BILL NUMBER: SB 350 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JULY 8, 2015
INTRODUCED BY Senators De León and Leno
(Coauthors: Senators Hancock and Monning)
FEBRUARY 24, 2015
An act to amend Section 43013 of of, and
to add Section 44258.5 to, the Health and Safety Code, to amend
Sections 25000.5 and 25943 of the Public Resources Code, and to
amend Sections 399.11, 399.12, 399.13, 399.15, 399.16, 399.18,
399.21, and 399.30 399.30, 701.1, and 740.8
of, to add Section 454.51 Sections
237.5, 454.51, and 740.12 to, and to add Article 17 (commencing
with Section 400) to Chapter 2.3 of Part 1 of Division 1 of, the
Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 350, as amended, De León. Clean Energy and Pollution Reduction
Act of 2015.
(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. Under existing law, a violation of the Public Utilities
Act is a crime.
Existing law establishes the California Renewables Portfolio
Standard (RPS) program, Program, which
is codified in the Public Utilities Act and
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 includes as an eligible renewable energy resources
resource a specified facility engaged in the
combustion of municipal solid waste.
Existing law makes the requirements of the RPS program
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 (Energy 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 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.
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. The bill would exclude all
facilities engaged in the combustion of municipal solid waste from
being eligible renewable energy resources. The bill would require
community choice aggregators and electric service providers to
prepare and submit renewable energy procurement plans. The bill would
revise other aspects of the RPS program,
Program, including, among other things, the enforcement
provisions and would require penalties collected from retai
l sellers for noncompliance to be deposited in the
Electric Program Investment Charge Fund. The bill would require the
PUC to direct electrical corporations to include in their proposed
procurement plans a strategy for procuring a diverse portfolio of
resources that provide a reliable electricity supply. The bill would
require the PUC and the Energy Commission to take certain actions in
furtherance of meeting the state's clean energy and pollution
reduction objectives.
This bill would authorize the PUC to authorize a procurement
entity, and would authorize a local publicly owned utility, to
procure an unspecified percentage of retail sales of onsite
generation meeting certain requirements within the area served by the
procurement entity to serve local electricity needs.
Existing law requires the PUC, in cooperation with specified
entities, to evaluate and implement policies to promote development
of equipment and infrastructure needed to facilitate the use of
electricity and natural gas to fuel low-emission vehicles. Existing
law requires those policies to prohibit utilities from passing the
costs and expenses related to programs for the development of that
equipment or infrastructure through to ratepayers unless the PUC
finds and determines that those programs are in the interest of
ratepayers. Existing law defines "interests" of the ratepayers for
this purpose.
This bill would revise the definition of "interests" of the
ratepayers. The bill would require the PUC, in consultation with
specified entities, to direct electric corporations to propose
multiyear programs and investments to accelerate widespread
transportation electrification as a means to achieve certain goals.
The bill would require the commission to review data concerning
current and future electric transportation adoption rates and
charging infrastructure utilization rates no less than every 3 years.
(2) Under existing law, a violation of the RPS program is a crime.
Because the above provisions of this bill
would expand the RPS program, are codified in the
Public Utilities Act, a violation of these provisions would
impose a state-mandated local program by expanding the definition of
a crime or establishing a new crime.
(3) By
By placing additional requirements upon local publicly
owned electric utilities, this bill would impose a state-mandated
local program.
(4)
(2) Existing law requires the State Air Resources Board
to adopt and implement various standards related to emissions from
motor vehicles.
This bill would require those standards to be in furtherance of
achieving a reduction in petroleum use in motor vehicles by 50% by
January 1, 2030. The bill would require the state board, by
January 1, 2017, to prepare a strategy and implementation plan to
achieve this reduction.
Existing law requires the State Air Resources Board to adopt
greenhouse gas emission limits and emissions reduction measures, by
regulations, to achieve the maximum technologically feasible and
cost-effective reductions in greenhouse gas emissions in furtherance
of achieving the statewide greenhouse gas emissions limit. Existing
law requires the state board, in adoption regulations, to, among
other things, design the regulations to include distribution of
emissions allowance, where appropriate, to minimize the costs and
maximize total benefits to California.
The Charge Ahead California Initiative states goals of, among
other things, placing in service at least 1,000,000 zero-emission and
near-zero-emission vehicles by January 1, 2023, and increasing
access for disadvantaged, low-income, and moderate-income communities
and consumers to zero-emission and near-zero-emission vehicles.
This bill would require the state board to identify and adopt
appropriate policies to remove regulatory disincentives facing retail
sellers from facilitating the achievement of greenhouse gas
emissions reduction in other sectors through increased investments in
transportation and building electrification that includes allocation
of greenhouse gas emissions allowances to retail sellers to account
for increased greenhouse gas emissions in the electric sector from
transportation electrification.
(5)
(3) Existing law states the policy of the state to
exploit all practicable and cost-effective conservation and
improvements in the efficiency of energy use and distribution, and to
achieve energy security, diversity of supply sources, and
competitiveness of transportation energy markets based on the least
environmental and economic costs.
This bill would additionally state the policy of the state to
exploit those conservation and improvements in furtherance of
reducing petroleum use in the transportation sector by 50% by January
1, 2030. The bill would state the policy of the state to
encourage transportation electrification natural gas vehicles as a
short-term measure, fuel cell vehicles, and transportation
innovations as means to achieve certain goals.
(6)
(4) Existing law requires the Energy Commission to
establish a regulatory proceeding to develop and implement a
comprehensive program to achieve greater energy savings in California'
s existing residential and nonresidential building stock and to
periodically update criteria for the program.
This bill would require the Energy Commission, by January 1, 2017,
and at least once every 3 years thereafter, to adopt an update to
the program in furtherance of achieving a doubling of energy
efficiency in buildings by January 1, 2030. The bill would
require the Energy Commission to adopt, implement, and enforce
certain policy regarding ratepayer-funded energy efficiency programs.
(7)
(5) 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:
SECTION 1. This act shall be known and may be cited as the Clean
Energy and Pollution Reduction Act of 2015.
SEC. 2. (a) The Legislature finds and declares that the Governor
has called for a new set of objectives in clean energy, clean air,
and pollution reduction for 2030 and beyond. Those objectives consist
of the following:
(1) To increase from 33 percent to 50 percent, the procurement of
our electricity from renewable sources.
(2) To reduce today's petroleum use in cars and trucks by up to 50
percent.
(3) To double the efficiency of existing buildings.
(b) It is the intent of the Legislature in enacting this act to
codify the targets described under subdivision (a) to ensure they are
permanent, enforceable, and quantifiable.
SEC. 3. Section 43013 of the Health and Safety Code is amended to
read:
43013. (a) The state board shall adopt and implement motor
vehicle emission standards, in-use performance standards, and motor
vehicle fuel specifications for the control of air contaminants and
sources of air pollution which the state board has found to be
necessary, cost effective, and technologically feasible, to carry out
the purposes of this division and in furtherance of achieving a
reduction in petroleum use in motor vehicles by 50 percent by January
1, 2030, unless preempted by federal law.
(b) The state board shall, consistent with subdivision (a), adopt
standards and regulations for light-duty and heavy-duty motor
vehicles, medium-duty motor vehicles, as determined and specified by
the state board, portable fuel containers and spouts, and off-road or
nonvehicle engine categories, including, but not limited to,
off-highway motorcycles, off-highway vehicles, construction
equipment, farm equipment, utility engines, locomotives, and, to the
extent permitted by federal law, marine vessels.
(c) Prior to adopting standards and regulations for farm
equipment, the state board shall hold a public hearing and find and
determine that the standards and regulations are necessary, cost
effective, and technologically feasible. The state board shall also
consider the technological effects of emission control standards on
the cost, fuel consumption, and performance characteristics of mobile
farm equipment.
(d) Notwithstanding subdivision (b), the state board shall not
adopt any standard or regulation affecting locomotives until the
final study required under Section 5 of Chapter 1326 of the Statutes
of 1987 has been completed and submitted to the Governor and
Legislature.
(e) Prior to adopting or amending any standard or regulation
relating to motor vehicle fuel specifications pursuant to this
section, the state board shall, after consultation with public or
private entities that would be significantly impacted as described in
paragraph (2) of subdivision (f), do both of the following:
(1) Determine the cost-effectiveness of the adoption or amendment
of the standard or regulation. The cost-effectiveness shall be
compared on an incremental basis with other mobile source control
methods and options.
(2) Based on a preponderance of scientific and engineering data in
the record, determine the technological feasibility of the adoption
or amendment of the standard or regulation. That determination shall
include, but is not limited to, the availability, effectiveness,
reliability, and safety expected of the proposed technology in an
application that is representative of the proposed use.
(f) Prior to adopting or amending any motor vehicle fuel
specification pursuant to this section, the state board shall do both
of the following:
(1) To the extent feasible, quantitatively document the
significant impacts of the proposed standard or specification on
affected segments of the state's economy. The economic analysis shall
include, but is not limited to, the significant impacts of any
change on motor vehicle fuel efficiency, the existing motor vehicle
fuel distribution system, the competitive position of the affected
segment relative to border states, and the cost to consumers.
(2) Consult with public or private entities that would be
significantly impacted to identify those investigative or preventive
actions that may be necessary to ensure consumer acceptance, product
availability, acceptable performance, and equipment reliability. The
significantly impacted parties shall include, but are not limited to,
fuel manufacturers, fuel distributors, independent marketers,
vehicle manufacturers, and fuel users.
(g) (1) No later than January 1, 2017, the state board, after one
or more public workshops, shall prepare a strategy and implementation
plan to achieve a reduction in petroleum use in motor vehicles by 50
percent by January 1, 2030, and provide a copy of the strategy and
plan to the appropriate policy committees of the Legislature.
(2) Beginning January 1, 2020, and every three years thereafter,
the state board shall provide an update to the strategy and plan that
reflects any changes made to the strategy and plan.
(g)
(h) To the extent that there is any conflict between
the information required to be prepared by the state board pursuant
to subdivision (f) and information required to be prepared by the
state board pursuant to Chapter 3.5 (commencing with Section 11340)
of Part 1 of Division 3 of Title 2 of the Government Code, the
requirements established under subdivision (f) shall prevail.
(h)
(i) It is the intent of the Legislature that the state
board act as expeditiously as is feasible to reduce nitrogen oxide
emissions from diesel vehicles, marine vessels, and other categories
of vehicular and mobile sources which significantly contribute to air
pollution problems.
SEC. 4. Section 44258.5 is added to the
Health and Safety Code , to read:
44258.5. (a) For the purposes of this section, the following
terms mean the following:
(1) "Retail seller" has the same meaning as set forth in Section
399.12 of the Public Utilities Code.
(2) "Transportation electrification" has the same meaning as set
forth in Section 237.5 of the Public Utilities Code.
(b) The state board shall identify and adopt appropriate policies
to remove regulatory disincentives facing retail sellers from
facilitating the achievement of greenhouse gas emission reductions in
other sectors through increased investments in transportation
electrification. Those policies shall include, but are not limited
to, an allocation of greenhouse gas emissions allowances to retail
sellers to account for increased greenhouse gas emissions in the
electric sector from transportation electrification.
SEC. 4. SEC. 5. Section 25000.5 of
the Public Resources Code is amended to read:
25000.5. (a) The Legislature finds and declares that
overdependence on the production, marketing, and consumption of
petroleum based fuels as an energy resource in the transportation
sector is a threat to the energy security of the state due to
continuing market and supply uncertainties. In addition, petroleum
use as an energy resource contributes substantially to the following
public health and environmental problems: air pollution, acid rain,
global warming, and the degradation of California's marine
environment and fisheries.
(b) Therefore, it is the policy of this state to fully evaluate
the economic and environmental costs of petroleum use, and the
economic and environmental costs of other transportation fuels and
options, including the costs and values of environmental impacts, and
to establish a state transportation energy policy that results in
the least environmental and economic cost to the state. In pursuing
the "least environmental and economic cost" strategy, it is the
policy of the state to exploit all practicable and cost-effective
conservation and improvements in the efficiency of energy use and
distribution, and to achieve energy security, diversity of supply
sources, and competitiveness of transportation energy markets based
on the least environmental and economic cost, and in furtherance of
reducing petroleum use in the transportation sector by 50 percent by
January 1, 2030.
(c) It is also the policy of this state to minimize the economic
and environmental costs due to the use of petroleum-based and other
transportation fuels by state agencies. In implementing a least-cost
economic and environmental strategy for state fleets, it is the
policy of the state to implement practicable and cost-effective
measures, including, but not necessarily limited to, the purchase of
the cleanest and most efficient automobiles and replacement tires,
the use of alternative fuels in its fleets, and other conservation
measures.
(d) For the purposes of this section, "petroleum based fuels"
means fuels derived from liquid unrefined crude oil, including
natural gas liquids, liquefied petroleum gas, or the energy fraction
of methyl tertiary-butyl ether (MTBE) or other ethers that is not
attributed to natural gas.
SEC. 5. SEC. 6. Section 25943 of the
Public Resources Code is amended to read:
25943. (a) (1) By March 1, 2010, the commission shall establish a
regulatory proceeding to develop and implement a comprehensive
program to achieve greater energy savings in California's existing
residential and nonresidential building stock. This program shall
comprise a complementary portfolio of techniques, applications, and
practices that will achieve greater energy efficiency in existing
residential and nonresidential structures that fall significantly
below the current standards in Title 24 of the California Code of
Regulations, as determined by the commission.
(2) The comprehensive program may include, but need not be limited
to, a broad range of energy assessments, building benchmarking,
energy rating, cost-effective energy efficiency improvements, public
and private sector energy efficiency financing options, public
outreach and education efforts, and green workforce training.
(3) The commission shall adopt, implement, and enforce a
responsible contractor policy for use across all ratepayer-funded
energy efficiency programs that involve installation or maintenance,
or both installation and maintenance, by building contractors to
ensure that retrofits meet high-quality performance standards and
reduce energy savings lost or foregone due to poor-quality
workmanship.
(b) To develop and implement the program specified in subdivision
(a), the commission shall do both of the following:
(1) Coordinate with the Public Utilities Commission and consult
with representatives from the Bureau of Real Estate, the Department
of Housing and Community Development, investor-owned and publicly
owned utilities, local governments, real estate licensees, commercial
and homebuilders, commercial property owners, small businesses,
mortgage lenders, financial institutions, home appraisers,
inspectors, energy rating organizations, consumer groups,
environmental and environmental justice groups, and other entities
the commission deems appropriate.
(2) Hold at least three public hearings in geographically diverse
locations throughout the state.
(c) In developing the requirements for the program specified in
subdivision (a), the commission shall consider all of the following:
(1) The amount of annual and peak energy savings, greenhouse gas
emission reductions, and projected customer utility bill savings that
will accrue from the program.
(2) The most cost-effective means and reasonable timeframes to
achieve the goals of the program.
(3) The various climatic zones within the state.
(4) An appropriate method to inform and educate the public about
the need for, benefits of, and environmental impacts of, the
comprehensive energy efficiency program.
(5) The most effective way to report the energy assessment results
and the corresponding energy efficiency improvements to the owner of
the residential or nonresidential building, including, among other
things, the following:
(A) Prioritizing the identified energy efficiency improvements.
(B) The payback period or cost-effectiveness of each improvement
identified.
(C) The various incentives, loans, grants, and rebates offered to
finance the improvements.
(D) Available financing options including all of the following:
(i) Mortgages or sales agreement components.
(ii) On-bill financing.
(iii) Contractual property tax assessments.
(iv) Home warranties.
(6) Existing statutory and regulatory requirements to achieve
energy efficiency savings and greenhouse gas emission reductions.
(7) A broad range of implementation approaches, including both
utility and nonutility administration of energy efficiency programs.
(8) Any other considerations deemed appropriate by the commission.
(d) The program developed pursuant to this section shall do all of
the following:
(1) Minimize the overall costs of establishing and implementing
the comprehensive energy efficiency program requirements.
(2) Ensure, for residential buildings, that the energy efficiency
assessments, ratings, or improvements do not unreasonably or
unnecessarily affect the home purchasing process or the ability of
individuals to rent housing. A transfer of property subject to the
program implemented pursuant to this section shall not be invalidated
solely because of the failure of a person to comply with a provision
of the program.
(3) Ensure, for nonresidential buildings, that the energy
improvements do not have an undue economic impact on California
businesses.
(4) Determine, for residential buildings, the appropriateness of
the Home Energy Rating System (HERS) program to support the goals of
this section and whether there are a sufficient number of
HERS-certified raters available to meet the program requirements.
(5) Determine, for nonresidential structures, the availability of
an appropriate cost-effective energy efficiency assessment system and
whether there are a sufficient number of certified raters or
auditors available to meet the program requirements.
(6) Coordinate with the California Workforce Investment Board, the
Employment Training Panel, the California Community Colleges, and
other entities to ensure a qualified, well-trained workforce is
available to implement the program requirements.
(7) Coordinate with, and avoid duplication of, existing
proceedings of the Public Utilities Commission and programs
administered by utilities.
(e) A home energy rating or energy assessment service does not
meet the requirements of this section unless the service has been
certified by the commission to be in compliance with the program
criteria developed pursuant to this section and is in conformity with
other applicable elements of the program.
(f) (1) The commission shall periodically update the criteria and
adopt any revision that, in its judgment, is necessary to improve or
refine program requirements after receiving public input.
(2) On or before January 1, 2017, and at least once every three
years thereafter, the commission shall adopt an update to the program
in furtherance of achieving a an overall
doubling of the energy efficiency of buildings by January 1,
2030.
(g) Before implementing an element of the program developed
pursuant to subdivision (a) that requires the expansion of statutory
authority of the commission or the Public Utilities Commission, the
commission and the Public Utilities Commission shall obtain
legislative approval for the expansion of their authorities.
(h) The commission shall report on the status of the program in
the integrated energy policy report pursuant to Section 25302.
(i) The commission shall fund activities undertaken pursuant to
this section from the Federal Trust Fund consistent with the federal
American Recovery and Reinvestment Act of 2009 (Public Law 111-5) or
other sources of nonstate funds available to the commission for the
purposes of this section.
(j) For purposes of this section, "energy
the following terms mean the following:
(1) "Energy assessment" means a
determination of an energy user's energy consumption level, relative
efficiency compared to other users, and opportunities to achieve
greater efficiency or improve energy resource utilization.
(2) "Energy efficiency" means delivering equal or more services
with less energy input from an energy source.
SEC. 7. Section 237.5 is added to the
Public Utilities Code , to read:
237.5. "Transportation electrification" means the use of
electricity from the electric grid to power all or part of vehicles,
vessels, trains, boats, or other equipment that are mobile sources of
air pollution and greenhouse gases.
SEC. 6. SEC. 8. Section 399.11 of
the Public Utilities Code is amended to read:
399.11. The Legislature finds and declares all of the following:
(a) In order to attain a target of generating 20 percent of total
retail sales of electricity in California from eligible renewable
energy resources by December 31, 2013, 33 percent by December 31,
2020, and 50 percent by December 31, 2030, it is the intent of the
Legislature that the commission and the Energy Commission implement
the California Renewables Portfolio Standard Program described in
this article.
(b) Achieving the renewables portfolio standard through the
procurement of various electricity products from eligible renewable
energy resources is intended to provide unique benefits to
California, including all of the following, each of which
independently justifies the program:
(1) Displacing fossil fuel consumption within the state.
(2) Adding new electrical generating facilities in the
transmission network within the Western Electricity Coordinating
Council service area.
(3) Reducing air pollution in the state.
(4) Meeting the state's climate change goals by reducing emissions
of greenhouse gases associated with electrical generation.
(5) Promoting stable retail rates for electric service.
(6) Meeting the state's need for a diversified and balanced energy
generation portfolio.
(7) Assistance with meeting the state's resource adequacy
requirements.
(8) Contributing to the safe and reliable operation of the
electrical grid, including providing predictable electrical supply,
voltage support, lower line losses, and congestion relief.
(9) Implementing the state's transmission and land use planning
activities related to development of eligible renewable energy
resources.
(c) The California Renewables Portfolio Standard Program is
intended to complement the Renewable Energy Resources Program
administered by the Energy Commission and established pursuant to
Chapter 8.6 (commencing with Section 25740) of Division 15 of the
Public Resources Code.
(d) New and modified electric transmission facilities may be
necessary to facilitate the state achieving its renewables portfolio
standard targets.
(e) (1) Supplying electricity to California end-use customers that
is generated by eligible renewable energy resources is necessary to
improve California's air quality and public health, and the
commission shall ensure rates are just and reasonable, and are not
significantly affected by the procurement requirements of this
article. This electricity may be generated anywhere in the
interconnected grid that includes many states, and areas of both
Canada and Mexico.
(2) This article requires generating resources located outside of
California that are able to supply that electricity to California
end-use customers to be treated identically to generating resources
located within the state, without discrimination.
(3) California electrical corporations have already executed, and
the commission has approved, power purchase agreements with eligible
renewable energy resources located outside of California that will
supply electricity to California end-use customers. These resources
will fully count toward meeting the renewables portfolio standard
procurement requirements.
SEC. 7. SEC. 9. Section 399.12 of
the Public Utilities Code is amended to read:
399.12. For purposes of this article, the following terms have
the following meanings:
(a) "Conduit hydroelectric facility" means a facility for the
generation of electricity that uses only the hydroelectric potential
of an existing pipe, ditch, flume, siphon, tunnel, canal, or other
manmade conduit that is operated to distribute water for a beneficial
use.
(b) "Balancing authority" means the responsible entity that
integrates resource plans ahead of time, maintains load-interchange
generation balance within a balancing authority area, and supports
interconnection frequency in real time.
(c) "Balancing authority area" means the collection of generation,
transmission, and loads within the metered boundaries of the area
within which the balancing authority maintains the electrical
load-resource balance.
(d) "California balancing authority" is a balancing authority with
control over a balancing authority area primarily located in this
state and operating for retail sellers and local publicly owned
electric utilities subject to the requirements of this article and
includes the Independent System Operator (ISO) and a local publicly
owned electric utility operating a transmission grid that is not
under the operational control of the ISO. A California balancing
authority is responsible for the operation of the transmission grid
within its metered boundaries which may not be limited by the
political boundaries of the State of California.
(e) "Eligible renewable energy resource" means an electrical
generating facility that meets the definition of a "renewable
electrical generation facility" in Section 25741 of the Public
Resources Code, subject to the following:
(1) (A) An existing small hydroelectric generation facility of 30
megawatts or less shall be eligible only if a retail seller or local
publicly owned electric utility procured the electricity from the
facility as of December 31, 2005. A new hydroelectric facility that
commences generation of electricity after December 31, 2005, is not
an eligible renewable energy resource if it will cause an adverse
impact on instream beneficial uses or cause a change in the volume or
timing of streamflow.
(B) Notwithstanding subparagraph (A), a conduit hydroelectric
facility of 30 megawatts or less that commenced operation before
January 1, 2006, is an eligible renewable energy resource. A conduit
hydroelectric facility of 30 megawatts or less that commences
operation after December 31, 2005, is an eligible renewable energy
resource so long as it does not cause an adverse impact on instream
beneficial uses or cause a change in the volume or timing of
streamflow.
(C) A facility approved by the governing board of a local publicly
owned electric utility prior to June 1, 2010, for procurement to
satisfy renewable energy procurement obligations adopted pursuant to
former Section 387, shall be certified as an eligible renewable
energy resource by the Energy Commission pursuant to this article, if
the facility is a "renewable electrical generation facility" as
defined in Section 25741 of the Public Resources Code.
(D) (i) A small hydroelectric generation unit with a nameplate
capacity not exceeding 40 megawatts that is operated as part of a
water supply or conveyance system is an eligible renewable energy
resource only for the retail seller or local publicly owned electric
utility that procured the electricity from the unit as of December
31, 2005. No unit shall be eligible pursuant to this subparagraph if
an application for certification is submitted to the Energy
Commission after January 1, 2013. Only one retail seller or local
publicly owned electric utility shall be deemed to have procured
electricity from a given unit as of December 31, 2005.
(ii) Notwithstanding clause (i), a local publicly owned electric
utility that meets the criteria of subdivision (j) of Section 399.30
may sell to another local publicly owned electric utility electricity
from small hydroelectric generation units that qualify as eligible
renewable energy resources under clause (i), and that electricity may
be used by the local publicly owned electric utility that purchased
the electricity to meet its renewables portfolio standard procurement
requirements. The total of all those sales from the utility shall be
no greater than 100,000 megawatthours of electricity.
(iii) The amendments made to this subdivision by the act adding
this subparagraph are intended to clarify existing law and apply from
December 10, 2011.
(2) (A) A facility engaged in the combustion of municipal solid
waste shall not be considered an eligible renewable energy resource.
(B) Subparagraph (A) does not apply to contracts entered into
before January 1, 2016, for the procurement of renewable energy
resources from a facility located in Stanislaus County that was
operational prior to September 26, 1996.
(f) "Procure" means to acquire through ownership or contract.
(g) "Procurement entity" means any person or corporation
authorized by the commission to enter into contracts to procure
eligible renewable energy resources on behalf of customers of a
retail seller pursuant to subdivision (f) of Section 399.13.
(h) (1) "Renewable energy credit" means a certificate of proof
associated with the generation of electricity from an eligible
renewable energy resource, issued through the accounting system
established by the Energy Commission pursuant to Section 399.25, that
one unit of electricity was generated and delivered by an eligible
renewable energy resource.
(2) "Renewable energy credit" includes all renewable and
environmental attributes associated with the production of
electricity from the eligible renewable energy resource, except for
an emissions reduction credit issued pursuant to Section 40709 of the
Health and Safety Code and any credits or payments associated with
the reduction of solid waste and treatment benefits created by the
utilization of biomass or biogas fuels.
(3) (A) Electricity generated by an eligible renewable energy
resource attributable to the use of nonrenewable fuels, beyond a de
minimis quantity used to generate electricity in the same process
through which the facility converts renewable fuel to electricity,
shall not result in the creation of a renewable energy credit. The
Energy Commission shall set the de minimis
quantity of nonrenewable fuels for each renewable
energy technology at a level of no more than 2 percent of the total
quantity of fuel used by the technology to generate electricity. The
Energy Commission may adjust the de minimis quantity for an
individual facility, up to a maximum of 5 percent, if it finds that
all of the following conditions are met:
(i) The facility demonstrates that the higher quantity of
nonrenewable fuel will lead to an increase in generation from the
eligible renewable energy facility that is significantly greater than
generation from the nonrenewable fuel alone.
(ii) The facility demonstrates that the higher quantity of
nonrenewable fuels will reduce the variability of its electrical
output in a manner that results in net environmental benefits to the
state.
(iii) The higher quantity of nonrenewable fuel is limited to
either natural gas or hydrogen derived by reformation of a fossil
fuel.
(B) Electricity generated by a small hydroelectric generation
facility shall not result in the creation of a renewable energy
credit unless the facility meets the requirements of subparagraph (A)
or (D) of paragraph (1) of subdivision (e).
(C) Electricity generated by a conduit hydroelectric generation
facility shall not result in the creation of a renewable energy
credit unless the facility meets the requirements of subparagraph (B)
of paragraph (1) of subdivision (e).
(D) Electricity generated by a facility engaged in the combustion
of municipal solid waste shall not result in the creation of a
renewable energy credit. This subparagraph does not apply to
renewable energy credits that were generated before January 1, 2016,
by a facility engaged in the combustion of municipal solid waste
located in Stanislaus County that was operational prior to September
26, 1996, and sold pursuant to contacts entered into before January
1, 2016.
(i) "Renewables portfolio standard" means the specified percentage
of electricity generated by eligible renewable energy resources that
a retail seller or a local publicly owned electric utility is
required to procure pursuant to this article.
(j) "Retail seller" means an entity engaged in the retail sale of
electricity to end-use customers located within the state, including
any of the following:
(1) An electrical corporation, as defined in Section 218.
(2) A community choice aggregator. A community choice aggregator
shall participate in the renewables portfolio standard program
subject to the same terms and conditions applicable to an electrical
corporation.
(3) An electric service provider, as defined in Section 218.3. The
electric service provider shall be subject to the same terms and
conditions applicable to an electrical corporation pursuant to this
article. This paragraph does not impair a contract entered into
between an electric service provider and a retail customer prior to
the suspension of direct access by the commission pursuant to Section
80110 of the Water Code.
(4) "Retail seller" does not include any of the following:
(A) A corporation or person employing cogeneration technology or
producing electricity consistent with subdivision (b) of Section 218.
(B) The Department of Water Resources acting in its capacity
pursuant to Division 27 (commencing with Section 80000) of the Water
Code.
(C) A local publicly owned electric utility.
(k) "WECC" means the Western Electricity Coordinating Council of
the North American Electric Reliability Corporation, or a successor
to the corporation.
SEC. 8. SEC. 10. Section 399.13 of
the Public Utilities Code is amended to read:
399.13. (a) (1) The commission shall direct each electrical
corporation to annually prepare a renewable energy procurement plan
that includes the matter in paragraph (5), to satisfy its obligations
under the renewables portfolio standard. To the extent feasible,
this procurement plan shall be proposed, reviewed, and adopted by the
commission as part of, and pursuant to, a general procurement plan
process. The commission shall require each electrical corporation to
review and update its renewable energy procurement plan as it
determines to be necessary. The commission shall require all other
retail sellers to prepare and submit renewable energy procurement
plans that address the requirements identified in paragraph (5).
(2) Every electrical corporation that owns electrical transmission
facilities shall annually prepare, as part of the Federal Energy
Regulatory Commission Order 890 process, and submit to the
commission, a report identifying any electrical transmission
facility, upgrade, or enhancement that is reasonably necessary to
achieve the renewables portfolio standard procurement requirements of
this article. Each report shall look forward at least five years
and, to ensure that adequate investments are made in a timely manner,
shall include a preliminary schedule when an application for a
certificate of public convenience and necessity will be made,
pursuant to Chapter 5 (commencing with Section 1001), for any
electrical transmission facility identified as being reasonably
necessary to achieve the renewable energy resources procurement
requirements of this article. Each electrical corporation that owns
electrical transmission facilities shall ensure that project-specific
interconnection studies are completed in a timely manner.
(3) The commission shall direct each retail seller to prepare and
submit an annual compliance report that includes all of the
following:
(A) The current status and progress made during the prior year
toward procurement of eligible renewable energy resources as a
percentage of retail sales, including, if applicable, the status of
any necessary siting and permitting approvals from federal, state,
and local agencies for those eligible renewable energy resources
procured by the retail seller, and the current status of compliance
with the portfolio content requirements of subdivision (c) of Section
399.16, including procurement of eligible renewable energy resources
located outside the state and within the WECC and unbundled
renewable energy credits.
(B) If the retail seller is an electrical corporation, the current
status and progress made during the prior year toward construction
of, and upgrades to, transmission and distribution facilities and
other electrical system components it owns to interconnect eligible
renewable energy resources and to supply the electricity generated by
those resources to load, including the status of planning, siting,
and permitting transmission facilities by federal, state, and local
agencies.
(C) Recommendations to remove impediments to making progress
toward achieving the renewable energy resources procurement
requirements established pursuant to this article.
(4) The commission shall adopt, by rulemaking, all of the
following:
(A) A process that provides criteria for the rank ordering and
selection of least-cost and best-fit eligible renewable energy
resources to comply with the California Renewables Portfolio Standard
Program obligations on a total cost basis. This process shall take
into account all of the following:
(i) Estimates of indirect costs associated with needed
transmission investments.
(ii) The cost impact of procuring the eligible renewable energy
resources on the electrical corporation's electricity portfolio.
(iii) The viability of the project to construct and reliably
operate the eligible renewable energy resource, including the
developer's experience, the feasibility of the technology used to
generate electricity, and the risk that the facility will not be
built, or that construction will be delayed, with the result that
electricity will not be supplied as required by the contract.
(iv) Workforce recruitment, training, and retention efforts,
including the employment growth associated with the construction and
operation of eligible renewable energy resources and goals for
recruitment and training of women, minorities, and disabled veterans.
(v) (I) Estimates of electrical corporation expenses resulting
from integrating and operating eligible renewable energy resources,
including, but not limited to, any additional wholesale energy and
capacity costs associated with integrating each eligible renewable
resource.
(II) No later than December 31, 2015, the commission shall approve
a methodology for determining the integration costs described in
subclause (I).
(B) Rules permitting retail sellers to accumulate, beginning
January 1, 2011, excess procurement in one compliance period to be
applied to any subsequent compliance period. The rules shall apply
equally to all retail sellers. In determining the quantity of excess
procurement for the applicable compliance period, the commission
shall deduct from actual procurement quantities the total amount of
procurement associated with contracts of less than 10 years in
duration and electricity products meeting the portfolio content of
paragraph (3) of subdivision (b) of Section 399.16.
(C) Standard terms and conditions to be used by all electrical
corporations in contracting for eligible renewable energy resources,
including performance requirements for renewable generators. A
contract for the purchase of electricity generated by an eligible
renewable energy resource, at a minimum, shall include the renewable
energy credits associated with all electricity generation specified
under the contract. The standard terms and conditions shall include
the requirement that, no later than six months after the commission's
approval of an electricity purchase agreement entered into pursuant
to this article, the following information about the agreement shall
be disclosed by the commission: party names, resource type, project
location, and project capacity.
(D) An appropriate minimum margin of procurement above the minimum
procurement level necessary to comply with the renewables portfolio
standard to mitigate the risk that renewable projects planned or
under contract are delayed or canceled. This paragraph does not
preclude an electrical corporation from voluntarily proposing a
margin of procurement above the appropriate minimum margin
established by the commission.
(5) Consistent with the goal of increasing California's reliance
on eligible renewable energy resources, the renewable energy
procurement plan shall include all of the following:
(A) An assessment of annual or multiyear portfolio supplies and
demand to determine the optimal mix of eligible renewable energy
resources with deliverability characteristics that may include
peaking, dispatchable, baseload, firm, and as-available capacity.
(B) Potential compliance delays related to the conditions
described in paragraph (5) of subdivision (b) of Section 399.15.
(C) A bid solicitation setting forth the need for eligible
renewable energy resources of each deliverability characteristic,
required online dates, and locational preferences, if any.
(D) A status update on the development schedule of all eligible
renewable energy resources currently under contract.
(E) Consideration of mechanisms for price adjustments associated
with the costs of key components for eligible renewable energy
resource projects with online dates more than 24 months after the
date of contract execution.
(F) An assessment of the risk that an eligible renewable energy
resource will not be built, or that construction will be delayed,
with the result that electricity will not be delivered as required by
the contract.
(6) In soliciting and procuring eligible renewable energy
resources, each electrical corporation shall offer contracts of no
less than 10 years duration, unless the commission approves of a
contract of shorter duration.
(7) In soliciting and procuring eligible renewable energy
resources for California-based projects, each electrical corporation
shall give preference to renewable energy projects that provide
environmental and economic benefits to communities afflicted with
poverty or high unemployment, or that suffer from high emission
levels of toxic air contaminants, criteria air pollutants, and
greenhouse gases.
(b) A retail seller may enter into a combination of long- and
short-term contracts for electricity and associated renewable energy
credits. The commission may authorize a retail seller to enter into a
contract of less than 10 years' duration with an eligible renewable
energy resource, if the commission has established, for each retail
seller, minimum quantities of eligible renewable energy resources to
be procured through contracts of at least 10 years' duration.
(c) The commission shall review and accept, modify, or reject each
electrical corporation's renewable energy resource procurement plan
prior to the commencement of renewable energy procurement pursuant to
this article by an electrical corporation.
(d) Unless previously preapproved by the commission, an electrical
corporation shall submit a contract for the generation of an
eligible renewable energy resource to the commission for review and
approval consistent with an approved renewable energy resource
procurement plan. If the commission determines that the bid prices
are elevated due to a lack of effective competition among the
bidders, the commission shall direct the electrical corporation to
renegotiate the contracts or conduct a new solicitation.
(e) If an electrical corporation fails to comply with a commission
order adopting a renewable energy resource procurement plan, the
commission shall exercise its authority to require compliance.
(f) (1) The commission may authorize a procurement entity to enter
into contracts on behalf of customers of a retail seller for
electricity products from eligible renewable energy resources to
satisfy the retail seller's renewables portfolio standard procurement
requirements. The commission shall not require any person or
corporation to act as a procurement entity or require any party to
purchase eligible renewable energy resources from a procurement
entity.
(2) Subject to review and approval by the commission, the
procurement entity shall be permitted to recover reasonable
administrative and procurement costs through the retail rates of
end-use customers that are served by the procurement entity and are
directly benefiting from the procurement of eligible renewable energy
resources.
(3) The commission may authorize a procurement entity to procure
____ percent of retail sales of onsite generation within the area
served by the procurement entity to serve local electricity needs.
Onsite renewable generation shall be eligible renewable energy
resources certified by the Energy Commission pursuant to Section
399.25 with a tracking system described in subdivision (c) of Section
399.25. Estimation of energy production from onsite generation shall
not be used to demonstrate compliance with this article.
(g) Procurement and administrative costs associated with contracts
entered into by an electrical corporation for eligible renewable
energy resources pursuant to this article and approved by the
commission are reasonable and prudent and shall be recoverable in
rates.
(h) Construction, alteration, demolition, installation, and repair
work on an eligible renewable energy resource that receives
production incentives pursuant to Section 25742 of the Public
Resources Code, including work performed to qualify, receive, or
maintain production incentives, are "public works" for the purposes
of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2
of the Labor Code.
SEC. 9. SEC. 11. Section 399.15 of
the Public Utilities Code is amended to read:
399.15. (a) In order to fulfill unmet long-term resource needs,
the commission shall establish a renewables portfolio standard
requiring all retail sellers to procure a minimum quantity of
electricity products from eligible renewable energy resources as a
specified percentage of total kilowatthours sold to their retail
end-use customers each compliance period to achieve the targets
established under this article. For any retail seller procuring at
least 14 percent of retail sales from eligible renewable energy
resources in 2010, the deficits associated with any previous
renewables portfolio standard shall not be added to any procurement
requirement pursuant to this article.
(b) The commission shall implement renewables portfolio standard
procurement requirements only as follows:
(1) Each retail seller shall procure a minimum quantity of
eligible renewable energy resources for each of the following
compliance periods:
(A) January 1, 2011, to December 31, 2013, inclusive.
(B) January 1, 2014, to December 31, 2016, inclusive.
(C) January 1, 2017, to December 31, 2020, inclusive.
(D) January 1, 2021, to December 31, 2024, inclusive.
(E) January 1, 2025, to December 31, 2027, inclusive.
(D)
(F) January 1, 2028, to December 31, 2030, inclusive.
(2) (A) No later than January 1, 2017, the commission shall
establish the quantity of electricity products from eligible
renewable energy resources to be procured by the retail seller for
each compliance period. These quantities shall be established in the
same manner for all retail sellers and result in the same percentages
used to establish compliance period quantities for all retail
sellers.
(B) In establishing quantities for the compliance period from
January 1, 2011, to December 31, 2013, inclusive, the commission
shall require procurement for each retail seller equal to an average
of 20 percent of retail sales. For the following compliance periods,
the quantities shall reflect reasonable progress in each of the
intervening years sufficient to ensure that the procurement of
electricity products from eligible renewable energy resources
achieves 25 percent of retail sales by December 31, 2016, 33 percent
by December 31, 2020, 40 percent by December 31, 2024, 45 percent by
December 31, 2027, and 50 percent by December 31, 2030. The
commission shall establish appropriate multiyear compliance periods
for all subsequent years that require retail sellers to procure not
less than 50 percent of retail sales of electricity products from
eligible renewable energy resources.
(C) Retail sellers shall be obligated to procure no less than the
quantities associated with all intervening years by the end of each
compliance period. Retail sellers shall not be required to
demonstrate a specific quantity of procurement for any individual
intervening year.
(3) The commission may require the procurement of eligible
renewable energy resources in excess of the quantities specified in
paragraph (2).
(4) Only for purposes of establishing the renewables portfolio
standard procurement requirements of paragraph (1) and determining
the quantities pursuant to paragraph (2), the commission shall
include all electricity sold to retail customers by the Department of
Water Resources pursuant to Division 27 (commencing with Section
80000) of the Water Code in the calculation of retail sales by an
electrical corporation.
(5) The commission shall waive enforcement of this section if it
finds that the retail seller has demonstrated any of the following
conditions are beyond the control of the retail seller and will
prevent compliance:
(A) There is inadequate transmission capacity to allow for
sufficient electricity to be delivered from proposed eligible
renewable energy resource projects using the current operational
protocols of the Independent System Operator. In making its findings
relative to the existence of this condition with respect to a retail
seller that owns transmission lines, the commission shall consider
both of the following:
(i) Whether the retail seller has undertaken, in a timely fashion,
reasonable measures under its control and consistent with its
obligations under local, state, and federal laws and regulations, to
develop and construct new transmission lines or upgrades to existing
lines intended to transmit electricity generated by eligible
renewable energy resources. In determining the reasonableness of a
retail seller's actions, the commission shall consider the retail
seller's expectations for full-cost recovery for these transmission
lines and upgrades.
(ii) Whether the retail seller has taken all reasonable
operational measures to maximize cost-effective deliveries of
electricity from eligible renewable energy resources in advance of
transmission availability.
(B) Permitting, interconnection, or other circumstances that delay
procured eligible renewable energy resource projects, or there is an
insufficient supply of eligible renewable energy resources available
to the retail seller. In making a finding that this condition
prevents timely compliance, the commission shall consider whether the
retail seller has done all of the following:
(i) Prudently managed portfolio risks, including relying on a
sufficient number of viable projects.
(ii) Sought to develop one of the following: its own eligible
renewable energy resources, transmission to interconnect to eligible
renewable energy resources, or energy storage used to integrate
eligible renewable energy resources. This clause shall not require an
electrical corporation to pursue development of eligible renewable
energy resources pursuant to Section 399.14.
(iii) Procured an appropriate minimum margin of procurement above
the minimum procurement level necessary to comply with the renewables
portfolio standard to compensate for foreseeable delays or
insufficient supply.
(iv) Taken reasonable measures, under the control of the retail
seller, to procure cost-effective distributed generation and
allowable unbundled renewable energy credits.
(C) Unanticipated curtailment of eligible renewable energy
resources necessary to address the needs of a balancing
authority. if the waiver would not result in an
increase in greenhouse gas emissions.
(D) Unanticipated increase in retail sales due to transportation
electrification. In making a finding that this condition prevents
timely compliance, the commission shall consider all of the
following:
(i) Whether transportation electrification significantly exceeded
forecasts in that retail seller's service territory based on the best
and most recently available information filed with the State Air
Resources Board, the Energy Commission, or other state agency.
(ii) Whether the retail seller has taken reasonable measures to
procure sufficient resources to account for unanticipated increases
in retail sales due to transportation electrification.
(6) If the commission waives the compliance requirements of this
section, the commission shall establish additional reporting
requirements on the retail seller to demonstrate that all reasonable
actions under the control of the retail seller are taken in each of
the intervening years sufficient to satisfy future procurement
requirements.
(7) The commission shall not waive enforcement pursuant to this
section, unless the retail seller demonstrates that it has taken all
reasonable actions under its control, as set forth in paragraph (5),
to achieve full compliance.
(8) If a retail seller fails to procure sufficient eligible
renewable energy resources to comply with a procurement requirement
pursuant to paragraphs (1) and (2) and fails to obtain an order from
the commission waiving enforcement pursuant to paragraph (5), the
commission shall assess penalties for noncompliance. A schedule of
penalties shall be adopted by the commission that shall be comparable
for electrical corporations and other retail sellers. For electrical
corporations, the cost of any penalties shall not be collected in
rates. Any penalties collected under this article shall be deposited
into the Electric Program Investment Charge Fund and used for the
purposes described in Chapter 8.1 (commencing with Section 25710) of
Division 15 of the Public Resources Code.
(9) Deficits associated with the compliance period shall not be
added to a future compliance period.
(c) The commission shall establish a limitation for each
electrical corporation on the procurement expenditures for all
eligible renewable energy resources used to comply with the
renewables portfolio standard. This limitation shall be set at a
level that prevents disproportionate rate impacts.
(d) If the cost limitation for an electrical corporation is
insufficient to support the projected costs of meeting the renewables
portfolio standard procurement requirements, the electrical
corporation may refrain from entering into new contracts or
constructing facilities beyond the quantity that can be procured
within the limitation, unless eligible renewable energy resources can
be procured without exceeding a de minimis increase in rates,
consistent with the long-term procurement plan established for the
electrical corporation pursuant to Section 454.5.
(e) (1) The commission shall monitor the status of the cost
limitation for each electrical corporation in order to ensure
compliance with this article.
(2) If the commission determines that an electrical corporation
may exceed its cost limitation prior to achieving the renewables
portfolio standard procurement requirements, the commission shall do
both of the following within 60 days of making that determination:
(A) Investigate and identify the reasons why the electrical
corporation may exceed its annual cost limitation.
(B) Notify the appropriate policy and fiscal committees of the
Legislature that the electrical corporation may exceed its cost
limitation, and include the reasons why the electrical corporation
may exceed its cost limitation.
(f) The establishment of a renewables portfolio standard shall not
constitute implementation by the commission of the federal Public
Utility Regulatory Policies Act of 1978 (Public Law 95-617).
SEC. 10. SEC. 12. Section 399.16 of
the Public Utilities Code is amended to read:
399.16. (a) Various electricity products from eligible renewable
energy resources located within the WECC transmission network service
area shall be eligible to comply with the renewables portfolio
standard procurement requirements in Section 399.15. These
electricity products may be differentiated by their impacts on the
operation of the grid in supplying electricity, as well as,
as meeting the requirements of this article.
(b) Consistent with the goals of procuring the least-cost and
best-fit electricity products from eligible renewable energy
resources that meet project
viability principles adopted by the commission pursuant to
paragraph (4) of subdivision (a) of Section 399.13 and that provide
the benefits set forth in Section 399.11, a balanced portfolio of
eligible renewable energy resources shall be procured consisting of
the following portfolio content categories:
(1) Eligible renewable energy resource electricity products that
meet either of the following criteria:
(A) Have a first point of interconnection with a California
balancing authority, have a first point of interconnection with
distribution facilities used to serve end users within a California
balancing authority area, or are scheduled from the eligible
renewable energy resource into a California balancing authority
without substituting electricity from another source. The use of
another source to provide real-time ancillary services required to
maintain an hourly or subhourly import schedule into a California
balancing authority shall be permitted, but only the fraction of the
schedule actually generated by the eligible renewable energy resource
shall count toward this portfolio content category.
(B) Have an agreement to dynamically transfer electricity to a
California balancing authority.
(2) Firmed and shaped eligible renewable energy resource
electricity products providing incremental electricity and scheduled
into a California balancing authority.
(3) Eligible renewable energy resource electricity products, or
any fraction of the electricity generated, including unbundled
renewable energy credits, that do not qualify under the criteria of
paragraph (1) or (2).
(c) In order to achieve a balanced portfolio, all retail sellers
shall meet the following requirements for all procurement credited
toward each compliance period:
(1) Not less than 50 percent for the compliance period ending
December 31, 2013, 65 percent for the compliance period ending
December 31, 2016, and 75 percent for the compliance period ending
December 31, 2020, of the eligible renewable energy resource
electricity products associated with contracts executed after June 1,
2010, shall meet the product content requirements of paragraph (1)
of subdivision (b). Each retail seller shall continue to satisfy the
product content requirements applicable to procurement quantities
associated with the compliance period ending December 31, 2020, and
ensure that, for compliance periods ending after December 31, 2020,
not less than 75 percent of the incremental renewable procurement
requirements in each compliance period shall be satisfied with
eligible renewable energy resource electricity products meeting the
requirements of paragraph (1) of subdivision (b).
(2) Not more than 25 percent for the compliance period ending
December 31, 2013, 15 percent for the compliance period ending
December 31, 2016, and 10 percent for the compliance
period ending December 31, 2020, of the eligible renewable energy
resource electricity products associated with contracts executed
after June 1, 2010, shall meet the product content requirements of
paragraph (3) of subdivision (b). For the compliance periods ending
after December 31, 2020, not more than 10 percent of the incremental
renewable procurement requirements in each compliance period shall be
satisfied with eligible renewable energy resource electricity
products meeting the requirements of paragraph (3) of subdivision
(b).
(3) Any renewable energy resources contracts executed on or after
June 1, 2010, not subject to the limitations of paragraph (1) or (2),
shall meet the product content requirements of paragraph (2) of
subdivision (b).
(4) For purposes of electric service providers only, the
restrictions in this subdivision on crediting eligible renewable
energy resource electricity products to each compliance period shall
apply to contracts executed after January 13, 2011.
(d) Any contract or ownership agreement originally executed prior
to June 1, 2010, shall count in full toward the procurement
requirements established pursuant to this article, if all of the
following conditions are met:
(1) The renewable energy resource was eligible under the rules in
place as of the date when the contract was executed.
(2) For an electrical corporation, the contract has been approved
by the commission, even if that approval occurs after June 1, 2010.
(3) Any contract amendments or modifications occurring after June
1, 2010, do not increase the nameplate capacity or expected
quantities of annual generation, or substitute a different renewable
energy resource. The duration of the contract may be extended if the
original contract specified a procurement commitment of 15 or more
years.
(e) A retail seller may apply to the commission for a reduction of
a procurement content requirement of subdivision (c). The commission
may reduce a procurement content requirement of subdivision (c) to
the extent the retail seller demonstrates that it cannot comply with
that subdivision because of conditions beyond the control of the
retail seller as provided in paragraph (5) of subdivision (b) of
Section 399.15. The commission shall not, under any circumstance,
reduce the obligation specified in paragraph (1) of subdivision (c)
below 65 percent for any compliance period obligation after December
31, 2016.
SEC. 11. SEC. 13. Section 399.18 of
the Public Utilities Code is amended to read:
399.18. (a) This section applies to an electrical corporation
that as of January 1, 2010, met either of the following conditions:
(1) Served 30,000 or fewer customer accounts in California and had
issued at least four solicitations for eligible renewable energy
resources prior to June 1, 2010.
(2) Had 1,000 or fewer customer accounts in California and was not
connected to any transmission system or to the Independent System
Operator.
(b) For an electrical corporation or its successor, electricity
products from eligible renewable energy resources may be used for
compliance with this article, notwithstanding any procurement content
limitation in Section 399.16, provided that all of the following
conditions are met:
(1) The electrical corporation or its successor participates in,
and complies with, the accounting system administered by the Energy
Commission pursuant to subdivision (b) of Section 399.25.
(2) The Energy Commission verifies that the electricity generated
by the facility is eligible to meet the requirements of Section
399.15.
(3) The electrical corporation continues to satisfy either of the
conditions described in subdivision (a).
SEC. 12. SEC. 14. Section 399.21 of
the Public Utilities Code is amended to read:
399.21. (a) The commission, by rule, shall authorize the use of
renewable energy credits to satisfy the renewables portfolio standard
procurement requirements established pursuant to this article,
subject to the following conditions:
(1) The commission and the Energy Commission shall ensure that the
tracking system established pursuant to subdivision (c) of Section
399.25, is operational, is capable of independently verifying that
electricity earning the credit is generated by an eligible renewable
energy resource, and can ensure that renewable energy credits shall
not be double counted by any seller of electricity within the service
territory of the WECC.
(2) Each renewable energy credit shall be counted only once for
compliance with the renewables portfolio standard of this state or
any other state, or for verifying retail product claims in this state
or any other state.
(3) All revenues received by an electrical corporation for the
sale of a renewable energy credit shall be credited to the benefit of
ratepayers.
(4) Renewable energy credits shall not be created for electricity
generated pursuant to any electricity purchase contract with a retail
seller or a local publicly owned electric utility executed before
January 1, 2005, unless the contract contains explicit terms and
conditions specifying the ownership or disposition of those credits.
Procurement under those contracts shall be tracked through the
accounting system described in subdivision (b) of Section 399.25 and
included in the quantity of eligible renewable energy resources of
the purchasing retail seller pursuant to Section 399.15.
(5) Renewable energy credits shall not be created for electricity
generated under any electricity purchase contract executed after
January 1, 2005, pursuant to the federal Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.). Procurement under
the electricity purchase contracts shall be tracked through the
accounting system implemented by the Energy Commission pursuant to
subdivision (b) of Section 399.25 and count toward the renewables
portfolio standard procurement requirements of the purchasing retail
seller.
(6) A renewable energy credit shall not be eligible for compliance
with a renewables portfolio standard procurement requirement unless
it is retired in the tracking system established pursuant to
subdivision (c) of Section 399.25 by the retail seller or local
publicly owned electric utility within 36 months from the initial
date of generation of the associated electricity.
(b) The commission shall allow an electrical corporation to
recover the reasonable costs of purchasing, selling, and
administering renewable energy credit contracts in rates.
SEC. 13. SEC. 15. Section 399.30 of
the Public Utilities Code is amended to read:
399.30. (a) To fulfill unmet long-term generation resource needs,
each local publicly owned electric utility shall adopt and implement
a renewable energy resources procurement plan that requires the
utility to procure a minimum quantity of electricity products from
eligible renewable energy resources, including renewable energy
credits, as a specified percentage of total kilowatthours sold to the
utility's retail end-use customers, each compliance period, to
achieve the targets of subdivision (c).
(b) The governing board shall implement procurement targets for a
local publicly owned electric utility that require the utility to
procure a minimum quantity of eligible renewable energy resources for
each of the following compliance periods:
(1) January 1, 2011, to December 31, 2013, inclusive.
(2) January 1, 2014, to December 31, 2016, inclusive.
(3) January 1, 2017, to December 31, 2020, inclusive.
(D)
(4) January 1, 2021, to December 31, 2024, inclusive.
(E)
(5) January 1, 2025, to December 31, 2027, inclusive.
(D)
(6) January 1, 2028, to December 31, 2030, inclusive.
(c) The governing board of a local publicly owned electric utility
shall ensure all of the following:
(1) The quantities of eligible renewable energy resources to be
procured for the compliance period from January 1, 2011, to December
31, 2013, inclusive, are equal to an average of 20 percent of retail
sales.
(2) The quantities of eligible renewable energy resources to be
procured for all other compliance periods reflect reasonable progress
in each of the intervening years sufficient to ensure that the
procurement of electricity products from eligible renewable energy
resources achieves 25 percent of retail sales by December 31, 2016,
33 percent by December 31, 2020, 40 percent by December 31, 2024, 45
percent by December 31, 2027, and 50 percent by December 31, 2030.
The Energy Commission shall establish appropriate multiyear
compliance periods for all subsequent years that require the local
publicly owned electric utility to procure not less than 50 percent
of retail sales of electricity products from eligible renewable
energy resources.
(3) A local publicly owned electric utility shall adopt
procurement requirements consistent with Section 399.16.
(4) A local publicly owned electric utility may procure ____
percent of retail sales of onsite generation within the area served
by that utility to serve local electricity needs. Onsite renewable
generation shall be eligible renewable energy resources certified by
the Energy Commission pursuant to Section 399.25 with a tracking
system described in subdivision (c) of Section 399.25. Estimation of
energy production from onsite generation shall not be used to
demonstrate compliance with this article.
(d) The governing board of a local publicly owned electric utility
may adopt the following measures:
(1) Rules permitting the utility to apply excess procurement in
one compliance period to subsequent compliance periods in the same
manner as allowed for retail sellers pursuant to Section 399.13.
(2) Conditions that allow for delaying timely compliance
consistent with subdivision (b) of Section 399.15.
(3) Cost limitations for procurement expenditures consistent with
subdivision (c) of Section 399.15.
(e) The governing board of the local publicly owned electric
utility shall adopt a program for the enforcement of this article.
The program shall be adopted at a publicly noticed meeting offering
all interested parties an opportunity to comment. Not less than 30
days' notice shall be given to the public of any meeting held for
purposes of adopting the program. Not less than 10 days' notice shall
be given to the public before any meeting is held to make a
substantive change to the program.
(f) (1) Each local publicly owned electric utility shall annually
post notice, in accordance with Chapter 9 (commencing with Section
54950) of Part 1 of Division 2 of Title 5 of the Government Code,
whenever its governing body will deliberate in public on its
renewable energy resources procurement plan.
(2) Contemporaneous with the posting of the notice of a public
meeting to consider the renewable energy resources procurement plan,
the local publicly owned electric utility shall notify the Energy
Commission of the date, time, and location of the meeting in order to
enable the Energy Commission to post the information on its Internet
Web site. This requirement is satisfied if the local publicly owned
electric utility provides the uniform resource locator (URL) that
links to this information.
(3) Upon distribution to its governing body of information related
to its renewable energy resources procurement status and future
plans, for its consideration at a noticed public meeting, the local
publicly owned electric utility shall make that information available
to the public and shall provide the Energy Commission with an
electronic copy of the documents for posting on the Energy Commission'
s Internet Web site. This requirement is satisfied if the local
publicly owned electric utility provides the uniform resource locator
(URL) that links to the documents or information regarding other
manners of access to the documents.
(g) A public utility district that receives all of its electricity
pursuant to a preference right adopted and authorized by the United
States Congress pursuant to Section 4 of the Trinity River Division
Act of August 12, 1955 (Public Law 84-386) shall be in compliance
with the renewable energy procurement requirements of this article.
(h) For a local publicly owned electric utility that was in
existence on or before January 1, 2009, that provides retail electric
service to 15,000 or fewer customer accounts in California, and is
interconnected to a balancing authority located outside this state
but within the WECC, an eligible renewable energy resource includes a
facility that is located outside California that is connected to the
WECC transmission system, if all of the following conditions are
met:
(1) The electricity generated by the facility is procured by the
local publicly owned electric utility, is delivered to the balancing
authority area in which the local publicly owned electric utility is
located, and is not used to fulfill renewable energy procurement
requirements of other states.
(2) The local publicly owned electric utility participates in, and
complies with, the accounting system administered by the Energy
Commission pursuant to this article.
(3) The Energy Commission verifies that the electricity generated
by the facility is eligible to meet the renewables portfolio standard
procurement requirements.
(i) Notwithstanding subdivision (a), for a local publicly owned
electric utility that is a joint powers authority of districts
established pursuant to state law on or before January 1, 2005, that
furnish electric services other than to residential customers, and is
formed pursuant to the Irrigation District Law (Division 11
(commencing with Section 20500) of the Water Code), the percentage of
total kilowatthours sold to the district's retail end-use customers,
upon which the renewables portfolio standard procurement
requirements in subdivision (b) are calculated, shall be based on the
authority's average retail sales over the previous seven years. If
the authority has not furnished electric service for seven years,
then the calculation shall be based on average retail sales over the
number of completed years during which the authority has provided
electric service.
(j) A local publicly owned electric utility in a city and county
that only receives greater than 67 percent of its electricity sources
from hydroelectric generation located within the state that it owns
and operates, and that does not meet the definition of a "renewable
electrical generation facility" pursuant to Section 25741 of the
Public Resources Code, shall be required to procure eligible
renewable energy resources, including renewable energy credits, to
meet only the electricity demands unsatisfied by its hydroelectric
generation in any given year, in order to satisfy its renewable
energy procurement requirements.
(k) (1) A local publicly owned electric utility that receives
greater than 50 percent of its annual retail sales from its own
hydroelectric generation that is not an eligible renewable energy
resource shall not be required to procure additional eligible
renewable energy resources in excess of either of the following:
(A) The portion of its retail sales not supplied by its own
hydroelectric generation. For these purposes, retail sales supplied
by an increase in hydroelectric generation resulting from an increase
in the amount of water stored by a dam because the dam is enlarged
or otherwise modified after December 31, 2012, shall not count as
being retail sales supplied by the utility's own hydroelectric
generation.
(B) The cost limitation adopted pursuant to this section.
(2) For the purposes of this subdivision, "hydroelectric
generation" means electricity generated from a hydroelectric facility
that satisfies all of the following:
(A) Is owned solely and operated by the local publicly owned
electric utility as of 1967.
(B) Serves a local publicly owned electric utility with a
distribution system demand of less than 150 megawatts.
(C) Involves a contract in which an electrical corporation
receives the benefit of the electric generation through June of 2014,
at which time the benefit reverts back to the ownership and control
of the local publicly owned electric utility.
(D) Has a maximum penstock flow capacity of no more than 3,200
cubic feet per second and includes a regulating reservoir with a
small hydroelectric generation facility producing fewer than 20
megawatts with a maximum penstock flow capacity of no more than 3,000
cubic feet per second.
(3) This subdivision does not reduce or eliminate any renewable
procurement requirement for any compliance period ending prior to
January 1, 2014.
(4) This subdivision does not require a local publicly owned
electric utility to purchase additional eligible renewable energy
resources in excess of the procurement requirements of subdivision
(c).
(l) A local publicly owned electric utility shall retain
discretion over both of the following:
(1) The mix of eligible renewable energy resources procured by the
utility and those additional generation resources procured by the
utility for purposes of ensuring resource adequacy and reliability.
(2) The reasonable costs incurred by the utility for eligible
renewable energy resources owned by the utility.
(m) The Energy Commission shall adopt regulations specifying the
requirements under this article and require local governing boards to
adopt timely requirements consistent with this article. The Energy
Commission shall adopt regulations specifying procedures for
enforcement of these requirements, including the adoption of a
schedule of penalties to be imposed pursuant to subdivision (n). The
regulations shall include a public process under which the Energy
Commission may issue a notice of violation and correction against a
local publicly owned electric utility for failure to comply with this
article and assess penalties pursuant to subdivision (n).
(m) The Energy Commission shall adopt regulations specifying
procedures for enforcement of this article. The regulations shall
include a public process under which the Energy Commission may issue
a notice of violation and correction against a local publicly owned
electric utility for failure to comply with this article, and for
referral of violations to the State Air Resources Board for penalties
pursuant to subdivision (n).
(n) (1) Upon a determination by the Energy
Commission that a local publicly owned electric utility has failed to
comply with this article, the Energy Commission shall
impose penalties comparable to those adopted by the commission for
noncompliance by retail sellers. Any penalties collected under this
article shall be deposited into the Electric Program Investment
Charge Fund and used for the purposes described in Chapter 8.1
(commencing with Section 25710) of Division 15 of the Public
Resources Code. refer the failure to comply with this
article to the State Air Resources Board, which may impose penalties
to enforce this article consistent with Part 6 (commencing with
Section 38580) of Division 25.5 of the Health and Safety Code. Any
penalties imposed shall be comparabl e to those adopted by
the commission for noncompliance by retail sellers.
(2) Any penalties collected by the State Air Resources Board
pursuant to this article shall be deposited in the Air Pollution
Control Fund and, upon appropriation by the Legislature, shall be
expended for reducing emissions of air pollution or greenhouse gases
within the same geographic area as the local publicly owned electric
utility.
SEC. 14. SEC. 16. Article 17
(commencing with Section 400) is added to Chapter 2.3 of Part 1 of
Division 1 of the Public Utilities Code, to read:
Article 17. Clean Energy and Pollution Reduction
400. The commission and the Energy Commission shall do all of the
following in furtherance of meeting the state's clean energy and
pollution reduction objectives:
(a) Take into account the benefits of distributed
generation and promote the use of distributed generation
where to the extent that it provides
economic and environmental benefits, particularly
benefits in disadvantaged communities as identified
pursuant to Section 39711 of the Health and Safety Code.
(b) Allow for consideration of costs and benefits of grid
integration Take into account the opportunities to
decrease costs and increase benefits, including pollution reduction
and grid integration, using technologies with zero onsite greenhouse
gas emissions in proceedings associated with meeting the
objectives.
(c) Where feasible, adopt rules for integrating renewable
energy authorize procurement of resources to provide
grid reliability services that minimize reliance on
system power and fossil fuel purchases
resources and, where feasible feasible,
cost-effective, and consistent with other state policy
objectives, increase the use of energy storage,
large - and small -scale energy
storage with a variety of technologies, targeted energy efficiency,
demand response, and other low-emission or zero-
eligible renewable energy resources, or other
technologies with zero onsite greenhouse gas emissions to
protect system reliability.
(d) Review technology incentive incentive,
research, development, deployment, and market
facilitation programs overseen by the commission and the Energy
Commission and make recommendations for adjustments that
more effectively and consistently align with to
advance state clean energy and pollution reduction
objectives, and that objectives and provide
benefits to disadvantaged communities as identified pursuant to
Section 39711 of the Health and Safety Code.
(e) To the extent feasible, give first priority to the manufacture
and deployment of clean energy and pollution reduction technologies
that create employment opportunities, including high wage, highly
skilled employment opportunities, and increased investment in the
state.
(f) Establish a publicly available tracking system to provide
up-to-date information on progress toward meeting the clean energy
and pollution reduction goals of the Clean Energy and Pollution
Reduction Act of 2015.
(g) Establish an advisory group consisting of representatives from
disadvantaged communities identified in Section 39711 of the Health
and Safety Code. The advisory group shall review and provide advice
on programs proposed to achieve clean energy and pollution reduction
and determine whether those proposed programs will be effective and
useful in disadvantaged communities.
SEC. 15. SEC. 17. Section 454.51 is
added to the Public Utilities Code, to read:
454.51. The commission shall direct each electrical corporation
to include in its proposed procurement plan a strategy for procuring
a diverse portfolio of resources that provide a reliable electricity
supply, including renewable energy integration needs, using zero
carbon-emitting resources to the maximum extent reasonable. The net
capacity costs of those resources shall be allocated on a fully
nonbypassable basis consistent with the treatment of costs identified
in paragraph (2) of subdivision (c) of Section 365.1.
SEC. 18. Section 701.1 of the Public
Utilities Code is amended to read:
701.1. (a) (1) The Legislature finds and
declares that, in addition to other ratepayer protection objectives,
a principal goal of electric and natural gas utilities' resource
planning and investment shall be to minimize the cost to society of
the reliable energy services that are provided by natural gas and
electricity, and to improve the environment and to encourage the
diversity of energy sources through improvements in energy efficiency
and development of renewable energy resources, such as wind, solar,
biomass, and geothermal energy.
energy, and widespread transportation electrification.
(2) The amendment made to this subdivision by the Clean Energy and
Pollution Reduction Act of 2015 does not expand the authority of the
commission beyond that provided by other law.
(b) The Legislature further finds and declares that, in addition
to any appropriate investments in energy production, electrical and
natural gas utilities should seek to exploit all practicable and
cost-effective conservation and improvements in the efficiency of
energy use and distribution that offer equivalent or better system
reliability, and which are not being exploited by any other entity.
(c) In calculating the cost effectiveness of energy resources,
including conservation and load management options, the commission
shall include, in addition to other ratepayer protection objectives,
a value for any costs and benefits to the environment, including air
quality. The commission shall ensure that any values it develops
pursuant to this section are consistent with values developed by the
State Energy Resources Conservation and Development Commission
pursuant to Section 25000.1 of the Public Resources Code. However, if
the commission determines that a value developed pursuant to this
subdivision is not consistent with a value developed by the State
Energy Resources Conservation and Development Commission pursuant to
subdivision (c) of Section 25000.1 of the Public Resources Code, the
commission may nonetheless use this value if, in the appropriate
record of its proceedings, it states its reasons for using the value
it has selected.
(d) In determining the emission values associated with the current
operating capacity of existing electric powerplants pursuant to
subdivision (c), the commission shall adhere to the following
protocol in determining values for air quality costs and benefits to
the environment. If the commission finds that an air pollutant that
is subject to regulation is a component of residual emissions from an
electric powerplant and that the owner of that powerplant is either
of the following:
(1) Using a tradable emission allowance, right, or offset for that
pollutant, which (A) has been approved by the air quality district
regulating the powerplant, (B) is consistent with federal and state
law, and (C) has been obtained, authorized, or acquired in a
market-based system.
(2) Paying a tax per measured unit of that pollutant.
The commission shall not assign a value or cost to that residual
pollutant for the current operating capacity of that powerplant
because the alternative protocol for dealing with the pollutant
operates to internalize its cost for the purpose of planning for and
acquiring new generating resources.
(e) (1) The values determined pursuant to subdivision (c) to
represent costs and benefits to the environment shall not be used by
the commission, in and of themselves, to require early
decommissioning or retirement of an electric utility powerplant that
complies with applicable prevailing environmental regulations.
(2) Further, the environmental values determined pursuant to
subdivision (c) shall not be used by the commission in a manner
which, when such those values are
aggregated, will result in advancing an electric utility's need for
new powerplant capacity by more than 15 months.
(f) This subdivision shall apply whenever a powerplant bid
solicitation is required by the commission for an electric utility
and a portion of the amount of new powerplant capacity, which is the
subject of the bid solicitation, is the result of the commission's
use of environmental values to advance that electric utility's need
for new powerplant capacity in the manner authorized by paragraph (2)
of subdivision (e). The affected electric utility may propose to the
commission any combination of alternatives to that portion of the
new powerplant capacity that is the result of the commission's use of
environmental values as authorized by paragraph (2) of subdivision
(c). The commission shall approve an alternative in place of the new
powerplant capacity if it finds all of the following:
(1) The alternative has been approved by the relevant air quality
district.
(2) The alternative is consistent with federal and state law.
(3) The alternative will result in needed system reliability for
the electric utility at least equivalent to that which would result
from bidding for new powerplant capacity.
(4) The alternative will result in reducing system operating costs
for the electric utility over those which would result from the
process of bidding for new powerplant capacity.
(5) The alternative will result in equivalent or better
environmental improvements at a lower cost than would result from
bidding for new powerplant capacity.
(g) No provision of this section shall be construed as
requiring This section does not require an
electric utility to alter the dispatch of its powerplants for
environmental purposes.
(h) No provision of this section shall prelude
This section does not preclude an electric utility from
submitting to the commission any combination of alternatives to meet
a commission-identified need for new capacity, if such a
the submission is otherwise authorized by the
commission.
(i) No provision of this section shall be construed to
This section does not change or alter any
provision of commission decision 92-04-045, dated April 22, 1992.
SEC. 19. Section 740.8 of the Public
Utilities Code is amended to read:
740.8. As used in Section 740.3, "interests" of ratepayers,
short- or long-term, mean direct benefits that are specific to
ratepayers in the form of safer, any of the
following:
(a) Safer, more reliable, or less
costly gas or electrical service, consistent with Section
451, and activities 451.
(b) More efficient use of the electric system.
(c) Improve integration of renewable energy generation.
(d) Activities that both
directly benefit ratepayers and that promote energy
efficiency, reduction at least one of the following:
(1) Energy efficiency.
(2) Reduction of health and
environmental impacts from air pollution, and greenhouse
pollution.
(3) Reduction of greenhouse
gas emissions related to electricity and natural gas production
and use, and increased use.
(4) Increased use of alternative
fuels.
SEC. 20. Section 740.12 is added to the
Public Utilities Code , to read:
740.12. (a) (1) The Legislature finds and declares all of the
following:
(A) Transportation electrification, natural gas vehicles as a
short-term measure, fuel cell vehicles, and transportation
innovations are needed to reduce petroleum use, to meet air quality
standards, to improve public health, and to achieve greenhouse gas
emissions reduction goals.
(B) Widespread transportation electrification is needed to achieve
the goals of the Charge Ahead California Initiative (Chapter 8.5
(commencing with Section 44258) of Part 5 of Division 26 of the
Health and Safety Code).
(C) Reducing emissions of greenhouse gases to 40 percent below
1990 levels by 2030 and to 80 percent below 1990 levels by 2050 will
require widespread transportation electrification.
(D) Widespread transportation electrification requires electrical
corporations to increase access to the use of electricity as a
transportation fuel.
(E) Deploying electric vehicles should assist in integrating
generation from eligible renewable energy resources and reduce fuel
costs for vehicle drivers who charge in a manner consistent with
electric grid conditions.
(F) Deploying electric vehicle charging infrastructure should
facilitate increased sales of electric vehicles by making charging
easily accessible and should provide the opportunity to access
electricity as a fuel that is cleaner than gasoline or other fossil
fuels.
(G) Deploying natural gas and fuel cell infrastructure should
facilitate increased sales of natural gas or fuel cell vehicles by
making refueling easily accessible and should provide the opportunity
to access fuels that are cleaner than gasoline.
(H) According to the State Alternative Fuels Plan analysis by the
Energy Commission and the State Air Resources Board, light-, medium-,
and heavy-duty vehicle electrification results in approximately 70
percent fewer greenhouse gases emitted, over 85 percent fewer
ozone-forming air pollutants emitted, and 100 percent fewer petroleum
used. These reductions will become larger as renewable generation
increases.
(2) It is the policy of the state and the intent of the
Legislature to encourage transportation electrification as a means to
achieve ambient air quality standards and the state's climate goals.
Agencies designing and implementing regulations, guidelines, plans,
and funding programs to reduce greenhouse gas emissions should take
the finding described in subparagraph (H) of paragraph (1) into
account.
(b) The commission, in consultation with the State Air Resources
Board and the Energy Commission, shall direct electrical corporations
to propose multiyear programs and investments to accelerate
widespread transportation electrification to reduce dependence on
petroleum, meet air quality standards, achieve the goals set forth in
the Charge Ahead California Initiative (Chapter 8.5 (commencing with
Section 44258) of Part 5 of Division 26 of the Health and Safety
Code), and reduce emissions of greenhouse gases to 40 percent below
1990 levels by 2030 and to 80 percent below 1990 levels by 2050. The
commission shall approve programs and investments that deploy
charging infrastructure, as distribution system costs, if they are
consistent with this section and Section 740.3.
(c) The commission shall review data concerning current and future
electric transportation adoption rates and charging infrastructure
utilization rates no less than every three years and prior to any
further authorization for an electrical corporation to collect
additional new program costs related to transportation
electrification in ratepayer rates. If market barriers unrelated to
the investment made by an electric corporation prevent electric
transportation from adequately utilizing available charging
infrastructure, the commission shall not permit additional
investments in transportation electrification without adequate
assurance that the investments would not result in stranded costs
recoverable from ratepayers.
SEC. 16. SEC. 21. No reimbursement
is required by this act pursuant to Section 6 of Article XIII B of
the California Constitution because a local agency or school district
has the authority to levy service charges, fees, or assessments
sufficient to pay for the program or level of service mandated by
this act or because costs that may be incurred by a local agency or
school district will be incurred because this act creates a new crime
or infraction, eliminates a crime or infraction, or changes the
penalty for a crime or infraction, within the meaning of Section
17556 of the Government Code, or changes the definition of a crime
within the meaning of Section 6 of Article XIII B of the California
Constitution.