BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1393|
|Office of Senate Floor Analyses | |
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UNFINISHED BUSINESS
Bill No: SB 1393
Author: De León (D)
Amended: 8/31/16
Vote: 21
SENATE ENERGY, U. & C. COMMITTEE: 11-0, 4/19/16
AYES: Hueso, Morrell, Cannella, Gaines, Hertzberg, Hill, Lara,
Leyva, McGuire, Pavley, Wolk
SENATE APPROPRIATIONS COMMITTEE: 6-1, 5/23/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza
NOES: Nielsen
SENATE FLOOR: 27-8, 5/27/16
AYES: Allen, Beall, Block, De León, Galgiani, Glazer, Hall,
Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson,
Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning,
Pan, Pavley, Roth, Wieckowski, Wolk
NOES: Anderson, Fuller, Moorlach, Morrell, Nguyen, Nielsen,
Stone, Vidak
NO VOTE RECORDED: Bates, Berryhill, Cannella, Gaines, Runner
ASSEMBLY FLOOR: Not available
SUBJECT: Energy efficiency and pollution reduction
SOURCE: Author
DIGEST: This bill makes clarifying amendments to existing code
that was originally added to statute as part of SB 350 (De Leon,
Chapter 547, Statutes of 2015).
SB 1393
Page 2
Assembly Amendments (1) clarify that electricity generated by a
municipal solid waste (MSW) facility may qualify for credit
under the Renewable Portfolio Standard (RPS) only if it was
generated before January 1, 2017, thereby eliminating
conflicting and ambiguous language that states electricity
generated by an MSW facility may qualify for RPS credit if it
was generated pursuant to a contract entered into before January
1, 2017; (2) eliminate language requiring a publicly owned
utility (POU) to report to the California Energy Commission
(CEC) information regarding the POU's use of public goods funds
and procurement plans; (3) conform two existing RPS exemptions
for POUs that own large hydroelectric facilities; (4) clarify
that a POU is to conduct efficiency studies and set targets only
every four years; and (5) streamline reporting requirements and
eliminates duplicate reporting requirements.
ANALYSIS:
Existing law:
1)Requires the state's electric utilities to procure 50 percent
of their electricity from qualifying renewable energy
resources. This is known as the Renewable Portfolio Standard.
2)States that MSW electricity generation will not result in RPS
credits unless the generation occurs before January 1, 2017.
(Public Utilities Code §399.12 (e)(2))
3)States that MSW electricity generation shall not produce
renewable energy credits unless (a) the MSW facility is
located in Stanislaus County, (b) the MSW facility was
operational prior to September 26, 1996, and (c) the MSW
generation was sold pursuant to a contract entered into before
January 1, 2017. ((Public Utilities Code §399.12 (h)(3)(D))
4)Provides an exemption to the RPS requirements for the Merced
Irrigation District in years when the district received
greater than 50 percent of its annual retail sales from its
own hydroelectric generation that is not an eligible renewable
SB 1393
Page 3
energy resource. (Public Utilities Code §399.30(k))
5)Provides a general exemption to the RPS requirements for a POU
that procures greater than 50 percent of its retail sales from
qualifying large hydroelectric facilities. (Public Utilities
Code §399.30(l))
6)Requires a POU to annually report to the CEC its expenditures
of public goods funds. (Public Utilities Code §9598(c))
7)Requires a POU to report to the CEC information regarding its
energy resources procurement plan. (Public Utilities Code
§399.30(f))
8)Requires a POU to report triennially and quadrennially
thereafter to the CEC its progress in meeting energy
efficiency targets. (Public Resources Code 25310(b) and Public
Utilities Code §9505)
This bill makes numerous clarifying and substantive amendments
to code affected by last year's SB 350.
Among this bill's more significant effects:
Clarifies that electricity generated by an MSW facility may
qualify for credit under the RPS only if it was generated
before January 1, 2017, thereby eliminating conflicting and
ambiguous language that states electricity generated by an MSW
facility may qualify for RPS credit if it was generated
pursuant to a contract entered into before January 1, 2017.
It is unclear how this change affects the status of
electricity generated by any existing MSW facility.
SB 1393
Page 4
Eliminates language requiring a POU to report to CEC
information regarding the POU's use of public goods funds and
procurement plans. The CEC reports it generally has no use
for such information and, if it did, it could request the
information from a POU.
Conforms two existing RPS exemptions for POUs that own large
hydroelectric facilities. One exemption applies to the Merced
Irrigation District. The second exemption is more generous and
applies to POUs with hydroelectric generation similar to that
of Merced. There is no clear policy rationale for maintaining
the differences between the two exemptions.
Clarifies that a POU is to conduct efficiency studies and set
targets only every four years.
Streamlines reporting requirements and eliminates duplicate
reporting requirements.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal:No
According to the Assembly Committee on Appropriations:
1)Increased annual the Air Resources Board costs of
approximately $80,000 (Cost of Implementation).
SB 1393
Page 5
2)Increased absorbable annual CEC costs.
3)Minor, absorbable the California Public Utilities Commission
costs.
SUPPORT: (Verified8/31/16)
None received
OPPOSITION: (Verified8/31/16)
None received
ARGUMENTS IN SUPPORT: According to the author's office,
there are several noncontroversial and clarifying amendments
needed to the statutory changes made by last year's SB 350.
Prepared by:Jay Dickenson / E., U., & C. / (916) 651-4107
8/31/16 23:01:40
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