BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 2378
                                                                Page  1


        ASSEMBLY THIRD READING
        AB 2378 (Tran)
        As Amended  May 11, 2010
        Majority vote 

         UTILITIES & COMMERCE            8-2                              
         
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        |Ayes:|Knight, Buchanan, Carter, |     |                          |
        |     |Fong, Fuller, Ma,         |     |                          |
        |     |Swanson, Villines         |     |                          |
        |     |                          |     |                          |
        |-----+--------------------------+-----+--------------------------|
        |Nays:|Huffman, Skinner          |     |                          |
        |     |                          |     |                          |
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         SUMMARY  :   Includes any combination of the renewable resources to  
        qualify as an eligible renewable energy device under the California  
        Energy Commission's (CEC) Renewables Program and for Renewable  
        Portfolio Standard (RPS) compliance.

         EXISTING LAW  :

        1)Requires investor-owned utilities (IOUs) and certain other retail  
          sellers to achieve a 20% Renewable Portfolio Standard (RPS) by  
          2010, and requires publicly-owned utilities (POUs) to implement and  
          enforce their own RPS programs. 

        2)Establishes the Renewable Energy Resources Program (Renewables  
          Program) to complement RPS by increasing the quantity of  
          electricity generated by in-state renewable electricity generation  
          facilities and identifying and supporting specified emerging  
          renewable technologies.

        3)Defines eligible renewable technologies under the program to  
          include: biomass, solar thermal, photovoltaic, wind, geothermal,  
          fuel cells using renewable fuels, small hydroelectric generation of  
          30 megawatts or less, digester gas, municipal solid waste  
          conversion, landfill gas, ocean wave, ocean thermal, or tidal  
          current, and any additions or enhancements to the facility using  
          that technology. 

         FISCAL EFFECT  :   Unknown

         COMMENTS  :   This bill is intended to codify a renewable energy device  







                                                                AB 2378
                                                                Page  2


        that may use more than one source of renewable resource.  The current  
        eligible renewables identify a number of specific renewable energy  
        technologies, however, it is silent with regard to whether a  
        combination of technologies would qualify for the Renewables Program  
        and RPS compliance.  

        The author states that devices that would generate electricity using  
        more than one renewable resource could include: wind turbines atop  
        wave generators; photovoltaic panels and/or wind turbines affixed to  
        wave machines; wind turbines affixed to exhaust vents from biomass  
        generators; or, any other combination of renewable energy devices  
        that increases net energy generation.

        Current law requires the CEC to establish eligibility requirements  
        for renewable resources.  CEC guide book states that the generator  
        can count as renewable any output that is associated with renewable  
        input.  So if the generator uses 20% wind and 80% solar, it is  
        considered 100% renewable electricity.  If the generator uses a fuel  
        cell that runs on 20% biogas and 80% natural gas, only 20% of the  
        output is considered renewable for RPS compliance.  

         Analysis Prepared by  :    Gina Adams / U. & C. / (916) 319-2083 FN:  
        0004131