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, which is codified in the Public Utilities
begin delete Act and expresses the intent of the Legislature thatend delete the amount of electricity generated per year from eligible renewable energy resources begin delete be increasedend delete
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 resource a specified facility engaged in the combustion of municipal solid waste.
Existing law makes the requirements of the RPS Program applicable to local publicly owned electric
begin delete utilities,end delete
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
begin delete additionally express the intent of the Legislature for the purposes of the RPS Programend delete 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 begin delete toend delete 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,
including, among other things, the enforcement provisions and would require penalties collected from retail 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.
Because the above provisions 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.
By placing additional requirements upon local publicly owned electric utilities, this bill would impose a state-mandated local program.
(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.
(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
begin delete natural gas vehicles as a short-term measure, fuel cell vehicles, and transportation
innovations as means to achieve certainend delete goals.
(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.
(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 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:
This act shall be known and may be cited as the
2Clean Energy and Pollution Reduction Act of 2015.
(a) The Legislature finds and declares that the
4Governor has called for a new set of objectives in clean energy,
5clean air, and pollution reduction for 2030 and beyond. Those
6objectives consist of the following:
7(1) To increase from 33 percent to 50 percent, the procurement
8of our electricity from renewable sources.
9(2) To reduce today’s petroleum use in cars and trucks by up
10to 50 percent.
11(3) To double the efficiency of existing buildings.
is the intent of the Legislature in enacting this act to codify
13the targets described under subdivision (a) to ensure they are
14permanent, enforceable, and quantifiable.
Section 43013 of the Health and Safety Code is
16amended to read:
(a) The state board shall adopt and implement motor
18vehicle emission standards, in-use performance standards, and
19motor vehicle fuel specifications for the control of air contaminants
P6 1and sources of air pollution which the state board has found to be
2necessary, cost effective, and technologically feasible, to carry out
3the purposes of this division and in furtherance of achieving a
4reduction in petroleum use in motor vehicles by 50 percent by
5January 1, 2030, unless preempted by federal law.
6(b) The state board shall, consistent with subdivision (a), adopt
7standards and regulations for light-duty and heavy-duty motor
8vehicles, medium-duty motor vehicles, as determined and specified
9by the state board, portable fuel containers and spouts, and off-road
10or nonvehicle engine categories, including, but not limited to,
11off-highway motorcycles, off-highway vehicles, construction
12equipment, farm equipment, utility engines, locomotives, and, to
13the extent permitted by federal law, marine vessels.
14(c) Prior to adopting standards and regulations for farm
15equipment, the state board shall hold a public hearing and find and
16determine that the standards and regulations are necessary, cost
17effective, and technologically feasible. The state board shall also
18consider the technological effects of emission control standards
19on the cost, fuel consumption, and performance characteristics of
20mobile farm equipment.
subdivision (b), the state board shall not
22adopt any standard or regulation affecting locomotives until the
23final study required under Section 5 of Chapter 1326 of the Statutes
24of 1987 has been completed and submitted to the Governor and
26(e) Prior to adopting or amending any standard or regulation
27relating to motor vehicle fuel specifications pursuant to this section,
28the state board shall, after consultation with public or private
29entities that would be significantly impacted as described in
30paragraph (2) of subdivision (f), do both of the following:
31(1) Determine the cost-effectiveness of the adoption or
32amendment of the standard or regulation. The cost-effectiveness
33shall be compared on an incremental basis with other mobile source
34control methods and options.
35(2) Based on a preponderance of scientific and engineering data
36in the record, determine the technological feasibility of the adoption
37or amendment of the standard or regulation. That determination
38shall include, but is not limited to, the availability, effectiveness,
39reliability, and safety expected of the proposed technology in an
40application that is representative of the proposed use.
P7 1(f) Prior to adopting or amending any motor vehicle fuel
2specification pursuant to this section, the state board shall do both
3of the following:
4(1) To the extent feasible, quantitatively document the
5significant impacts of the proposed standard or specification on
6affected segments of the state’s economy. The economic analysis
7shall include, but is not limited to, the significant impacts of any
8change on motor vehicle fuel efficiency, the existing motor vehicle
9fuel distribution system, the competitive position of the affected
10segment relative to border states, and the cost to consumers.
11(2) Consult with public or private entities that would be
12significantly impacted to identify those investigative or preventive
13actions that may be necessary to ensure consumer acceptance,
14product availability, acceptable performance, and equipment
15reliability. The significantly impacted parties shall include, but are
16not limited to, fuel manufacturers, fuel distributors, independent
17marketers, vehicle manufacturers, and fuel users.
18(g) (1) No later than January 1, 2017, the state board, after one
19or more public workshops, shall prepare a strategy and
20implementation plan to achieve a reduction in petroleum use in
21motor vehicles by 50 percent by January 1, 2030, and provide a
22copy of the strategy and plan to the appropriate policy committees
23of the Legislature.
24(2) Beginning January 1, 2020, and every three years thereafter,
25the state board shall provide an update to the strategy and plan that
26reflects any changes made to the strategy and plan.
27(h) To the extent that there is any conflict between the
28information required to be prepared by the state board pursuant to
29subdivision (f) and information required to be prepared by the state
30board pursuant to Chapter 3.5 (commencing with Section 11340)
31of Part 1 of Division 3 of Title 2 of the Government Code, the
32requirements established under subdivision (f) shall prevail.
33(i) It is the intent of the Legislature that the state board act as
34expeditiously as is feasible to reduce nitrogen oxide emissions
35from diesel vehicles, marine vessels, and other categories of
36vehicular and mobile sources which significantly contribute to air
Section 44258.5 is added to the Health and Safety
39Code, to read:
(a) For the purposes of this section, the following
2terms mean the following:
6 “Retail seller” has the same meaning as set forth in Section
7399.12 of the Public Utilities Code.
9 “Transportation electrification” has the same meaning as
10set forth in Section 237.5 of the Public Utilities Code.
11(b) The state board shall identify and adopt appropriate policies
12to remove regulatory disincentives facing retail sellers from facilitating the achievement
14of greenhouse gas emission reductions in other sectors through
15increased investments in transportation electrification. Those
16policies shall include, but are not limited to, an allocation of
17greenhouse gas emissions allowances to retail sellers to account for increased greenhouse
19gas emissions in the electric sector from transportation
Section 25000.5 of the Public Resources Code is
22amended to read:
(a) The Legislature finds and declares that
24overdependence on the production, marketing, and consumption
25of petroleum based fuels as an energy resource in the transportation
26sector is a threat to the energy security of the state due to
27continuing market and supply uncertainties. In addition, petroleum
28use as an energy resource contributes substantially to the following
29public health and environmental problems: air pollution, acid rain,
30global warming, and the degradation of California’s marine
31environment and fisheries.
32(b) Therefore, it is the policy of this state to fully evaluate the
33economic and environmental costs of petroleum use, and the
34economic and environmental costs of other transportation fuels
35and options, including the costs and values of environmental
36impacts, and to establish a state transportation energy policy that
37results in the least environmental and economic cost to the state.
38In pursuing the “least environmental and economic cost” strategy,
39it is the policy of the state to exploit all practicable and
40cost-effective conservation and improvements in the efficiency of
P9 1energy use and distribution, and to achieve energy security,
2diversity of supply sources, and competitiveness of transportation
3energy markets based on the least environmental and economic
4cost, and in furtherance of reducing petroleum use in the
5transportation sector by 50 percent by January 1, 2030.
6(c) It is also the policy of this state to minimize the economic
7and environmental costs due to the use of petroleum-based and
8other transportation fuels by state agencies. In implementing a
9least-cost economic and environmental strategy for state fleets, it
10is the policy of the state to implement practicable and cost-effective
11measures, including, but not necessarily limited to, the purchase
12of the cleanest and most efficient automobiles and replacement
13tires, the use of alternative fuels in its fleets, and other conservation
15(d) For the purposes of this section, “petroleum based fuels”
16means fuels derived from liquid unrefined crude oil, including
17natural gas liquids, liquefied petroleum gas, or the energy fraction
18of methyl tertiary-butyl ether (MTBE) or other ethers that is not
19attributed to natural gas.
Section 25943 of the Public Resources Code is
21amended to read:
(a) (1) By March 1, 2010, the commission shall
23establish a regulatory proceeding to develop and implement a
24comprehensive program to achieve greater energy savings in
25California’s existing residential and nonresidential building stock.
26This program shall comprise a complementary portfolio of
27techniques, applications, and practices that will achieve greater
28energy efficiency in existing residential and nonresidential
29structures that fall significantly below the current standards in Title
3024 of the California Code of Regulations, as determined by the
32(2) The comprehensive program may include, but need not be
33limited to, a broad range of energy assessments, building
34benchmarking, energy rating, cost-effective energy efficiency
35 improvements, public and private sector energy efficiency
36financing options, public outreach and education efforts, and green
38(3) The commission shall adopt, implement, and enforce a
39responsible contractor policy for use across all ratepayer-funded
40energy efficiency programs that involve installation or
P10 1maintenance, or both installation and maintenance, by building
2contractors to ensure that retrofits meet high-quality performance
3standards and reduce energy savings lost or foregone due to
5(b) To develop and implement the program specified in
6subdivision (a), the commission shall do both of the following:
7(1) Coordinate with the Public Utilities Commission
8with representatives from the Bureau of Real Estate, the
9Department of Housing and Community Development,
10investor-owned and publicly owned utilities, local governments,
11real estate licensees, commercial and homebuilders, commercial
12property owners, small businesses, mortgage lenders, financial
13institutions, home appraisers, inspectors, energy rating
14organizations, consumer groups, environmental and environmental
15justice groups, and other entities the commission deems
17(2) Hold at least three public hearings in geographically diverse
18locations throughout the state.
19(c) In developing the requirements for the program specified in
20subdivision (a), the commission shall consider all of the following:
21(1) The amount of annual and peak energy savings, greenhouse
22gas emission reductions, and projected customer utility bill savings
23that will accrue from the program.
24(2) The most cost-effective means and reasonable timeframes
25to achieve the goals of the program.
26(3) The various climatic zones within the state.
27(4) An appropriate method to inform and educate the public
28about the need for, benefits of, and environmental impacts of, the
29comprehensive energy efficiency program.
30(5) The most effective way to report the energy assessment
31results and the corresponding energy efficiency improvements to
32the owner of the residential or nonresidential building, including,
33among other things, the following:
34(A) Prioritizing the identified energy efficiency improvements.
35(B) The payback period or cost-effectiveness of each
37(C) The various incentives, loans, grants, and rebates offered
38to finance the improvements.
39(D) Available financing options including all of the following:
40(i) Mortgages or sales agreement components.
P11 1(ii) On-bill financing.
2(iii) Contractual property tax assessments.
3(iv) Home warranties.
4(6) Existing statutory and regulatory requirements to achieve
5energy efficiency savings and greenhouse gas emission reductions.
6(7) A broad range of implementation approaches, including both
7utility and nonutility administration of energy efficiency programs.
8(8) Any other considerations deemed appropriate by the
10(d) The program developed pursuant to this section shall do all
11of the following:
12(1) Minimize the overall costs of establishing and implementing
13the comprehensive energy efficiency program requirements.
14(2) Ensure, for residential buildings, that the energy efficiency
15assessments, ratings, or improvements do not unreasonably or
16unnecessarily affect the home purchasing process or the ability of
17individuals to rent housing. A transfer of property subject to the
18program implemented pursuant to this section shall not be
19invalidated solely because of the failure of a person to comply
20with a provision of the program.
21(3) Ensure, for nonresidential buildings, that the energy
22improvements do not have an undue economic impact on California
24(4) Determine, for residential buildings, the appropriateness of
25the Home Energy Rating System (HERS) program to support the
26goals of this section and whether there are a sufficient number of
27HERS-certified raters available to meet the program requirements.
28(5) Determine, for nonresidential structures, the availability of
29an appropriate cost-effective energy efficiency assessment system
30and whether there are a sufficient number of certified raters or
31auditors available to meet the program requirements.
32(6) Coordinate with the California Workforce Investment Board,
33the Employment Training Panel, the California Community
34Colleges, and other entities to ensure a qualified, well-trained
35workforce is available to implement the program requirements.
36(7) Coordinate with, and avoid duplication of, existing
37proceedings of the Public Utilities Commission and programs
38administered by utilities.
39(e) A home energy rating or energy assessment service does not
40meet the requirements of this section unless the service has been
P12 1certified by the commission to be in compliance with the program
2criteria developed pursuant to this section and is in conformity
3with other applicable elements of the program.
4(f) (1) The commission shall periodically update the criteria
5and adopt any revision that, in its judgment, is necessary to improve
6or refine program requirements after receiving public input.
7(2) On or before January 1, 2017, and at least once every three
8years thereafter, the commission shall adopt an update to the
9program in furtherance of achieving an overall doubling of the
10energy efficiency of buildings by January 1, 2030.
11(g) Before implementing an element of the program developed
12pursuant to subdivision (a) that requires the expansion of statutory
13authority of the commission or the Public Utilities Commission,
14the commission and the Public Utilities Commission shall obtain
15legislative approval for the expansion of their authorities.
16(h) The commission shall report on the status of the program in
17the integrated energy policy report pursuant to Section 25302.
18(i) The commission shall fund activities undertaken pursuant
19to this section from the Federal Trust Fund consistent with the
20federal American Recovery and Reinvestment Act of 2009 (Public
21Law 111-5) or other sources of nonstate funds available to the
22commission for the purposes of this section.
23(j) For purposes of this section, the following terms mean the
25(1) “Energy assessment” means a determination of an energy
26user’s energy consumption level, relative efficiency compared to
27other users, and opportunities to achieve greater efficiency or
28improve energy resource utilization.
29(2) “Energy efficiency” means delivering equal or more services
30with less energy input from an energy source.
Section 237.5 is added to the Public Utilities Code, to
“Transportation electrification” means the use of
34electricity from the
begin delete electricend delete grid to power all or part of
35vehicles, vessels, trains, boats, or other equipment that are mobile
36sources of air pollution and greenhouse gases.
Section 399.11 of the Public Utilities Code is amended
The Legislature finds and declares all of the following:
P13 1(a) In order to attain a target of generating 20 percent of total
2retail sales of electricity in California from eligible renewable
3energy resources by December 31, 2013, 33 percent by December
431, 2020, and 50 percent by December 31, 2030, it is the intent of
5the Legislature that the commission and the Energy Commission
6implement the California Renewables Portfolio Standard Program
7described in this article.
8(b) Achieving the renewables portfolio standard through the
9 procurement of various electricity products from eligible renewable
10energy resources is intended to provide unique benefits to
11California, including all of the following, each of which
12independently justifies the program:
13(1) Displacing fossil fuel consumption within the state.
14(2) Adding new electrical generating facilities in the
15transmission network within the Western Electricity Coordinating
16Council service area.
17(3) Reducing air pollution in the state.
18(4) Meeting the state’s climate change goals by reducing
19emissions of greenhouse gases associated with electrical generation.
20(5) Promoting stable retail rates for electric service.
21(6) Meeting the state’s need for a diversified and balanced
22energy generation portfolio.
23(7) Assistance with meeting the state’s resource adequacy
25(8) Contributing to the safe and reliable operation of the
26electrical grid, including providing predictable electrical supply,
27voltage support, lower line losses, and congestion relief.
28(9) Implementing the state’s transmission and land use planning
29activities related to development of eligible renewable energy
31(c) The California Renewables Portfolio Standard Program
32intended to complement the Renewable Energy Resources Program
33administered by the Energy Commission and established pursuant
34to Chapter 8.6 (commencing with Section 25740) of Division 15
35of the Public Resources Code.
36(d) New and modified electric transmission facilities may be
37necessary to facilitate the state achieving its renewables portfolio
39(e) (1) Supplying electricity to California end-use customers
40that is generated by eligible renewable energy resources is
P14 1necessary to improve California’s air quality and public health,
2and the commission shall ensure rates are just and reasonable, and
3are not significantly affected by the procurement requirements of
4this article. This electricity may be generated anywhere in the
5interconnected grid that includes many states, and areas of both
6Canada and Mexico.
7(2) This article requires generating resources located outside of
8California that are able to supply that electricity to California
9end-use customers to be treated identically to generating resources
10located within the state, without discrimination.
11(3) California electrical corporations have already executed,
12and the commission has approved, power purchase agreements
13with eligible renewable energy resources located outside of
14California that will supply electricity to California end-use
15customers. These resources will fully count toward meeting the
16renewables portfolio standard procurement requirements.
Section 399.12 of the Public Utilities Code is amended
For purposes of this article, the following terms have
20the following meanings:
21(a) “Conduit hydroelectric facility” means a facility for the
22generation of electricity that uses only the hydroelectric potential
23of an existing pipe, ditch, flume, siphon, tunnel, canal, or other
24manmade conduit that is operated to distribute water for a
26(b) “Balancing authority” means the responsible entity that
27integrates resource plans ahead of time, maintains load-interchange
28generation balance within a balancing authority area, and supports
29interconnection frequency in real time.
30(c) “Balancing authority area” means the collection of
31generation, transmission, and loads within the metered boundaries
32of the area within which the balancing authority maintains the
33electrical load-resource balance.
34(d) “California balancing authority” is a balancing authority
35with control over a balancing authority area primarily located in
36this state and operating for retail sellers and local publicly owned
37electric utilities subject to the requirements of this article and
38includes the Independent System Operator (ISO) and a local
39publicly owned electric utility operating a transmission grid that
40is not under the operational control of the ISO. A California
P15 1balancing authority is responsible for the operation of the
2transmission grid within its metered boundaries which may not be
3limited by the political boundaries of the State of California.
4(e) “Eligible renewable energy resource” means an electrical
5generating facility that meets the definition of a “renewable
6electrical generation facility” in Section 25741 of the Public
7Resources Code, subject to the following:
8(1) (A) An existing small hydroelectric generation facility of
930 megawatts or less shall be eligible only if a retail seller or local
10publicly owned electric utility procured the electricity from the
11facility as of December 31, 2005. A new hydroelectric facility that
12commences generation of electricity after December 31, 2005, is
13not an eligible renewable energy resource if it will cause an adverse
14impact on instream beneficial uses or cause a change in the volume
15or timing of streamflow.
16(B) Notwithstanding subparagraph (A), a conduit hydroelectric
17facility of 30 megawatts or less that commenced operation before
18January 1, 2006, is an eligible renewable energy resource. A
19conduit hydroelectric facility of 30 megawatts or less that
20commences operation after December 31, 2005, is an eligible
21renewable energy resource so long as it does not cause an adverse
22impact on instream beneficial uses or cause a change in the volume
23or timing of streamflow.
24(C) A facility approved by the governing board of a local
25publicly owned electric utility prior to June 1, 2010, for
26procurement to satisfy renewable energy procurement obligations
27adopted pursuant to former Section 387, shall be certified as an
28eligible renewable energy resource by the Energy Commission
29pursuant to this article, if the facility is a “renewable electrical
30generation facility” as defined in Section 25741 of the Public
32(D) (i) A small hydroelectric generation unit with a nameplate
33capacity not exceeding 40 megawatts that is operated as part of a
34water supply or conveyance system is an eligible renewable energy
35resource only for the retail seller or local publicly owned electric
36utility that procured the electricity from the unit as of December
3731, 2005. No unit shall be eligible pursuant to this subparagraph
38if an application for certification is submitted to the Energy
39Commission after January 1, 2013. Only one retail seller or local
P16 1publicly owned electric utility shall be deemed to have procured
2electricity from a given unit as of December 31, 2005.
3(ii) Notwithstanding clause (i), a local publicly owned electric
4utility that meets the criteria of subdivision (j) of Section 399.30
5may sell to another local publicly owned electric utility electricity
6from small hydroelectric generation units that qualify as eligible
7renewable energy resources under clause (i), and that electricity
8may be used by the local publicly owned electric utility that
9purchased the electricity to meet its renewables portfolio standard
10procurement requirements. The total of all those sales from the
11utility shall be no greater than 100,000 megawatthours of
13(iii) The amendments made to this subdivision by the act adding
14this subparagraph are intended to clarify existing law and apply
15from December 10, 2011.
16(2) (A) A facility engaged in the combustion of municipal solid
17waste shall not be considered an eligible renewable energy
19(B) Subparagraph (A) does not apply to contracts entered into
20before January 1, 2016, for the procurement of renewable energy
21resources from a facility located in Stanislaus County that was
22operational prior to September 26, 1996.
23(f) “Procure” means to acquire through ownership or contract.
24(g) “Procurement entity” means any person or corporation
25authorized by the commission to enter into contracts to procure
26eligible renewable energy resources on behalf of customers of a
27retail seller pursuant to subdivision (f) of Section 399.13.
28(h) (1) “Renewable energy credit” means a certificate of proof
29associated with the generation of electricity from an eligible
30renewable energy resource, issued through the accounting system
31established by the Energy Commission pursuant to Section 399.25,
32that one unit of electricity was generated and delivered by an
33eligible renewable energy resource.
34(2) “Renewable energy credit” includes all renewable and
35environmental attributes associated with the production of
36electricity from the eligible renewable energy resource, except for
37an emissions reduction credit issued pursuant to Section 40709 of
38the Health and Safety Code and any credits or payments associated
39with the reduction of solid waste and treatment benefits created
40by the utilization of biomass or biogas fuels.
P17 1(3) (A) Electricity generated by an eligible renewable energy
2resource attributable to the use of nonrenewable fuels, beyond a
3de minimis quantity used to generate electricity in the same process
4through which the facility converts renewable fuel to electricity,
5shall not result in the creation of a renewable energy credit. The
6Energy Commission shall set the de minimis quantity of
7nonrenewable fuels for each renewable energy technology at a
8level of no more than 2 percent of the total quantity of fuel used
9by the technology to generate electricity. The Energy Commission
10may adjust the de minimis quantity for an individual facility, up
11to a maximum of 5 percent, if it finds that all of the following
12conditions are met:
13(i) The facility demonstrates that the higher quantity of
14nonrenewable fuel will lead to an increase in generation from the
15eligible renewable energy facility that is significantly greater than
16generation from the nonrenewable fuel alone.
17(ii) The facility demonstrates that the higher quantity of
18nonrenewable fuels will reduce the variability of its electrical
19output in a manner that results in net environmental benefits to the
21(iii) The higher quantity of nonrenewable fuel is limited to either
22natural gas or hydrogen derived by reformation of a fossil fuel.
23(B) Electricity generated by a small hydroelectric generation
24facility shall not result in the creation of a renewable energy credit
25unless the facility meets the requirements of subparagraph (A) or
26(D) of paragraph (1) of subdivision (e).
27(C) Electricity generated by a conduit hydroelectric generation
28facility shall not result in the creation of a renewable energy credit
29unless the facility meets the requirements of subparagraph (B) of
30paragraph (1) of subdivision (e).
31(D) Electricity generated by a facility engaged in the combustion
32of municipal solid waste shall not result in the creation of a
33renewable energy credit. This subparagraph does not apply to
34renewable energy credits that were generated before January 1,
352016, by a facility engaged in the combustion of municipal solid
36waste located in Stanislaus County that was operational prior to
37September 26, 1996, and sold pursuant to contacts entered into
38before January 1, 2016.
portfolio standard” means the specified
40percentage of electricity generated by eligible renewable energy
P18 1resources that a retail seller or a local publicly owned electric utility
2is required to procure pursuant to this article.
3(j) “Retail seller” means an entity engaged in the retail sale of
4electricity to end-use customers located within the state, including
5any of the following:
6(1) An electrical corporation, as defined in Section 218.
7(2) A community choice aggregator. A community choice
8aggregator shall participate in the renewables portfolio standard
9program subject to the same terms and conditions applicable to an
11(3) An electric
service provider, as defined in Section 218.3.
12The electric service provider shall be subject to the same terms
13and conditions applicable to an electrical corporation pursuant to
14this article. This paragraph does not impair a contract entered into
15between an electric service provider and a retail customer prior to
16the suspension of direct access by the commission pursuant to
17Section 80110 of the Water Code.
18(4) “Retail seller” does not include any of the following:
19(A) A corporation or person employing cogeneration technology
20or producing electricity consistent with subdivision (b) of Section
22(B) The Department of Water Resources acting in its capacity
23pursuant to Division 27 (commencing with Section 80000) of the
25(C) A local publicly owned electric utility.
26(k) “WECC” means the Western Electricity Coordinating
27Council of the North American Electric Reliability Corporation,
28or a successor to the corporation.
Section 399.13 of the Public Utilities Code is
30amended to read:
(a) (1) The commission shall direct each electrical
32corporation to annually prepare a renewable energy procurement
33plan that includes the matter in paragraph (5), to satisfy its
34obligations under the renewables portfolio standard. To the extent
35feasible, this procurement plan shall be proposed, reviewed, and
36adopted by the commission as part of, and pursuant to, a general
37procurement plan process. The commission shall require each
38electrical corporation to review and update its renewable energy
39procurement plan as it determines to be necessary. The commission
40shall require all other retail sellers to prepare and submit renewable
P19 1energy procurement plans that address the requirements identified
2in paragraph (5).
3(2) Every electrical corporation that owns electrical transmission
4facilities shall annually prepare, as part of the Federal Energy
5Regulatory Commission Order 890 process, and submit to the
6commission, a report identifying any electrical transmission
7facility, upgrade, or enhancement that is reasonably necessary to
8achieve the renewables portfolio standard procurement
9requirements of this article. Each report shall look forward at least
10five years and, to ensure that adequate investments are made in a
11timely manner, shall include a preliminary schedule when an
12application for a certificate of public convenience and necessity
13will be made, pursuant to Chapter 5 (commencing with Section
141001), for any electrical transmission facility identified as being
15reasonably necessary to achieve the renewable energy resources
16procurement requirements of this article. Each electrical
17corporation that owns electrical transmission facilities shall ensure
18that project-specific interconnection studies are completed in a
20(3) The commission shall direct each retail seller to prepare and
21submit an annual compliance report that includes all of the
23(A) The current status and progress made during the prior year
24toward procurement of eligible renewable energy resources as a
25percentage of retail sales, including, if applicable, the status of any
26necessary siting and permitting approvals from federal, state, and
27local agencies for those eligible renewable energy resources
28procured by the retail seller, and the current status of compliance
29with the portfolio content requirements of subdivision (c) of
30Section 399.16, including procurement of eligible renewable energy
31resources located outside the state and within the WECC and
32unbundled renewable energy credits.
33(B) If the retail seller is an electrical corporation, the current
34status and progress made during the prior year toward construction
35of, and upgrades to, transmission and distribution facilities and
36other electrical system components it owns to interconnect eligible
37renewable energy resources and to supply the electricity generated
38by those resources to load, including the status of planning, siting,
39and permitting transmission facilities by federal, state, and local
P20 1(C) Recommendations to remove impediments to making
2progress toward achieving the renewable energy resources
3procurement requirements established pursuant to this article.
4(4) The commission shall adopt, by rulemaking, all of the
6(A) A process that provides criteria for the rank ordering and
7selection of least-cost and best-fit eligible renewable energy
8resources to comply with the California Renewables Portfolio
9Standard Program obligations on a total cost basis. This process
10shall take into account all of the following:
11(i) Estimates of indirect costs associated with needed
13(ii) The cost impact of procuring the eligible renewable energy
14resources on the electrical corporation’s electricity portfolio.
15(iii) The viability of the project to construct and reliably operate
16the eligible renewable energy resource, including the developer’s
17experience, the feasibility of the technology used to generate
18electricity, and the risk that the facility will not be built, or that
19construction will be delayed, with the result that electricity will
20not be supplied as required by the contract.
21(iv) Workforce recruitment, training, and retention efforts,
22including the employment growth associated with the construction
23and operation of eligible renewable energy resources and goals
24for recruitment and training of women, minorities, and disabled
26(v) (I) Estimates of electrical corporation expenses resulting
27from integrating and operating eligible renewable energy resources,
28including, but not limited to, any additional wholesale energy and
29capacity costs associated with integrating each eligible renewable
31(II) No later than December 31, 2015, the commission shall
32approve a methodology for determining the integration costs
33described in subclause (I).
34(B) Rules permitting retail sellers to accumulate, beginning
35January 1, 2011, excess procurement in one compliance period to
36be applied to any subsequent compliance period. The rules shall
37apply equally to all retail sellers. In determining the quantity of
38excess procurement for the applicable compliance period, the
39commission shall deduct from actual procurement quantities the
40total amount of procurement associated with contracts of less than
P21 110 years in duration and electricity products meeting the portfolio
2content of paragraph (3) of subdivision (b) of Section 399.16.
3(C) Standard terms and conditions to be used by all electrical
4corporations in contracting for eligible renewable energy resources,
5including performance requirements for renewable generators. A
6contract for the purchase of electricity generated by an eligible
7renewable energy resource, at a minimum, shall include the
8renewable energy credits associated with all electricity generation
9specified under the contract. The standard terms and conditions
10shall include the requirement that, no later than six months after
11the commission’s approval of an electricity purchase agreement
12entered into pursuant to this article, the following information
13about the agreement shall be disclosed by the commission: party
14names, resource type, project location, and project capacity.
15(D) An appropriate minimum margin of procurement above the
16minimum procurement level necessary to comply with the
17renewables portfolio standard to mitigate the risk that renewable
18projects planned or under contract are delayed or canceled. This
19paragraph does not preclude an electrical corporation from
20voluntarily proposing a margin of procurement above the
21appropriate minimum margin established by the commission.
22(5) Consistent with the goal of increasing California’s reliance
23on eligible renewable energy resources, the renewable energy
24procurement plan shall include all of the following:
25(A) An assessment of annual or multiyear portfolio supplies
26and demand to determine the optimal mix of eligible renewable
27energy resources with deliverability characteristics that may include
28peaking, dispatchable, baseload, firm, and as-available capacity.
29(B) Potential compliance delays related to the conditions
30described in paragraph (5) of subdivision (b) of Section 399.15.
31(C) A bid solicitation setting forth the need for eligible
32renewable energy resources of each deliverability characteristic,
33required online dates, and locational preferences, if any.
34(D) A status update on the development schedule of all eligible
35renewable energy resources currently under contract.
36(E) Consideration of mechanisms for price adjustments
37associated with the costs of key components for eligible renewable
38energy resource projects with online dates more than 24 months
39after the date of contract execution.
P22 1(F) An assessment of the risk that an eligible renewable energy
2resource will not be built, or that construction will be delayed,
3with the result that electricity will not be delivered as required by
5(6) In soliciting and procuring eligible renewable energy
6resources, each electrical corporation shall offer contracts of no
7less than 10 years duration, unless the commission approves of a
8contract of shorter duration.
9(7) In soliciting and procuring eligible renewable energy
10resources for California-based projects, each electrical corporation
11shall give preference to renewable energy projects that provide
12environmental and economic benefits to communities afflicted
13with poverty or high unemployment, or that suffer from high
14emission levels of toxic air contaminants, criteria air pollutants,
15and greenhouse gases.
16(b) A retail seller may enter into a combination of long- and
17short-term contracts for electricity and associated renewable energy
18credits. The commission may authorize a retail seller to enter into
19a contract of less than 10 years’ duration with an eligible renewable
20energy resource, if the commission has established, for each retail
21seller, minimum quantities of eligible renewable energy resources
22to be procured through contracts of at least 10 years’ duration.
23(c) The commission shall review and accept, modify, or reject
24each electrical corporation’s renewable energy resource
25 procurement plan prior to the commencement of renewable energy
26procurement pursuant to this article by an electrical corporation.
27(d) Unless previously preapproved by the commission, an
28electrical corporation shall submit a contract for the generation of
29an eligible renewable energy resource to the commission for review
30and approval consistent with an approved renewable energy
31resource procurement plan. If the commission determines that the
32bid prices are elevated due to a lack of effective competition among
33the bidders, the commission shall direct the electrical corporation
34to renegotiate the contracts or conduct a new solicitation.
35(e) If an electrical corporation fails to comply with a commission
36order adopting a renewable energy resource procurement plan, the
37commission shall exercise its authority to require compliance.
38(f) (1) The commission may authorize a procurement entity to
39enter into contracts on behalf of customers of a retail seller for
40electricity products from eligible renewable energy resources to
P23 1satisfy the retail seller’s renewables portfolio standard procurement
2requirements. The commission shall not require any person or
3corporation to act as a procurement entity or require any party to
4purchase eligible renewable energy resources from a procurement
6(2) Subject to review and approval by the commission, the
7procurement entity shall be permitted to recover reasonable
8administrative and procurement costs through the retail rates of
9end-use customers that are served by the procurement entity and
10are directly benefiting from the procurement of eligible renewable
12(3) The commission may authorize a procurement entity to
13procure ____ percent of retail sales of onsite generation within the
14area served by the procurement entity to serve local electricity
15needs. Onsite renewable generation shall be eligible renewable
16energy resources certified by the Energy Commission pursuant to
17Section 399.25 with a tracking system described in subdivision
18(c) of Section 399.25. Estimation of energy production from onsite
19generation shall not be used to demonstrate compliance with this
21(g) Procurement and administrative costs associated with
22contracts entered into by an electrical corporation for eligible
23renewable energy resources pursuant to this article and approved
24by the commission are reasonable and prudent and shall be
25recoverable in rates.
26(h) Construction, alteration, demolition, installation, and repair
27work on an eligible renewable energy resource that receives
28production incentives pursuant to Section 25742 of the Public
29Resources Code, including work performed to qualify, receive, or
30maintain production incentives, are “public works” for the purposes
31of Chapter 1 (commencing with Section 1720) of Part 7 of Division
322 of the Labor Code.
Section 399.15 of the Public Utilities Code is
34amended to read:
(a) In order to fulfill unmet long-term resource needs,
36the commission shall establish a renewables portfolio standard
37requiring all retail sellers to procure a minimum quantity of
38electricity products from eligible renewable energy resources as
39a specified percentage of total kilowatthours sold to their retail
40end-use customers each compliance period to achieve the targets
P24 1established under this article. For any retail seller procuring at least
214 percent of retail sales from eligible renewable energy resources
3in 2010, the deficits associated with any previous renewables
4portfolio standard shall not be added to any procurement
5requirement pursuant to this article.
commission shall implement renewables portfolio
7standard procurement requirements only as follows:
8(1) Each retail seller shall procure a minimum quantity of
9eligible renewable energy resources for each of the following
11(A) January 1, 2011, to December 31, 2013, inclusive.
12(B) January 1, 2014, to December 31, 2016, inclusive.
13(C) January 1, 2017, to December 31, 2020, inclusive.
14(D) January 1, 2021, to December 31, 2024, inclusive.
15(E) January 1, 2025, to December 31, 2027, inclusive.
16(F) January 1, 2028, to December 31, 2030, inclusive.
17(2) (A) No later than January 1, 2017, the commission shall
18establish the quantity of electricity products from eligible
19renewable energy resources to be procured by the retail seller for
20each compliance period. These quantities shall be established in
21the same manner for all retail sellers and result in the same
22percentages used to establish compliance period quantities for all
24(B) In establishing quantities for the compliance period from
25January 1, 2011, to December 31, 2013, inclusive, the commission
26shall require procurement for each retail seller equal to an average
27of 20 percent of retail sales. For the following compliance periods,
28the quantities shall reflect reasonable progress in each of the
29intervening years sufficient to ensure that the procurement of
30electricity products from eligible renewable energy resources
31achieves 25 percent of retail sales by December 31, 2016, 33
32percent by December 31, 2020, 40 percent by December 31, 2024,
3345 percent by December 31, 2027, and 50 percent by December
3431, 2030. The commission shall establish appropriate multiyear
35compliance periods for all subsequent years that require retail
36sellers to procure not less than 50 percent of retail sales of
37electricity products from eligible renewable energy resources.
38(C) Retail sellers shall be obligated to procure no less than the
39quantities associated with all intervening years by the end of each
40compliance period. Retail sellers shall not be required to
P25 1demonstrate a specific quantity of procurement for any individual
3(3) The commission may require the procurement of eligible
4renewable energy resources in excess of the quantities specified
5in paragraph (2).
6(4) Only for purposes of establishing the renewables portfolio
7standard procurement requirements of paragraph (1) and
8determining the quantities pursuant to paragraph (2), the
9commission shall include all electricity sold to retail customers by
10the Department of Water Resources pursuant to Division 27
11(commencing with Section 80000) of the Water Code in the
12 calculation of retail sales by an electrical corporation.
13(5) The commission shall waive enforcement of this section if
14it finds that the retail seller has demonstrated any of the following
15conditions are beyond the control of the retail seller and will
17(A) There is inadequate transmission capacity to allow for
18sufficient electricity to be delivered from proposed eligible
19renewable energy resource projects using the current operational
20protocols of the Independent System Operator. In making its
21findings relative to the existence of this condition with respect to
22a retail seller that owns transmission lines, the commission shall
23consider both of the following:
24(i) Whether the retail
seller has undertaken, in a timely fashion,
25reasonable measures under its control and consistent with its
26obligations under local, state, and federal laws and regulations, to
27develop and construct new transmission lines or upgrades to
28existing lines intended to transmit electricity generated by eligible
29renewable energy resources. In determining the reasonableness of
30a retail seller’s actions, the commission shall consider the retail
31seller’s expectations for full-cost recovery for these transmission
32lines and upgrades.
33(ii) Whether the retail seller has taken all reasonable operational
34measures to maximize cost-effective deliveries of electricity from
35eligible renewable energy resources in advance of transmission
37(B) Permitting, interconnection, or other
38delay procured eligible renewable energy resource projects, or
39there is an insufficient supply of eligible renewable energy
40resources available to the retail seller. In making a finding that this
P26 1condition prevents timely compliance, the commission shall
2consider whether the retail seller has done all of the following:
3(i) Prudently managed portfolio risks, including relying on a
4sufficient number of viable projects.
5(ii) Sought to develop one of the following: its own eligible
6renewable energy resources, transmission to interconnect to eligible
7renewable energy resources, or energy storage used to integrate
8eligible renewable energy resources. This clause shall not require
9an electrical corporation to pursue development of eligible
10renewable energy resources pursuant to Section 399.14.
11(iii) Procured an appropriate minimum margin of procurement
12above the minimum procurement level necessary to comply with
13the renewables portfolio standard to compensate for foreseeable
14delays or insufficient supply.
15(iv) Taken reasonable measures, under the control of the retail
16seller, to procure cost-effective distributed generation and allowable
17unbundled renewable energy credits.
18(C) Unanticipated curtailment of eligible renewable energy
19resources if the waiver would not result in an increase in
20greenhouse gas emissions.
21(D) Unanticipated increase in retail sales due to transportation
22electrification. In making a finding that this condition prevents
23timely compliance, the commission shall consider all of the
25(i) Whether transportation electrification significantly exceeded
26forecasts in that retail seller’s service territory based on the best
27and most recently available information filed with the State Air
28Resources Board, the Energy Commission, or other state agency.
29(ii) Whether the retail seller has taken reasonable measures to
30procure sufficient resources to account for unanticipated increases
31in retail sales due to transportation electrification.
32(6) If the commission waives the compliance requirements of
33this section, the commission shall establish additional reporting
34requirements on the retail seller to demonstrate that all reasonable
35actions under the control of the retail seller are taken in each of
36the intervening years sufficient to satisfy future procurement
38(7) The commission shall not waive enforcement pursuant to
39this section, unless the retail seller demonstrates that it has taken
P27 1 all reasonable actions under its control, as set forth in paragraph
2(5), to achieve full compliance.
3(8) If a retail seller fails to procure sufficient eligible renewable
4energy resources to comply with a procurement requirement
5pursuant to paragraphs (1) and (2) and fails to obtain an order from
6the commission waiving enforcement pursuant to paragraph (5),
7the commission shall assess penalties for noncompliance. A
8schedule of penalties shall be adopted by the commission that shall
9be comparable for electrical corporations and other retail sellers.
10For electrical corporations, the cost of any penalties shall not be
11collected in rates. Any penalties collected under this article shall
12be deposited into the Electric Program Investment Charge Fund
13and used for the purposes described in Chapter 8.1 (commencing
14with Section 25710) of Division 15 of the Public Resources Code.
15(9) Deficits associated with the compliance period shall not be
16added to a future compliance period.
17(c) The commission shall establish a limitation for each electrical
18corporation on the procurement expenditures for all eligible
19renewable energy resources used to comply with the renewables
20portfolio standard. This limitation shall be set at a level that
21prevents disproportionate rate impacts.
22(d) If the cost limitation for an electrical corporation is
23insufficient to support the projected costs of meeting the
24renewables portfolio standard procurement requirements, the
25electrical corporation may refrain from entering into new contracts
26or constructing facilities beyond the quantity that can be procured
27within the limitation, unless eligible renewable energy resources
28can be procured without exceeding a de minimis increase in rates,
29consistent with the long-term procurement plan established for the
30electrical corporation pursuant to Section 454.5.
31(e) (1) The commission shall monitor the status of the cost
32limitation for each electrical corporation in order to ensure
33compliance with this article.
34(2) If the commission determines that an electrical corporation
35may exceed its cost limitation prior to achieving the renewables
36portfolio standard procurement requirements, the commission shall
37do both of the following within 60 days of making that
39(A) Investigate and identify the reasons why the electrical
40corporation may exceed its annual cost limitation.
P28 1(B) Notify the appropriate policy and fiscal committees of the
2Legislature that the electrical corporation may exceed its cost
3limitation, and include the reasons why the electrical corporation
4may exceed its cost limitation.
5(f) The establishment of a renewables portfolio standard shall
6not constitute implementation by the commission of the federal
7Public Utility Regulatory Policies Act of 1978 (Public Law
Section 399.16 of the Public Utilities Code is
10amended to read:
(a) Various electricity products from eligible renewable
12energy resources located within the WECC transmission network
13service area shall be eligible to comply with the renewables
14portfolio standard procurement requirements in Section 399.15.
15These electricity products may be differentiated by their impacts
16on the operation of the grid in supplying electricity, as well as
17meeting the requirements of this article.
18(b) Consistent with the goals of procuring the least-cost and
19best-fit electricity products from eligible renewable energy
20resources that meet project viability principles adopted by the
21commission pursuant to paragraph (4) of subdivision (a) of Section
22399.13 and that provide the benefits set forth in Section 399.11, a
23balanced portfolio of eligible renewable energy resources shall be
24procured consisting of the following portfolio content categories:
25(1) Eligible renewable energy resource electricity products that
26meet either of the following criteria:
27(A) Have a first point of interconnection with a California
28balancing authority, have a first point of interconnection with
29distribution facilities used to serve end users within a California
30balancing authority area, or are scheduled from the eligible
31renewable energy resource into a California balancing authority
32without substituting electricity from another source. The use of
33another source to provide real-time ancillary services required to
34maintain an hourly or subhourly import schedule into a California
35balancing authority shall be permitted, but only the fraction of the
36schedule actually generated by the eligible renewable energy
37resource shall count toward this portfolio content category.
38(B) Have an agreement to dynamically transfer electricity to a
39California balancing authority.
P29 1(2) Firmed and shaped eligible renewable energy resource
2electricity products providing incremental electricity and scheduled
3into a California balancing authority.
4(3) Eligible renewable energy resource electricity products, or
5any fraction of the electricity generated, including unbundled
6renewable energy credits, that do not qualify under the criteria of
7paragraph (1) or (2).
8(c) In order to achieve a balanced portfolio, all retail sellers
9shall meet the following requirements for all procurement credited
10toward each compliance period:
11(1) Not less than 50 percent for the compliance period ending
12December 31, 2013, 65 percent for the compliance period ending
13December 31, 2016, and 75 percent for the compliance period
14ending December 31, 2020, of the eligible renewable energy
15resource electricity products associated with contracts executed
16after June 1, 2010, shall meet the product content requirements of
17paragraph (1) of subdivision (b). Each retail seller shall continue
18to satisfy the product content requirements applicable to
19procurement quantities associated with the compliance period
20ending December 31, 2020, and ensure that, for compliance periods
21ending after December 31, 2020, not less than 75 percent of the
22incremental renewable procurement requirements in each
23compliance period shall be satisfied with eligible renewable energy
24resource electricity products meeting the requirements of paragraph
25(1) of subdivision (b).
26(2) Not more than 25 percent for the compliance period ending
27December 31, 2013, 15 percent for the compliance period ending
28December 31, 2016, and 10 percent for the compliance period
29ending December 31, 2020, of the eligible renewable energy
30resource electricity products associated with contracts executed
31after June 1, 2010, shall meet the product content requirements of
32paragraph (3) of subdivision (b). For the compliance periods ending
33after December 31, 2020, not more than 10 percent of the
34incremental renewable procurement requirements in each
35compliance period shall be satisfied with eligible renewable energy
36resource electricity products meeting the requirements of paragraph
37(3) of subdivision (b).
38(3) Any renewable energy resources contracts executed on or
39after June 1, 2010, not subject to the limitations of paragraph (1)
P30 1or (2), shall meet the product content requirements of paragraph
2(2) of subdivision (b).
3(4) For purposes of electric service providers only, the
4restrictions in this subdivision on crediting eligible renewable
5energy resource electricity products to each compliance period
6shall apply to contracts executed after January 13, 2011.
7(d) Any contract or ownership agreement originally executed
8prior to June 1, 2010, shall count in full toward the procurement
9requirements established pursuant to this article, if all of the
10following conditions are met:
11(1) The renewable energy resource was eligible under the rules
12in place as of the date when the contract was executed.
13(2) For an electrical corporation, the contract has been approved
14by the commission, even if that approval occurs after June 1, 2010.
15(3) Any contract amendments or modifications occurring after
16June 1, 2010, do not increase the nameplate capacity or expected
17quantities of annual generation, or substitute a different renewable
18energy resource. The duration of the contract may be extended if
19the original contract specified a procurement commitment of 15
20or more years.
21(e) A retail
seller may apply to the commission for a reduction
22of a procurement content requirement of subdivision (c). The
23commission may reduce a procurement content requirement of
24subdivision (c) to the extent the retail seller demonstrates that it
25cannot comply with that subdivision because of conditions beyond
26the control of the retail seller as provided in paragraph (5) of
27subdivision (b) of Section 399.15. The commission shall not, under
28any circumstance, reduce the obligation specified in paragraph (1)
29of subdivision (c) below 65 percent for any compliance period
30obligation after December 31, 2016.
Section 399.18 of the Public Utilities Code is
32amended to read:
(a) This section applies to an electrical corporation
34that as of January 1, 2010, met either of the following conditions:
35(1) Served 30,000 or fewer customer accounts in California and
36had issued at least four solicitations for eligible renewable energy
37resources prior to June 1, 2010.
38(2) Had 1,000 or fewer customer accounts in California and was
39not connected to any transmission system or to the Independent
P31 1(b) For an electrical corporation or its successor, electricity
2products from eligible renewable energy resources may be used
3for compliance with this article, notwithstanding any procurement
4content limitation in Section 399.16, provided that all of the
5following conditions are met:
6(1) The electrical corporation or its successor participates in,
7and complies with, the accounting system administered by the
8Energy Commission pursuant to subdivision (b) of Section 399.25.
9(2) The Energy Commission verifies that the electricity
10generated by the facility is eligible to meet the requirements of
12(3) The electrical corporation continues to satisfy either of the
13conditions described in subdivision (a).
Section 399.21 of the Public Utilities Code is
15amended to read:
(a) The commission, by rule, shall authorize the use
17of renewable energy credits to satisfy the renewables portfolio
18standard procurement requirements established pursuant to this
19article, subject to the following conditions:
20(1) The commission and the Energy Commission shall ensure
21that the tracking system established pursuant to subdivision (c) of
22Section 399.25, is operational, is capable of independently
23verifying that electricity earning the credit is generated by an
24eligible renewable energy resource, and can ensure that renewable
25energy credits shall not be double counted by any seller of
26electricity within the service territory of the WECC.
27(2) Each renewable energy credit shall be counted only once
28for compliance with the renewables portfolio standard of this state
29or any other state, or for verifying retail product claims in this state
30or any other state.
31(3) All revenues received by an electrical corporation for the
32sale of a renewable energy credit shall be credited to the benefit
34(4) Renewable energy credits shall not be created for electricity
35generated pursuant to any electricity purchase contract with a retail
36seller or a local publicly owned electric utility executed before
37January 1, 2005, unless the contract contains explicit terms and
38conditions specifying the ownership or disposition of those credits.
39Procurement under those contracts shall be tracked through the
40accounting system described in subdivision (b) of Section 399.25
P32 1and included in the quantity of eligible renewable energy resources
2of the purchasing retail seller pursuant to Section 399.15.
3(5) Renewable energy credits shall not be created for electricity
4generated under any electricity purchase contract executed after
5January 1, 2005, pursuant to the federal Public Utility Regulatory
6Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.). Procurement
7under the electricity purchase contracts shall be tracked through
8the accounting system implemented by the Energy Commission
9pursuant to subdivision (b) of Section 399.25 and count toward
10the renewables portfolio standard procurement requirements of
11the purchasing retail seller.
12(6) A renewable
energy credit shall not be eligible for
13compliance with a renewables portfolio standard procurement
14requirement unless it is retired in the tracking system established
15pursuant to subdivision (c) of Section 399.25 by the retail seller
16or local publicly owned electric utility within 36 months from the
17initial date of generation of the associated electricity.
18(b) The commission shall allow an electrical corporation to
19recover the reasonable costs of purchasing, selling, and
20administering renewable energy credit contracts in rates.
Section 399.30 of the Public Utilities Code is
22amended to read:
(a) To fulfill unmet long-term generation resource
24needs, each local publicly owned electric utility shall adopt and
25implement a renewable energy resources procurement plan that
26requires the utility to procure a minimum quantity of electricity
27products from eligible renewable energy resources, including
28renewable energy credits, as a specified percentage of total
29kilowatthours sold to the utility’s retail end-use customers, each
30compliance period, to achieve the targets of subdivision (c).
31(b) The governing board shall implement procurement targets
32for a local publicly owned electric utility that require the utility to
33procure a minimum quantity of eligible renewable energy resources
34for each of the following compliance periods:
35(1) January 1, 2011, to December 31, 2013, inclusive.
36(2) January 1, 2014, to December 31, 2016, inclusive.
37(3) January 1, 2017, to December 31, 2020, inclusive.
38(4) January 1, 2021, to December 31, 2024, inclusive.
39(5) January 1, 2025, to December 31, 2027, inclusive.
40(6) January 1, 2028, to December 31, 2030, inclusive.
P33 1(c) The governing board of a local publicly owned electric utility
2shall ensure all of the following:
3(1) The quantities of eligible renewable energy resources to be
4procured for the compliance period from January 1, 2011, to
5December 31, 2013, inclusive, are equal to an average of 20 percent
6of retail sales.
7(2) The quantities of eligible renewable energy resources to be
8procured for all other compliance periods reflect reasonable
9progress in each of the intervening years sufficient to ensure that
10the procurement of electricity products from eligible renewable
11energy resources achieves 25 percent of retail sales by December
1231, 2016, 33 percent by December 31, 2020, 40 percent by
13December 31, 2024, 45 percent by December 31, 2027, and 50
14percent by December 31, 2030. The Energy Commission shall
15establish appropriate multiyear compliance periods for all
16subsequent years that require the local publicly owned electric
17utility to procure not less than 50 percent of retail sales of
18electricity products from eligible renewable energy resources.
19(3) A local publicly owned electric utility shall adopt
20procurement requirements consistent with Section 399.16.
21(4) A local publicly owned electric utility may procure ____
22percent of retail sales of onsite generation within the area served
23by that utility to serve local electricity needs. Onsite renewable
24generation shall be eligible renewable energy resources certified
25by the Energy Commission pursuant to Section 399.25 with a
26tracking system described in subdivision (c) of Section 399.25.
27Estimation of energy production from onsite generation shall not
28be used to demonstrate compliance with this article.
29(d) The governing board of a local publicly owned electric utility
30may adopt the following measures:
31(1) Rules permitting the utility to apply excess procurement in
32one compliance period to subsequent compliance periods in the
33same manner as allowed for retail sellers pursuant to Section
35(2) Conditions that allow for delaying timely compliance
36consistent with subdivision (b) of Section 399.15.
37(3) Cost limitations for procurement expenditures consistent
38with subdivision (c) of Section 399.15.
39(e) The governing board of the local publicly owned electric
40utility shall adopt a program for the enforcement of this article.
P34 1The program shall be adopted at a publicly noticed meeting offering
2all interested parties an opportunity to comment. Not less than 30
3days’ notice shall be given to the public of any meeting held for
4purposes of adopting the program. Not less than 10 days’ notice
5shall be given to the public before any meeting is held to make a
6substantive change to the program.
7(f) (1) Each local publicly owned electric utility shall annually
8post notice, in accordance with Chapter 9 (commencing with
9Section 54950) of Part 1 of Division 2 of Title 5 of the Government
10Code, whenever its governing body will deliberate in public on its
11renewable energy resources procurement plan.
12(2) Contemporaneous with the posting of the notice of a public
13meeting to consider the renewable energy resources procurement
14plan, the local publicly owned electric utility shall notify the
15Energy Commission of the date, time, and location of the meeting
16in order to enable the Energy Commission to post the information
17on its Internet Web site. This requirement is satisfied if the local
18publicly owned electric utility provides the uniform resource
19locator (URL) that links to this information.
20(3) Upon distribution to its governing body of information
21related to its renewable energy resources procurement status and
22future plans, for its consideration at a noticed public meeting, the
23local publicly owned electric utility shall make that information
24available to the public and shall provide the Energy Commission
25with an electronic copy of the documents for posting on the Energy
26Commission’s Internet Web site. This requirement is satisfied if
27the local publicly owned electric utility provides the uniform
28resource locator (URL) that links to the documents or information
29regarding other manners of access to the documents.
30(g) A public utility district that receives all of its electricity
31pursuant to a preference right adopted and authorized by the United
32States Congress pursuant to Section 4 of the Trinity River Division
33Act of August 12, 1955 (Public Law 84-386) shall be in compliance
34with the renewable energy procurement requirements of this article.
35(h) For a local publicly owned electric utility that was in
36existence on or before January 1, 2009, that provides retail electric
37service to 15,000 or fewer customer accounts in California, and is
38interconnected to a balancing authority located outside this state
39but within the WECC, an eligible renewable energy resource
40includes a facility that is located outside California that is
P35 1connected to the WECC transmission system, if all of the following
2conditions are met:
3(1) The electricity generated by the facility is procured by the
4local publicly owned electric utility, is delivered to the balancing
5authority area in which the local publicly owned electric utility is
6located, and is not used to fulfill renewable energy procurement
7requirements of other states.
8(2) The local publicly owned electric utility participates in, and
9complies with, the accounting system administered by the Energy
10Commission pursuant to this article.
11(3) The Energy Commission
verifies that the electricity
12generated by the facility is eligible to meet the renewables portfolio
13standard procurement requirements.
14(i) Notwithstanding subdivision (a), for a local publicly owned
15electric utility that is a joint powers authority of districts established
16pursuant to state law on or before January 1, 2005, that furnish
17electric services other than to residential customers, and is formed
18pursuant to the Irrigation District Law (Division 11 (commencing
19with Section 20500) of the Water Code), the percentage of total
20kilowatthours sold to the district’s retail end-use customers, upon
21which the renewables portfolio standard procurement requirements
22in subdivision (b) are calculated, shall be based on the authority’s
23average retail sales over the previous seven years. If the authority
24has not furnished electric service for seven years, then the
25calculation shall be based on average retail sales over the number
26of completed years during which the authority has provided electric
28(j) A local publicly owned electric utility in a city and county
29that only receives greater than 67 percent of its electricity sources
30from hydroelectric generation located within the state that it owns
31and operates, and that does not meet the definition of a “renewable
32electrical generation facility” pursuant to Section 25741 of the
33Public Resources Code, shall be required to procure eligible
34renewable energy resources, including renewable energy credits,
35to meet only the electricity demands unsatisfied by its hydroelectric
36generation in any given year, in order to satisfy its renewable
37energy procurement requirements.
38(k) (1) A local publicly owned electric utility that receives
39greater than 50 percent of its annual retail sales from its own
40hydroelectric generation that is not an eligible renewable energy
P36 1resource shall not be required to procure additional eligible
2renewable energy resources in excess of either of the following:
3(A) The portion of its retail sales not supplied by its own
4hydroelectric generation. For these purposes, retail sales supplied
5by an increase in hydroelectric generation resulting from an
6increase in the amount of water stored by a dam because the dam
7is enlarged or otherwise modified after December 31, 2012, shall
8not count as being retail sales supplied by the utility’s own
10(B) The cost limitation adopted pursuant to this section.
11(2) For the purposes of this subdivision, “hydroelectric
12generation” means electricity generated from a hydroelectric
13facility that satisfies all of the following:
14(A) Is owned solely and operated by the local publicly owned
15electric utility as of 1967.
16(B) Serves a local publicly owned electric utility with a
17distribution system demand of less than 150 megawatts.
18(C) Involves a contract in which an electrical corporation
19receives the benefit of the electric generation through June of 2014,
20at which time the benefit reverts back to the ownership and control
21of the local publicly owned electric utility.
22(D) Has a maximum penstock flow capacity of no more than
233,200 cubic feet per second and includes a regulating reservoir
24with a small hydroelectric generation facility producing fewer than
2520 megawatts with a maximum penstock flow capacity of no more
26than 3,000 cubic feet per second.
27(3) This subdivision does not reduce or eliminate any renewable
28procurement requirement for any compliance period ending prior
29to January 1, 2014.
30(4) This subdivision does not require a local publicly owned
31electric utility to purchase additional eligible renewable energy
32resources in excess of the procurement requirements of subdivision
34(l) A local publicly owned electric utility shall retain discretion
35over both of the following:
36(1) The mix of eligible renewable energy resources procured
37by the utility and those additional generation resources procured
38by the utility for purposes of ensuring resource adequacy and
P37 1(2) The reasonable costs incurred by the utility for eligible
2renewable energy resources owned by the utility.
3(m) The Energy Commission shall adopt regulations specifying
4procedures for enforcement of this article. The regulations shall
5include a public process under which the Energy Commission may
6issue a notice of violation and correction against a local publicly
7owned electric utility for failure to comply with this article, and
8for referral of violations to the State Air Resources Board for
9penalties pursuant to subdivision (n).
10(n) (1) Upon a determination by the Energy Commission that
11a local publicly owned electric utility has failed to comply with
12this article, the Energy Commission shall refer the failure to comply
13with this article to the State Air Resources Board, which may
14impose penalties to enforce this article consistent with Part 6
15(commencing with Section 38580) of Division 25.5 of the Health
16and Safety Code. Any penalties imposed shall be comparable to
17those adopted by the commission for noncompliance by retail
19(2) Any penalties collected by the State Air Resources Board
20pursuant to this article shall be deposited in the Air Pollution
21Control Fund and, upon appropriation by the Legislature, shall be
22expended for reducing emissions of air pollution or greenhouse
23gases within the same geographic area as the local publicly owned
Article 17 (commencing with Section 400) is added
26to Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code,
The commission and the Energy Commission shall do all
32of the following in furtherance of meeting the state’s clean energy
33and pollution reduction objectives:
34(a) Take into account the use of distributed generation to the
35extent that it provides economic and environmental benefits in
36disadvantaged communities as identified pursuant to Section 39711
37of the Health and Safety Code.
38(b) Take into account the opportunities to decrease costs and
39increase benefits, including pollution reduction and grid integration,
P38 1using technologies with zero onsite greenhouse gas emissions in
2proceedings associated with meeting the objectives.
3(c) Where feasible,
authorize procurement of resources to
4provide grid reliability services that minimize reliance on system
5power and fossil fuel resources and, where feasible, cost-effective,
6and consistent with other state policy objectives, increase the use
7of large- and small-scale energy storage with a variety of
8technologies, targeted energy efficiency, demand response, eligible
9renewable energy resources, or other technologies with zero onsite
10greenhouse gas emissions to protect system reliability.
11(d) Review technology incentive, research, development,
12deployment, and market facilitation programs overseen by the
13commission and the Energy Commission and make
14recommendations to advance state clean energy and pollution
15reduction objectives and provide benefits to disadvantaged
16communities as identified pursuant to Section 39711 of the Health
17and Safety Code.
18(e) To the extent feasible, give first priority to the manufacture
19and deployment of clean energy and pollution reduction
20technologies that create employment opportunities, including high
21wage, highly skilled employment opportunities, and increased
22investment in the state.
23(f) Establish a publicly available tracking system to provide
24up-to-date information on progress toward meeting the clean energy
25and pollution reduction goals of the Clean Energy and Pollution
26Reduction Act of 2015.
27(g) Establish an advisory group consisting of representatives
28from disadvantaged communities identified in Section 39711 of
29the Health and Safety Code. The advisory group shall review and
30provide advice on programs proposed to achieve clean energy and
31pollution reduction and determine whether those proposed
32programs will be effective and useful in disadvantaged
Section 454.51 is added to the Public Utilities Code,
The commission shall direct each electrical corporation
37to include in its proposed procurement plan a strategy for procuring
38a diverse portfolio of resources that provide a reliable electricity
39supply, including renewable energy integration needs, using zero
40carbon-emitting resources to the maximum extent reasonable. The
P39 1net capacity costs of those resources shall be allocated on a fully
2nonbypassable basis consistent with the treatment of costs
3identified in paragraph (2) of subdivision (c) of Section 365.1.
Section 701.1 of the Public Utilities Code is amended
(a) (1) The Legislature finds and declares that, in
7addition to other ratepayer protection objectives, a principal goal
8of electric and natural gas utilities’ resource planning and
9investment shall be to minimize the cost to society of the reliable
10energy services that are provided by natural gas and electricity,
11and to improve the environment and to encourage the diversity of
12energy sources through improvements in energy efficiency and
13development of renewable energy resources, such as wind, solar,
14biomass, geothermal energy, and widespread transportation
16(2) The amendment made to this subdivision by the Clean
17Energy and Pollution Reduction Act of 2015 does not expand the
18authority of the commission beyond that provided by other law.
19(b) The Legislature further finds and declares that, in addition
20to any appropriate investments in energy production, electrical
21and natural gas utilities should seek to exploit all practicable and
22cost-effective conservation and improvements in the efficiency of
23energy use and distribution that offer equivalent or better system
24reliability, and which are not being exploited by any other entity.
25(c) In calculating the cost effectiveness of energy resources,
26including conservation and load management options, the
27commission shall include, in addition to other ratepayer protection
28objectives, a value for any costs and benefits to the environment,
29including air quality. The commission shall ensure that any values
30it develops pursuant to this section are consistent with values
31developed by the State Energy Resources Conservation and
32Development Commission pursuant to Section 25000.1 of the
33Public Resources Code. However, if the commission determines
34that a value developed pursuant to this subdivision is not consistent
35with a value developed by the State Energy Resources
36Conservation and Development Commission pursuant to
37subdivision (c) of Section 25000.1 of the Public Resources Code,
38the commission may nonetheless use this value if, in the
39appropriate record of its proceedings, it states its reasons for using
40the value it has selected.
P40 1(d) In determining the emission values associated with the
2current operating capacity of existing electric powerplants pursuant
3to subdivision (c), the commission shall adhere to the following
4protocol in determining values for air quality costs and benefits to
5the environment. If the commission finds that an air pollutant that
6is subject to regulation is a component of residual emissions from
7an electric powerplant and that the owner of that powerplant is
8either of the following:
9(1) Using a tradable emission allowance, right, or offset for that
10pollutant, which (A) has been approved by the air quality district
11regulating the powerplant, (B) is consistent with federal and state
12law, and (C) has been obtained, authorized, or acquired in a
14(2) Paying a tax per measured unit of that pollutant.
15The commission shall not assign a value or cost to that residual
16pollutant for the current operating capacity of that powerplant
17because the alternative protocol for dealing with the pollutant
18operates to internalize its cost for the purpose of planning for and
19acquiring new generating resources.
20(e) (1) The values determined pursuant to subdivision (c) to
21represent costs and benefits to the environment shall not be used
22by the commission, in and of themselves, to require early
23decommissioning or retirement of an electric utility powerplant
24that complies with applicable prevailing environmental regulations.
25(2) Further, the environmental values determined pursuant to
26subdivision (c) shall not be used by the commission in a manner
27which, when those values are aggregated, will result in advancing
28an electric utility’s need for new powerplant capacity by more than
30(f) This subdivision shall apply whenever a powerplant bid
31solicitation is required by the commission for an electric utility
32and a portion of the amount of new powerplant capacity, which is
33the subject of the bid solicitation, is the result of the commission’s
34use of environmental values to advance that electric utility’s need
35for new powerplant capacity in the manner authorized by paragraph
36(2) of subdivision (e). The affected electric utility may propose to
37the commission any combination of alternatives to that portion of
38the new powerplant capacity that is the result of the commission’s
39use of environmental values as authorized by paragraph (2) of
P41 1subdivision (c). The commission shall approve an alternative in
2place of the new powerplant capacity if it finds all of the following:
3(1) The alternative has been approved by the relevant air quality
5(2) The alternative is consistent with federal and state law.
6(3) The alternative will result in needed system reliability for
7the electric utility at least equivalent to that which would result
8from bidding for new powerplant capacity.
9(4) The alternative will result in reducing system operating costs
10for the electric utility over those which would result from the
11process of bidding for new powerplant capacity.
12(5) The alternative will result in equivalent or better
13environmental improvements at a lower cost than would result
14from bidding for new powerplant capacity.
15(g) This section does not require an electric utility to alter the
16dispatch of its powerplants for environmental purposes.
17(h) This section does not preclude an electric utility from
18submitting to the commission any combination of alternatives to
19meet a commission-identified need for new capacity, if the
20submission is otherwise authorized by the commission.
21(i) This section does not change or alter any provision of
22commission decision 92-04-045, dated April 22, 1992.
Section 740.8 of the Public Utilities Code is amended
As used in Section 740.3, “interests” of ratepayers,
26short- or long-term, mean direct benefits that are specific to
27ratepayers in the form of any of the following:
28(a) Safer, more reliable, or less costly gas or electrical service,
29consistent with Section 451.
30(b) More efficient use of the electric system.
31(c) Improve integration of renewable energy generation.
32(d) Activities that both directly benefit ratepayers and that
33promote at least one of the following:
34(1) Energy efficiency.
35(2) Reduction of health and environmental impacts from air
37(3) Reduction of greenhouse gas emissions related to electricity
38and natural gas production and use.
39(4) Increased use of alternative fuels.
Section 740.12 is added to the Public Utilities Code,
(a) (1) The Legislature finds and declares all of the
begin deleteTransportation electrification, natural gas vehicles as a are needed to reduce
6short-term measure, fuel cell vehicles, and transportation
7innovations end delete
8petroleum use, to meet air quality standards, to improve public
9health, and to achieve greenhouse gas emissions reduction goals.
transportation electrification is needed to
11achieve the goals of the Charge Ahead California Initiative
12(Chapter 8.5 (commencing with Section 44258) of Part 5 of
13Division 26 of the Health and Safety Code).
14(C) Reducing emissions of greenhouse gases to 40 percent below
151990 levels by 2030 and to 80 percent below 1990 levels by 2050
16will require widespread transportation electrification.
17(D) Widespread transportation electrification requires electrical
18corporations to increase access to the use of electricity as a
20(E) Deploying electric vehicles should assist in integrating
21generation from eligible renewable energy resources and reduce
22fuel costs for vehicle drivers who charge in a manner consistent
begin delete electricend delete grid conditions.
24(F) Deploying electric vehicle charging infrastructure should
25facilitate increased sales of electric vehicles by making charging
26easily accessible and should provide the opportunity to access
27electricity as a fuel that is cleaner than gasoline or other fossil
29(G) Deploying natural gas and fuel cell infrastructure should
30facilitate increased sales of natural gas or fuel cell vehicles by
31making refueling easily accessible and should provide the
32opportunity to access fuels that are cleaner than gasoline.
34 According to the State Alternative Fuels Plan analysis by
35the Energy Commission and the State Air Resources Board, light-,
36medium-, and heavy-duty vehicle electrification results in
37approximately 70 percent fewer greenhouse gases emitted, over
3885 percent fewer ozone-forming air pollutants emitted, and 100
39percent fewer petroleum used. These reductions will become larger
40as renewable generation increases.
P43 1(2) It is the policy of the state and the intent of the Legislature
2to encourage transportation electrification as a means to achieve
3ambient air quality standards and the state’s climate goals.
4Agencies designing and implementing regulations, guidelines,
5plans, and funding programs to reduce greenhouse gas emissions
6should take the finding described in subparagraph
begin delete (H)end delete of
7paragraph (1) into account.
8(b) The commission, in consultation with the State Air Resources
9Board and the Energy Commission, shall direct electrical
10corporations to propose multiyear programs and investments to
11accelerate widespread transportation electrification to reduce
12dependence on petroleum, meet air quality standards, achieve the
13goals set forth in the Charge Ahead California Initiative (Chapter
148.5 (commencing with Section 44258) of Part 5 of Division 26 of
15the Health and Safety Code), and reduce emissions of greenhouse
16gases to 40 percent below 1990 levels by 2030 and to 80 percent
17below 1990 levels by 2050. The commission shall approve
18programs and investments that deploy charging infrastructure, as
19distribution system costs, if they are consistent with this section
20and Section 740.3.
21(c) The commission shall review data concerning current and
22future electric transportation adoption rates and charging
23infrastructure utilization rates no less than every three years and
24prior to any further authorization for an electrical corporation to
25collect additional new program costs related to transportation
26electrification in ratepayer rates. If market barriers unrelated to
27the investment made by an electric corporation prevent electric
28transportation from adequately utilizing available charging
29infrastructure, the commission shall not permit additional
30investments in transportation electrification without adequate
31assurance that the investments would not result in stranded costs
32recoverable from ratepayers.
No reimbursement is required by this act pursuant to
34Section 6 of Article XIII B of the California Constitution because
35a local agency or school district has the authority to levy service
36charges, fees, or assessments sufficient to pay for the program or
37level of service mandated by this act or because costs that may be
38incurred by a local agency or school district will be incurred
39because this act creates a new crime or infraction, eliminates a
40crime or infraction, or changes the penalty for a crime or infraction,
P44 1within the meaning of Section 17556 of the Government Code, or
2changes the definition of a crime within the meaning of Section 6
3of Article XIII B of the California Constitution.