Amended in Senate April 10, 2013

Senate BillNo. 591


Introduced by Senator Cannella

begin insert

(Coauthor: Assembly Member Gray)

end insert

February 22, 2013


An act to amend Section 399.30 ofbegin insert, and to add and repeal Section 399.30.5 of,end insert the Public Utilities Code, relating to renewable energy.

LEGISLATIVE COUNSEL’S DIGEST

SB 591, as amended, Cannella. Renewable energy: publicly owned electric utility: hydroelectric generation facilitybegin insert and enforcementend insert.

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 periodbegin insert fromend insert 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).begin insert Existing law requires the State Energy Resources Conservation and Development Commission to adopt regulations specifying procedures for enforcement of the above requirements for local publicly owned electric utilities.end insert

This bill would require a local publicly owned electric utility that receivesbegin insert greater thanend insert 50%begin delete greaterend delete of itsbegin delete consumption load demandend deletebegin insert electricity sourcesend insert from hydroelectric generation meeting specified requirementsbegin delete and other renewable energy resourcesend delete 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.begin insert The bill would require the commission, by July 1, 2014, to report to the Legislature on whether the regulations specifying procedures for enforcement result in surplus electricity sales and under what circumstances surplus electricity sales have occurred or may occur.end insert

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    1

SECTION 1.  

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

3

399.30.  

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

P3    1(2) The quantities of eligible renewable energy resources to be
2procured for all other compliance periods reflect reasonable
3progress in each of the intervening years sufficient to ensure that
4the procurement of electricity products from eligible renewable
5energy resources achieves 25 percent of retail sales by December
631, 2016, and 33 percent of retail sales by December 31, 2020.
7The local governing board shall require the local publicly owned
8electric utilities to procure not less than 33 percent of retail sales
9of electricity products from eligible renewable energy resources
10in all subsequent years.

11(3) A local publicly owned electric utility shall adopt
12procurement requirements consistent with Section 399.16.

13(d) The governing board of a local publicly owned electric utility
14may adopt the following measures:

15(1) Rules permitting the utility to apply excess procurement in
16one compliance period to subsequent compliance periods in the
17same manner as allowed for retail sellers pursuant to Section
18399.13.

19(2) Conditions that allow for delaying timely compliance
20consistent with subdivision (b) of Section 399.15.

21(3) Cost limitations for procurement expenditures consistent
22with subdivision (c) of Section 399.15.

23(e) The governing board of the local publicly owned electric
24utility shall adopt a program for the enforcement of this article on
25or before January 1, 2012. The program shall be adopted at a
26publicly noticed meeting offering all interested parties an
27opportunity to comment. Not less than 30 days’ notice shall be
28given to the public of any meeting held for purposes of adopting
29the program. Not less than 10 days’ notice shall be given to the
30public before any meeting is held to make a substantive change to
31the program.

32(f) (1) Each local publicly owned electric utility shall annually
33post notice, in accordance with Chapter 9 (commencing with
34Section 54950) of Part 1 of Division 2 of Title 5 of the Government
35Code, whenever its governing body will deliberate in public on its
36renewable energy resources procurement plan.

37(2) Contemporaneous with the posting of the notice of a public
38meeting to consider the renewable energy resources procurement
39plan, the local publicly owned electric utility shall notify the
40Energy Commission of the date, time, and location of the meeting
P4    1in order to enable the Energy Commission to post the information
2on its Internet Web site. This requirement is satisfied if the local
3publicly owned electric utility provides the uniform resource
4 locator (URL) that links to this information.

5(3) Upon distribution to its governing body of information
6related to its renewable energy resources procurement status and
7future plans, for its consideration at a noticed public meeting, the
8local publicly owned electric utility shall make that information
9available to the public and shall provide the Energy Commission
10with an electronic copy of the documents for posting on the Energy
11Commission’s Internet Web site. This requirement is satisfied if
12the local publicly owned electric utility provides the uniform
13resource locator (URL) that links to the documents or information
14regarding other manners of access to the documents.

15(g) A public utility district that receives all of its electricity
16pursuant to a preference right adopted and authorized by the United
17States Congress pursuant to Section 4 of the Trinity River Division
18Act of August 12, 1955 (Public Law 84-386) shall be in compliance
19with the renewable energy procurement requirements of this article.

20(h) For a local publicly owned electric utility that was in
21existence on or before January 1, 2009, that provides retail electric
22service to 15,000 or fewer customer accounts in California, and is
23interconnected to a balancing authority located outside this state
24but within the WECC, an eligible renewable energy resource
25includes a facility that is located outside California that is
26connected to the WECC transmission system, if all of the following
27conditions are met:

28(1) The electricity generated by the facility is procured by the
29local publicly owned electric utility, is delivered to the balancing
30authority area in which the local publicly owned electric utility is
31located, and is not used to fulfill renewable energy procurement
32requirements of other states.

33(2) The local publicly owned electric utility participates in, and
34complies with, the accounting system administered by the Energy
35Commission pursuant to this article.

36(3) The Energy Commission verifies that the electricity
37generated by the facility is eligible to meet the renewables portfolio
38standard procurement requirements.

39(i) Notwithstanding subdivision (a), for a local publicly owned
40electric utility that is a joint powers authority of districts established
P5    1pursuant to state law on or before January 1, 2005, that furnish
2electric services other than to residential customers, and is formed
3pursuant to the Irrigation District Law (Division 11 (commencing
4with Section 20500) of the Water Code), the percentage of total
5kilowatthours sold to the district’s retail end-use customers, upon
6which the renewables portfolio standard procurement requirements
7in subdivision (b) are calculated, shall be based on the authority’s
8average retail sales over the previous seven years. If the authority
9has not furnished electric service for seven years, then the
10calculation shall be based on average retail sales over the number
11of completed years during which the authority has provided electric
12service.

13(j) A local publicly owned electric utility in a city and county
14that only receives greater than 67 percent of its electricity sources
15from hydroelectric generation located within the state that it owns
16and operates, and that does not meet the definition of a “renewable
17electrical generation facility” pursuant to Section 25741 of the
18Public Resources Code, shall be required to procure eligible
19renewable energy resources, including renewable energy credits,
20to meet only the electricity demands unsatisfied by its hydroelectric
21generation in any given year, in order to satisfy its renewable
22energy procurement requirements.

23(k) (1) A local publicly owned electric utility that receivesbegin delete 50
24percent or greater of its consumption load demand from
25hydroelectric generation and other renewable energy resourcesend delete

26begin insert greater than 50 percent of its electricity sources from hydroelectric
27generation that it owns and operates, and that does not meet the
28definition of a renewable electrical generation facility pursuant
29to Section 25741 of the Public Resources Code, end insert
shall be required
30to procure eligible renewable energy resources, including
31renewable energy creditsbegin insert,end insert to meet only the electricity demands
32unsatisfied by its hydroelectric generation in any given yearbegin insert,end insert to
33satisfy its renewable energy procurement requirements.

34(2) For the purposes of this subdivision, “hydroelectric begin delete35 generation facility” means a hydroelectric facility satisfying allend delete
36begin insert generation” means electricity generated from a hydroelectric
37facility that satisfies all end insert
of the following:

38(A) Is owned solely and operated by the local publicly owned
39electric utility as of 1967.

P6    1(B) Has a distribution system demand of less than 150
2megawatts.

3(C) Involves a contract in which an electrical corporation
4receives the benefit of the electric generation through June of 2014,
5at which time the benefit reverts back to the ownership and control
6of the local publicly owned electric utility.

7(D) Has a maximum penstock flow capacity of no more than
83,000 cubic feet per second and includes a regulating reservoir
9with a small hydroelectric generation facility producing fewer than
1020 megawatts with a maximum penstock flow capacity of no more
11than 2,700 cubic feet per second.

begin insert

12(3) This subdivision does not reduce or eliminate any renewable
13procurement requirement for any compliance period ending prior
14to January 1, 2014.

end insert

15(l) A local publicly owned electric utility shall retain discretion
16over both of the following:

17(1) The mix of eligible renewable energy resources procured
18by the utility and those additional generation resources procured
19by the utility for purposes of ensuring resource adequacy and
20reliability.

21(2) The reasonable costs incurred by the utility for eligible
22renewable energy resources owned by the utility.

23(m) On or before July 1, 2011, the Energy Commission shall
24adopt regulations specifying procedures for enforcement of this
25article. The regulations shall include a public process under which
26the Energy Commission may issue a notice of violation and
27correction against a local publicly owned electric utility for failure
28to comply with this article, and for referral of violations to the
29State Air Resources Board for penalties pursuant to subdivision
30(o).

31(n) (1) Upon a determination by the Energy Commission that
32a local publicly owned electric utility has failed to comply with
33this article, the Energy Commission shall refer the failure to comply
34with this article to the State Air Resources Board, which may
35impose penalties to enforce this article consistent with Part 6
36(commencing with Section 38580) of Division 25.5 of the Health
37and Safety Code. Any penalties imposed shall be comparable to
38those adopted by the commission for noncompliance by retail
39sellers.

P7    1(2) If Division 25.5 (commencing with Section 38500) of the
2Health and Safety Code is suspended or repealed, the State Air
3Resources Board may take action to enforce this article on local
4publicly owned electric utilities consistent with Section 41513 of
5the Health and Safety Code, and impose penalties on a local
6publicly owned electric utility consistent with Article 3
7(commencing with Section 42400) of Chapter 4 of Part 4 of, and
8Chapter 1.5 (commencing with Section 43025) of Part 5 of,
9Division 26 of the Health and Safety Code.

10(3) For the purpose of this subdivision, this section is an
11emissions reduction measure pursuant to Section 38580 of the
12Health and Safety Code.

13(4) If the State Air Resources Board has imposed a penalty upon
14a local publicly owned electric utility for the utility’s failure to
15comply with this article, the State Air Resources Board shall not
16impose an additional penalty for the same infraction, or the same
17failure to comply, with any renewables procurement requirement
18imposed upon the utility pursuant to the California Global Warming
19Solutions Act of 2006 (Division 25.5 (commencing with Section
2038500) of the Health and Safety Code).

21(5) Any penalties collected by the State Air Resources Board
22pursuant to this article shall be deposited in the Air Pollution
23Control Fund and, upon appropriation by the Legislature, shall be
24expended for reducing emissions of air pollution or greenhouse
25gases within the same geographic area as the local publicly owned
26electric utility.

27(o) The commission has no authority or jurisdiction to enforce
28any of the requirements of this article on a local publicly owned
29electric utility.

30begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 399.30.5 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert,
31to read:end insert

begin insert
32

begin insert399.30.5.end insert  

(a) On or before July 1, 2014, the Energy
33Commission, in consultation with the local publicly owned electric
34utilities, shall, pursuant to Section 9795 of the Government Code,
35report to the Legislature on whether regulations it has adopted
36pursuant to subdivision (m) of Section 399.30 result in surplus
37electricity sales and the circumstances under which surplus
38electricity sales have occurred or may occur.

P8    1(b) This section shall remain in effect only until January 1, 2019,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2019, deletes or extends that date.

end insert


O

    98