Senate BillNo. 591


Introduced by Senator Cannella

February 22, 2013


An act to amend Section 399.30 of the Public Utilities Code, relating to renewable energy.

LEGISLATIVE COUNSEL’S DIGEST

SB 591, as introduced, Cannella. Renewable energy: publicly owned electric utility: hydroelectric generation facility.

The California Renewables Portfolio Standard Program (RPS program) requires a retail seller of electricity, as defined, and local publicly owned electric utilities to purchase specified minimum quantities of electricity products from eligible renewable energy resources, 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).

This bill would require a local publicly owned electric utility that receives 50% greater of its consumption load demand from hydroelectric generation meeting specified requirements and other renewable energy resources 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 to satisfy its portfolio content requirements.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

P2    1

SECTION 1.  

Section 399.30 of the Public Utilities Code is
2amended to read:

3

399.30.  

(a) begin deleteIn order to end deletebegin insertTo end insertfulfill unmet long-term generation
4resource needs, each local publicly owned electric utility shall
5adopt and implement a renewable energy resources procurement
6plan that requires the utility to procure a minimum quantity of
7electricity products from eligible renewable energy resources,
8including renewable energy credits, as a specified percentage of
9total kilowatthours sold to the utility’s retail end-use customers,
10each compliance period, to achieve the targets of subdivision (c).

11(b) The governing board shall implement procurement targets
12for a local publicly owned electric utility that require the utility to
13procure a minimum quantity of eligible renewable energy resources
14for each of the following compliance periods:

15(1) January 1, 2011, to December 31, 2013, inclusive.

16(2) January 1, 2014, to December 31, 2016, inclusive.

17(3) January 1, 2017, to December 31, 2020, inclusive.

18(c) The governing board of a local publicly owned electric utility
19shall ensure all of the following:

20(1) The quantities of eligible renewable energy resources to be
21procured for the compliance period from January 1, 2011, to
22December 31, 2013, inclusive, are equal to an average of 20 percent
23of retail sales.

24(2) The quantities of eligible renewable energy resources to be
25procured for all other compliance periods reflect reasonable
26progress in each of the intervening years sufficient to ensure that
27the procurement of electricity products from eligible renewable
28energy resources achieves 25 percent of retail sales by December
2931, 2016, and 33 percent of retail sales by December 31, 2020.
30The local governing board shall require the local publicly owned
31electric utilities to procure not less than 33 percent of retail sales
32of electricity products from eligible renewable energy resources
33in all subsequent years.

P3    1(3) A local publicly owned electric utility shall adopt
2procurement requirements consistent with Section 399.16.

3(d) The governing board of a local publicly owned electric utility
4may adopt the following measures:

5(1) Rules permitting the utility to apply excess procurement in
6one compliance period to subsequent compliance periods in the
7same manner as allowed for retail sellers pursuant to Section
8399.13.

9(2) Conditions that allow for delaying timely compliance
10consistent with subdivision (b) of Section 399.15.

11(3) Cost limitations for procurement expenditures consistent
12with subdivision (c) of Section 399.15.

13(e) The governing board of the local publicly owned electric
14utility shall adopt a program for the enforcement of this article on
15or before January 1, 2012. The program shall be adopted at a
16publicly noticed meeting offering all interested parties an
17opportunity to comment. Not less than 30 days’ notice shall be
18given to the public of any meeting held for purposes of adopting
19the program. Not less than 10 days’ notice shall be given to the
20public before any meeting is held to make a substantive change to
21the program.

22(f) (1) Each local publicly owned electric utility shall annually
23post notice, in accordance with Chapter 9 (commencing with
24Section 54950) of Part 1 of Division 2 of Title 5 of the Government
25Code, whenever its governing body will deliberate in public on its
26renewable energy resources procurement plan.

27(2) Contemporaneous with the posting of the notice of a public
28meeting to consider the renewable energy resources procurement
29plan, the local publicly owned electric utility shall notify the
30Energy Commission of the date, time, and location of the meeting
31in order to enable the Energy Commission to post the information
32on its Internet Web site. This requirement is satisfied if the local
33publicly owned electric utility provides the uniform resource
34 locator (URL) that links to this information.

35(3) Upon distribution to its governing body of information
36related to its renewable energy resources procurement status and
37future plans, for its consideration at a noticed public meeting, the
38local publicly owned electric utility shall make that information
39available to the public and shall provide the Energy Commission
40with an electronic copy of the documents for posting on the Energy
P4    1Commission’s Internet Web site. This requirement is satisfied if
2the local publicly owned electric utility provides the uniform
3resource locator (URL) that links to the documents or information
4regarding other manners of access to the documents.

5(g) A public utility district that receives all of its electricity
6pursuant to a preference right adopted and authorized by the United
7States Congress pursuant to Section 4 of the Trinity River Division
8Act of August 12, 1955 (Public Law 84-386) shall be in compliance
9with the renewable energy procurement requirements of this article.

10(h) For a local publicly owned electric utility that was in
11existence on or before January 1, 2009, that provides retail electric
12service to 15,000 or fewer customer accounts in California, and is
13interconnected to a balancing authority located outside this state
14but within the WECC, an eligible renewable energy resource
15includes a facility that is located outside California that is
16connected to the WECC transmission system, if all of the following
17conditions are met:

18(1) The electricity generated by the facility is procured by the
19local publicly owned electric utility, is delivered to the balancing
20authority area in which the local publicly owned electric utility is
21located, and is not used to fulfill renewable energy procurement
22requirements of other states.

23(2) The local publicly owned electric utility participates in, and
24complies with, the accounting system administered by the Energy
25Commission pursuant to this article.

26(3) The Energy Commission verifies that the electricity
27generated by the facility is eligible to meet the renewables portfolio
28standard procurement requirements.

29(i) Notwithstanding subdivision (a), for a local publicly owned
30electric utility that is a joint powers authority of districts established
31pursuant to state law on or before January 1, 2005, that furnish
32electric services other than to residential customers, and is formed
33pursuant to the Irrigation District Law (Division 11 (commencing
34with Section 20500) of the Water Code), the percentage of total
35kilowatthours sold to the district’s retail end-use customers, upon
36which the renewables portfolio standard procurement requirements
37in subdivision (b) are calculated, shall be based on the authority’s
38average retail sales over the previous seven years. If the authority
39has not furnished electric service for seven years, then the
40calculation shall be based on average retail sales over the number
P5    1of completed years during which the authority has provided electric
2service.

3(j) A local publicly owned electric utility in a city and county
4that only receives greater than 67 percent of its electricity sources
5from hydroelectric generation located within the state that it owns
6and operates, and that does not meet the definition of a “renewable
7electrical generation facility” pursuant to Section 25741 of the
8Public Resources Code, shall be required to procure eligible
9renewable energy resources, including renewable energy credits,
10to meet only the electricity demands unsatisfied by its hydroelectric
11generation in any given year, in order to satisfy its renewable
12energy procurement requirements.

begin insert

13(k) (1) A local publicly owned electric utility that receives 50
14percent or greater of its consumption load demand from
15hydroelectric generation and other renewable energy resources
16shall be required to procure eligible renewable energy resources,
17including renewable energy credits to meet only the electricity
18demands unsatisfied by its hydroelectric generation in any given
19year to satisfy its renewable energy procurement requirements.

end insert
begin insert

20(2) For the purposes of this subdivision, “hydroelectric
21generation facility” means a hydroelectric facility satisfying all
22of the following:

end insert
begin insert

23(A) Is owned solely and operated by the local publicly owned
24electric utility as of 1967.

end insert
begin insert

25(B) Has a distribution system demand of less than 150
26megawatts.

end insert
begin insert

27(C) Involves a contract in which an electrical corporation
28receives the benefit of the electric generation through June of
292014, at which time the benefit reverts back to the ownership and
30control of the local publicly owned electric utility.

end insert
begin insert

31(D) Has a maximum penstock flow capacity of no more than
323,000 cubic feet per second and includes a regulating reservoir
33with a small hydroelectric generation facility producing fewer
34than 20 megawatts with a maximum penstock flow capacity of no
35more than 2,700 cubic feet per second.

end insert
begin delete

36(k)

end delete

37begin insert(end insertbegin insertl)end insert A local publicly owned electric utility shall retain discretion
38over both of the following:

39(1) The mix of eligible renewable energy resources procured
40by the utility and those additional generation resources procured
P6    1by the utility for purposes of ensuring resource adequacy and
2reliability.

3(2) The reasonable costs incurred by the utility for eligible
4renewable energy resources owned by the utility.

begin delete

5(l)

end delete

6begin insert(end insertbegin insertm)end insert On or before July 1, 2011, the Energy Commission shall
7adopt regulations specifying procedures for enforcement of this
8article. The regulations shall include a public process under which
9the Energy Commission may issue a notice of violation and
10correction against a local publicly owned electric utility for failure
11to comply with this article, and for referral of violations to the
12State Air Resources Board for penalties pursuant to subdivision
13(o).

begin delete

14(m)

end delete

15begin insert(nend insertbegin insert)end insert (1) Upon a determination by the Energy Commission that
16a local publicly owned electric utility has failed to comply with
17this article, the Energy Commission shall refer the failure to comply
18with this article to the State Air Resources Board, which may
19impose penalties to enforce this article consistent with Part 6
20(commencing with Section 38580) of Division 25.5 of the Health
21and Safety Code. Any penalties imposed shall be comparable to
22those adopted by the commission for noncompliance by retail
23sellers.

24(2) If Division 25.5 (commencing with Section 38500) of the
25Health and Safety Code is suspended or repealed, the State Air
26Resources Board may take action to enforce this article on local
27publicly owned electric utilities consistent with Section 41513 of
28the Health and Safety Code, and impose penalties on a local
29publicly owned electric utility consistent with Article 3
30(commencing with Section 42400) of Chapter 4 of Part 4 of, and
31Chapter 1.5 (commencing with Section 43025) of Part 5 of,
32Division 26 of the Health and Safety Code.

33(3) For the purpose of this subdivision, this section is an
34emissions reduction measure pursuant to Section 38580 of the
35Health and Safety Code.

36(4) If the State Air Resources Board has imposed a penalty upon
37a local publicly owned electric utility for the utility’s failure to
38comply with this article, the State Air Resources Board shall not
39impose an additional penalty for the same infraction, or the same
40failure to comply, with any renewables procurement requirement
P7    1imposed upon the utility pursuant to the California Global Warming
2Solutions Act of 2006 (Division 25.5 (commencing with Section
338500) of the Health and Safety Code).

4(5) Any penalties collected by the State Air Resources Board
5pursuant to this article shall be deposited in the Air Pollution
6Control Fund and, upon appropriation by the Legislature, shall be
7expended for reducing emissions of air pollution or greenhouse
8gases within the same geographic area as the local publicly owned
9electric utility.

begin delete

10(n)

end delete

11begin insert(end insertbegin inserto)end insert The commission has no authority or jurisdiction to enforce
12any of the requirements of this article on a local publicly owned
13electric utility.


CORRECTIONS:

Text--Pages 1 and 5.




O

Corrected 3-12-13—See last page.     99