BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
                              Senator Ben Hueso, Chair
                                2015 - 2016  Regular 

          Bill No:          SB 350            Hearing Date:    4/7/2015
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          |Author:    |De León                                              |
          |-----------+-----------------------------------------------------|
          |Version:   |2/24/2015    As Introduced                           |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Jay Dickenson                                        |
          |           |                                                     |
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          SUBJECT: Clean Energy and Pollution Reduction Act of 2015.

            DIGEST:    This bill enacts the Clean Energy and Pollution  
          Reduction Act of 2015, which creates or expands three related  
          clean-energy goals to be achieved by 2030: (1) a 50 percent  
          reduction in petroleum used in motor vehicles; (2) a doubling of  
          the energy efficiency of existing buildings; and (3) generating  
          50 percent of total retail sales of electricity from renewable  
          resources.

          ANALYSIS:
          
          Existing law:
          
             1.   Provides the California Air Resources Board (ARB) with  
               primary responsibility for control of mobile source air  
               pollution, including adoption of rules for reducing vehicle  
               emissions and the specification of vehicular fuel  
               composition.  (Health and Safety Code §39000 et seq. and  
               §39500 et seq.)

             2.   Directs ARB to implement motor vehicle emission  
               standards, in-use performance standards, and motor vehicle  
               fuel specifications for the control of air contaminants and  
               sources of air pollution that ARB finds to be necessary,  
               cost effective, and technologically feasible, unless  
               preempted by federal law. (Health and Safety Code §43013 et  
               seq.)

             3.   Directs the California Energy Commission (CEC) to  








          SB 350 (De León)                                      PageB of?
          
               continually assess energy consumption trends and to analyze  
               the social, economic, and environmental consequences of  
               these trends; carry out, energy conservation measures; and  
               recommend to the Governor and the Legislature new and  
               expanded energy conservation measures. (Public Resources  
               Code §25200 et seq.)

             4.   Requires the CEC to develop and implement a  
               comprehensive program to achieve greater energy savings in  
               California's existing residential and nonresidential  
               building stock. (Public Resources Code §25943 et seq.)  

             5.   Establishes the Electric Program Investment Charge  
               (EPIC) Fund, to fund projects that benefit electricity  
               ratepayers and lead to technological advancement and  
               breakthroughs to overcome the barriers that prevent the  
               achievement of the state's statutory energy goals. (Public  
               Utilities Code §25710 et seq.)

             6.   Requires retail sellers of electricity - investor-owned  
               utilities (IOU), community choice aggregators (CCAs), and  
               energy service providers (ESPs) - and publicly-owned  
               utilities (POU) to increase purchases of renewable energy  
               such that at least 33 percent of retail sales are procured  
               from renewable energy resources by December 31, 2020. This  
               is known as the Renewable Portfolio Standard (RPS).  The  
               California Public Utilities Commission (CPUC) establishes  
               the RPS for retail sellers and ensures they progress in  
               achieving it, and levies penalties for failure.  The  
               governing board of each POU establishes its own RPS. The  
               CEC may issue a notice of violation against a POU for  
               failure the adequately progress in meeting RPS targets and  
               refer the POU to the ARB, which may assess penalties  
               against it.  The RPS provides numerous cost containment  
               provisions and exceptions to compliance obligations.  
               (Public Utilities Code §399.11 et seq.)

             7.   Requires all renewable electricity products to meet the  
               requirements of a "loading order" that mandates minimum and  
               maximum quantities of three product categories (or  
               "buckets"), which includes renewable resources directly  
               connected to a California balancing authority (CBA) or  
               provided in real time without substitution from another  
               energy source, energy not connected or delivered in real  
               time yet still delivering electricity, and unbundled  









          SB 350 (De León)                                      PageC of?
          
               renewable energy credits (RECs). (Public Utilities Code  
               §399.16.)

          This bill:

          This bill enacts the Clean Energy and Pollution Reduction Act of  
          2015, which creates or expands three related clean-energy goals  
          to be achieved by 2030: (1) a 50 percent reduction in petroleum  
          used in motor vehicles; (2) generating 50 percent of total  
          retail sales of electricity from renewable resources; and (3) a  
          doubling of the energy efficiency of existing buildings.   
          Specific to the petroleum reduction goal, this bill directs the  
          ARB to adopt and implement motor vehicle emissions standards,  
          in-use performance standards, and motor vehicle fuel  
          specifications in furtherance of achieving a 50 percent  
          reduction in petroleum use in motor vehicles by January 1, 2030.  
           Specific to the energy efficiency goal, this bill directs the  
          CEC, by January 1, 2017, and at least once every three years  
          thereafter, to adopt and update its comprehensive program to  
          achieve greater energy savings in California's existing  
          residential and nonresidential building stock - known as the  
          California Existing Buildings Energy Efficiency Action Plan - in  
          order to achieve a doubling of the energy efficiency of existing  
          buildings by January 1, 2030.

          Specific to the renewable energy goal, this bill:

                 Directs the CPUC and the CEC to implement the RPS to  
               obtain the target of generating 50 percent of total retail  
               electricity sales from renewable energy resources by  
               December 31, 2030.

                 Establishes the following RPS compliance periods and  
               renewable energy goals for retail sellers and POUs: January  
               1, 2021, to December 31, 2024 - 40 percent; January 1,  
               2025, to December 31, 2027 - 45 percent; and January 1,  
               2028, to December 31, 2030 - 50 percent.

                 Directs the CPUC to require all retail sellers of  
               electricity to annually prepare renewable energy  
               procurement plans and, for each IOU procurement plan,  
               require the IOU to include a strategy for procuring a  
               diverse portfolio of resources that provide a reliable  
               electricity supply, including renewable energy integration  
               needs, using zero carbon-emitting resources to the maximum  









          SB 350 (De León)                                      PageD of?
          
               extent reasonable, the net capacity costs of which shall be  
               allocated on a nonbypassable basis.

                 Requires retail sellers and POUs to ensure that, for  
               each compliance period after 2020, at least 75 percent of  
               the incremental renewable energy procurement is from  
               generation either (1) directly connected to a CBA, or, (2)  
               connected to another balancing authority and providing  
               power to a CBA via dynamic transfers or by scheduling power  
               from the facility into a CBA on an hourly basis. 

                 Limits to 10 percent, for each compliance period after  
               2020, the incremental renewable power a retail seller or a  
               POU may receive from unbundled RECs from generators not  
               directly connected to a CBA.

                 Directs the CPUC to establish limitations for each IOU  
               on procurement expenditures for RPS compliance at a level  
               that prevents disproportionate rate impacts and deletes  
               provisions of existing law requiring the CPUC to report to  
               the Legislature, by January 1, 2016, on the ability of each  
               IOU to meet and maintain the 33 percent 2020 target within  
               existing cost limitations.

                 Authorizes the CPUC to assess penalties against a retail  
               seller, and the CEC to assess penalties against a POU, for  
               noncompliance with an RPS interim goal and, in the case of  
               an IOU, prohibits the IOU from collecting the cost of the  
               penalties in rates.

                 Directs penalties collected from a retail seller or a  
               POU to the EPIC Fund, to be used for renewable energy  
               programs and research, development, and demonstration  
               programs. 

                 Directs the CPUC and the CEC to consider the benefits of  
               distributed generation; allow for consideration of costs  
               and benefits of grid integration in RPS proceedings;  
               minimize system power and fossil fuel purchases; recommend  
               how to better align state incentive programs with the  
               state's clean energy and pollution reduction goals and  
               provide benefits to disadvantaged communities; and give  
               preference to the manufacture and deployment of clean  
               energy and pollution reduction technologies that create  
               jobs and investment in the state. 









          SB 350 (De León)                                      PageE of?
          

          Background
           
          State Efforts to Address Environmental Effects of Energy Use  . In  
          California, the energy sector, broadly defined, accounts for  
          more than 85 percent of greenhouse gas emissions. The two  
          largest sources of California's greenhouse gases are  
          transportation, at 39 percent, and electricity production, at 21  
          percent.<1> Accordingly, the state's existing clean energy and  
          climate change programs focus on the energy sector in general  
          and the transportation and electricity sectors specifically.

          Principal among those programs are the California Global Warming  
          Solutions Act of 2006 (more commonly known as "AB 32"), which  
          requires a reduction of the state's greenhouse gas emissions to  
          1990 levels by 2020, and the RPS, which requires the 33 percent  
          of the state's electricity come from renewable resources by  
          2020.  AB 32 tasks the ARB with developing a plan of measures  
          that reduce greenhouse gas emission levels, to be updated every  
          five years.  To that end, ARB, in 2008, adopted a scoping plan  
          that includes regulatory and market-based measures applicable to  
          the state's major economic sectors.  Among the regulatory  
          measures included in the initial scoping plan were numerous  
          energy efficiency measures, measures to encourage the  
          development and adoption of alternative fuels, and a 33 percent  
          RPS.  In 2014, ARB released an update to its scoping plan. The  
          ARB approved its first update to the scoping plan in May of  
          2014.  The state has reduced its overall emissions of greenhouse  
          gases since passage of AB 32, as shown below:




           --------------------------------------------------------------------- 
          |Overall Greenhouse Gas Emission Decline Since Passage of AB 32       |
          |                                                                     |
           --------------------------------------------------------------------- 
          |--------------------------------------+----------------------+------|
          |                                      |                      |      |
          |                Sector                |         2006         | 2012 |
          |                                      |                      |      |
          |--------------------------------------+----------------------+------|

          ---------------------------
          <1> 2013 Integrated Energy Policy Report  
          (http://www.energy.ca.gov/2013publications/CEC-100-2013-001/CEC-1 
          00-2013-001-CMF.pdf)








          SB 350 (De León)                                      PageF of?
          
          |     Electricity Generation (In-state)|              50.05444|51.180|
          |                                      |                      |    08|
          |--------------------------------------+----------------------+------|
          |      Electricity Generation (Imports)|              54.76146|44.146|
          |                                      |                      |    77|
          |--------------------------------------+----------------------+------|
          |                            Industrial|              99.65204|100.67|
          |                                      |                      |    17|
          |--------------------------------------+----------------------+------|
          |                          Agricultural|               37.7503|37.863|
          |                                      |                      |     4|
          |--------------------------------------+----------------------+------|
          |                           Residential|              30.60681|31.587|
          |                                      |                      |    83|
          |--------------------------------------+----------------------+------|
          |                            Commercial|              17.34549|22.021|
          |                                      |                      |    16|
          |--------------------------------------+----------------------+------|
          |                        Transportation|              192.1233|171.00|
          |                                      |                      |    75|
          |--------------------------------------+----------------------+------|
          |       Total Greenhouse Gas Emissions |              482.2939|458.47|
          |   (millions of metric tons of carbon |                      |    85|
          |                   dioxide equivalent)|                      |      |
           -------------------------------------------------------------------- 
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          |                                                                     |
          |Source:  California Energy Commission.                               |
          |                                                                     |
           --------------------------------------------------------------------- 

          The Legislature approved the statutory RPS program in 2011 with  
          the passage of SB 2 x1 (Simitian, Chapter 1).  Statute directs  
          the CPUC to establish the RPS for retail sellers and ensure they  
          progress in achieving it, levying penalties for failure.  The  
          governing board of each POU establishes its own RPS. The CEC may  
          issue a notice of violation against a POU for failure the  
          adequately progress in meeting RPS targets and refer the POU to  
          the ARB, which may assess penalties against it.  The state's  
          electric utilities report they are on track to meet, or exceed,  
          the RPS goals.  The following table shows the progress to date  
          of the state's largest electric utilities:












          SB 350 (De León)                                      PageG of?
          


          

           ------------------------------------------------------------------- 
          |Progress of Major Electric Utilities Towards Meetings RPS Goals    |
          |                                                                   |
           ------------------------------------------------------------------- 
          |--------------------+------------------------+---------------------|
          |                    |                        |  Percentage of RPS  |
          |                    |    RPS Procurement     |     Procurement     |
          |                    |  Percentages for the   |   Currently Under   |
          |                    |  2011-13 Procurement   |  Contract for 2020  |
          |                    |        Period          |                     |
          |                    |                        |                     |
          |--------------------+------------------------+---------------------|
          |                    |         23.8%          |        31.3%        |
          |    Pacific Gas and |                        |                     |
          |            Electric|                        |                     |
          |                    |                        |                     |
          |--------------------+------------------------+---------------------|
          |                    |         21.6%          |        23.5%        |
          |Southern California |                        |                     |
          |              Edison|                        |                     |
          |                    |                        |                     |
          |--------------------+------------------------+---------------------|
          |                    |         23.6%          |        38.8%        |
          |  San Diego Gas and |                        |                     |
          |            Electric|                        |                     |
          |                    |                        |                     |
          |--------------------+------------------------+---------------------|
          |                    |         20.1%          |         --          |
          |         Sacramento |                        |                     |
          |Municipal Utilities |                        |                     |
          |            District|                        |                     |
          |                    |                        |                     |
          |--------------------+------------------------+---------------------|
          |                    |         20.0%          |         --          |
          |        Los Angeles |                        |                     |
          |Department of Water |                        |                     |
          |           and Power|                        |                     |
          |                    |                        |                     |
           ------------------------------------------------------------------- 
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          |                                                                   |









          SB 350 (De León)                                      PageH of?
          
          |IOU RPS procurement is as reported by the CPUC.  See               |
          |http://www.cpuc.ca.gov/PUC/energy/Renewables/index.htm.            |
          |                                                                   |
          |The POUs report their own progress on the RPS to the CEC. See      |
          |http://www.energy.ca.gov/portfolio/pou_rulemaking/2013-RPS-01/POU_R|
          |eported_2011-2013_RPS_Percentage_Table.pdf.                        |
          |                                                                   |
          |                                                                   |
           ------------------------------------------------------------------- 
          
          Regarding transportation, the state regulates vehicle emissions  
          and encourages the development of less carbon-intensive  
          alternative fuels.  For example, the ARB regulates the  
          greenhouse gas tailpipe emissions of new passenger vehicles, as  
          well as smog-forming emissions.  Acting under the authority  
          provided by AB 32, the ARB regulates the carbon content of  
          transportation fuels, via the Low Carbon Fuel Standard.  In  
          addition, ARB provides rebates for the purchase of  
          alternative-fueled vehicles and funds the retirement of older,  
          higher-polluting vehicles, as well as funding alternative fuel  
          research, demonstration and workforce training.  In a related  
          effort, the CEC provides nearly $100 million annually to fund  
          measures to develop and deploy innovative technologies that  
          transform California fuel and vehicle types to help attain the  
          state's climate change policies. 

          Other state programs directly address energy efficiency.  The  
          state's loading order, established by the energy agencies in  
          2003, calls for meeting new electricity needs first with  
          efficiency and demand response, followed by renewable energy and  
          distributed generation, and then with fossil generation.<2>   
          Under statute guidelines, the CPUC authorizes IOU spending for  
          all available energy efficiency that is cost effective, reliable  
          and feasible.  In recent years the CPUC has authorized close to  
          $1 billion per year in energy efficiency spending to meet this  
          mandate based on feasibility studies and the record developed in  
          CPUC's energy efficiency proceedings. Since 1977, the CEC,  
          acting under the broad authority provided to it under the  
          Warren-Alquist Act, has set energy efficiency standards for  
          appliances and new buildings; many credit these standards, in  
          part, with keeping California's per-capita electricity  


          ---------------------------

          ---------------------------
          <2> 2003 Energy Action Plan  
          (http://www.energy.ca.gov/energy_action_plan/2003-05-08_ACTION_PL 
          AN.PDF).








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          consumption flat over the past three decades.<3> Further, CEC,  
          acting according to statutory mandate, recently released a draft  
          plan to achieve cost-effective energy savings in California's  
          existing residential and nonresidential buildings, which,  
          generally, are not subject to CEC's building efficiency  
          standards.<4>  

           Building Upon Existing Structure to Create New "Golden  
          Standards"  . In his 2015 State-of-the-State speech, Governor  
          Brown announced three ambitious new energy goals that would take  
          state clean energy policy beyond 2020: (1) 50 percent of  
          California's electricity to come from renewable energy sources;  
          (2) reducing by 50 percent the amount of petroleum used in cars  
          and trucks; and (3) doubling the energy efficiency of existing  
          buildings, all by 2030.  The author has described this bill as  
          an effort to execute on the Governor's "bold vision."  

          To a large extent, the bill builds upon existing state programs,  
          which the author describes as already making significant  
          progress to the three goals.  In its current form, the bill  
          prescribes little for the achievement of the petroleum reduction  
          goal or the energy efficiency goal.  Rather, the bill directs  
          the ARB and the CEC, respectively, to expand upon existing  
          authorities to achieve each goal.  

          Similarly, the bill builds upon existing statutory authority to  
          achieve the expanded RPS goal.  As existing statute makes  
          extensive, specific requirements of the RPS program, so too does  
          the bill.  Notably, the bill removes the prescriptive  
          cost-containment provisions of the RPS statute meant to ensure  
          the renewables mandate does not cost too much.  Just as notable,  
          however, is that the cost-containment provisions have never been  
          used as the cost of compliance with the RPS statute has not been  






          ---------------------------
          <3> See, for example,  
          http://switchboard.nrdc.org/blogs/mwaltner/energy_savings_on_the_ 
          way_for.html.
          <4> Existing Buildings Energy Efficiency Action Plan - Draft  
          (http://www.energy.ca.gov/ab758/).








           






          SB 350 (De León)                                      PageK of?
          
          too burdensome.<5>  This bill, instead, directs the CPUC to  
          establish a limitation for each IOU, at a level that prevents  
          disproportionate rate impacts. It will be important for the  
          Legislature to maintain oversight of the CPUC's implementation  
          of these looser cost-containment provisions.  The author and  
          committee may wish to consider requiring the CPUC and the Office  
          of Ratepayer Advocate, as part of their annual reports to the  
          Legislature, to update the Legislature on the cost-containment  
          requirements the CPUC has made of each IOU. 

           What the Duck Is This  ?  The bill also adds language to the RPS  
          statute that directs the CEC and CPUC to:
           
                 Value distributed generation and the benefits it  
               provides, particularly in disadvantaged communities, and to  
               promote its use.
                 Allow for the costs of grid integration.
                 Adopt rules that, where feasible, minimize system power  
               and fossil fuel purchases, increase the use of energy  
               storage, demand response, and other low-emission and  
               zero-emission technologies to protect system reliability.
                 Ensure incentive programs are aligned with state policy  
               and benefit disadvantaged communities.
                 Give priority to opportunities to create jobs and  
               increase investment in the state.

          Integration of renewables is a real challenge.  Many renewable  
          resources, including solar and wind, are intermittent resources,  
          meaning they are available only as conditions allow them to be,  
          such as, when the sun is shining or the wind is blowing.  This  
          intermittency complicates reliable management of the electrical  
          grid a challenge and has the potential to lead to situations in  
          which the state produces more power than it needs.  Such a  
          scenario is depicted in the California Independent Service  
          Operator's now-infamous "duck" chart. Thus far, the state's  
          electrical system has responded to the challenge of  
          intermittency by, primarily, relying on natural-gas fired power  
          plants that can quickly ramp up and down in their generation of  
          power.  

          However, other solutions exist or may be developed.  For  
          example, energy may be stored in batteries, pumped hydro, or  
          ---------------------------
          <5> The CPUC's Energy Division estimates that the RPS has  
          increased electricity rates by four to five percent, a range  
          well within that contemplated by the Legislature during its  
          deliberation of SB 2 X1.  See, for example, the Assembly  
          Appropriations Committee analysis of SB 2 X1, which referenced a  
          CPUC estimate that the 33 percent RPS might raise rates as much  
          as 7.7 percent.








          SB 350 (De León)                                      PageL of?
          
          compressed air.  So called demand response can be called upon to  
          better match electricity demand to electricity supply.   
          Distributed generation can be placed where it most benefits the  
          grid overall. Balancing markets can allow use of resources  
          across regions, so that local supply need less coincide with  
          local demand.  And the state has programs and policies to  
          encourage these programs.  For example, the CPUC requires the  
          IOUs to procure set amounts of storage capacity.  And the IOUs  
          operate demand response programs, though, as the CEC notes,  
          growth in demand response in California is flat and lags other  
          parts of the country.<6>  The author may want to consider, as  
          the bill moves forward, language that better ensures that the  
          CPUC, CEC and the retail sellers of electricity appropriately  
          value these zero-emission, grid-enabling opportunities.   
          Similarly, the author may want to consider language that ensures  
          regulators, retail sellers and POUs recognize the value of local  
          benefits that certain projects may provide.

           Balancing the Balanced Portfolio  . This bill leaves unchanged the  
          statutory requirement that retail sellers procure a "balanced  
          portfolio" of renewable energy resources.  This bill, and the  
          existing RPS statute, define eligible renewable energy sources  
          as biomass, solar thermal, photovoltaic (PV), wind, geothermal,  
          fuel cells using renewable fuels, small hydroelectric  
          generation, digester gas, municipal solid waste conversion,  
          landfill gas, ocean wave, ocean thermal, or tidal current.  An  
          examination of the IOU's RPS portfolios, however, shows an  
          increasing and predominant reliance on solar PV renewable energy  
          resources.  This increasing reliance makes sense, in that the  
          cost of solar PV has decreased dramatically in recent years,  
          making electricity generated from solar PV nearly cost  
          competitive with electricity generated from natural gas, based  
          on the direct cost of generation.  Yet, in calling for a  
          "balanced portfolio" of renewable resources, the Legislature  
          recognized that procurement of electricity from a variety of  
          renewable resources may have value not recognized by the price  
          of electricity generation.  

          This bill reaffirms and strengthens this recognition. The bill  
          newly requires each IOU to include in its RPS procurement plan a  
          strategy for procuring a diverse portfolio of resources that  
          provide specific, nonmonetary benefits: reliable electric  
          supply, including renewable energy integration needs, using  
          zero-carbon emitting resources to the maximum extent possible.  



          ---------------------------
          <6> See 2013 IEPR, Chapter 2:  Demand Response.








          SB 350 (De León)                                      PageM of?
          
          The Legislature should expect this requirement to lead IOUs to  
          procure a more-diverse portfolio of renewable resources and to  
          rely less on natural gas-fired electricity generation to balance  
          the electrical system.

           Not This Henhouse  . The bill authorizes CEC to levy fines for  
          noncompliance with the RPS against POUs and directs monies from  
          any such fines to the EPIC Fund, as it does monies resulting  
          from fines levied by the CPUC against retail sellers. Existing  
          statute charges the CEC with administering monies in the EPIC  
          Fund and defines eligible projects as research, development, and  
          demonstration programs that benefit IOU electricity ratepayers.   
          In addition, the CPUC must approve CEC planned expenditures from  
          the fund.  These requirements - CPUC approval and benefits to  
          IOU ratepayers - are appropriate for monies that come from IOU  
          electricity ratepayers.  It seems inappropriate to apply these  
          requirements to monies from fines paid by the ratepayers of the  
          state's POUs.  The author and committee may wish to establish a  
          fund, distinct from the EPIC Fund, to receive RPS penalties from  
          POUs, that funds similar projects as the main EPIC Fund, but  
          without the IOU-specific constraints statute places on monies in  
          the EPIC Fund.

           
          Do As I Say (And Do)  . The existing RPS does not apply to the  
          Department of Water Resources (DWR), though DWR is a major  
          purchaser of electric power. The Governor effectively described  
          the driving imperative of achieving our clean energy goals.  If  
          the state is committed to meeting those clean energy goals - and  
          committed to obliging retail sellers and POUs and their  
          ratepayers as well, then it should apply those clean energy  
          goals to all energy users.  The author and committee might want  
          to consider amending this bill to subject DWR to the RPS  
          requirements, though pursuant to a modified schedule that  
          acknowledges DWR's current fossil fuel-dependent energy  
          portfolio. 
           
          Decarbonizing the Electricity Sector:  Another Way Forward  ? As  
          described above, the bill expands upon the existing RPS  
          framework, largely as a strategy to reduce greenhouse gas  
          emissions.  This makes sense:  the strategy has worked.   
          California is on track to meet its renewable energy targets.  As  
          the bill's author notes, renewable resources provide a number of  
          benefits beyond the production of electricity:  minimizing local  
          air pollution effects, insulating ratepayers from fossil fuel  









          SB 350 (De León)                                      PageN of?
          
          market volatility, and encouraging technology innovation and a  
          decline in costs.  

          Some industry representatives, while expressing general support  
          for the state's clean energy goals, have suggested a "clean  
          energy standard" (CES) instead of an RPS. As described, under a  
          CES, the electricity generating sector would agree to a  
          sector-wide greenhouse gas emission cap.  The particulars of how  
          the actors in the sector would achieve such a cap would be left  
          up to those actors, who, presumably, would choose the  
          least-costly greenhouse gas reduction measures needed to meet  
          the cap.  Such measures might not include renewable energy  
          project or might not include the number and scale of renewable  
          energy projects that would be realized under the higher RPS.   
          The CES approach would have the advantage of being, potentially,  
          lower cost; however, it would also provide less benefit,  
          especially since it seems unlikely the lowest cost projects  
          would be those that would force innovation.

           Double Referral  . Should this bill be approved by the committee,  
          it will be re-referred to the Senate Committee on Environmental  
          Quality for its consideration. 

          Prior/Related Legislation
          
          AB 758 (Skinner, Chapter 470, Statutes of 2009) requires the CEC  
          to develop and implement a comprehensive program to achieve  
          greater energy savings in California's existing residential and  
          nonresidential building stock.

          SB 2 x1 (Simitian, Chapter 1, Statutes of 2011) requires retail  
          sellers of electricity and POUs to procure at least 33 percent  
          of their electricity from renewable resources by 2020.

          FISCAL EFFECT:                 Appropriation:  No    Fiscal  
          Com.:             Yes          Local:          Yes


            ARGUMENTS IN SUPPORT: Supporters note the need to build upon the  
          success of the state's existing clean energy policies and note  
          many co-benefits, such as cleaner air, innovation forcing, and  
          energy supply diversity, provided by RPS.
          
          ARGUMENTS IN OPPOSITION: The Western States Petroleum  
          Association (WSPA), in explaining its opposition to the bill's  









          SB 350 (De León)                                      PageO of?
          
          petroleum reduction goal, decries this approach, expressing  
          concern over how ARB would implement such a broad mandate.  WSPA  
          recommends the bill, instead, spell out the regulatory  
          mechanisms ARB is to use to achieve the petroleum reduction  
          goal. Other opponents protest what they see as the excessive  
          cost of complying with the bill and the lack of flexibility.
            
          SUPPORT:  

          American Lung Association - California
          American Academy of Pediatrics - California
          Asthma Coalition of Los Angeles County
          Azul
          Baz Allergy, Asthma and Sinus Center
          Berkshire Hathaway Energy
          Blattner Energy
          Bonnie J. Adario Lung Cancer Foundation
          Breathe California
          BYD Motors, Inc.
          California Black Health Network
          California Conference of Directors of Environmental Health
          California Energy Efficiency Industry Council
          California League of Conservation Voters
          California Pan-Ethnic Health Network
          California Public Health Association - North
          California Thoracic Society
          California Wind Energy Association, if amended
          Californians Against Waste
          Center for Climate Change and Health; Public Health Institute
          Central California Asthma Collaborative
          Circulate San Diego
          Clean Water Action
          Clean Power Campaign
          Cleveland National Forest Foundation
          Coastal Environmental Rights Foundation
          Doctors for Climate Health (8 Doctors)
          Endangered Habitats League
          Environment California
          Environmental Defense Fund
          EtaGen
          First Solar
          Friends of the River
          Friends Committee on Legislation of California
          Health Care Without Harm
          Large-Scale Solar Association









          SB 350 (De León)                                      PageP of?
          
          League of Women Voters of California
          McCarthy Building Companies, Inc.
          Medical Advocates for Healthy Air
          Moms Clean Air Force
          National Parks Conservation Association
          Natural Resource Defense Council
          NextGen Climate
          NextTracker, Inc.
          Office of Ratepayer Advocates
          Physicians for Social Responsibility - Los Angeles
          Physicians for Social Responsibility - San Francisco Bay Area  
          Chapter
          Public Health Institute
          Recurrent Energy
          Regional Asthma Management and Prevention
          Sequoia Riverlands Trust
          Sierra Club California
          Signal Energy, LLC
          Solar Energy Industries Association
          Southwest Wetlands Interpretive Association
          SunEdison
          The Utility Reform Network
          TransForm
          Trust for Public Lands
          Union of Concerned Scientists
          Wireless Advanced Vehicle Electrification


          CONCERNS:

          California Municipal Utilities Association
          County of Los Angeles Public Health

          OPPOSITION:

          Association Builders and Contractors of California
          BizFed (Los Angeles County Business Federation)
          California Chamber of Commerce
          California Construction Trucking Association
          California Independent Oil Marketers Association
          California Independent Petroleum Association
          California Manufacturers & Technology Association
          California Small Business Alliance
          California Small Business Association
          Coalition of Energy Users









          SB 350 (De León)                                      PageQ of?
          
          Fullerton Association of Concerned Taxpayers
          Howard Jarvis Taxpayers Association
          Independent Oil Producers Agency
          International Warehouse Logistics Association
          Kern Citizens of Energy
          Kern Citizens for Sustainable Government
          Kern County Taxpayers Association
          Long Beach Area Chamber of Commerce
          National Association of Royalty Owners - California 
          National Federation of Independent Business/California
          Placer County Taxpayers Association
          Regional Hispanic Chamber of Commerce
          San Diego Tax Fighters
          Santa Barbara County Taxpayers Association
          Santa Barbara Technology and Industry Association
          Small Business Action Committee
          South Bay Association of Chamber of Commerce
          Torrance Area Chamber of Commerce
          Valley Industry & Commerce Association
          Western States Petroleum Association
          Wilmington Chamber of Commerce
          
          
                                      -- END --