Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 448


Introduced by Assembly Member Quirk

February 19, 2013


An act tobegin delete amend Section 399.11 of the Public Utilities Codeend deletebegin insert add Section 25305.7 to the Public Resources Codeend insert, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

AB 448, as amended, Quirk. Renewable energy resources.

begin insert

Existing law establishes the California Renewables Portfolio Standard Program, which requires the Public Utilities Commission to implement annual procurement targets for the procurement of eligible renewable energy resources, as defined, for all retail sellers, as defined, to achieve the targets and goals of the program.

end insert
begin insert

Existing law requires the State Energy Resources Conservation and Development Commission to adopt, on a biennial basis, an integrated energy policy report, containing among other things, an overview of major energy trends and issues facing the state.

end insert
begin insert

This bill would require the State Energy Resources Conservation and Development Commission to include an assessment of various aspects of the California Renewables Portfolio Standards Program in its integrated energy policy report.

end insert
begin delete

Existing law requires the Public Utilities Commission to review and adopt a renewable energy procurement plan for each electrical corporation, as defined, pursuant to the California Renewables Portfolio Standard Program.

end delete
begin delete

This bill would make nonsubstantive changes to the program’s legislative findings and declarations.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 25305.7 is added to the end insertbegin insertPublic Resources
2Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert25305.7.end insert  

The commission shall include in its integrated energy
4policy report an assessment of all of the following:

5(a) The costs to electrical corporations for compliance with the
6requirements of the California Renewables Portfolio Standard
7Program (Article 16 (commencing with Section 399.11) of Chapter
82.3 of Part 1 of Division 1 of the Public Utilities Code).

9(b) The effect of compliance with the renewables portfolio
10standard targets on the price of electricity paid by ratepayers.

11(c) The overall impact on air quality that compliance with the
12renewables portfolio standard targets is expected to have by
13December 31, 2020.

14(d) Whether achieving the renewables portfolio standard target
15of generating 33 percent of total retail sales of electricity in
16California from eligible renewable energy resources by December
1731, 2020, will affect system reliability.

18(e) Potential options for increasing cost effectiveness and system
19reliability in regard to achieving the renewables portfolio standard
20targets.

end insert
begin delete
21

SECTION 1.  

Section 399.11 of the Public Utilities Code is
22amended to read:

23

399.11.  

The Legislature finds and declares all of the following:

24(a) In order to attain a target of generating 20 percent of total
25retail sales of electricity in California from eligible renewable
26energy resources by December 31, 2013, and 33 percent by
27December 31, 2020, it is the intent of the Legislature that the
28commission and the Energy Commission implement the California
29Renewables Portfolio Standard Program described in this article.

30(b) Achieving the renewables portfolio standard through the
31procurement of various electricity products from eligible renewable
32energy resources is intended to provide unique benefits to
33California, including all of the following benefits, each of which
34independently justifies the program:

35(1) Displacing fossil fuel consumption within the state.

P3    1(2) Adding new electrical generating facilities in the
2transmission network within the Western Electricity Coordinating
3Council service area.

4(3) Reducing air pollution in the state.

5(4) Meeting the state’s climate change goals by reducing
6emissions of greenhouse gases associated with electrical generation.

7(5) Promoting stable retail rates for electric service.

8(6) Meeting the state’s need for a diversified and balanced
9energy generation portfolio.

10(7) Assistance with meeting the state’s resource adequacy
11requirements.

12(8) Contributing to the safe and reliable operation of the
13electrical grid, including the provision of predictable electrical
14supply, voltage support, lower line losses, and congestion relief.

15(9) Implementing the state’s transmission and land use planning
16activities related to development of eligible renewable energy
17resources.

18(c) The California Renewables Portfolio Standard Program is
19intended to complement the Renewable Energy Resources Program
20administered by the Energy Commission and established pursuant
21to Chapter 8.6 (commencing with Section 25740) of Division 15
22of the Public Resources Code.

23(d) New and modified electric transmission facilities may be
24necessary to facilitate the state achieving its renewables portfolio
25standard targets.

26(e) (1) Supplying electricity to California end-use customers
27that is generated by eligible renewable energy resources is
28necessary to improve California’s air quality and public health,
29and the commission shall ensure rates are just and reasonable, and
30are not significantly affected by the procurement requirements of
31this article. This electricity may be generated anywhere in the
32interconnected grid that includes many states, and areas of both
33Canada and Mexico.

34(2) This article requires that generating resources located outside
35of California that are able to supply that electricity to California
36end-use customers be treated identically to generating resources
37located within the state, without discrimination.

38(3) California electrical corporations have already executed,
39and the commission has approved, power purchase agreements
40with eligible renewable energy resources located outside of
P4    1California that will supply electricity to California end-use
2 customers. These resources will fully count toward meeting the
3renewables portfolio standard procurement requirements. In
4addition, there are nearly 7,000 megawatts of additional proposed
5renewable energy resources located outside of California that are
6awaiting interconnection approval from the Independent System
7Operator. All of these resources, if procured, will count as eligible
8renewable energy resources that satisfy the portfolio content
9requirements of paragraph (1) of subdivision (c) of Section 399.16.

end delete


O

    98