Amended in Senate April 14, 2015

Amended in Senate April 6, 2015

Senate BillNo. 539


Introduced by Senator Hueso

February 26, 2015


An act to add and repeal Section 25401.1 of the Public Resources Code, and tobegin delete amendend deletebegin insert repealend insert Section 782 of the Public Utilities Code, relating to renewable energy resources.

LEGISLATIVE COUNSEL’S DIGEST

SB 539, as amended, Hueso. Renewable energy resources: geothermal.

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.

This bill wouldbegin delete 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 deletebegin insert repeal the above-described geothermal generation, production, or transmission curtailment authorization.end 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.

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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P2    1

SECTION 1.  

Section 25401.1 is added to the Public Resources
2Code
, to read:

3

25401.1.  

(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
9maintaining existing contracts with baseload in-state renewable
10electrical generation facilities.

11(2) Potential solutions to those barriers, including how to level
12the playing field for those baseload in-state renewable electrical
13generation facilities.

14(b) The commission shall report the results of the study and
15recommendations to the Legislature by January 1, 2017.

16(c) (1) A report to be submitted pursuant to subdivision (b)
17shall be submitted in compliance with Section 9795 of the
18Government Code.

P3    1(2) Pursuant to Section 10231.5 of the Government Code, this
2section is repealed on January 1, 2021.

begin delete
3

SEC. 2.  

Section 782 of the Public Utilities Code is amended
4to read:

5

782.  

In order to encourage the development of geothermal
6resources in the State of California, the commission shall, upon a
7complaint by a geothermal energy producer, prohibit any electrical
8corporation from curtailing the generation, production, or
9transmission of electricity from a geothermal powerplant operated
10by the corporation, if the commission determines that the
11curtailment is not in the public interest. For purposes of this section,
12“public interest” includes, but is not limited to, all of the following:

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

14(b) An increase in emissions of carbon dioxide and other
15greenhouse gases.

16(c) The loss of production or potential production of lithium
17and other strategic metals.

end delete
18begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 782 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is repealed.end insert

begin delete
19

782.  

In order to encourage the development of geothermal
20resources in the State of California, the commission may, upon a
21complaint by a geothermal energy producer, prohibit any electrical
22corporation from curtailing the generation, production, or
23transmission of electricity from a geothermal powerplant operated
24by such corporation, if the commission deems that such curtailment
25is not in the public interest.

end delete


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