Amended in Senate April 6, 2015

Senate BillNo. 539


Introduced by Senator Hueso

February 26, 2015


An act to addbegin insert and repealend insert Sectionbegin delete 399.35 toend deletebegin insert 25401.1 of the Public Resources Code, and to amend Section 782 ofend insert the Public Utilities Code, relating to renewable energy resources.

LEGISLATIVE COUNSEL’S DIGEST

SB 539, as amended, Hueso. begin deleteCalifornia Renewables Portfolio Standard Program. end deletebegin insertRenewable energy resources: geothermal.end insert

begin insert

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. The Public Utilities Act authorizes the Public Utilities Commission, upon a complaint by a geothermal energy producer, to prohibit any electrical corporation from curtailing the generation, production, or transmission of electricity from a geothermal powerplant operated by the corporation, if the commission deems that the curtailment is not in the public interest.

end insert
begin insert

This bill would require the Public Utilities Commission, upon a complaint by a geothermal energy producer, to prohibit any electrical corporation from curtailing the generation, production, or transmission of electricity from a geothermal powerplant operated by the corporation, if the commission determines that the curtailment is not in the public interest, as specified.

end insert
begin insert

The existing Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission. Existing law requires the State Energy Resources Conservation and Development Commission to continuously carry out studies, research projects, data collection, and other activities required to assess the nature, extent, and distribution of energy resources to meet the needs of the state, including, but not limited to, fossil fuels and solar, nuclear, and geothermal energy resources.

end insert
begin insert

This bill would require the State Energy Resources Conservation and Development Commission, in consultation with the Public Utilities Commission and the Independent System Operator, to study barriers to developing new baseload in-state renewable electrical generation facilities, as defined, including geothermal electrical generating facilities, and barriers to maintaining existing contracts with baseload in-state renewable electrical generation facilities, and potential solutions to those barriers, including how to level the playing field for those baseload in-state renewable electrical generation facilities. The bill would require the State Energy Resources Conservation and Development Commission to report the results of the study and recommendations to the Legislature by January 1, 2017.

end insert
begin delete

The California Renewables Portfolio Standard Program requires the Public Utilities Commission to establish a renewables portfolio standard requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources during specified compliance periods. The program additionally requires each local publicly owned electric utility, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources to achieve the targets established by the program.

end delete
begin delete

This bill would state the intent of the Legislature to enact legislation to amend the program.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 25401.1 is added to the end insertbegin insertPublic Resources
2Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert25401.1.end insert  

(a) The commission, in consultation with the Public
4Utilities Commission and the Independent System Operator, shall
5conduct a study to examine both of the following:

6(1) The barriers to developing new baseload in-state renewable
7electrical generation facilities, as defined in Section 25741,
8including geothermal electrical generating facilities, and
P3    1maintaining existing contracts with baseload in-state renewable
2electrical generation facilities.

3(2) Potential solutions to those barriers, including how to level
4the playing field for those baseload in-state renewable electrical
5generation facilities.

6(b) The commission shall report the results of the study and
7recommendations to the Legislature by January 1, 2017.

8(c) (1) A report to be submitted pursuant to subdivision (b)
9shall be submitted in compliance with Section 9795 of the
10Government Code.

11(2) Pursuant to Section 10231.5 of the Government Code, this
12section is repealed on January 1, 2021.

end insert
13begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 782 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
14to read:end insert

15

782.  

In order to encourage the development of geothermal
16resources in the State of California, the commissionbegin delete may,end deletebegin insert shall,end insert
17 upon a complaint by a geothermal energy producer, prohibit any
18electrical corporation from curtailing the generation, production,
19or transmission of electricity from a geothermal powerplant
20operated bybegin delete suchend deletebegin insert theend insert corporation, if the commissionbegin delete deems that
21suchend delete
begin insert determines that theend insert curtailment is not in the public interest.
22begin insert For purposes of this section, “public interest” includes, but is not
23limited to, all of the following:end insert

begin insert

24(a) Loss of economic output, including jobs and tax revenue.

end insert
begin insert

25(b) An increase in emissions of carbon dioxide and other
26greenhouse gases.

end insert
begin insert

27(c) The loss of production or potential production of lithium
28and other strategic metals.

end insert
begin delete29

SECTION 1.  

Section 399.35 is added to the Public Utilities
30Code
, to read:

31

399.35.  

It is the intent of the Legislature to enact legislation to
32amend the California Renewables Portfolio Standard Program.

end delete


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