BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 14|
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THIRD READING
Bill No: SB 14
Author: Simitian (D), et al
Amended: 3/24/09
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 6-3, 3/3/09
AYES: Padilla, Corbett, Kehoe, Lowenthal, Simitian,
Wiggins
NOES: Benoit, Cox, Wright
NO VOTE RECORDED: Calderon, Strickland
SENATE APPROPRIATIONS COMMITTEE : 7-5, 3/23/09
AYES: Kehoe, Corbett, DeSaulnier, Hancock, Leno, Wolk, Yee
NOES: Cox, Denham, Runner, Walters, Wyland
NO VOTE RECORDED: Oropeza
SUBJECT : Utilities: renewable energy resources
SOURCE : Author
DIGEST : This bill revises the California Renewables
Portfolio Standard (RPS) Program, as follows: (1) requires
investor owned utilities (IOUs) to increase total
procurement of electricity generated by eligible renewable
energy resources by at least an additional one percent of
retail sales annually so that 33 percent of its retail
sales are procured from eligible renewable energy resources
no later than December 31, 2020, if the PUC determines that
achieving these targets will result in just and reasonable
rates, (2) makes certain requirements of the RPS program
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applicable to publicly owned utilities (POUs), thereby
imposing a state mandated local program, (3) requires the
California Energy Commission (CEC) to implement an
accounting system to verify compliance with the RPS program
requirements by POUs, adopt regulations, and to undertake
measures in order to substantially increase the amounts of
eligible renewable energy resources connected to
transmission grids, (4) requires the PUC to enforce
existing requirements until an IOU procures 20 percent of
its retail sales from eligible renewable energy resources
and then requires that an IOUs procurement plan contain a
showing that eligible renewable energy resources will be
procured in an amount sufficient to meet RPS program
requirements, (5) requires the PUC to approve an
application for a certificate of public convenience within
one year of the filing of a completed application, allow
recovery of transmission costs incurred by an IOU, approve
reasonable and cost effective transmission investments that
are necessary to deliver electricity generated by eligible
renewable energy resources, and to approve transmission
investments necessary to transmit electricity generated by
eligible renewable energy resources to IOUs and POUs, (6)
requires the California Independent System Operator (Cal
ISO) to adjust its market structure to achieve, in the most
cost effective manner, the 33 percent RPS threshold by
2020, develop annual statewide transmission plans, seek
proposals from and propose transmission projects to POUs
that can be jointly owned, and eliminate barriers over
transmission lines in its control area, (7) requires the
PUC, the CEC, and the Cal ISO to consider recommendations
of the Renewable Energy Transmission Initiative (RETI)
relative to the siting of transmission and eligible
renewable energy resources, (8) requires the Department of
Fish and Game (DFG) to establish an internal division for
the purpose of performing planning and streamlined
environmental compliance services with a priority given to
the building of eligible renewable energy resources, (9)
requires the CEC to develop a review process with the DFG
with the goal of reducing the time required to comply with
the California Environmental Quality Act (CEQA) for
eligible renewable energy resources, (10) states the intent
to appropriate $3,700,000 from the Public Interest
Research, Development, and Demonstration Fund to the CEC
for the purposes of facilitating the development of solar
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energy in the Mojave Desert, (11) clarifies that a public
utility district receiving 100 percent of its electricity
pursuant to a preference right pursuant to the federal
Trinity River Diversion Act of August 12, 1955 is in
compliance with the renewable energy procurement
requirements of the RPS Program, and (12) requires the PUC
to prepare, on an annual basis, a report summarizing IOU
revenue requirements associated with meeting the RPS,
including procurement costs, expenses incurred to ensure a
reliable supply of electricity, and expenses to upgrade the
transmission grid; all cost savings experienced, or costs
avoided, as a result of meeting the RPS; costs incurred for
incentives for distributed and renewable generation; cost
savings experienced, or costs avoided, as a result of these
incentives; all renewable, fossil fuel, and nuclear
procurement costs, research, study, or pilot program costs
for which an IOU is seeking recovery in rates; and any
change in the electrical load serviced by the IOU since the
preceding report. The information contained in this report
is similar to, and may be combined with, report information
required by Public Utilities Code Section 747.
ANALYSIS : 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 three
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
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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 percent of total retail sales of
electricity in California per year by December 31, 2010.
This bill revises 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 20
percent of total retail sales of electricity in California
per year by December 31, 2010, and 33 percent by December
31, 2020.
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 percent of the total electricity sold to retail
customers in California per year by December 31, 2010.
This bill expresses the additional intent that the amount
of electricity generated per year from eligible renewable
energy resources is increased to an amount that equals at
least 33 percent of the total electricity sold to retail
customers in California per year by December 31, 2020.
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
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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 one percent of retail sales per year so that 20
percent of its retail sales of electricity are procured
from eligible renewable energy resources no later than
December 31, 2010.
This bill additionally requires, once the retail seller
reaches the 20 percent renewables target, that the PUC
implement triennial procurement targets for each retail
seller to increase its total procurement of electricity
generated by eligible renewable energy resources by at
least an additional three percent every three years so that
33 percent of its retail sales are procured from eligible
renewable energy resources no later than December 31, 2020,
if the commission determines that achieving these targets
will result in just and reasonable rates.
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 expands the definition of a
crime.
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 repeals this provision and instead make certain
of the requirements of the RPS program, as discussed below,
applicable to local publicly owned electric utilities.
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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 requires 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 requires the Energy
Commission, among other things, to adopt regulations for
the enforcement of the RPS program with respect to a local
publicly owned electric utility, would require, by October
30, 2010, at a noticed public meeting and in consultation
with the State Air Resources Board, to establish an RPS
requiring each local publicly owned electric utility to
procure a minimum quantity of electricity generated by
eligible renewable energy resources as a specified
percentage of total kilowatthours sold to the utility's
retail end-use customers each calendar year. The bill
requires that the RPS established for a local publicly
owned electric utility be consistent with certain targets
and purposes that are applicable to retail sellers. The
bill requires the utility to adopt and implement a
renewable energy resources procurement plan that, at a
minimum, complies with the RPS adopted for the utility by
the Energy Commission, provides that the utility retains
discretion with respect to certain matter in complying with
the RPS, requires 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. The bill requires the
Energy Commission, in order to meet the requirements of the
RPS program, undertake certain measures in order to
substantially increase the amounts of electricity generated
by eligible renewable energy resources integrated with and
interconnected to specified transmission grids.
Existing law requires that an electrical corporation's
proposed procurement plan include certain elements,
including a showing that the electrical corporation will,
in order to fulfill its unmet resource needs, until a 20
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percent renewable resources portfolio is achieved, procure
renewable energy resources with the goal of ensuring that
at least an additional 1 percent per year of the
electricity sold by the electrical corporation is generated
from eligible renewable energy resources, provided
sufficient funds are made available to cover the
above-market costs for new renewable energy resources
pursuant to certain provisions of the Renewable Energy
Resources Program. Existing law requires the PUC to make a
determination of the existing market cost for electricity
(market price referent).
This bill requires that the PUC enforce these requirements
until the retail seller procures 20 percent of its retail
sales from eligible renewable energy resources. Once the 20
percent requirement is met, the bill would require that an
electrical corporation's proposed procurement plan include
a showing that the electrical corporation will, in order to
fulfill its unmet resource needs, procure resources from
eligible renewable energy resources in an amount sufficient
to meet its procurement requirements pursuant to the RPS
program.
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.
This bill requires 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
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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.
The Public Utilities Act prohibits any electrical
corporation from beginning the construction of, among other
things, a line, plant, or system, or of any extension
thereof, without having first obtained from the PUC a
certificate that the present or future public convenience
and necessity require or will require that construction,
termed a certificate of public convenience and necessity.
Existing law requires the PUC, in acting upon an
application by an electrical corporation for a certificate
of public convenience and necessity, to deem new
transmission facilities necessary to the provision of
electric service if the PUC finds that new transmission
facilities are necessary to facilitate achievement of the
renewable power goals established under the RPS program.
Existing law requires the PUC, upon finding that new
transmission facilities are necessary to facilitate
achievement of the renewable power goals established under
the RPS, to take all feasible actions to ensure that the
transmission rates established by the Federal Energy
Regulatory Commission (FERC) are fully reflected in any
retail rates established by the PUC.
This bill requires the PUC to approve an application for a
certificate of public convenience and necessity within one
year of the filing of a completed application under
specified circumstances and would authorize the PUC, if it
finds the costs are justified pursuant to the statutory
requirements for approving a rate increase, to allow
recovery of certain transmission costs incurred by an
electrical corporation.
The existing restructuring of the electrical industry
within the Public Utilities Act provides for the
establishment of an Independent System Operator (ISO).
Existing law requires the ISO to ensure efficient use and
reliable operation of the transmission grid consistent with
achieving planning and operating reserve criteria no less
stringent than those established by the Western Electricity
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Coordinating Council and the American Electric Reliability
Council. Pursuant to existing law, the ISO's tariffs are
required to be approved by the FERC.
This bill requires the ISO to undertake all feasible
efforts to do certain things and seek the approval of the
FERC, if necessary, including adjusting its market
structure to achieve, in the most cost-effective manner
possible, the increased amount of electricity to be
generated by eligible renewable energy resources. The bill
requires the PUC to approve reasonable and cost-effective
transmission and power line investments that are not under
the ratemaking authority of the FERC that are necessary to
enable electricity generated by eligible renewable energy
resources to be delivered to retail sellers and local
publicly owned electric utilities.
This bill requires the PUC, Energy Commission, and ISO to
consider the recommendations of the Renewable Energy
Transmission Initiative in their respective
responsibilities relative to the siting of transmission and
eligible renewable energy resources that are necessary to
achieve the renewables portfolio standard.
Existing law establishes the Department of Fish and Game in
the Resources Agency, and generally charges the department
with the administration and enforcement of the Fish and
Game Code.
This bill requires the department to establish an internal
division with the primary purpose of performing
comprehensive planning and streamlined environmental
compliance services with priority given to projects
involving the building of eligible renewable energy
resources.
Existing law grants the Energy Commission the exclusive
authority to certify any stationary or floating electrical
generating facility using any source of thermal energy,
with a generating capacity of 50 megawatts or more, and any
facilities appurtenant thereto. Existing law prohibits the
construction of any thermal powerplant or facilities
appurtenant thereto or modification of any existing thermal
powerplant and appurtenant facility without first obtaining
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certification from the Energy Commission. Each person
proposing to construct a thermal powerplant or electric
transmission line on a site is required to submit an
application to the Energy Commission. The Energy
Commission is required to prescribe the form and content of
applications for facilities and to formally act to approve
or disapprove applications, including specifying conditions
under which approval and continuing operation of any
facility is permitted.
This bill requires the Energy Commission to develop a
concurrent application review process with the Department
of Fish and Game for eligible renewable energy resources
with the goal of reducing the time required to complete
certification and compliance with the California
Environmental Quality Act for eligible renewable energy
resources that are within a competitive renewable energy
zone.
This bill states the intent of the Legislature to
appropriate $3,700,000 from the Public Interest Research,
Development, and Demonstration Fund to the Energy
Commission for contracts and for interagency agreements
with the Department of Fish and Game or other wildlife
agencies for the preparation of one or more natural
communities conservation plans in the Mojave and Colorado
Desert regions for the purposes of facilitating the
development of solar energy in those regions.
Background
Chapter 516 of 2002 (SB 1078, Sher) and Chapter 464 of 2006
(SB 107, Simitian) established and revised the RPS program
which requires IOUs to increase procurement from eligible
renewable energy resources by at least one percent of
retail sales annually, until they reach 20 percent by 2010.
The 20 percent threshold in Chapter 516 was accelerated
from 2017 to 2010 by Chapter 464.
Executive Order S-14-08 ordered that all retail sellers of
electricity shall serve 33 percent of their load with
renewable energy by 2020. The order directed state
agencies to take all appropriate actions to implement this
target in all regulatory proceedings, inlcuding siting,
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permitting, and procurement for renewable energy power
plants and transmission lines.
PUC
The PUC's RPS program responsibilities include:
1.Determining annual procurement targets and enforcing
compliance.
2.Reviewing and approving IOU renewable energy procurement
plans.
3.Reviewing IOU contracts for RPS-eligible energy.
4.Establishing the standard terms and conditions used by
IOUs in their contracts for eligible renewable energy.
5.Calculating market price referents for non-renewable
energy that serve as benchmarks for the price of
renewable energy.
Under this bill, PUC responsibilities would be increased in
order to:
1.Facilitate the identification, review, and approval of
transmission projects needed to deliver 33 percent RPS
energy by 2020.
2.Identify additional renewable transmission
interconnection projects needed to deliver 33 percent RPS
energy by 2020.
3.Decrease the time needed to perform environmental review
and project need analysis in order to meet permit
streamlining requirements, improve implementation of the
PUC's streamlining practices, and improve coordination
with federal agencies.
RPS Program
The PUC has identified the need for two regulatory analyst
positions ongoing to meet the above requirements. Since
current RPS staff is still implementing the 20 percent 2010
threshold, the new staff will concurrently address expanded
design and implementation issues.
Transmission
The PUC's average time for permitting transmission lines is
18 months and was 16 months before the Sunrise Powerlink
case. A 12-month timeframe may be difficult as CEQA review
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typically takes 12-months in order to account for the four
seasons. After the EIR/EIS is released, the PUC generally
needs two to four months to complete the permitting
process, a 30 day period for public review and comment,
including public hearings in select communities impacted by
the transmission line, drafting of the proposed decision on
whether to approve the line, a 30 day period for public
review and comment on the proposed decision, and adoption
of the decision by a PUC vote.
The PUC has identified the need for one regulatory analyst
to assist with permitting and rate recovery, one engineer
to process applications more quickly, and one
administrative law judge to handle the increased proceeding
workload on an expedited basis.
CEC
Under this bill, the CEC will have oversight of POU efforts
to meet the same 33 percent 2020 RPS threshold required of
IOUs.
Preliminary information indicates the CEC will require five
staff and $300,000 in contract services annually to provide
the required oversight of POUs, two staff and $400,000 in
contract services annually for transmission siting,
permitting, and review activities and one staff attorney to
assist with POU oversight and transmission activities. The
CEC will utilize the Energy Resources Programs Account to
fund the oversight functions. It is unknown at this time
whether this will necessitate an increase in the surcharge.
DFG
DFG has identified costs of $3,057,000 in 2009-10,
$3,777,000 in 2010-11, and $3,057,000 in 2011-12 and
ongoing. Of these amounts, personal services are
consistent at $2,045,000 (22 two year limited term
positions of which 17 are a scientist classification) with
one time equipment costs in 2009-10 and consultant
contracts in 2010-11 accounting for the biggest changes in
operating expenses and equipment.
2009-10 and 2010-11 costs would be paid from a combination
of CEC funds and a Wildlife Conservation Board (WCB) Prop
84 Natural Community Conservation Plan (NCCP) planning
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grant of $1,558,103 in 2009-10 and $1,498,897 in 2010-11.
For 2011-12 and ongoing reimbursements would come from
energy generators. According to a DFG Budget Change
Proposal, a fund source is under development with the
Resources Agency and a funding commitment will be in place
prior to July 10, 2019. The Senate Appropriations analysis
notes that a fee on permits for transmission projects, as
well as energy generators, would more equitably spread
these costs. Absent adoption of the funding source under
development, these costs may be a General Fund obligation.
DFG would establish a Renewable Energy Action Team and a
Renewable Energy Conservation Planning Program. The action
team would:
1.Develop multi-species regional conservation strategies
while facilitating the development of renewable energy to
meet RPS goals.
2.Provide permit and technical assistance to expedite
siting and construction of renewable energy projects.
3.Develop multiple coordinated processes with state and
federal agencies to ensure renewable energy development
is timely and achieves environmental policy goals.
Chapter 6 of Prop 84 authorized $450 million for the
protection and conservation of forests and wildlife
habitat. Of that amount, $90 million is available to the
WCB for grants to implement NCCP plans. As of March 15,
2009, this chapter has a balance of $28,542,000. As noted
above, DFG is proposing the use of these funds.
The Senate Appropriations analysis notes that the use of
bond funds, which are retired over 30 years, for a non
capital outlay expenditure is not cost effective. As part
of the budget process, an appropriation of PIER funds, or a
loan from another funding source, would result in a General
Fund savings of $6,365,000 over 30 years by eliminating the
principal and interest cost on the repayment of $3,057,000.
PIER revenues are approximately $70,000,000 annually. The
fund balance is estimated at $48,100,000 on 6/30/2009.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
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Local: Yes
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2008-09 2009-10
2010-11 Fund
PUC administration
RPS program $110 $220 $220 Special*
Transmission $170 $340 $340
CEC administration $520 $1,040$1,040Special**
Contracts $350 $700 $700
DFG planning $3,057 $3,777$3,057 Bond***
General
****
Cal ISO planning and Unknown costs
ongoing Special
Oversight *****
State energy costs Unknown
cumulative increase General/
potentially $279,000 annually Special
statewide beginning 2010 to 2013
******
to meet newRPS threshold.
* PUC Utilities Reimbursement Account
** Energy Resources Programs Account (revenue in this fund
is available for General Fund purposes)
*** Proposition 84 general obligation bond funds in 2009-10
and 2010-11 (approximately $1,500 in each year)
**** Various. Reimbursements, intent to appropriate $3,700
from the Public Interest Research, Development, and
Demonstration Fund (PIER) to the CEC for contracts and
interagency agreements to prepare natural communities
conversation plans (revenue in this fund is available for
General Fund purposes), and, potentially, future permit
fees.
***** The ISO is a private, non profit public benefit
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corporation regulated by the Federal Energy Regulatory
Commission
****** Service Revolving Fund, other special funds (total
estimated on IOU usage
The Senate Appropriations analysis states that the use of
bond funds, which are retired over 30 years, for a
non-capital outlay expenditure is not cost effective. As
part of the budget process, an appropriation of PIER funds,
or a loan from another funding source, would result in a
General Fund savings of $6,365,000 over 30 years by
eliminating the principal and interest cost on the
repayment of $3,057,000.
PIER revenues are approximately $70,000,000 annually. The
fund balance is estimated at $48,100,000 on 6/30/2009.
SUPPORT : (Verified 3/25/09)
Clean Power Campaign
Coalition of Utility Employees
California State Association of Electrical Workers
California State Pipe Trades Council
Western State Council of Sheet Metal Workers
RightCycle Enterprises
AFSCME
American Lung Association
State Building and Construction Trades Council
California Biomass Energy Alliance
Environment California
Silicon Valley Leadership Group
OPPOSITION : (Verified 3/25/09)
BP
Alliance for Retail Energy Markets
Edison
Direct Energy
PG&E
California Wind Energy Association
Direct Access Consumer Coalition
California Public Utilities Commission
Western States Petroleum Association
RBS Sempra Energy Solutions
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School Project for Utility Rate Reduction
California Retailers Association
Shell Energy North America
Safeway
California Manufacturer's & Technology Association
ARGUMENTS IN SUPPORT : Supporters state the following:
1. "Would like to see a 'real and enforceable'
RPS of 33 percent, not one that comes about only if
PUC determines that achieving this target is just
and reasonable.
2. Would like the 33 percent to be based on
'total statewide electricity demand' as opposed to
total retail sales.
3. Maintains California's position as leader in
renewable energy, while creating those jobs in
California.
4. Ensure that renewable power paid by
Californians is delivered to California.
5. Job creation in the state, because the
generation is in California.
6. Wants to see comprehensive feed-in tariff.
7. Goal of 33 percent is achievable.
8. Likes the CPUC reforms.
9. Achieves the goals of AB 32 and will clean the
air.
10. Generates clean energy at home (as opposed
to foreign dirty energy).
11. Represents a substantial investment in
state's infrastructure.
12. Drops MPR, which though nice in theory
hasn't worked; complicates bidding; becomes the
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assumed price target; does not lead to the
successful development of new renewable projects.
13. Deletes 'least-cost, best fit' which will
encourage retail providers to select bids based on
overall retail-provider needs and considerations.
Hopefully the resource selection process will
become more open and transparent, with benefits for
generators, retail providers and consumers.
14. Reducing fossil fuel generation will reduce
NOx emissions.
15. Tremendous opportunity to create green
collar jobs and address emissions.
16. Achieves goals of AB 32.
17. One of the best ways the state can maximize
renewable energy resources while bringing about
numerous environmental and public health benefits.
18. Creates green jobs.
19. Brings about greater energy independence,
energy security and price stability.
20. Important to reduce GHG emissions."
ARGUMENTS IN OPPOSITION : Opponents state the following:
1. "Want to see combined heat and power (CHP),
otherwise known as co-generation to be considered
as renewable.
2. Believes that all customers must share in the
costs associated with RPS.
3. States that SB 14 'could' increase regulatory
barriers for CHP projects. 'Implementing a 33
percent RPS mandate, without careful design
consideration might also cause further erosion of
the regulatory environment for CHP and could impair
the state's goals of employing CHP as a GHG
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reduction measure.'
4. Wants to see 'incentives' for increased CHP
use.
5. Modifies AB 1X to limit direct access
6. Expand RECs
7. Fear the hefty penalties for non-compliance.
8. Need to better align AB 32 targets with RPS
goals.
9. Wants cost containment - ACP.
10. Wants delivery of a specified amount of
eligible renewables from any where in the WECC.
11. Equivalent rules for IOUs and Munis.
12. Wants a transmission off ramp.
13. Wants a time-out provision that suspends
annual procurement targets if the commission
determines that procurement would jeopardize
reliability.
14. Wants to see a streamlined transmission
process.
15. Not timely as no one will meet 20 percent
by 2010.
16. Cost of moving to 33 percent is
prohibitive.
17. Should have a better understanding of the
financial costs, environmental and operational
impacts of moving to 33 percent before actually
requiring it.
18. Doesn't think the non-RPS provisions should
be in the bill.
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19. Direct energy is an ESP, which doesn't like
the penalties for the 2010 deadline, which no one
will meet.
20. Wants to be able to use RECs and ACPs.
21. Consistent and enforceable set of rules for
all.
22. Expanded eligibility of renewables, esp
expansion of hydro to 50MW.
23. Use of WECC wide unbundled RECs.
24. Promotion of new technology.
25. Flexible three-year compliance.
26. 'Ensure any increase in the RPS mandate be
coupled with a fair backstop that provides market
intervention to mitigate substantial price
increases.'
27. Stronger cost containment to protect
consumers needed.
28. Should include a 'cost-effective and
technologically feasible' standard just like AB 32.
29. RPS should be expanded to include CHP.
30. Improve transmission planning process.
31. Expand REC market.
32. Remove non-RPS provisions.
33. Wants to be able to do direct access, so
would like to see the ban against PUC moving on
direct access eliminated.
34. Either do a hard target or an annual
target, but not both.
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35. Definition of delivered eliminates the use
of out of state renewable energy.
36. Requiring PUC to do a lot of unnecessary
work regarding procurement planning.
37. Rate related issues, CPUC governance, and
direct access are all unrelated to RPS and
shouldn't be in the bill.
38. State needs comprehensive energy and
climate change policy - RPS is only one part of the
larger GHG picture, and ignores other viable
options, like CHP.
39. Ignores CHP.
40. Increases regulatory barriers for CHP
projects.
41. Raises energy costs, which will be passed
on to ratepayers.
42. Doesn't require RPS to be cost-effective or
technologically feasible.
43. Doesn't like the AB 1X modifications that
further limit direct access.
44. Modifies AB 1X to limit direct access.
45. Will increase the costs of electricity for
manufacturers who already pay 35 percent more than
the national average.
46. Other AB 32 will add other costs to
business.
47. Ignores CHP.
48. Wants to preserve MPR.
49. Shifts CARE costs to large consumers.
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50. Limits use of dynamic pricing.
51. Wants direct access."
RJG:nl 3/25/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
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