BILL ANALYSIS �
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 23|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: SB 23
Author: Simitian (D)
Amended: 9/2/11
Vote: 21
SENATE ENERGY, UTILITIES & COMM. COMMITTEE : 10-0, 5/3/11
AYES: Padilla, Fuller, Berryhill, Corbett, DeSaulnier,
Pavley, Rubio, Simitian, Strickland, Wright
NO VOTE RECORDED: De Le�n
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 31-4, 5/31/11
AYES: Alquist, Blakeslee, Calderon, Cannella, Corbett,
Correa, De Le�n, DeSaulnier, Emmerson, Evans, Fuller,
Harman, Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu,
Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price,
Runner, Simitian, Strickland, Vargas, Wolk, Wright, Yee
NOES: Anderson, Gaines, Walters, Wyland
NO VOTE RECORDED: Berryhill, Dutton, Hancock, Rubio,
Steinberg
ASSEMBLY FLOOR : Not available
SUBJECT : Energy: renewable energy resources
SOURCE : Author
DIGEST : This bill makes a number of substantive and
technical changes to the recently signed SB 2X1 (Simitian),
CONTINUED
SB 23
Page
2
Chapter 1, Statutes of 2011-12, First Extraordinary
Session, which increases California's renewable portfolio
standard (RPS) from 20 percent by 2010 to 33 percent by
2020.
Assembly Amendments (1) specify that a small hydroelectric
generation unit is an eligible renewable energy resource if
it supplies or conveys water to its customers; (2)
eliminate the requirement for the Public Utilities
Commission (PUC) to prepare annual procurement plans; (3)
authorize the PUC to require more frequent compliance
reports; (4) eliminate all deficits accumulated by retail
sellers prior to December 31, 2010, not just the deficits
of those retail sellers who are at 14 percent; (5) extend
the deadline for the PUC to establish minimum procurement
quantities in each compliance period from January 1, 2012,
to July 1, 2012; (6) clarify PUC enforcement provisions
against IOUs; (7) permit local publically owned utilities
that have met the 20 percent requirement by 2010 to bank
its excess procurement; (8) change effective load carrying
capacity deadline from July 1, 2012, to January 1, 2013;
(9) allow PUC to report to Legislature on RPS progress in
existing AB 67 (Levine), Chapter 562, Statutes of 2005,
report; (10) specify that California Air Resources Board
cannot adopt any state renewable energy goals; and (11)
make a number of technical and non-substantive changes.
ANALYSIS : Existing law:
1. Creates the California renewables portfolio standard
program (RPS program) and the Renewable Energy Resources
Program to increase the amount of electricity generated
per year from eligible renewable energy resources, as
defined.
2. Requires the State Energy Resources Conservation and
Development Commission (Energy Commission), by June 30,
2011, to study and provide a report to the Legislature
that analyzes run-of-river hydroelectric generating
facilities, as defined, in British Columbia, including
whether these facilities are, or should be, included as
renewable electrical generation facilities for purposes
of the Renewable Energy Resources Program administered
by the Energy Commission or eligible renewable energy
CONTINUED
SB 23
Page
3
resources for purposes of the RPS program.
3. Requires the Energy Commission, among other things, to
adopt regulations specifying procedures for enforcement
of the RPS requirements by July 1, 2011.
4. Requires the PUC, by July 1, 2011, to determine the
effective load carrying capacity of wind and solar
energy resources on the electrical grid.
5. Requires the PUC, in consultation with the Energy
Commission, to report to the Legislature by January 1 of
every even-numbered year on (A) the progress and status
of procurement activities by each retail seller, (B) the
status of permitting and siting eligible renewable
energy resources and transmission facilities necessary
to supply electricity generated to load, (C) the
projected ability of electrical corporations to meet the
RPS program procurement requirements under a cost
limitation established by the PUC and any
recommendations for revisions to those cost limitations,
and (D) barriers to, and policy recommendations for,
achieving the renewables portfolio standard established
pursuant to the RPS program.
6. Requires the PUC to establish the quantity of
electricity products from eligible renewable energy
resources, as defined, to be procured by each retail
seller, as defined, for specified compliance periods,
sufficient to ensure that the procurement of electricity
products from eligible renewable energy resources
achieves 20 percent of retail sales for the period
January 1, 2011, to December 31, 2013, 25 percent of
retail sales by December 31, 2016, and 33 percent of
retail sales by December 31, 2020, and in all subsequent
years. The RPS program, consistent with the goals of
procuring the least-cost and best-fit eligible renewable
energy resources that meet project viability principles,
requires that all retail sellers procure a balanced
portfolio of electricity products from eligible
renewable energy resources, as specified. The RPS
program requires the PUC to direct each electrical
corporation to annually prepare a renewable energy
procurement plan containing specified matter.
CONTINUED
SB 23
Page
4
7. Defines an eligible renewable energy resource for the
purposes of the RPS program to include a small
hydroelectric generation unit with a nameplate capacity
not exceeding 40 megawatts that is operated as part of a
water supply or conveyance system, if the retail seller
or local publicly owned electric utility procured the
electricity from the facility as of December 31, 2005.
8. Requires the governing board of a local publicly owned
electric utility, as defined, to adopt a program for the
enforcement of the RPS program on or before January 1,
2012.
9. The California Global Warming Solutions Act of 2006
(Act), establishes the California Air Resources Board
(CARB) as the state agency responsible for monitoring
and regulating sources emitting greenhouse gases (GHG).
The Act requires the CARB to adopt regulations to
require the reporting and verification of statewide GHG
emissions and to monitor and enforce compliance with
this program. The Act requires the CARB to adopt a
statewide GHG emissions limit, as defined, to be
achieved by 2020, equivalent to the statewide GHG
emissions levels in 1990. The CARB is required to adopt
rules and regulations in an open public process to
achieve the maximum technologically feasible and
cost-effective GHG emission reductions.
This bill:
1. Extends the deadline for the California Energy
Commission (CEC) to study and report to the Legislature
on run-of-river hydroelectric generating facilities in
British Columbia for one year to June 30, 2012.
2. Extends the deadline for the PUC to determine resource
adequacy standards for wind and solar energy resources
for one year to no later than July 1, 2012.
3. Extends the deadline for CEC to adopt regulations for
enforcement of RPS requirements of the publicly owned
utilities (POUs) for one year to July 1, 2012.
CONTINUED
SB 23
Page
5
4. Specifies that a small hydroelectric generation unit is
an eligible renewable energy resource if it supplies or
conveys water to its customers.
5. Eliminates the requirement for the PUC to prepare annual
procurement plans.
6. Authorizes the PUC to require more frequent compliance
reports.
7. Eliminates all deficits accumulated by retails sellers
prior to December 31, 2010, not just the deficits of
those retail sellers who are at 14 percent.
8. Extends the deadline for the PUC to establish minimum
procurement quantities in each compliance period from
January 1, 2012 to July 1, 2012.
9. Clarifies PUC enforcement provisions against POUs.
10.Permits local publically owned utilities that have met
the 20 percent requirement by 2010 to bank its excess
procurement.
11. Changes effective load carrying capacity deadline from
July 1, 2012 to January 1, 2013.
12. Allows PUC to report to Legislature on RPS progress in
existing AB 67 report.
13. Specifies that CARB cannot adopt any state renewable
energy goals.
14. Makes a number code clean up changes.
Comments
Governor Brown signed SB 2X1 (Simitian) on April 12th. The
bill will take effect 90 days after the adjournment of the
first extraordinary session which has not yet occurred. In
the meantime there were three deadlines in that bill by
which the CEC and CPUC were to adopt rules, regulations or
issue reports this summer. The delay in enactment of SB
2X1 and the delay in adjournment of the special session
CONTINUED
SB 23
Page
6
require that the deadlines be extended by one year for
these agencies to complete their work.
Both proponents and opponents of SB 2X1 cite the need for
further revisions to that measure in order to ensure that
implementation of the new 33 percent standard is carried
out efficiently and effectively. The author is considering
those provisions.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 9/7/11)
SMUD (if amended)
OPPOSITION : (Verified 9/7/11)
California Biomass Energy Alliance
California Wind Energy Association
Clean Power Campaign
Environment California
Independent Energy Producers
Large Scale Solar Association
Natural Resources Defense Council
Sierra Club California
The Solar Alliance
The Vote Solar Initiative
Union of Concerned Scientists
RM:kc 9/8/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED