SB 591, as amended, Cannella. Renewable energy resources: local publicly owned electric utility: hydroelectric generation facility.
The California Renewables Portfolio Standard Program, referred to as the 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 from 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, referred to as the portfolio content requirements.
This bill would provide that a local publicly owned electric utility is not required to procure additional eligible renewable energy resources in excess of specified levels, if it receives 50% or greater of its annual retail sales from its own hydrodelectric generation meeting specified 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 399.30 of the Public Utilities Code is
2amended to read:
(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.
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
P3 1electric utilities to procure not less than 33 percent of retail sales
2of electricity products from eligible renewable energy resources
3in all subsequent years.
4(3) A local publicly owned electric utility shall adopt
5procurement requirements consistent with Section 399.16.
6(d) The governing board of a local publicly owned electric utility
7may adopt the following measures:
8(1) Rules permitting the utility to apply excess procurement in
9one compliance period to subsequent compliance periods in the
10same manner as allowed for retail sellers pursuant to Section
12(2) Conditions that allow for delaying timely compliance
13consistent with subdivision (b) of Section 399.15.
14(3) Cost limitations for procurement expenditures consistent
15with subdivision (c) of Section 399.15.
16(e) The governing board of the local publicly owned electric
17utility shall adopt a program for the enforcement of this article on
18or before January 1, 2012. The program shall be adopted at a
19publicly noticed meeting offering all interested parties an
20opportunity to comment. Not less than 30 days’ notice shall be
21given to the public of any meeting held for purposes of adopting
22the program. Not less than 10 days’ notice shall be given to the
23public before any meeting is held to make a substantive change to
25(f) (1) Each local publicly owned electric utility shall annually
26post notice, in accordance with Chapter 9 (commencing with
27Section 54950) of Part 1 of Division 2 of Title 5 of the Government
28Code, whenever its governing body will deliberate in public on its
29renewable energy resources procurement plan.
30(2) Contemporaneous with the posting of the notice of a public
31meeting to consider the renewable energy resources procurement
32plan, the local publicly owned electric utility shall notify the
33Energy Commission of the date, time, and location of the meeting
34in order to enable the Energy Commission to post the information
35on its Internet Web site. This requirement is satisfied if the local
36publicly owned electric utility provides the uniform resource
37 locator (URL) that links to this information.
38(3) Upon distribution to its governing body of information
39related to its renewable energy resources procurement status and
40future plans, for its consideration at a noticed public meeting, the
P4 1local publicly owned electric utility shall make that information
2available to the public and shall provide the Energy Commission
3with an electronic copy of the documents for posting on the Energy
4Commission’s Internet Web site. This requirement is satisfied if
5the local publicly owned electric utility provides the uniform
6resource locator (URL) that links to the documents or information
7regarding other manners of access to the documents.
8(g) A public utility district that receives all of its electricity
9pursuant to a preference right adopted and authorized by the United
10States Congress pursuant to Section 4 of the Trinity River Division
11Act of August 12, 1955 (Public Law 84-386) shall be in compliance
12with the renewable energy procurement requirements of this article.
13(h) For a local publicly owned electric utility that was in
14existence on or before January 1, 2009, that provides retail electric
15service to 15,000 or fewer customer accounts in California, and is
16interconnected to a balancing authority located outside this state
17but within the WECC, an eligible renewable energy resource
18includes a facility that is located outside California that is
19connected to the WECC transmission system, if all of the following
20conditions are met:
21(1) The electricity generated by the facility is procured by the
22local publicly owned electric utility, is delivered to the balancing
23authority area in which the local publicly owned electric utility is
24located, and is not used to fulfill renewable energy procurement
25requirements of other states.
26(2) The local publicly owned electric utility participates in, and
27complies with, the accounting system administered by the Energy
28Commission pursuant to this article.
29(3) The Energy Commission verifies that the electricity
30generated by the facility is eligible to meet the renewables portfolio
31standard procurement requirements.
32(i) Notwithstanding subdivision (a), for a local publicly owned
33electric utility that is a joint powers authority of districts established
34pursuant to state law on or before January 1, 2005, that furnish
35electric services other than to residential customers, and is formed
36pursuant to the Irrigation District Law (Division 11 (commencing
37with Section 20500) of the Water Code), the percentage of total
38kilowatthours sold to the district’s retail end-use customers, upon
39which the renewables portfolio standard procurement requirements
40in subdivision (b) are calculated, shall be based on the authority’s
P5 1average retail sales over the previous seven years. If the authority
2has not furnished electric service for seven years, then the
3calculation shall be based on average retail sales over the number
4of completed years during which the authority has provided electric
6(j) A local publicly owned electric utility in a city and county
7that only receives greater than 67 percent of its electricity sources
8from hydroelectric generation located within the state that it owns
9and operates, and that does not meet the definition of a “renewable
10electrical generation facility” pursuant to Section 25741 of the
11Public Resources Code, shall be required to procure eligible
12renewable energy resources, including renewable energy credits,
13to meet only the electricity demands unsatisfied by its hydroelectric
14generation in any given year, in order to satisfy its renewable
15energy procurement requirements.
16(k) (1) A local publicly owned electric utility that receives
17greater than 50 percent of its annual retail sales from its own
18hydroelectric generation that is not an eligible renewable energy
19resource shall not be required to procure additional eligible
20renewable energy resources in excess of either of the following:
21(A) The portion of its retail sales not supplied by its own
23(B) The cost limitation adopted pursuant to this section.
24(2) For the purposes of this subdivision, “hydroelectric
25 generation” means electricity generated from a hydroelectric
26facility that satisfies all of the following:
27(A) Is owned solely and operated by the local publicly owned
28electric utility as of 1967.
29(B) Serves a local publicly owned electric utility with a
30distribution system demand of less than 150 megawatts.
31(C) Involves a contract in which an electrical corporation
32receives the benefit of the electric generation through June of 2014,
33at which time the benefit reverts back to the ownership and control
34of the local publicly owned electric utility.
35(D) Has a maximum penstock flow capacity of no more than
363,000 cubic feet per second and includes a regulating reservoir
37with a small hydroelectric generation facility producing fewer than
3820 megawatts with a maximum penstock flow capacity of no more
39than 2,700 cubic feet per second.
P6 1(3) This subdivision does not reduce or eliminate any renewable
2procurement requirement for any compliance period ending prior
3to January 1, 2014.
4(l) A local publicly owned electric utility shall retain discretion
5over both of the following:
6(1) The mix of eligible renewable energy resources procured
7by the utility and those additional generation resources procured
8by the utility for purposes of ensuring resource adequacy and
10(2) The reasonable costs incurred by the utility for eligible
11renewable energy resources owned by the utility.
12(m) On or before July 1, 2011, the Energy
13adopt regulations specifying procedures for enforcement of this
14article. The regulations shall include a public process under which
15the Energy Commission may issue a notice of violation and
16correction against a local publicly owned electric utility for failure
17to comply with this article, and for referral of violations to the
18State Air Resources Board for penalties pursuant to subdivision
20(n) (1) Upon a determination by the Energy Commission that
21a local publicly owned electric utility has failed to comply with
22this article, the Energy Commission shall refer the failure to comply
23with this article to the State Air Resources Board, which may
24impose penalties to enforce this article consistent with Part 6
25(commencing with Section 38580) of Division 25.5 of the Health
26and Safety Code. Any penalties imposed shall be comparable to
27those adopted by the commission for noncompliance by retail
29(2) If Division 25.5 (commencing with Section 38500) of the
30Health and Safety Code is suspended or repealed, the State Air
31Resources Board may take action to enforce this article on local
32publicly owned electric utilities consistent with Section 41513 of
33the Health and Safety Code, and impose penalties on a local
34publicly owned electric utility consistent with Article 3
35(commencing with Section 42400) of Chapter 4 of Part 4 of, and
36Chapter 1.5 (commencing with Section 43025) of Part 5 of,
37Division 26 of the Health and Safety Code.
38(3) For the purpose of this subdivision, this section is an
39emissions reduction measure pursuant to Section 38580 of the
40Health and Safety Code.
P7 1(4) If the State Air Resources Board has imposed a penalty upon
2a local publicly owned electric utility for the utility’s failure to
3comply with this article, the State Air Resources Board shall not
4impose an additional penalty for the same infraction, or the same
5failure to comply, with any renewables procurement requirement
6imposed upon the utility pursuant to the California Global Warming
7Solutions Act of 2006 (Division 25.5 (commencing with Section
838500) of the Health and Safety Code).
9(5) Any penalties collected by the State Air Resources Board
10pursuant to this article shall be deposited in the Air Pollution
11Control Fund and, upon appropriation by the Legislature, shall be
12expended for reducing emissions of air pollution or greenhouse
13gases within the same geographic area as the local publicly owned
15(o) The commission has no authority or jurisdiction to enforce
16any of the requirements of this article on a local publicly owned