BILL NUMBER: AB 2187 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Bradford
FEBRUARY 23, 2012
An act to amend Sections 399.11 and 399.16 of the Public Utilities
Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2187, as introduced, Bradford. Renewable energy resources.
The California renewables portfolio standard program (RPS program)
requires the Public Utilities Commission to establish the quantity
of electricity products from eligible renewable energy resources, as
defined, to be procured by each retail seller, as defined, for
specified compliance periods, sufficient to ensure that the
procurement of electricity products from eligible renewable energy
resources achieves 20% of retail sales for the period January 1,
2011, to December 31, 2013, inclusive, 25% of retail sales by
December 31, 2016, and 33% of retail sales by December 31, 2020, and
in all subsequent years. The RPS program, consistent with the goals
of procuring the least-cost and best-fit eligible renewable energy
resources that meet project viability principles, requires that all
retail sellers procure a balanced portfolio of electricity products
from eligible renewable energy resources, as specified (portfolio
content requirements). The RPS program conditions certain eligibility
requirements upon whether the contract for electricity products from
eligible renewable energy resources was executed after June 1, 2010.
This bill would instead condition those eligibility requirements
upon whether the contract is executed after January 13, 2011. The
bill would provide, if a retail seller fails to achieve compliance
with the portfolio content requirements, that the retail seller's
procurement will not be disallowed solely because the retail seller's
procurement does not meet the portfolio content requirements.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. 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, 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) Achieving the renewables portfolio standard through the
procurement of various electricity products from eligible renewable
energy resources is intended to provide unique benefits to
California, including all of the following, each of which
independently justifies the program:
(1) Displacing fossil fuel consumption within the state.
(2) Adding new electrical generating facilities in the
transmission network within the Western Electricity Coordinating
Council service area.
(3) Reducing air pollution in the state.
(4) Meeting the state's climate change goals by reducing emissions
of greenhouse gases associated with electrical generation.
(5) Promoting stable retail rates for electric service.
(6) Meeting the state's need for a diversified and balanced energy
generation portfolio.
(7) Assistance with meeting the state's resource adequacy
requirements.
(8) Contributing to the safe and reliable operation of the
electrical grid, including providing predictable electrical supply,
voltage support, lower line losses, and congestion relief.
(9) Implementing the state's transmission and land use planning
activities related to development of eligible renewable energy
resources.
(c) 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.
(d) New and modified electric transmission facilities may be
necessary to facilitate the state achieving its renewables portfolio
standard targets.
(e) (1) Supplying electricity to California end-use customers that
is generated by eligible renewable energy resources is necessary to
improve California's air quality and public health, and the
commission shall ensure rates are just and reasonable, and are not
significantly affected by the procurement requirements of this
article. This electricity may be generated anywhere in the
interconnected grid that includes many states, and areas of both
Canada and Mexico.
(2) This article requires generating resources located outside of
California, but are able to supply that electricity to California
end-use customers, to be treated identically to generating resources
located within the state, without discrimination.
(3) California electrical corporations
retail sellers have already executed, and for electrical
corporations, the commission has approved, power purchase
agreements with eligible renewable energy resources located outside
of California that will supply electricity to California end-use
customers. These resources will fully count toward meeting
the renewables portfolio standard procurement requirements
as eligible renewable energy resources that satisfy any of the
electricity product content requirements of subdivision (c) of
Section 399.16 for any of the compliance periods established in
subdivision (b) of Section 399.15 . In addition, there are
nearly 7,000 megawatts of additional proposed renewable energy
resources located outside of California that are awaiting
interconnection approval from the Independent System Operator. All of
these resources, if procured, will count as eligible renewable
energy resources that satisfy any of the portfolio content
requirements of paragraph (1) of subdivision (c)
of Section 399.16 for any of the compliance periods established
in subdivision (b) of Section 399.15 .
SEC. 2. Section 399.16 of the Public Utilities Code is amended to
read:
399.16. (a) Various electricity products from eligible renewable
energy resources located within the WECC transmission network service
area shall be eligible to comply with the renewables portfolio
standard procurement requirements in Section 399.15. These
electricity products may be differentiated by their impacts on the
operation of the grid in supplying electricity, as well as, meeting
the requirements of this article.
(b) Consistent with the goals of procuring the least-cost and
best-fit electricity products from eligible renewable energy
resources that meet project viability principles adopted by the
commission pursuant to paragraph (4) of subdivision (a) of Section
399.13 and that provide the benefits set forth in Section 399.11, a
balanced portfolio of eligible renewable energy resources shall be
procured consisting of the following portfolio content categories:
(1) Eligible renewable energy resource electricity products that
meet either of the following criteria:
(A) Have a first point of interconnection with a California
balancing authority, have a first point of interconnection with
distribution facilities used to serve end users within a California
balancing authority area, or are scheduled from the eligible
renewable energy resource into a California balancing authority
without substituting electricity from another source. The use of
another source to provide real-time ancillary services required to
maintain an hourly or subhourly import schedule into a California
balancing authority shall be permitted, but only the fraction of the
schedule actually generated by the eligible renewable energy resource
shall count toward this portfolio content category.
(B) Have an agreement to dynamically transfer electricity to a
California balancing authority.
(2) Firmed and shaped eligible renewable energy resource
electricity products providing incremental electricity and scheduled
into a California balancing authority.
(3) Eligible renewable energy resource electricity products, or
any fraction of the electricity generated, including unbundled
renewable energy credits, that do not qualify under the criteria of
paragraph (1) or (2).
(c) In order to achieve a balanced portfolio, all retail sellers
shall meet the following requirements for all procurement credited
towards each compliance period:
(1) Not less than 50 percent for the compliance period ending
December 31, 2013, 65 percent for the compliance period ending
December 31, 2016, and 75 percent thereafter of the eligible
renewable energy resource electricity products associated with
contracts executed after June 1, 2010 January
13, 2011 , shall meet the product content requirements of
paragraph (1) of subdivision (b).
(2) Not more than 25 percent for the compliance period ending
December 31, 2013, 15 percent for the compliance period ending
December 31, 2016, and 10 percent thereafter of the eligible
renewable energy resource electricity products associated with
contracts executed after June 1, 2010 January
13, 2011 , shall meet the product content requirements of
paragraph (3) of subdivision (b).
(3) Any renewable energy resources contracts executed on
or after June 1, 2010 after January 13, 2011 ,
not subject to the limitations of paragraph (1) or (2), shall meet
the product content requirements of paragraph (2) of subdivision (b).
(4) If a retail seller fails to achieve compliance with the
balanced portfolio requirements because of a shortfall in procurement
meeting the product content requirements of paragraph (1), (2), or
(3), that retail seller's procurement will not be disallowed solely
because the retail seller's procurement does not meet the balanced
portfolio requirements.
(d) Any contract or ownership agreement originally executed prior
to June 1, 2010 January 14, 2011 ,
shall count in full towards the procurement
toward meeting any of the product content
requirements established pursuant to this article
subdivision (c) of this section, for any of the
compliance periods established in subdivision (b) of Section 399.15
, if all of the following conditions are met:
(1) The renewable energy resource was eligible under the rules in
place as of the date when the contract was executed.
(2) For an electrical corporation, the contract has been approved
by the commission, even if that approval occurs after June
1, 2010 January 13, 2011 .
(3) Any contract amendments or modifications occurring after
June 1, 2010 January
13, 2011 , do not increase the nameplate capacity or expected
quantities of annual generation, or substitute a different renewable
energy resource. The duration of the contract may be extended if the
original contract specified a procurement commitment of 15 or more
years.
(e) A retail seller may apply to the commission for a reduction of
a procurement content requirement of subdivision (c). The commission
may reduce a procurement content requirement of subdivision (c) to
the extent the retail seller demonstrates that it cannot comply with
that subdivision because of conditions beyond the control of the
retail seller as provided in paragraph (5) of subdivision (b) of
Section 399.15. The commission shall not, under any circumstance,
reduce the obligation specified in paragraph (1) of subdivision (c)
below 65 percent for any compliance obligation after December 31,
2016.