Amended in Assembly August 6, 2013

Amended in Assembly June 25, 2013

Amended in Senate May 28, 2013

Amended in Senate April 10, 2013

Senate BillNo. 591


Introduced by Senator Cannella

(Coauthor: Assembly Member Gray)

February 22, 2013


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

LEGISLATIVE COUNSEL’S DIGEST

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: begin deleteyes end deletebegin insertnoend 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.

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
P3    131, 2016, and 33 percent of retail sales by December 31, 2020.
2The local governing board shall require the local publicly owned
3electric utilities to procure not less than 33 percent of retail sales
4of electricity products from eligible renewable energy resources
5in all subsequent years.

6(3) A local publicly owned electric utility shall adopt
7procurement requirements consistent with Section 399.16.

8(d) The governing board of a local publicly owned electric utility
9may adopt the following measures:

10(1) Rules permitting the utility to apply excess procurement in
11one compliance period to subsequent compliance periods in the
12same manner as allowed for retail sellers pursuant to Section
13399.13.

14(2) Conditions that allow for delaying timely compliance
15consistent with subdivision (b) of Section 399.15.

16(3) Cost limitations for procurement expenditures consistent
17with subdivision (c) of Section 399.15.

18(e) The governing board of the local publicly owned electric
19utility shall adopt a program for the enforcement of this article on
20or before January 1, 2012. The program shall be adopted at a
21publicly noticed meeting offering all interested parties an
22opportunity to comment. Not less than 30 days’ notice shall be
23given to the public of any meeting held for purposes of adopting
24the program. Not less than 10 days’ notice shall be given to the
25public before any meeting is held to make a substantive change to
26the program.

27(f) (1) Each local publicly owned electric utility shall annually
28post notice, in accordance with Chapter 9 (commencing with
29Section 54950) of Part 1 of Division 2 of Title 5 of the Government
30Code, whenever its governing body will deliberate in public on its
31renewable energy resources procurement plan.

32(2) Contemporaneous with the posting of the notice of a public
33meeting to consider the renewable energy resources procurement
34plan, the local publicly owned electric utility shall notify the
35Energy Commission of the date, time, and location of the meeting
36in order to enable the Energy Commission to post the information
37on its Internet Web site. This requirement is satisfied if the local
38publicly owned electric utility provides the uniform resource
39 locator (URL) that links to this information.

P4    1(3) Upon distribution to its governing body of information
2related to its renewable energy resources procurement status and
3future plans, for its consideration at a noticed public meeting, the
4local publicly owned electric utility shall make that information
5available to the public and shall provide the Energy Commission
6with an electronic copy of the documents for posting on the Energy
7Commission’s Internet Web site. This requirement is satisfied if
8the local publicly owned electric utility provides the uniform
9resource locator (URL) that links to the documents or information
10regarding other manners of access to the documents.

11(g) A public utility district that receives all of its electricity
12pursuant to a preference right adopted and authorized by the United
13States Congress pursuant to Section 4 of the Trinity River Division
14Act of August 12, 1955 (Public Law 84-386) shall be in compliance
15with the renewable energy procurement requirements of this article.

16(h) For a local publicly owned electric utility that was in
17existence on or before January 1, 2009, that provides retail electric
18service to 15,000 or fewer customer accounts in California, and is
19interconnected to a balancing authority located outside this state
20but within the WECC, an eligible renewable energy resource
21includes a facility that is located outside California that is
22connected to the WECC transmission system, if all of the following
23conditions are met:

24(1) The electricity generated by the facility is procured by the
25local publicly owned electric utility, is delivered to the balancing
26authority area in which the local publicly owned electric utility is
27located, and is not used to fulfill renewable energy procurement
28requirements of other states.

29(2) The local publicly owned electric utility participates in, and
30complies with, the accounting system administered by the Energy
31Commission pursuant to this article.

32(3) The Energy Commission verifies that the electricity
33generated by the facility is eligible to meet the renewables portfolio
34standard procurement requirements.

35(i) Notwithstanding subdivision (a), for a local publicly owned
36electric utility that is a joint powers authority of districts established
37pursuant to state law on or before January 1, 2005, that furnish
38electric services other than to residential customers, and is formed
39pursuant to the Irrigation District Law (Division 11 (commencing
40with Section 20500) of the Water Code), the percentage of total
P5    1kilowatthours sold to the district’s retail end-use customers, upon
2which the renewables portfolio standard procurement requirements
3in subdivision (b) are calculated, shall be based on the authority’s
4average retail sales over the previous seven years. If the authority
5has not furnished electric service for seven years, then the
6calculation shall be based on average retail sales over the number
7of completed years during which the authority has provided electric
8service.

9(j) A local publicly owned electric utility in a city and county
10that only receives greater than 67 percent of its electricity sources
11from hydroelectric generation located within the state that it owns
12and operates, and that does not meet the definition of a “renewable
13electrical generation facility” pursuant to Section 25741 of the
14Public Resources Code, shall be required to procure eligible
15renewable energy resources, including renewable energy credits,
16to meet only the electricity demands unsatisfied by its hydroelectric
17generation in any given year, in order to satisfy its renewable
18energy procurement requirements.

19(k) (1) A local publicly owned electric utility that receives
20greater than 50 percent of its annual retail sales from its own
21hydroelectric generation that is not an eligible renewable energy
22resource shall not be required to procure additional eligible
23renewable energy resources in excess of either of the following:

24(A) The portion of its retail sales not supplied by its own
25hydroelectric generation.

26(B) The cost limitation adopted pursuant to this section.

27(2) For the purposes of this subdivision, “hydroelectric
28 generation” means electricity generated from a hydroelectric
29facility that satisfies all of the following:

30(A) Is owned solely and operated by the local publicly owned
31electric utility as of 1967.

32(B) Serves a local publicly owned electric utility with a
33distribution system demand of less than 150 megawatts.

34(C) Involves a contract in which an electrical corporation
35receives the benefit of the electric generation through June of 2014,
36at which time the benefit reverts back to the ownership and control
37of the local publicly owned electric utility.

begin insert

38(D) Has a maximum penstock flow capacity of no more than
393,200 cubic feet per second and includes a regulating reservoir
40with a small hydroelectric generation facility producing fewer
P6    1than 20 megawatts with a maximum penstock flow capacity of no
2more than 3,000 cubic feet per second.

end insert

3(3) This subdivision does not reduce or eliminate any renewable
4procurement requirement for any compliance period ending prior
5to January 1, 2014.

6(l) A local publicly owned electric utility shall retain discretion
7over both of the following:

8(1) The mix of eligible renewable energy resources procured
9by the utility and those additional generation resources procured
10by the utility for purposes of ensuring resource adequacy and
11reliability.

12(2) The reasonable costs incurred by the utility for eligible
13renewable energy resources owned by the utility.

14(m) On or before July 1, 2011, the Energy Commission shall
15adopt regulations specifying procedures for enforcement of this
16article. The regulations shall include a public process under which
17the Energy Commission may issue a notice of violation and
18correction against a local publicly owned electric utility for failure
19to comply with this article, and for referral of violations to the
20State Air Resources Board for penalties pursuant to subdivision
21(o).

22(n) (1) Upon a determination by the Energy Commission that
23a local publicly owned electric utility has failed to comply with
24this article, the Energy Commission shall refer the failure to comply
25with this article to the State Air Resources Board, which may
26impose penalties to enforce this article consistent with Part 6
27(commencing with Section 38580) of Division 25.5 of the Health
28and Safety Code. Any penalties imposed shall be comparable to
29those adopted by the commission for noncompliance by retail
30sellers.

31(2) If Division 25.5 (commencing with Section 38500) of the
32Health and Safety Code is suspended or repealed, the State Air
33Resources Board may take action to enforce this article on local
34publicly owned electric utilities consistent with Section 41513 of
35the Health and Safety Code, and impose penalties on a local
36publicly owned electric utility consistent with Article 3
37(commencing with Section 42400) of Chapter 4 of Part 4 of, and
38Chapter 1.5 (commencing with Section 43025) of Part 5 of,
39Division 26 of the Health and Safety Code.

P7    1(3) For the purpose of this subdivision, this section is an
2emissions reduction measure pursuant to Section 38580 of the
3Health and Safety Code.

4(4) If the State Air Resources Board has imposed a penalty upon
5a local publicly owned electric utility for the utility’s failure to
6comply with this article, the State Air Resources Board shall not
7impose an additional penalty for the same infraction, or the same
8failure to comply, with any renewables procurement requirement
9imposed upon the utility pursuant to the California Global Warming
10Solutions Act of 2006 (Division 25.5 (commencing with Section
1138500) of the Health and Safety Code).

12(5) Any penalties collected by the State Air Resources Board
13pursuant to this article shall be deposited in the Air Pollution
14Control Fund and, upon appropriation by the Legislature, shall be
15expended for reducing emissions of air pollution or greenhouse
16gases within the same geographic area as the local publicly owned
17electric utility.

18(o) The commission has no authority or jurisdiction to enforce
19any of the requirements of this article on a local publicly owned
20electric utility.



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