BILL ANALYSIS Ó
AB 197
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ASSEMBLY THIRD READING
AB
197 (Eduardo Garcia)
As Amended April 29, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+----------------------+--------------------|
|Utilities |10-3 |Rendon, Achadjian, |Patterson, Hadley, |
| | |Bonilla, Burke, |Jones |
| | |Eggman, Cristina | |
| | |Garcia, Quirk, | |
| | |Santiago, Ting, | |
| | |Williams | |
| | | | |
| | | | |
|----------------+------+----------------------+--------------------|
|Natural |6-2 |Williams, Cristina |Hadley, Harper |
|Resources | |Garcia, McCarty, | |
| | |Rendon, Mark Stone, | |
| | |Wood | |
| | | | |
|----------------+------+----------------------+--------------------|
|Appropriations |12-4 |Gomez, Bonta, |Bigelow, Gallagher, |
| | |Calderon, Daly, |Jones, Wagner |
| | |Eggman, Eduardo | |
| | |Garcia, Gordon, | |
| | |Holden, Quirk, | |
| | |Rendon, Weber, Wood | |
AB 197
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| | | | |
| | | | |
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SUMMARY: Revises the Renewables Portfolio Standard (RPS)
procurement process to emphasize greenhouse gas (GHG) emissions
and reliability factors. Specifically, this bill:
1)Requires the California Public Utilities Commission's (CPUC) RPS
procurement process, as well as the procurement plans of
investor-owned utilities (IOUs) and publicly-owned utilities
(POUs), to consider:
a) The statewide GHG emission limit established pursuant to
AB 32 (Núñez), Chapter 488, Statutes of 2006.
b) Capacity and essential reliability services of the
eligible renewable energy resource to ensure grid
reliability.
2)Requires each IOU, in soliciting and procuring eligible
renewable energy resources, to consider the "best-fit"
attributes of resource types that ensure a balanced resource mix
to maintain the reliability of the grid.
3)Provides the enactment of this bill is contingent upon the
enactment of AB 645 (Williams) of the current legislative
session.
FISCAL EFFECT: According to the Assembly Appropriations
Committee:
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1)Increased annual costs to the CPUC of $800,000 per year for five
years to hire consultants to provide modeling and analysis
(special fund).
2)Increased ongoing CPUC staffing costs of $226,000 (special
fund).
3)Estimated annual costs of $157,000 for two years for proceedings
(special fund).
COMMENTS:
1)Purpose: According to the author, current law only requires a
total cost basis for ranking and selecting least-cost and
best-fit eligible renewable energy resources. This bill
requires the consideration of best-fit in addition to total cost
to ensure all available renewable energy resources, with
attributes that provide grid reliability and reduce GHG
emission, are taken into account.
2)Background: The California Renewables Portfolio Standard
program requires IOUs, local POUs, and energy service providers
to increase purchases of renewable energy to at least 33% of
retail sales by December 31, 2020.
The original RPS bill, SB 1078 (Sher), Chapter 516, Statutes of
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2002, set a goal of 20% by 2017. SB 107 (Simitian), Chapter
464, Statutes of 2006, accelerated the deadline for 20% to 2010.
SB 2 X1 (Simitian), Chapter 1, Statutes of 2011-12 First
Extraordinary Session, codified the current 33% by 2020 RPS
target, and also established product content categories (or
"buckets") which place the highest value (Bucket 1) on renewable
energy that is directly delivered into California because it has
the greatest economic, environmental, and reliability benefits.
3)Governor's objectives for 2030 and beyond: In his January 5,
2015, Inaugural Address, Governor Brown announced the following
three objectives to be accomplished within the next 15 years:
a) Increase the RPS from 33% to 50%.
b) Reduce petroleum use in transportation fuels up to 50%.
c) Double the efficiency of existing buildings and make
heating fuels cleaner.
This bill provides additional requirements and analysis to be
included when establishing the increased renewable electricity
procurement requirement.
1)Contingent Enactment: This bill is joined to AB 645 which
establishes an RPS target of 50% by 2030, including interim
targets of 38% by 2023, and 44% by 2026. AB 645 is pending on
the Assembly Floor.
AB 197
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Analysis Prepared by:
Sue Kateley / U. & C. / (916) 319-2083 FN:
0000644