BILL ANALYSIS
AB 1954
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CONCURRENCE IN SENATE AMENDMENTS
AB 1954 (Skinner and V Manuel Perez)
As Amended August 20, 2010
Majority vote
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|ASSEMBLY: |76-0 |(May 13, 2010) |SENATE: |35-0 |(August 24, |
| | | | | |2010) |
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Original Committee Reference: U. & C.
SUMMARY : Authorizes California Public Utilities Commission
(PUC) to provide administrative pre-approval of utility costs
for transmission lines that facilitate achieving the Renewables
Portfolio Standard (RPS).
The Senate amendments :
1)Delete the ability for PUC to approve cost recovery in retail
rates for preconstruction costs of new transmission
facilities.
2)Decrease the minimum quantity of nonrenewable fuels allowed
for a renewable energy generator from 10% to 5%, if the PUC
finds that the higher quantity of nonrenewable fuel will
increase productivity of the fuel and reduce the variability
of its output.
3)Contingently enact this bill with SB 722 (Simitian), which
increases the RPS to 33% by 2020.
4)Incorporates amendments to Public Utilities Code Section
399.12 proposed by both this bill and SB 722 to ensure both
bills include appropriate amendments.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
in the intent to facilitate the construction of transmission
lines necessary to meet the RPS. However, the Assembly version
allowed for rate-recovery of preconstruction costs and permitted
the PUC to allow a more liberal use of nonrenewable fuels to
complement a renewable facility if the use of nonrenewable fuels
could significantly increase the renewable facility's output and
enable the facility to be more reliable.
AB 1954
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FISCAL EFFECT :
1)First-year special fund costs to the California Energy
Commission (CEC) of $110,000 for one position related to the
de minimis standard for each renewable technology, and
absorbable costs thereafter.
2)Minor absorbable costs to PUC.
COMMENTS : Current law creates a RPS that requires utilities to
procure at least 20% of their electricity generation from
renewable energy generators. Efforts are underway to increase
the RPS to 33%, which equates to about 28,000 megawatts. This
goal can't be attained by roof-top solar alone. As such, the
utilities are targeting remote areas of the state that possess
ample wind, solar, and geothermal potential to contribute to the
majority of its portfolio of renewable generation. AB 1954 is
intended to addresses a relatively technical issue that
inadvertently presents impediments to financing of renewable
energy.
Analysis Prepared by : Gina Adams / U. & C. / (916) 319-2083
FN: 0006704