BILL ANALYSIS Ó
AB 645
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ASSEMBLY THIRD READING
AB
645 (Williams and Rendon)
As Introduced February 24, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+---------------------+---------------------|
|Utilities |10-5 |Rendon, Bonilla, |Patterson, |
| | |Burke, Eggman, |Achadjian, Dahle, |
| | |Cristina Garcia, |Hadley, Jones |
| | |Roger Hernández, | |
| | |Quirk, Santiago, | |
| | |Ting, Williams | |
| | | | |
|----------------+------+---------------------+---------------------|
|Natural |6-3 |Williams, Cristina |Dahle, Hadley, |
|Resources | |Garcia, McCarty, |Harper |
| | |Rendon, | |
| | | | |
| | | | |
| | |Mark Stone, Wood | |
| | | | |
|----------------+------+---------------------+---------------------|
|Appropriations |12-5 |Gomez, Bonta, |Bigelow, Chang, |
| | |Calderon, Daly, |Gallagher, Jones, |
| | |Eggman, |Wagner |
| | | | |
| | | | |
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| | |Eduardo Garcia, | |
| | |Gordon, Holden, | |
| | |Quirk, Rendon, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Establishes a Renewables Portfolio Standard (RPS) target
of 50% by 2030, including interim targets of 38% by 2023 and 44%
by 2026.
FISCAL EFFECT: According the Assembly Appropriations Committee:
1)Annual California Public Utility Commission (CPUC) costs of $1.5
million per year over five years, beginning in 2017 to continue
consultant contracts. Increased ongoing annual staffing costs
of $125,000.
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.
COMMENTS:
1)Background. The California RPS 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% by 2017. SB 107 (Simitian), Chapter
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464, Statutes of 2006, accelerated the deadline for 20% to 2010.
SB2 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.
2)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%,
and
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 50% by 2030. These
include:
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1) Enabling the procurement and integration of the broad
range of renewable resources necessary to assure balanced,
reliable portfolios, and maximize environmental benefits,
2) 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, and
3) 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:
Sue Kateley / U. & C. / (916) 319-2083 FN:
0000696