BILL ANALYSIS
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THIRD READING
Bill No: AB 2378
Author: Tran (R)
Amended: 5/11/10 in Assembly
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 7-2, 6/15/10
AYES: Padilla, Dutton, Corbett, Florez, Simitian,
Strickland, Wright
NOES: Kehoe, Lowenthal
NO VOTE RECORDED: Cox, Oropeza
ASSEMBLY FLOOR : 69-0, 5/13/10 - See last page for vote
SUBJECT : Energy: renewable energy program
SOURCE : STS Ventures, LLC
DIGEST : This bill includes any combination of the
renewable resources to qualify as an eligible renewable
energy device under the California Energy Commissions
Renewables Program and for Renewable Portfolio Standard
compliance.
ANALYSIS : Existing law requires investor-owned utilities
(IOUs) and energy service providers (ESPs) to increase
existing purchases of renewable energy by one percent of
sales per year such that 20 percent of retail sales, as
measured by usage, are procured from eligible renewable
resources by December 31, 2010. This is known as the
Renewable Portfolio Standard (RPS). Existing law defines
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as RPS eligible, electric generation resources biomass,
solar thermal, photovoltaic, wind, geothermal, fuel cells
using renewable fuels, small hydroelectric generation of 30
megawatts or less, digester gas, landfill gas, ocean wave,
ocean thermal, tidal current, and municipal solid waste
conversion that uses a noncombustion thermal process to
convert solid waste to a clean-burning fuel. Existing law
authorizes the California Energy Commission (CEC) to
provide funding in the form of production incentives for
eligible renewable generation facilities for each kilowatt
hour of eligible electricity generated.
This bill expands the definition of eligible renewable
resources to include any combination of the currently
eligible renewable resource technologies.
Background
RPS Progress - California's three large IOUs collectively
served 15 percent of 2009 retail electricity sales with
renewable power. The IOUs, which provide service to about
three-fourths of California utility customers, report the
following individual RPS percentages:
Pacific Gas and Electric (PG&E)14.4 percent
Southern California Edison (SCE)17.4 percent
San Diego Gas & Electric (SDG&E) 10.5 percent
In the last two years the RPS program started to show
significant gains. In 2008 more renewable generation came
on line than in the entire 2003 - 2007 time period (692
MW). Calendar year 2009 broke the 2008 record with more
than 1,000 MW coming on line. Since the RPS statute took
affect in 2003, almost 1,600 MW of renewable capacity has
come online.
The generation mix also improved in 2009. New capacity in
2008 was almost entirely from wind and a good portion of
that was from out of state. In 2009, 71 percent of new
capacity was from in-state sources and included a mix of
biomass, biogas, geothermal, solar PV, small hydro, and
wind.
Bids received by the IOUs for new generation also hit a
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record in 2009 bringing in potential contracts for more
than half of the generation needed to meet a 33 percent
target in 2020. The IOUs have now contracted for more than
12,000 MW of renewable generation. To put this in context
the statewide demand in a typical January is 25,000 to
30,000 MW. A July heat storm would drive that number up
over 50,000 MW.
The state's local publicly owned utilities report renewable
progress ranging from 1.7 percent to 61.2 percent.
Compliance data for 2009 recently submitted to this
committee collectively shows:
Northern California Power Authority20 percent
Sacramento Municipal Utility District21 percent
L.A. Department of Water & Power14 percent
Southern California Power Authority2 percent - 20
percent
Comments
According to the author's office, "existing law is silent
on the use of multiple renewable energy devices.
Therefore, existing subsidies for renewable energy projects
are silent on multiple energy devices, and the California
Energy Commission has been conservative insofar as which
devices qualify for these rebates. There is no current
definition for a multiple renewable energy device, and the
traditional stringent application of existing standards
strongly suggests against multiple technology devices
qualifying. Therefore, absent the codification of a
definition, it is expected that current programs would
exclude such devices."
Related Legislation
The following bills have been introduced in 2010 which
affect the RPS program:
SB 722 (Simitian) increases the RPS mandate to 33 percent
by 2020 and makes other program changes. On Assembly
Floor; pending re-referral to policy committee.
SB 1247 (Dutton) expands the definition of eligible
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renewable resources to include all hydroelectric, nuclear
and municipal solid waste conversion technologies. In
Senate Committee on Energy, Utilities & Communications.
SB 1367 (Wyland) extends the RPS compliance timeline to 20
percent by 2020. Died in Senate Committee on Energy,
Utilities & Communications.
AB 1954 (Skinner) modifies the de minimus standard for the
use of fossil fueled sources to assist RPS generation and
addresses back-stop cost recovery of renewable transmission
facilities. In Senate Committee on Energy, Utilities &
Communications.
AB 2514 (Skinner) requires the adoption of energy storage
procurement targets. In Senate Committee on Energy,
Utilities & Communications.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/16/10)
STS Ventures, LLC (source)
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall,
Bill Berryhill, Blakeslee, Block, Blumenfield, Bradford,
Brownley, Buchanan, Charles Calderon, Carter, Chesbro,
Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,
Emmerson, Eng, Feuer, Fletcher, Fong, Fuentes, Fuller,
Furutani, Gaines, Galgiani, Garrick, Gilmore, Hall,
Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Lieu, Logue, Bonnie Lowenthal,
Mendoza, Miller, Monning, Nestande, Niello, Nielsen, V.
Manuel Perez, Portantino, Ruskin, Salas, Silva, Smyth,
Solorio, Audra Strickland, Swanson, Torlakson, Torres,
Torrico, Tran, Villines, Yamada
NO VOTE RECORDED: Tom Berryhill, Caballero, Evans, Hagman,
Ma, Nava, Norby, Saldana, Skinner, John A. Perez
DLW:nl 6/16/10 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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