BILL ANALYSIS
AB 1954
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Date of Hearing: April 19, 2010
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
AB 1954 (Skinner) - As Amended: April 12, 2010
SUBJECT : Electrical transmission: renewable energy resources
SUMMARY : Authorizes the PUC to provide administrative
pre-approval of utility costs for transmission lines that
facilitate achieving the Renewables Portfolio Standard (RPS).
EXISTING LAW :
1)Requires investor-owned utilities (IOUs) and certain other
retail sellers to achieve a 20 percent renewable portfolio by
2010 and establishes a detailed process and standards for
renewable energy procurement.
2)Provides that eligible renewable technologies are biomass,
solar thermal, photovoltaic, wind, geothermal, renewable fuel
cells, small hydroelectric (30 megawatts or less), digester
gas, municipal solid waste conversion, landfill gas, ocean
wave, ocean thermal, and tidal current.
3)Defines and permits the use of unbundled/tradable renewable
energy credits (RECs) for RPS compliance, subject to PUC
approval, and authorizes the PUC to limit the amount of RECs a
retail seller may use for RPS compliance.
4)Provides that no electricity attributable to the use of
non-renewable fuels, beyond a de minimis quantity as
determined by the California Energy Commission (CEC), shall
result in the creation of a REC.
5)Requires the Public Utilities Commission (PUC) to certify the
public convenience and necessity require a transmission line
before an IOU may begin construction (Certificate of Public
Convenience and Necessity, or CPCN).
THIS BILL :
1)Authorizes the PUC to provide administrative pre-approval of
utility costs for transmission lines that facilitate achieving
the RPS.
AB 1954
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2)Caps de minimis quantities of non-renewable fuels for purposes
of REC creation at no more than two percent of the total
quantity of fuel used, but authorizes the CEC to increase the
limit up to 10 percent for a specific facility based on
demonstration that higher non-renewable fuel use will permit
the facility to increase its utilization of renewable fuel and
reduce the variability of its electrical output.
FISCAL EFFECT : Unknown
AB 1954
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COMMENTS :
Purpose of the bill. According to the author:
As we move toward California's current renewable energy
goals - and pursue a higher standard, it has become clear
that there are limitations to the statutory authority to
accommodate new and improved technologies, and the current
tight credit market, which, in turn, affects financing of
these projects. This bill addresses a relatively technical
issue that inadvertently present impediments to financing
of renewable energy - and another issue which may
unintentionally serve to limit the efficient production of
renewable energy. In short, it helps to smooth a couple of
small issues that could have big impacts on the renewable
development community - and on the achievement of our
long-term goals.
REGISTERED SUPPORT / OPPOSITION :
Support
BrightSource Energy
Large-scale Solar Association
Opposition
None on file
Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916)
319-2092