progress
in reducing its compliance deficiency and has identified and taken
all reasonable actions under its control to pursue additional options
to comply with the delayed interim procurement obligation and remove
impediments that are related to its delay.
(7) The commission may not authorize any delay in achieving the 33
percent by December 31, 2020, renewables portfolio standard
procurement requirement of subparagraph (D) of paragraph (1).
(8) If a retail seller fails to procure sufficient eligible
renewable energy resources to comply with a renewables portfolio
standard procurement requirement and fails to obtain an order from
the commission authorizing a compliance delay pursuant to paragraph
(4), the commission shall exercise its authority pursuant to Section
2113.
(c) The commission shall establish a methodology to determine the
market price of electricity for terms corresponding to the length of
contracts with eligible renewable energy resources, in consideration
of the long-term ownership, operating, and fixed-price fuel costs
associated with fixed-price electricity from new generating
facilities. The methodology shall reflect all of the following:
(1) The value of different products including baseload, peaking,
and as-available electricity.
(2) All current and anticipated environmental compliance costs,
including mitigation of emissions of greenhouse gases and air
pollution offsets
associated with the operation of new generating facilities.
(d) (1) The commission shall establish a limitation for each
electrical corporation on the expenditures above the market costs
determined in subdivision (c) for the procurement of all eligible
renewable energy resources that are used to comply with the
electrical corporation's renewables portfolio standard. The cost
limitation shall equal 6 percent of the total bundled electric
revenues recorded by the electrical corporation in 2008 multiplied by
the number of years remaining until 2020. Total bundled electric
revenues shall include revenues collected by the electrical
corporation on behalf of the Department of Water Resources for
procurement activities conducted pursuant to Division 27 (commencing
with Section 80000) of the Water Code.
(2) The calculation of the above-market costs shall include all
procurement of eligible renewable energy resources that are used to
comply with the electrical corporation's renewables portfolio
standard that are submitted for approval to the commission after
January 1, 2010.
(3) The above-market costs of procurement do not include any
indirect expenses, including imbalance energy charges, sale of excess
energy, decreased generation from existing resources, or
transmission upgrades.
(4) Calculations of the above-market costs shall include, as a
reduction to the total above-market costs, procurement from eligible
renewable energy resources that are used to meet the renewables
portfolio standard procurement requirements established pursuant to
paragraph (1) of subdivision (b) that are below the market prices
determined in subdivision (c) for each year.
(5) In calculating the limit on above-market costs established in
paragraph (1), the commission shall account for the potential that
some procured resources may be delayed or canceled.
(e) If the cost limitation for an electrical corporation is
insufficient to support the projected net above-market costs
identified in subdivision (d), the commission shall allow the
electrical corporation to refrain from entering into new contracts or
to construct facilities for that future year beyond the quantity of
eligible renewable energy resources that can be procured at or below
the market prices established in subdivision (c).
(f) Notwithstanding subdivision (e), if an electrical corporation'
s net annual above-market costs for a future year exceed the
electrical corporation's cost limitation, the electrical corporation
may voluntarily propose to procure eligible renewable energy
resources at above-market prices. Any voluntary procurement under
this paragraph shall be subject to commission approval prior to the
expense being recovered in rates.
(g) (1) The commission shall monitor the status of the cost
limitation for each electrical corporation in order to ensure
compliance with this article.
(2) If the commission determines that an electrical corporation
may exceed its cost limitation prior to achieving the renewables
portfolio standard procurement requirements, the commission shall do
all of the following within 60 days of making that determination:
(A) Investigate and identify the reasons why the electrical
corporation may exceed its annual cost limitation.
(B) Identify those actions that can be taken to ensure that the
electrical corporation continues to comply with its renewables
portfolio standard procurement requirements.
(C) Notify the appropriate policy and fiscal committees of the
Legislature that the electrical corporation may exceed its cost
limitation, the reasons why the electrical corporation may exceed its
cost limitation, and those actions that may be taken by the
electrical corporation to comply with the renewables portfolio
standard procurement requirements.
(3) The commission shall examine mechanisms for mitigating the
potential impact of low fossil fuel prices on the cost limitation of
each electrical corporation and make recommendations to the
Legislature on any changes in law it identifies to mitigate those
impacts.
(h) The commission shall examine and adopt mechanisms to limit the
potential influence of the market prices established in subdivision
(c) on seller pricing and buyer contract selection.
(i) The establishment of a renewables portfolio standard shall not
constitute implementation by the commission of the federal Public
Utility Regulatory Policies Act of 1978 (Public Law 95-617).
(j) The commission shall consult with the Energy Commission in
establishing renewables portfolio standard policies.
SEC. 9. Section 399.16 of the Public Utilities Code is amended and
renumbered to read:
399.21. (a) The commission, by rule, shall authorize the use of
renewable energy credits to satisfy the renewables portfolio standard
procurement requirements established pursuant to this article,
subject to the following conditions:
(1) Prior to authorizing any renewable energy credit to be used
toward satisfying the renewables portfolio standard procurement
requirements, the commission and the Energy Commission shall conclude
that the tracking system established pursuant to subdivision (c) of
Section 399.25, is operational, is capable of independently verifying
that the electricity is generated by an eligible renewable energy
resource and is delivered to the retail seller, and can ensure that
renewable energy credits shall not be double counted by any seller of
electricity within the service territory of the Western Electricity
Coordinating Council (WECC).
(2) Each renewable energy credit shall be counted only once for
compliance with the renewables portfolio standard of this state or
any other state, or for verifying retail product claims in this state
or any other state.
(3) All revenues received by an electrical corporation for the
sale of a renewable energy credit shall be credited to the benefit of
ratepayers.
(4) No renewable energy credits shall be created for electricity
generated pursuant to any electricity purchase contract with a retail
seller or a local publicly owned electric utility executed before
January 1, 2005, unless the contract contains explicit terms and
conditions specifying the ownership or disposition of those credits.
Deliveries under those contracts shall be tracked through the
accounting system described in subdivision (b) of Section 399.25 and
included in the quantity of eligible renewable energy resources of
the purchasing retail seller pursuant to Section 399.15.
(5) No renewable energy credits shall be created for electricity
generated under any electricity purchase contract executed after
January 1, 2005, pursuant to the federal Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.). Deliveries under
the electricity purchase contracts shall be tracked through the
accounting system described in subdivision (b) of Section 399.12 and
count toward the renewables portfolio standard obligations of the
purchasing retail seller.
(6) The use, by a retail seller, of renewable energy credits
associated with electricity that does not satisfy the delivery
requirements of subdivision (b) of Section 399.12 shall be limited to
25 percent of the retail seller's renewables portfolio standard
procurement requirements.
(7) If a retail seller exceeds the 25 percent limitation of
paragraph (6) as a result of contracts executed prior to September
18, 2009, and if those contracts are approved by the commission, the
retail seller shall be allowed to fully use the renewable energy
credits toward meeting its renewables portfolio standard procurement
requirements through the original term of the approved contracts, but
may not procure additional renewable energy credits associated with
electricity that does not satisfy the delivery requirements of
subdivision (b) of Section 399.12. For a local publicly owned
electric utility acting pursuant to subdivision (c) of Section
399.30, contract execution occurs on the date of project approval by
the utility's governing board or the board of a joint powers
authority of which the utility is a member and that approval shall
take the place of approval by the commission for a retail seller.
(8) No renewable energy credit shall be eligible for compliance
with a renewables portfolio standard procurement requirement after 18
months from the initial date of generation of the associated
electricity. A renewable energy credit is used for compliance when
the retail seller or local publicly owned electric utility
irrevocably retires the credit within the tracking system established
pursuant to subdivision (c) of Section 399.25.
(9) If an electrical corporation or local publicly owned electric
utility owns and operates eligible renewable energy resources
constructed after January 1, 2008, in its service territory or in the
service territory of another electrical corporation or local
publicly owned utility, it may use additional renewable energy
credits beyond those allowed by paragraphs (6) and (7) in an amount
authorized by this paragraph. The additional renewable energy credits
shall be equal to the average annual amount of delivered electricity
from the owned and operated eligible renewable energy resources, or
the forecast of the delivered electricity from the resource after its
construction has begun. Ownership of the resources shall be obtained
by the electrical corporation no later than the time of commencement
of commercial operation. The maximum amount of additional renewable
energy credits authorized under this section shall not exceed 5
percent of the electrical corporation's renewables portfolio standard
procurement requirements.
(10) Any additional condition that the commission determines is
reasonable.
(b) The commission shall allow an electrical corporation to
recover the reasonable costs of purchasing renewable energy credits
in rates.
SEC. 10. Section 399.17 of the Public Utilities Code is amended to
read:
399.17. (a) Subject to the provisions of this section, the
requirements of this article apply to an electrical corporation with
60,000 or fewer customer accounts in California and that either
serves retail end-use customers outside California or that is located
in a control area that is not under the operational control of the
Independent System Operator and receives the majority of its
electrical requirements from generating facilities located outside of
California.
(b) For an electrical corporation with 60,000 or fewer customer
accounts in California and that either serves retail end-use
customers outside California, or that is located in a control area
that is not under the operational control of the Independent System
Operator and receives the majority of its electrical requirements
from generating facilities located outside of California, an eligible
renewable energy resource includes a facility that is located
outside California, if the facility is connected to the Western
Electricity Coordinating Council (WECC) transmission system, provided
all of the following conditions are met:
(1) The electricity generated by the facility is procured by the
electrical corporation on behalf of its California customers, and is
not used to fulfill renewable energy procurement requirements in
other states.
(2) The electrical corporation participates in, and complies with,
the accounting system administered by the Energy Commission pursuant
to subdivision (b) of Section 399.25.
(3) The Energy Commission verifies that the electricity generated
by the facility is eligible to meet the procurement requirements of
this article.
(c) The commission shall determine the procurement requirements
for an electrical corporation with 60,000 or fewer customer accounts
in California that serves retail end-use customers outside
California, as a specified percentage of total kilowatthours sold by
the electrical corporation to its retail end-use customers in
California in a calendar year.
(d) An electrical corporation with 60,000 or fewer customer
accounts in California that serves retail end-use customers outside
California, may use an integrated resource plan prepared in
compliance with the requirements of another state utility regulatory
commission, to fulfill the requirement to prepare a renewable energy
procurement plan pursuant to this article, provided the plan meets
the requirements of Sections 399.11, 399.12, 399.13, or 399.14, and
399.25, as modified by this section.
(e) Procurement and administrative costs associated with long-term
contracts entered into by an electrical corporation with 60,000 or
fewer customer accounts in California that either serves retail
end-use customers outside California, or that is located in a control
area that is not under the operational control of the Independent
System Operator and receives the majority of its electrical
requirements from generating facilities located outside of
California, for eligible renewable energy resources pursuant to this
article, at or below the market price determined by the commission
pursuant to subdivision (c) of Section 399.15, shall be deemed
reasonable per se, and shall be recoverable in rates of the
electrical corporation's California customers, provided the costs are
not recoverable in rates in other states served by the electrical
corporation.
SEC. 11. Section 399.18 is added to the Public Utilities Code, to
read:
399.18. The commission, in consultation with the Energy
Commission, shall report to the Legislature by January 1 of every
even-numbered year on all of the following:
(a) The progress and status of procurement activities by each
retail seller.
(b) The status of permitting and siting eligible renewable energy
resources and transmission facilities necessary to deliver the
electricity generated to load, including the time taken to permit
each eligible renewable energy resource and transmission line or
upgrade, explanations of failures to meet permitting milestones, and
recommendations for improvements to expedite permitting and siting
processes.
(c) The projected ability of each electrical corporation to meet
the renewables portfolio standard procurement requirements under the
cost limitations in subdivision (d) of Section 399.15 and any
recommendations for revisions of those cost limitations.
(d) Any barriers to, and policy recommendations for, achieving the
renewables portfolio standard pursuant to this article.
SEC. 12. Section 399.30 is added to the Public Utilities Code, to
read:
399.30. (a) In order to fulfill unmet long-term generation
resource needs, each local publicly owned electric utility shall
adopt and implement a renewable energy resources procurement plan
that requires the utility to procure a minimum quantity of
electricity generated by eligible renewable energy resources,
including renewable energy credits, as a specified percentage of
total kilowatthours sold to the utility's retail end-use customers,
each calendar year, to achieve the targets of subdivision (b).
(b) The governing board shall implement procurement targets for a
local publicly owned electric utility that require the utility to
procure the following minimum percentages of eligible renewable
energy resources in the following years, and continue to procure
those percentages in subsequent years:
(1) Until December 31, 2012, the same percentage as actually
achieved by the utility in 2009.
(2) Twenty percent by December 31, 2013.
(3) Twenty-five percent by December 31, 2016.
(4) Thirty-three percent by December 31, 2020.
(c) (1) A local publicly owned electric utility may use renewable
energy credits associated with electricity generated, but not
necessarily delivered by, an eligible renewable energy resource, to
meet its renewables portfolio standard procurement requirements to
the same extent as permitted for a retail seller pursuant to
subdivision (a) of Section 399.21.
(2) A local publicly owned electric utility may adopt rules
permitting the utility to apply excess procurement in one year to
subsequent years in the same manner as allowed for retail sellers
pursuant to Section 399.13.
(d) The governing board of the local publicly owned electric
utility shall adopt a program for the enforcement of this article on
or before January 1, 2011. The program shall be adopted at a publicly
noticed meeting offering all interested parties an opportunity to
comment. Not less than 30 days' notice shall be given to the public
of any meeting held for purposes of adopting the program. Not less
than 10 days' notice shall be given to the public before any meeting
is held to make a substantive change to the program.
(e) (1) Each local publicly owned electric utility shall annually
post notice, in accordance with Chapter 9 (commencing with Section
54950) of Part 1 of Division 2 of Title 5 of the Government Code,
whenever its governing body will deliberate in public on its
renewable energy resources procurement plan.
(2) Contemporaneous with the posting of the notice of a public
meeting to consider the renewable energy resources procurement plan,
the local publicly owned electric utility shall notify the Energy
Commission of the date, time, and location of the meeting in order to
enable the Energy Commission to post the information on its Internet
Web site. This requirement is satisfied if the local publicly owned
electric utility provides the uniform resource locator (URL) that
links to this information.
(3) Upon distribution to its governing body of information related
to its renewable energy resources procurement status and future
plans, for its consideration at a noticed public meeting, the local
publicly owned electric utility shall make that information available
to the public and shall provide the Energy Commission with an
electronic copy of the documents for posting on the Energy Commission'
s Internet Web site. This requirement is satisfied if the local
publicly owned electric utility provides the uniform resource locator
(URL) that links to the documents or information regarding other
manners of access to the documents.
(f) A local publicly owned electric utility shall annually submit
to the Energy Commission documentation regarding eligible renewable
energy resources procurement contracts that it executed during the
prior year, as follows:
(1) A description of the eligible renewable energy resource,
including the duration of the contract or electricity purchase
agreement.
(2) A description and identification of the electrical generating
facility providing the eligible renewable energy resource under the
contract.
(3) An estimate of the percentage increase in the utility's total
retail sales of electricity from eligible renewable energy resources
that will result from the contract.
(g) A public utility district that receives all of its electricity
pursuant to a preference right adopted and authorized by the United
States Congress pursuant to Section 4 of the Trinity River Division
Act of August 12, 1955 (Public Law 84-386) shall be in compliance
with the renewable energy procurement requirements of this article.
(h) For a local publicly owned electric utility that was in
existence on or before January 1, 2009, that provides retail electric
service to 15,000 or fewer customer accounts in California, and is
interconnected to a balancing authority located outside this state
but within the WECC, an eligible renewable energy resource includes a
facility that is located outside California that is connected to the
WECC transmission system, if all of the following conditions are
met:
(1) The electricity generated by the facility is procured by the
local publicly owned electric utility, is delivered to the balancing
authority area in which the local publicly owned electric utility is
located, and is not used to fulfill renewable energy procurement
requirements of other states.
(2) The local publicly owned electric utility participates in, and
complies with, the accounting system administered by the Energy
Commission pursuant to Article 4.
(3) The Energy Commission verifies that the electricity generated
by the facility is eligible to meet the renewables portfolio standard
procurement requirements.
(i) Notwithstanding subdivision (a), for a local publicly owned
electric utility that is a joint powers authority of districts that
furnish electric services other than to residential customers, and is
formed pursuant to the Irrigation District Law (Division 11
(commencing with Section 20500) of the Water Code), the percentage of
total kilowatthours sold to the district's retail end-use customers,
upon which the renewables portfolio standard procurement
requirements in subdivision (b) are calculated, shall be based on the
average retail sales over the previous three years.
(j) A local publicly owned electric utility in a city and county
that only receives greater than 67 percent of its electricity sources
from hydroelectric generation located within the state that it owns
and operates, and that does not meet the definition of a "renewable
electrical generation facility" pursuant to Section 25741 of the
Public Resources Code, shall be required to procure eligible
renewable energy resources, including renewable energy credits, to
meet only the electricity demands unsatisfied by its hydroelectric
generation in any given year, in order to satisfy its renewable
energy procurement requirements.
(k) Each local publicly owned electric utility shall report, on an
annual basis, to its customers and to the Energy Commission, all of
the following:
(1) Expenditures of public goods funds collected pursuant to
Section 385 for eligible renewable energy resource development.
Reports shall contain a description of programs, expenditures, and
expected or actual results.
(2) The resource mix used to serve its customers by energy source.
(3) The utility's status in implementing a renewables portfolio
standard pursuant to subdivision (a) and the utility's progress
toward attaining the standard following implementation.
(l) A local publicly owned electric utility shall retain
discretion over all of the following:
(1) The mix of eligible renewable energy resources procured or
owned by the utility and those additional generation resources
procured or owned by the utility for purposes of ensuring resource
adequacy and reliability.
(2) The prices paid by the utility for electricity generated by
eligible renewable energy resources.
(3) The reasonable costs incurred by the utility for eligible
renewable energy resources owned by the utility.
(m) On or before July 1, 2010, the Energy Commission shall adopt
regulations specifying procedures for enforcement of this article.
The regulations shall include a public process under which the Energy
Commission may issue a notice of violation and correction against a
local publicly owned electric utility for failure to comply with this
article, and for referral of violations to the State Air Resources
Board for penalties pursuant to subdivision (n).
(n) (1) Upon a determination by the Energy Commission that a local
publicly owned electric utility has failed to comply with this
article, the Energy Commission shall refer the failure to comply with
this article to the State Air Resources Board which may impose
penalties to enforce this article consistent with Part 6 (commencing
with Section 38580) of Division 25.5 of the Health and Safety Code.
(2) For the purpose of this subdivision, this section is an
emissions reduction measure pursuant to Section 38580 of the Health
and Safety Code.
(3) If the State Air Resources Board has imposed a penalty upon a
local publicly owned electric utility for the utility's failure to
comply with this article, the State Air Resources Board shall not
impose an additional penalty for the same infraction, or the same
failure to comply, with any renewables procurement requirement
imposed upon the utility pursuant to the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)
of the Health and Safety Code).
(o) The commission has no authority or jurisdiction to enforce any
of the requirements of this article on a local publicly owned
electric utility.
SEC. 13. Section 399.31 is added to the Public Utilities Code, to
read:
399.31. A retail seller may procure renewable energy credits
associated with deliveries of electricity by an eligible renewable
energy resource to a local publicly owned electric utility, for
purposes of compliance with the renewables portfolio standard
requirements, if both of the following conditions are met:
(a) The local publicly owned electric utility has adopted and
implemented a renewable energy resources procurement plan that
complies with the renewables portfolio standard adopted by the Energy
Commission pursuant to subdivision (f) of Section 399.25.
(b) The local publicly owned electric utility is procuring
sufficient eligible renewable energy resources to satisfy the target
standard, and will not fail to satisfy the target standard in the
event that the renewable energy credit is sold to the retail seller.
SEC. 14. Article 11 (commencing with Section 910) is added to
Chapter 4 of Part 1 of Division 1 of the Public Utilities Code, to
read:
Article 11. Reports
910. (a) The commission shall, on an annual basis by February 1
of each year, prepare and submit to the policy and fiscal committees
of the Legislature a written report summarizing the following
information:
(1) All electrical corporation revenue requirement increases
associated with meeting the renewables portfolio standard, as defined
in Section 399.12, including direct procurement costs for eligible
renewable energy resources and renewable energy credits,
administrative expenses for procurement, expenses incurred to ensure
a reliable supply of electricity, and expenses for upgrades to the
electrical transmission and distribution grid necessary to the
delivery of electricity from eligible renewable energy resources to
load.
(2) All cost savings experienced, or costs avoided, by electrical
corporations as a result of meeting the renewables portfolio
standard.
(3) All costs incurred by electrical corporations for incentives
for distributed and renewable generation, including the
self-generation incentive program, the California Solar Initiative,
and net energy metering.
(4) All cost savings experienced, or costs avoided, by electrical
corporations as a result of incentives for distributed and renewable
generation.
(5) All renewable, fossil fuel, and nuclear procurement costs,
research, study, or pilot program costs, or other program costs for
which an electrical corporation is seeking recovery in rates, that
is pending
determination or approval by the commission.
(6) The decision number for each decision of the commission of
recovery in rates of costs incurred by an electrical corporation
since the preceding report.
(7) Any change in the electrical load serviced by an electrical
corporation since the preceding report.
(b) The commission may combine the information required by this
section with the reports prepared pursuant to Article 16 (commencing
with Section 399.11) of Chapter 2.3.
SEC. 15. This bill shall only become operative if this bill and
Assembly Bill 64 are both enacted and become effective on or before
January 1, 2010.
SEC. 16. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
certain 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.
With respect to certain other costs, no reimbursement is required
by this act pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act, within
the meaning of Section 17556 of the Government Code.
SEC. 17. The sum of three hundred twenty-two thousand dollars
($322,000) is hereby appropriated from the Public Utilities
Commission Utilities Reimbursement Account to the Public Utilities
Commission for additional staffing to identify, review, and approve
transmission lines reasonably necessary or appropriate to facilitate
achievement of the renewables portfolio standard established in
Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1
of Division 1 of the Public Utilities Code.
