BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
SB 591 (Canella) - Renewable energy: publicaly owned electric
utility: hydroelectric generation facility and enforcement.
Amended: April 10, 2013 Policy Vote: EU&C 8-1
Urgency: No Mandate: No
Hearing Date: April 22, 2013 Consultant:
Marie Liu
This bill meets the criteria for referral to the Suspense File.
Bill Summary: SB 591 would limit the Merced Irrigation
District's Renewable Portfolio Standard obligation to the
electricity demands that are unsatisfied by the New Exchequer
Dam.
Fiscal Impact:
One-time costs of $75,000 to $150,000 from the Energy
Resources Programs Account (General Fund) to update
regulations in FY 2013-14.
Minor and absorbable costs to the California Energy
Commission (CEC) to report to the Legislature as required.
Background: The Renewable Portfolio Standard (RPS) requires
invest-owned utilities, publically owned utilities, community
choice aggregators, and energy service providers to increase
purchases of renewable energy so that 33% of total retail sales
are procured from renewable energy resources by December 31,
2020. In the interim, each entity would be required to procure
an average of 20% of renewable energy for the period of January
1, 2011 through December 31, 2013 and 25% by December 31, 2016.
(PUC �399.11 et seq)
Hydroelectric generation is only eligible as a renewable energy
source under RPS if the facility produces 30 megawatts or less
or 40 megawats or less if the hydroelectric generation units are
operated as part of a water supply or conveyance system in
operation prior to 2005. (PRC �25741)
Existing law allows specified publically owned utilities that
have ownership or long-term contracts for generation from large
hydroelectric generation resources, including Trinity and the
SB 591 (Cannella)
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San Francisco Public Utilities Commission, to base its RPS
procurement obligations only on the electricity demands
unsatisfied by hydroelectric generation. (PUC �399.30)
The New Exchequer Dam is part of the Merced River Hydroelectric
Project in Mariposa County and is operated by the Merced
Irrigation District, which is a publically owned utility. The
dam and hydroelectric facility was put into service in 1967 and
currently has a capacity of 94.5 megawatts. While the facility
is owned and operated by the Merced Irrigation District,
currently Pacific Gas and Electric receives all the electricity
under a contract which expires on July 1, 2014.
Proposed Law: This bill limits the RPS procurement obligation
for a publically owned utility that owns and operates a
hydroelectric facility that came into service in 1967, and for
which the utility will take the generation rights in 2014, to
the electricity demands unsatisfied by that hydroelectric
generation. This bill further requires the CEC to report to the
Legislature by July 1, 2014 regarding whether the implantation
of this bill will result in surplus electricity sales.
Staff Comments: This bills description of a hydroelectric
facility only fits the New Exchequer Dam which is owned by the
Merced Irrigation District.
Proposed regulations to implement the RPS statue were released
by the CEC on March 1, 2013. Should this bill pass, these
regulations will have to be updated. The CEC estimates that such
an update is likely to take half to one full PY (Energy Resource
Specialists) for a one-time cost of $75,000 to $150,000.
The CEC estimates that the cost to comply with this bill's
reporting requirement will be minor and absorbable.