Amended in Senate April 2, 2014

Senate Bill No. 1139

Introduced by Senator Hueso

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(Principal coauthor: Assembly Member V. Manuel Pérez)

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February 20, 2014

An act to begin delete amend end delete begin insert add end insert Section begin delete 3822.2 of end delete begin insert 399.35 to end insert the Public begin delete Resources end delete begin insert Utilities end insert Code, relating to begin delete geothermal resources. end delete begin insert energy. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 1139, as amended, Hueso. begin delete Geothermal resources. end delete begin insert California Renewables Portfolio Standard Program. end insert

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Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined, while local publicly owned electric utilities, as defined, are under the direction of their governing board. The Public Utilities Act imposes various duties and responsibilities on the commission with respect to the purchase of electricity and requires the commission to review and adopt a renewable energy procurement plan for each electrical corporation pursuant to the California Renewables Portfolio Standard Program. The California Renewables Portfolio Standard Program requires a retail seller, as defined, and local publicly owned electric utilities to purchase specified minimum quantities of electricity products from eligible renewable energy resources, as defined, for specified compliance periods. Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to certify eligible renewable energy resources that it determines meet specified statutory criteria. A violation of the Public Utilities Act is a crime.

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This bill would require, no later than December 24, 2024, each retail seller and local publicly owned electric utility to procure a proportionate share, as determined by the Energy Commission, of a statewide total of 500 megawatts of electricity generated by specified baseload geothermal powerplants. The bill would require, no later than January 1, 2016, each retail seller to file with the Public Utilities Commission, and each local publicly owned electric utility to file with the Energy Commission, a plan for complying with this procurement requirement. The bill would provide that the electricity procured by retail sellers and local publicly owned electric utilities from these baseload geothermal powerplants does not count towards meeting their requirements under the California Renewables Portfolio Standard Program to purchase specified minimum quantities of electricity products from eligible renewable energy resources. Because a violation of these provisions would be a crime under the Public Utilities Act, the bill would impose a state-mandated local program.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Existing law authorizes the State Energy Resources Conservation and Development Commission to expend certain funds, used for grants and loans from the Geothermal Resources Development Account, to provide direct technical assistance to local jurisdictions, as specified.

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This bill would make a technical, nonsubstantive change to that provision.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert Section 399.35 is added to the end insert begin insert Public Utilities
Code end insert begin insert , to read: end insert

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begin insert 399.35. end insert   

(a) No later than December 31, 2024, each retail seller
and local publicly owned electric utility shall procure a
proportionate share of a statewide total of 500 megawatts of
electricity generated by baseload geothermal powerplants that
began being constructed after January 1, 2015, and that meet the
requirements of paragraph (1) of subdivision (b) of Section 399.16.

(b) No later than June 30, 2015, the Energy Commission shall
determine the proportionate share of the 500 megawatts of
electricity that each retail seller and local publicly owned electric
utility is required to procure pursuant to subdivision (a). For
purposes of this section, “proportionate share” shall be based on
the forecast retail sales for the year 2018.

(c) No later than January 1, 2016, each retail seller shall file
with the commission, and each local publicly owned electric utility
shall file with the Energy Commission, a plan for complying with
subdivision (a). Those plans shall require each retail seller and
local publicly owned electric utility to procure at least one-half of
its proportionate share by December 31, 2019. The commission
shall review and approve, modify, or reject plans filed by retail
sellers. The Energy Commission shall review and approve, modify,
or reject plans filed by local publicly owned electric utilities.

(d) The electricity procured pursuant to this section shall not
count towards meeting the requirements specified in subparagraph
(B) of paragraph (2) of subdivision (b) of Section 399.15 or
paragraph (2) of subdivision (c) of Section 399.30.

(e) The electricity procured pursuant to this section shall be
procured to reasonably minimize costs. Subdivision (c) of Section
399.15 shall not apply to electricity procured pursuant to this
section.

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begin insert SEC. 2. end insert   

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No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

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SECTION 1.  

Section 3822.2 of the Public Resources Code is
amended to read:

3822.2.  

(a) Notwithstanding any provision of law, the State
Energy Resources Conservation and Development Commission
may expend funds, from that portion of the Geothermal Resources
Development Account used by the commission for grants and
loans, to provide direct technical assistance to local jurisdictions
that are eligible for grants and loans pursuant to Section 3822.

(b) The total of all amounts expended pursuant to this section
shall not exceed 5 percent of all funds available under Section
3822 or one hundred thousand dollars ($100,000), whichever
amount is less.

(c) In making expenditures under this section, the commission
shall consider, but not be limited to a consideration of, all of the
following:

(1) The availability of energy resource and technology
opportunities.

(2) The project definition and likelihood of success.

(3) Local needs and potential project benefits.

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