BILL ANALYSIS �
SB 23
Page 1
CORRECTED : 09/15/11
( Without Reference to File )
SENATE THIRD READING
SB 23 (Simitian)
As Amended September 9, 2011
Majority vote.
SENATE VOTE :31-4
UTILITIES & COMMERCE 11-1 NATURAL
RESOURCES 5-2
-----------------------------------------------------------------
|Ayes:|Bradford, Fletcher, |Ayes:|Chesbro, Brownley, |
| |Buchanan, Fong, Fuentes, | |Dickinson, Huffman, |
| |Furutani, Roger | |Monning |
| |Hern�ndez, Ma, Nestande, | | |
| |Skinner, Swanson | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Beth Gaines |Nays:|Knight, Grove |
| | | | |
-----------------------------------------------------------------
APPROPRIATIONS 12-5
-----------------------------------------------------------------
|Ayes:|Fuentes, Blumenfield, | | |
| |Bradford, Charles | | |
| |Calderon, Campos, Davis, | | |
| |Gatto, Hall, Hill, Lara, | | |
| |Mitchell, Solorio | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Harkey, Donnelly, | | |
| |Nielsen, Norby, Wagner | | |
| | | | |
-----------------------------------------------------------------
SUMMARY : Makes a number of technical and substantive changes
to the recently signed SB 2 X1 (Simitian) in the First
Extraordinary Session, Chapter 1, Statutes of 2011 which
increased California's renewable portfolio standard (RPS) from
20% by 2010 to 33% by 2020. Specifically, this bill :
SB 23
Page 2
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 California Public Utilities
Commission (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.
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 a provision regarding the long-term and short-term
contracting requirement.
8)Eliminates all deficits accumulated by retail sellers prior to
December 31, 2010, not just the deficits of those retail
sellers who are at 14%.
9)Extends the deadline for the PUC to establish minimum
procurement quantities in each compliance period from January
1, 2012 to July 1, 2012.
10)Clarifies that the enforcement provisions taken by the PUC
against IOUs are retrospective in applications.
11)Permits local publicly owned utilities that have met the 20%
requirement by 2010 to bank its excess procurement.
12)Changes the date by which the PUC has established quantities
for each compliance period from July 1, 2012 to January 1,
SB 23
Page 3
2013.
13)Allows PUC to report to Legislature on RPS progress in
existing AB 67 report.
14)Specifies that CARB cannot adopt any state renewable energy
goals.
15)Makes technical changes.
EXISTING LAW :
1)Creates the California RPS program and the Renewable Energy
Resources Program to increase the amount of electricity
generated per year from eligible renewable energy resources.
2)Effective 90 days after the adjournment of the First
Extraordinary Session, increases California's renewable
portfolio standard from 20% by 2010 to 33% by 2020.
3)Effective 90 days after the adjournment of the First
Extraordinary Session, requires the CEC to study and provide a
report to the Legislature that analyzes run-of-river
hydroelectric generating facilities by June 30, 2011.
4)Effective 90 days after the adjournment of the First
Extraordinary Session, requires the CEC to adopt regulations,
on or before July 1, 2011, for enforcement of the RPS
requirements of the POUs.
5)Effective upon the adjournment of the First Extraordinary
Session, requires the PUC to determine resource adequacy
standards for wind and solar energy resources no later than
July 1, 2011.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, by establishing more realistic deadlines, CEC and PUC
will realize minor administrative cost savings in completing the
required tasks.
COMMENTS : The Governor signed SB 2 X1 (Simitian) on April 12,
2011. The bill will take effect 90 days after the adjournment
of the First Extraordinary Session which has not yet occurred.
However, the bill required the CEC and PUC to provide reports or
SB 23
Page 4
promulgate regulations by this summer. Due to the delay in
enactment of the bill and the delay in adjournment of the
special session require that the deadlines be extended by one
year for these agencies to complete their work.
Background : In 2002, the Legislature approved SB 1078 (Sher),
Chapter 516, Statutes of 2002, which created RPS. Under RPS,
IOUs and competitive energy service providers (ESPs) of
electricity were required to increase their renewable
procurement each year by at least 1% of total sales, so that 20%
of their sales are from renewable energy sources by December 31,
2017. This goal was accelerated to 20% renewable power by 2010
by SB 107 (Simitian), Chapter 464, Statutes of 2006.
1)Outstanding issues : The most recent amendments to this bill
have drawn strong opposition from key stakeholders. Therefore
the author and this committee may wish to amend the bill as
follows :
A. Reinstate language in the statute of SB 2 1X requiring
the IOUs to report on its transmission grid.
B. Reinstate language in the statute of SB 2 1X regarding
the authorizing of deficits accumulated by retail sellers
prior to December 31, 2010 to count toward their RPS
obligation.
C. Reinstate the language in the statute of SB 2 1X
regarding banking for local publicly owned utilities to
bank its excess procurement in the same manner as IOUs
since they met the 20% requirement by 2010.
D. Reinstate a provision in the statute of SB 2 1X
regarding long-term and short-term contracting for retail
sellers.
E. Change the date by which the PUC has established
quantities for each compliance period from January 1, 2013
to June 1, 2012.
1)Technical amendment : This bill amends the same code section
as AB 1391 (Bradford), therefore chaptering out amendments are
needed for the bill.
SB 23
Page 5
Analysis Prepared by : DaVina Flemings / U. & C. / (916)
319-2083
FN: 0002915