California Legislature—2015–16 Regular Session

Assembly BillNo. 645


Introduced by Assembly Members Williams and Rendon

February 24, 2015


An act to amend Sections 399.11, 399.15, and 399.30 of the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL’S DIGEST

AB 645, as introduced, Williams. Electricity: California Renewables Portfolio Standard.

(1) Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations, as defined, while local publicly owned electric utilities, as defined, are under the direction of their governing boards.

Existing law establishes the California Renewables Portfolio Standard (RPS) program, which expresses the intent of the Legislature that the amount of electricity generated per year from eligible renewable energy resources be increased to an amount that equals at least 33% of the total electricity sold to retail customers in California per year by December 31, 2020. Existing law requires the PUC, by January 1, 2012, to establish the quantity of electricity products from eligible renewable energy resources to be procured by each retail seller for specified compliance periods, sufficient to ensure that the procurement of electricity products from eligible renewable energy resources achieves 25% of retail sales by December 31, 2016, and 33% of retail sales by December 31, 2020, and that retail sellers procure not less than 33% of retail sales in all subsequent years.

Existing law makes the requirements of the RPS program applicable to local publicly owned electric utilities, except that the utility’s governing board is responsible for implementation of those requirements, instead of the PUC, and certain enforcement authority with respect to local publicly owned electric utilities is given to the State Energy Resources Conservation and Development Commission and State Air Resources Board, instead of the PUC.

This bill would additionally express the intent of the Legislature for the purposes of the RPS program that the amount of electricity generated per year from eligible renewable energy resources be increased to an amount equal to at least 50% by December 31, 2030, and would require the PUC, by January 1, 2017, to establish the quantity of electricity products from eligible renewable energy resources to be procured by each retail seller for specified compliance periods sufficient to ensure that the procurement of electricity products from eligible renewable energy resources achieves 50% of retail sales by December 31, 2030, and that retail sellers procure not less than 50% of retail sales in all subsequent years. The bill would require the governing boards of local publicly owned electric utilities to ensure that specified quantities of electricity products from eligible renewable energy resources to be procured for specified compliance periods to ensure that the procurement of electricity products from eligible renewable energy resources achieve 50% of retail sales by December 31, 2030, and that the local publicly owned electric utilities procure not less than 50% of retail sales in all subsequent years.

(2) Under existing law, a violation of the RPS program is a crime.

Because the provisions of this bill would expand the RPS program, a violation of these provisions would impose a state-mandated local program by expanding the definition of a crime.

(3) By placing additional requirements upon local publicly owned electric utilities, this bill would impose a state-mandated local program.

(4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reasons.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

Section 399.11 of the Public Utilities Code is
2amended to read:

3

399.11.  

The Legislature finds and declares all of the following:

4(a) In order to attain a target of generating 20 percent of total
5retail sales of electricity in California from eligible renewable
6energy resources by December 31, 2013,begin delete andend delete 33 percent by
7December 31, 2020,begin insert and 50 percent by December 31, 2030,end insert it is
8the intent of the Legislature that the commission and the Energy
9Commission implement the California Renewables Portfolio
10Standard Program described in this article.

11(b) Achieving the renewables portfolio standard through the
12 procurement of various electricity products from eligible renewable
13energy resources is intended to provide unique benefits to
14California, including all of the following, each of which
15independently justifies the program:

16(1) Displacing fossil fuel consumption within the state.

17(2) Adding new electrical generating facilities in the
18transmission network within the Western Electricity Coordinating
19Council service area.

20(3) Reducing air pollution in the state.

21(4) Meeting the state’s climate change goals by reducing
22emissions of greenhouse gases associated with electrical generation.

23(5) Promoting stable retail rates for electric service.

24(6) Meeting the state’s need for a diversified and balanced
25energy generation portfolio.

26(7) Assistance with meeting the state’s resource adequacy
27requirements.

28(8) Contributing to the safe and reliable operation of the
29electrical grid, including providing predictable electrical supply,
30voltage support, lower line losses, and congestion relief.

31(9) Implementing the state’s transmission and land use planning
32activities related to development of eligible renewable energy
33resources.

34(c) The California Renewables Portfolio Standard Program is
35intended to complement the Renewable Energy Resources Program
36administered by the Energy Commission and established pursuant
37to Chapter 8.6 (commencing with Section 25740) of Division 15
38of the Public Resources Code.

P4    1(d) New and modified electric transmission facilities may be
2necessary to facilitate the state achieving its renewables portfolio
3standard targets.

4(e) (1) Supplying electricity to California end-use customers
5that is generated by eligible renewable energy resources is
6necessary to improve California’s air quality and public health,
7and the commission shall ensure rates are just and reasonable, and
8are not significantly affected by the procurement requirements of
9this article. This electricity may be generated anywhere in the
10interconnected grid that includes many states, and areas of both
11Canada and Mexico.

12(2) This article requires generating resources located outside of
13California that are able to supply that electricity to California
14end-use customers to be treated identically to generating resources
15located within the state, without discrimination.

16(3) California electrical corporations have already executed,
17and the commission has approved, power purchase agreements
18with eligible renewable energy resources located outside of
19California that will supply electricity to California end-use
20customers. These resources will fully count toward meeting the
21renewables portfolio standard procurement requirements. In
22addition, there are nearly 7,000 megawatts of additional proposed
23renewable energy resources located outside of California that are
24awaiting interconnection approval from the Independent System
25Operator. All of these resources, if procured, will count as eligible
26renewable energy resources that satisfy the portfolio content
27requirements of paragraph (1) of subdivision (c) of Section 399.16.

28

SEC. 2.  

Section 399.15 of the Public Utilities Code is amended
29to read:

30

399.15.  

(a) In order to fulfill unmet long-term resource needs,
31the commission shall establish a renewables portfolio standard
32requiring all retail sellers to procure a minimum quantity of
33electricity products from eligible renewable energy resources as
34a specified percentage of total kilowatthours sold to their retail
35end-use customers each compliance period to achieve the targets
36established under this article. For any retail seller procuring at least
3714 percent of retail sales from eligible renewable energy resources
38in 2010, the deficits associated with any previous renewables
39portfolio standard shall not be added to any procurement
40requirement pursuant to this article.

P5    1(b) The commission shall implement renewables portfolio
2standard procurement requirements only as follows:

3(1) Each retail seller shall procure a minimum quantity of
4eligible renewable energy resources for each of the following
5compliance periods:

6(A) January 1, 2011, to December 31, 2013, inclusive.

7(B) January 1, 2014, to December 31, 2016, inclusive.

8(C) January 1, 2017, to December 31, 2020, inclusive.

begin insert

9(D) January 1, 2021, to December 31, 2023, inclusive.

end insert
begin insert

10(E) January 1, 2024, to December 31, 2026, inclusive.

end insert
begin insert

11(D) January 1, 2027, to December 31, 2030, inclusive.

end insert

12(2) (A) No later than January 1,begin delete 2012,end deletebegin insert 2017,end insert the commission
13shall establish the quantity of electricity products from eligible
14renewable energy resources to be procured by the retail seller for
15each compliance period. These quantities shall be established in
16the same manner for all retail sellers and result in the same
17percentages used to establish compliance period quantities for all
18retail sellers.

19(B) In establishing quantities for the compliance period from
20January 1, 2011, to December 31, 2013, inclusive, the commission
21shall require procurement for each retail seller equal to an average
22of 20 percent of retail sales. For the following compliance periods,
23the quantities shall reflect reasonable progress in each of the
24intervening years sufficient to ensure that the procurement of
25electricity products from eligible renewable energy resources
26achieves 25 percent of retail sales by December 31, 2016,begin delete andend delete 33
27percentbegin delete of retail salesend delete by December 31,begin delete 2020.end deletebegin insert 2020, 38 percent by
28December 31, 2023, 44 percent by December 31, 2026, and 50
29percent by December 31, 2030.end insert
The commission shall require retail
30sellers to procure not less thanbegin delete 33end deletebegin insert 50end insert percent of retail sales of
31electricity products from eligible renewable energy resources in
32all subsequent years.

33(C) Retail sellers shall be obligated to procure no less than the
34quantities associated with all intervening years by the end of each
35compliance period. Retail sellers shall not be required to
36demonstrate a specific quantity of procurement for any individual
37intervening year.

38(3) The commission may require the procurement of eligible
39renewable energy resources in excess of the quantities specified
40in paragraph (2).

P6    1(4) Only for purposes of establishing the renewables portfolio
2standard procurement requirements of paragraph (1) and
3determining the quantities pursuant to paragraph (2), the
4commission shall include all electricity sold to retail customers by
5the Department of Water Resources pursuant to Division 27
6(commencing with Section 80000) of the Water Code in the
7calculation of retail sales by an electrical corporation.

8(5) The commission shall waive enforcement of this section if
9it finds that the retail seller has demonstrated any of the following
10conditions are beyond the control of the retail seller and will
11prevent compliance:

12(A) There is inadequate transmission capacity to allow for
13sufficient electricity to be delivered from proposed eligible
14renewable energy resource projects using the current operational
15protocols of the Independent System Operator. In making its
16findings relative to the existence of this condition with respect to
17a retail seller that owns transmission lines, the commission shall
18consider both of the following:

19(i) Whether the retail seller has undertaken, in a timely fashion,
20reasonable measures under its control and consistent with its
21obligations under local, state, and federal laws and regulations, to
22develop and construct new transmission lines or upgrades to
23existing lines intended to transmit electricity generated by eligible
24renewable energy resources. In determining the reasonableness of
25 a retail seller’s actions, the commission shall consider the retail
26seller’s expectations for full-cost recovery for these transmission
27lines and upgrades.

28(ii) Whether the retail seller has taken all reasonable operational
29measures to maximize cost-effective deliveries of electricity from
30eligible renewable energy resources in advance of transmission
31availability.

32(B) Permitting, interconnection, or other circumstances that
33delay procured eligible renewable energy resource projects, or
34there is an insufficient supply of eligible renewable energy
35resources available to the retail seller. In making a finding that this
36condition prevents timely compliance, the commission shall
37consider whether the retail seller has done all of the following:

38(i) Prudently managed portfolio risks, including relying on a
39sufficient number of viable projects.

P7    1(ii) Sought to develop one of the following: its own eligible
2renewable energy resources, transmission to interconnect to eligible
3renewable energy resources, or energy storage used to integrate
4eligible renewable energy resources. This clause shall not require
5an electrical corporation to pursue development of eligible
6renewable energy resources pursuant to Section 399.14.

7(iii) Procured an appropriate minimum margin of procurement
8above the minimum procurement level necessary to comply with
9the renewables portfolio standard to compensate for foreseeable
10delays or insufficient supply.

11(iv) Taken reasonable measures, under the control of the retail
12seller, to procure cost-effective distributed generation and allowable
13unbundled renewable energy credits.

14(C) Unanticipated curtailment of eligible renewable energy
15resources necessary to address the needs of a balancing authority.

16(6) If the commission waives the compliance requirements of
17this section, the commission shall establish additional reporting
18requirements on the retail seller to demonstrate that all reasonable
19actions under the control of the retail seller are taken in each of
20the intervening years sufficient to satisfy future procurement
21requirements.

22(7) The commission shall not waive enforcement pursuant to
23this section, unless the retail seller demonstrates that it has taken
24all reasonable actions under its control, as set forth in paragraph
25(5), to achieve full compliance.

26(8) If a retail seller fails to procure sufficient eligible renewable
27 energy resources to comply with a procurement requirement
28pursuant to paragraphs (1) and (2) and fails to obtain an order from
29the commission waiving enforcement pursuant to paragraph (5),
30the commission shall exercise its authority pursuant to Section
312113.

32(9) Deficits associated with the compliance period shall not be
33added to a future compliance period.

34(c) The commission shall establish a limitation for each electrical
35corporation on the procurement expenditures for all eligible
36renewable energy resources used to comply with the renewables
37portfolio standard. In establishing this limitation, the commission
38shall rely on the following:

39(1) The most recent renewable energy procurement plan.

P8    1(2) Procurement expenditures that approximate the expected
2 cost of building, owning, and operating eligible renewable energy
3resources.

4(3) The potential that some planned resource additions may be
5delayed or canceled.

6(d) In developing the limitation pursuant to subdivision (c), the
7commission shall ensure all of the following:

8(1) The limitation is set at a level that prevents disproportionate
9rate impacts.

10(2) The costs of all procurement credited toward achieving the
11renewables portfolio standard are counted towards the limitation.

12(3) Procurement expenditures do not include any indirect
13expenses, including imbalance energy charges, sale of excess
14energy, decreased generation from existing resources, transmission
15upgrades, or the costs associated with relicensing any utility-owned
16hydroelectric facilities.

17(e) (1) No later than January 1, 2016, the commission shall
18prepare a report to the Legislature assessing whether each electrical
19corporation can achieve a 33-percent renewables portfolio standard
20by December 31, 2020, and maintain that level thereafter, within
21the adopted cost limitations. If the commission determines that it
22is necessary to change the limitation for procurement costs incurred
23by any electrical corporation after that date, it may propose a
24revised cap consistent with the criteria in subdivisions (c) and (d).
25The proposed modifications shall take effect no earlier than January
261, 2017.

27(2) Notwithstanding Section 10231.5 of the Government Code,
28the requirement for submitting a report imposed under paragraph
29(1) is inoperative on January 1, 2021.

30(3) A report to be submitted pursuant to paragraph (1) shall be
31submitted in compliance with Section 9795 of the Government
32Code.

33(f) If the cost limitation for an electrical corporation is
34insufficient to support the projected costs of meeting the
35renewables portfolio standard procurement requirements, the
36electrical corporation may refrain from entering into new contracts
37or constructing facilities beyond the quantity that can be procured
38within the limitation, unless eligible renewable energy resources
39can be procured without exceeding a de minimis increase in rates,
P9    1consistent with the long-term procurement plan established for the
2electrical corporation pursuant to Section 454.5.

3(g) (1) The commission shall monitor the status of the cost
4limitation for each electrical corporation in order to ensure
5compliance with this article.

6(2) If the commission determines that an electrical corporation
7may exceed its cost limitation prior to achieving the renewables
8portfolio standard procurement requirements, the commission shall
9do both of the following within 60 days of making that
10determination:

11(A) Investigate and identify the reasons why the electrical
12corporation may exceed its annual cost limitation.

13(B) Notify the appropriate policy and fiscal committees of the
14Legislature that the electrical corporation may exceed its cost
15limitation, and include the reasons why the electrical corporation
16may exceed its cost limitation.

17(h) The establishment of a renewables portfolio standard shall
18not constitute implementation by the commission of the federal
19Public Utility Regulatory Policies Act of 1978 (Public Law
2095-617).

21

SEC. 3.  

Section 399.30 of the Public Utilities Code is amended
22to read:

23

399.30.  

(a) To fulfill unmet long-term generation resource
24needs, each local publicly owned electric utility shall adopt and
25implement a renewable energy resources procurement plan that
26requires the utility to procure a minimum quantity of electricity
27products from eligible renewable energy resources, including
28renewable energy credits, as a specified percentage of total
29kilowatthours sold to the utility’s retail end-use customers, each
30compliance period, to achieve the targets of subdivision (c).

31(b) The governing board shall implement procurement targets
32for a local publicly owned electric utility that require the utility to
33procure a minimum quantity of eligible renewable energy resources
34for each of the following compliance periods:

35(1) January 1, 2011, to December 31, 2013, inclusive.

36(2) January 1, 2014, to December 31, 2016, inclusive.

37(3) January 1, 2017, to December 31, 2020, inclusive.

begin insert

38(D) January 1, 2021, to December 31, 2023, inclusive.

end insert
begin insert

39(E) January 1, 2024, to December 31, 2026, inclusive.

end insert
begin insert

40(D) January 1, 2027, to December 31, 2030, inclusive.

end insert

P10   1(c) The governing board of a local publicly owned electric utility
2shall ensure all of the following:

3(1) The quantities of eligible renewable energy resources to be
4procured for the compliance period from January 1, 2011, to
5December 31, 2013, inclusive, are equal to an average of 20 percent
6of retail sales.

7(2) The quantities of eligible renewable energy resources to be
8procured for all other compliance periods reflect reasonable
9progress in each of the intervening years sufficient to ensure that
10the procurement of electricity products from eligible renewable
11energy resources achieves 25 percent of retail sales by December
1231, 2016,begin delete andend delete 33 percentbegin delete of retail salesend delete by December 31,begin delete 2020.end delete
13begin insert 2020, 38 percent by December 31, 2023, 44 percent by December
1431, 2026, and 50 percent by December 31, 2030.end insert
The local
15governing board shall require the local publicly owned electric
16begin delete utilitiesend deletebegin insert utilityend insert to procure not less thanbegin delete 33end deletebegin insert 50end insert percent of retail sales
17of electricity products from eligible renewable energy resources
18in all subsequent years.

19(3) A local publicly owned electric utility shall adopt
20procurement requirements consistent with Section 399.16.

21(d) The governing board of a local publicly owned electric utility
22may adopt the following measures:

23(1) Rules permitting the utility to apply excess procurement in
24one compliance period to subsequent compliance periods in the
25same manner as allowed for retail sellers pursuant to Section
26399.13.

27(2) Conditions that allow for delaying timely compliance
28consistent with subdivision (b) of Section 399.15.

29(3) Cost limitations for procurement expenditures consistent
30with subdivision (c) of Section 399.15.

31(e) The governing board of the local publicly owned electric
32utility shall adopt a program for the enforcement of this article on
33or before January 1, 2012. The program shall be adopted at a
34publicly noticed meeting offering all interested parties an
35opportunity to comment. Not less than 30 days’ notice shall be
36given to the public of any meeting held for purposes of adopting
37the program. Not less than 10 days’ notice shall be given to the
38public before any meeting is held to make a substantive change to
39the program.

P11   1(f) (1) Each local publicly owned electric utility shall annually
2post notice, in accordance with Chapter 9 (commencing with
3Section 54950) of Part 1 of Division 2 of Title 5 of the Government
4Code, whenever its governing body will deliberate in public on its
5renewable energy resources procurement plan.

6(2) Contemporaneous with the posting of the notice of a public
7meeting to consider the renewable energy resources procurement
8plan, the local publicly owned electric utility shall notify the
9Energy Commission of the date, time, and location of the meeting
10in order to enable the Energy Commission to post the information
11on its Internet Web site. This requirement is satisfied if the local
12publicly owned electric utility provides the uniform resource
13locator (URL) that links to this information.

14(3) Upon distribution to its governing body of information
15related to its renewable energy resources procurement status and
16future plans, for its consideration at a noticed public meeting, the
17local publicly owned electric utility shall make that information
18available to the public and shall provide the Energy Commission
19with an electronic copy of the documents for posting on the Energy
20Commission’s Internet Web site. This requirement is satisfied if
21the local publicly owned electric utility provides the uniform
22resource locator (URL) that links to the documents or information
23regarding other manners of access to the documents.

24(g) A public utility district that receives all of its electricity
25pursuant to a preference right adopted and authorized by the United
26States Congress pursuant to Section 4 of the Trinity River Division
27Act of August 12, 1955 (Public Law 84-386) shall be in compliance
28with the renewable energy procurement requirements of this article.

29(h) For a local publicly owned electric utility that was in
30existence on or before January 1, 2009, that provides retail electric
31service to 15,000 or fewer customer accounts in California, and is
32interconnected to a balancing authority located outside this state
33but within the WECC, an eligible renewable energy resource
34includes a facility that is located outside California that is
35connected to the WECC transmission system, if all of the following
36conditions are met:

37(1) The electricity generated by the facility is procured by the
38local publicly owned electric utility, is delivered to the balancing
39authority area in which the local publicly owned electric utility is
P12   1located, and is not used to fulfill renewable energy procurement
2requirements of other states.

3(2) The local publicly owned electric utility participates in, and
4complies with, the accounting system administered by the Energy
5Commission pursuant to this article.

6(3) The Energy Commission verifies that the electricity
7generated by the facility is eligible to meet the renewables portfolio
8standard procurement requirements.

9(i) Notwithstanding subdivision (a), for a local publicly owned
10electric utility that is a joint powers authority of districts established
11pursuant to state law on or before January 1, 2005, that furnish
12electric services other than to residential customers, and is formed
13pursuant to the Irrigation District Law (Division 11 (commencing
14with Section 20500) of the Water Code), the percentage of total
15kilowatthours sold to the district’s retail end-use customers, upon
16which the renewables portfolio standard procurement requirements
17in subdivision (b) are calculated, shall be based on the authority’s
18average retail sales over the previous seven years. If the authority
19has not furnished electric service for seven years, then the
20calculation shall be based on average retail sales over the number
21of completed years during which the authority has provided electric
22service.

23(j) A local publicly owned electric utility in a city and county
24that only receives greater than 67 percent of its electricity sources
25from hydroelectric generation located within the state that it owns
26and operates, and that does not meet the definition of a “renewable
27electrical generation facility” pursuant to Section 25741 of the
28Public Resources Code, shall be required to procure eligible
29renewable energy resources, including renewable energy credits,
30to meet only the electricity demands unsatisfied by its hydroelectric
31generation in any given year, in order to satisfy its renewable
32energy procurement requirements.

33(k) (1) A local publicly owned electric utility that receives
34greater than 50 percent of its annual retail sales from its own
35hydroelectric generation that is not an eligible renewable energy
36resource shall not be required to procure additional eligible
37renewable energy resources in excess of either of the following:

38(A) The portion of its retail sales not supplied by its own
39hydroelectric generation. For these purposes, retail sales supplied
40by an increase in hydroelectric generation resulting from an
P13   1increase in the amount of water stored by a dam because the dam
2is enlarged or otherwise modified after December 31, 2012, shall
3not count as being retail sales supplied by the utility’s own
4hydroelectric generation.

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

6(2) For the purposes of this subdivision, “hydroelectric
7generation” means electricity generated from a hydroelectric
8facility that satisfies all of the following:

9(A) Is owned solely and operated by the local publicly owned
10electric utility as of 1967.

11(B) Serves a local publicly owned electric utility with a
12distribution system demand of less than 150 megawatts.

13(C) Involves a contract in which an electrical corporation
14receives the benefit of the electric generation through June of 2014,
15at which time the benefit reverts back to the ownership and control
16of the local publicly owned electric utility.

17(D) Has a maximum penstock flow capacity of no more than
183,200 cubic feet per second and includes a regulating reservoir
19with a small hydroelectric generation facility producing fewer than
2020 megawatts with a maximum penstock flow capacity of no more
21than 3,000 cubic feet per second.

22(3) This subdivision does not reduce or eliminate any renewable
23procurement requirement for any compliance period ending prior
24to January 1, 2014.

25(4) This subdivision does not require a local publicly owned
26electric utility to purchase additional eligible renewable energy
27resources in excess of the procurement requirements of subdivision
28(c).

29(l) A local publicly owned electric utility shall retain discretion
30over both of the following:

31(1) The mix of eligible renewable energy resources procured
32by the utility and those additional generation resources procured
33by the utility for purposes of ensuring resource adequacy and
34reliability.

35(2) The reasonable costs incurred by the utility for eligible
36renewable energy resources owned by the utility.

37(m) On or before July 1, 2011, the Energy Commission shall
38adopt regulations specifying procedures for enforcement of this
39article. The regulations shall include a public process under which
40the Energy Commission may issue a notice of violation and
P14   1correction against a local publicly owned electric utility for failure
2to comply with this article, and for referral of violations to the
3State Air Resources Board for penalties pursuant to subdivision
4(o).

5(n) (1) Upon a determination by the Energy Commission that
6a local publicly owned electric utility has failed to comply with
7this article, the Energy Commission shall refer the failure to comply
8with this article to the State Air Resources Board, which may
9impose penalties to enforce this article consistent with Part 6
10(commencing with Section 38580) of Division 25.5 of the Health
11and Safety Code. Any penalties imposed shall be comparable to
12those adopted by the commission for noncompliance by retail
13sellers.

14(2) If Division 25.5 (commencing with Section 38500) of the
15Health and Safety Code is suspended or repealed, the State Air
16Resources Board may take action to enforce this article on local
17publicly owned electric utilities consistent with Section 41513 of
18the Health and Safety Code, and impose penalties on a local
19publicly owned electric utility consistent with Article 3
20(commencing with Section 42400) of Chapter 4 of Part 4 of, and
21Chapter 1.5 (commencing with Section 43025) of Part 5 of,
22Division 26 of the Health and Safety Code.

23(3) For the purpose of this subdivision, this section is an
24emissions reduction measure pursuant to Section 38580 of the
25Health and Safety Code.

26(4) If the State Air Resources Board has imposed a penalty upon
27a local publicly owned electric utility for the utility’s failure to
28comply with this article, the State Air Resources Board shall not
29impose an additional penalty for the same infraction, or the same
30failure to comply, with any renewables procurement requirement
31imposed upon the utility pursuant to the California Global Warming
32Solutions Act of 2006 (Division 25.5 (commencing with Section
3338500) of the Health and Safety Code).

34(5) Any penalties collected by the State Air Resources Board
35pursuant to this article shall be deposited in the Air Pollution
36Control Fund and, upon appropriation by the Legislature, shall be
37expended for reducing emissions of air pollution or greenhouse
38gases within the same geographic area as the local publicly owned
39electric utility.

P15   1(o) The commission has no authority or jurisdiction to enforce
2any of the requirements of this article on a local publicly owned
3electric utility.

4

SEC. 4.  

No reimbursement is required by this act pursuant to
5Section 6 of Article XIII B of the California Constitution because
6a local agency or school district has the authority to levy service
7charges, fees, or assessments sufficient to pay for the program or
8level of service mandated by this act or because costs that may be
9incurred by a local agency or school district will be incurred
10because this act creates a new crime or infraction, eliminates a
11crime or infraction, or changes the penalty for a crime or infraction,
12within the meaning of Section 17556 of the Government Code, or
13changes the definition of a crime within the meaning of Section 6
14of Article XIII B of the California Constitution.



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