Senate BillNo. 1299


Introduced by Senator Hertzberg

February 19, 2016


An act to amend Section 399.21 of the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL’S DIGEST

SB 1299, as introduced, Hertzberg. California Renewables Portfolio Standard Program: renewable energy credits.

The California Renewables Portfolio Standard Program requires the Public Utilities Commission to establish a rewewables portfolio standard requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, at specified percentages of the total kilowatthours sold to their retail end-customers 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. The program requires the commission to authorize the use of renewable energy credits to satisfy the renewables portfolio standard procurement requirements, subject to specified conditions.

This bill would make nonsubstantial revisions to the requirement that the commission authorize the use of renewable energy credits to satisfy the renewables portfolio standard procurement requirements.

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

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

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SECTION 1.  

Section 399.21 of the Public Utilities Code is
2amended to read:

3

399.21.  

(a) The commission, by rule, shall authorize the use
4of renewable energy credits to satisfy the renewables portfolio
5standard procurement requirements established pursuant to this
6article, subject to the following conditions:

7(1) The commission and the Energy Commission shall ensure
8that the tracking system established pursuant to subdivision (c) of
9Section 399.25, is operational, is capable of independently
10verifying that electricity earning the credit is generated by an
11eligible renewable energy resource, and can ensure that renewable
12energy credits shall not be double counted by any seller of
13electricity within the service territory of the WECC.

14(2) Each renewable energy credit shall be counted only once
15for compliance with the renewables portfolio standard of this state
16or any other state, or for verifying retail product claims in this state
17or any other state.

18(3) All revenues received by an electrical corporation for the
19sale of a renewable energy credit shall be credited to the benefit
20of ratepayers.

21(4) Renewable energy credits shall not be created for electricity
22generated pursuant to any electricity purchase contract with a retail
23seller or a local publicly owned electric utility executed before
24January 1, 2005, unless the contract contains explicit terms and
25conditions specifying the ownership or disposition of those credits.
26Procurement under those contracts shall be tracked through the
27accounting system described in subdivision (b) of Section 399.25
28and included in the quantity of eligible renewable energy resources
29of the purchasing retail seller pursuant to Section 399.15.

30(5) Renewable energy credits shall not be created for electricity
31generated under any electricity purchase contract executed after
32January 1, 2005, pursuant to the federal Public Utility Regulatory
33Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.). Procurement
34under the electricity purchase contracts shall be tracked through
35the accounting system implemented by the Energy Commission
36pursuant to subdivision (b) of Section 399.25 and count toward
37the renewables portfolio standard procurement requirements of
38the purchasing retail seller.

P3    1(6) Nothing in the amendments to this article made by the Clean
2Energy and Pollution Reduction Act of 2015begin delete (Senate Bill 350 of
3the 2015-16 Regular Session)end delete
begin insert (Chapter 547 of the Statutes of 2015)end insert
4 is intended to change commission Decision 11-12-052begin insert (December
515, 2011), Decision Implementing Portfolio Content Categories
6For The Renewables Portfolio Standard Program,end insert
regarding the
7classification of renewable energy credits from generation on the
8customer side of the meter.

9(7) A renewable energy credit shall not be eligible for
10compliance with a renewables portfolio standard procurement
11requirement unless it is retired in the tracking system established
12pursuant to subdivision (c) of Section 399.25 by the retail seller
13or local publicly owned electric utility within 36 months from the
14initial date of generation of the associated electricity.

15(b) The commission shall allow an electrical corporation to
16recover the reasonable costs of purchasing, selling, and
17administering renewable energy credit contracts in rates.



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