BILL ANALYSIS
AB 21
Page 1
GOVERNOR'S VETO
AB 21 (Krekorian)
As Amended September 12, 2009
2/3 vote
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|ASSEMBLY: | |(June 1, 2009) |SENATE: |21-10|(September 12, |
| | | | | |2009) |
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(vote note relevant)
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|ASSEMBLY: |50-26|(September 12, | | | |
| | |2009) | | | |
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Original Committee Reference: AGRI.
SUMMARY : Modifies provisions in SB 14 (Simitian) to provide
that a new Renewable Portfolio Standards (RPS) enacted into law
will match the analysis and mock-up version of SB14 the
Utilities and Commerce Committee approved on September 9, 2009,
and to expand the definition of delivered. Specifically, this
bill:
The Senate amendments delete the Assembly version of the bill,
and instead:
1)Provides that retail sellers of electricity must procure at
least 20% of their retail load from renewable sources by 2013,
25% by 2016, and 33% by 2020.
2)Changes the definition of "delivered" electricity in SB 14
(Simitian) to provide that a facility that is not directly
interconnected to the transmission grid controlled by a
California grid operator is delivered into California if the
metered output within a 24 hour period matches the import
schedules into California.
EXISTING LAW requires investor-owned utilities (IOUs) and
certain other retail sellers to achieve a 20% RPS by 2010 and
establishes a process and standards for renewable procurement.
FISCAL EFFECT : Unknown
AB 21
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COMMENTS : The Utilities and Commerce Committee approved SB 14
with amendments on July 9, 2009, with a vote of 10 -5. The
amendments that were presented to the Committee and the official
analysis both provided that SB 14 would require retail sellers
of electricity to procure at least 20% of electricity delivered
to retail customers from renewable sources by 2013. However,
the final version of SB 14 provides that the retail sellers
shall procure 20% of their electricity from renewable resources
by 2012. This bill corrects this error and provides that retail
sellers shall meet the 20% renewable mandate by 2013.
.
At the September 9, 2009, hearing a number of parties expressed
concern that requirements that to be an eligible renewable
resources must deliver their power into California. Some of the
parties stated that the requirements in the proposed amendments
that in order for electricity to be "delivered" it must be
scheduled into California in the same hour in which it was
produced was too limiting and made it difficult to count some
wind and solar generation toward the RPS. The amendments in AB
21 address these concerns by allowing renewable electricity to
be "delivered" if it is scheduled into California in the same 24
hour period in which it was produced. This will allow
significantly more wind and solar generation schedule its output
into the state.
The bill also contains other provisions that are identical to SB
14 in order to prevent AB 21 from chaptering out those
provisions of SB 14. SB 14 was vetoed by the Governor.
GOVERNOR'S VETO MESSAGE :
I support the intent of this and other measures to
increase California's Renewable Portfolio Standard
(RPS) target to 33% by 2020. However, as drafted
this measure would make it more difficult and costly
to achieve this very important goal.
As a world leader in climate change and renewable
energy development, California needs a regional
approach that provides streamlined regulatory
processes and compliance flexibility that facilitate
the timely construction of in-state resources. This
legislative package does the opposite - adds new
regulatory hurdles to permitting renewable resources
in the state, at the same time limiting the
AB 21
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importation of cost-effective renewable energy from
other states in the West.
On November 17, 2008, I issued Executive Order
S-14-08, which sets a target that all retail sellers
of electricity shall serve 33% of their load with
renewable energy by 2020.
On September 15, 2009, in order to keep us moving
forward, I directed California Air Resources Board
(CARB), in Executive Order S-21-09, to adopt
regulations that increase procurement of renewable
resources in furtherance of the Global Warming
Solutions Act of 2006 (AB 32, Statutes of 2006) and
its emission reduction goals.
The CARB's scoping document for the Global Warming
Solutions Act of 2006 determined that achieving 33%
RPS is a critical component in the fight against
global warming. I expect CARB to complete the
regulations implementing the 33% RPS by the fall of
2010.
I remain ready to sign legislation that codifies a
workable 33% RPS mandate. California has a rare
opportunity to champion the development of renewable
energy and reduce greenhouse gas emissions in-state
and beyond. We must seize the chance to lay the
foundation for a regional effort that optimizes
resources throughout the West at a lower cost to
ratepayers.
Analysis Prepared by : Edward Randolph / U. & C. / (916)
319-2083
FN: 0003447