BILL ANALYSIS Ó
AB 645
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Date of Hearing: May 13, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
645 (Williams) - As Introduced February 24, 2015
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|Policy |Utilities and Commerce |Vote:|10 - 5 |
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| |Natural Resources | |6 - 3 |
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Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill establishes a Renewables Portfolio Standard (RPS)
target of 50% by 2030, including interim targets of 38% by 2023
and 44% by 2026.
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FISCAL EFFECT:
1)Annual Public Utility Commission (PUC) costs of $1.5 million
per year over 5 years, beginning in 2017 to continue
consultant contracts. Increased ongoing annual staffing costs
of $125,000. (Special Funds)
2)Ongoing annual California Energy Commission (CEC) costs of
$870,000 to develop regulations and data necessary to
implement and track the higher procurement standard. (Special
Funds)
COMMENTS:
1)Purpose. According to the author, California currently uses
renewable resources for about 25% of its electricity use and
is on a trajectory to use 33% by 2020. However, in order to
meet long term climate change goals, we must derive 50% of the
state's electricity from renewable resources by 2030.
2)Background. The California Renewables Portfolio Standard
program requires investor- owned utilities, local
publicly-owned utilities, 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 2002, set a goal of 20 percent by 2017. SB 107 (Simitian),
Chapter 464, Statutes of 2006, accelerated the deadline for 20
percent to 2010.
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SBX1 2 (Simitian), Chapter 1, Statutes of 2011-12 First
Extraordinary Session, codified the current 33 percent 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 by up
to 50%.
c) Double the efficiency of existing buildings and make
heating fuels cleaner.
This bill addresses the Governor's first policy goal by
increasing the RPS from 33% to 50% by 2030.
1) Work in Progress. Many outstanding policy and
implementation issues remain and will need to be addressed
prior to enacting any legislation to increase the RPS to
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50% by 2030. These include:
a. Enabling the procurement and integration of
the broad range of renewable resources necessary to
assure balanced, reliable portfolios and maximize
environmental benefits.
b. Determining the manner in which electricity
from small-scale and distributed renewable energy
resources is counted toward the RPS to assure these
resources are properly valued, but not double-counted.
c. Reconciling the RPS with other programs that
are part of the state's overall climate and energy
goals, such as energy efficiency and electrification
of the transportation sector.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081