City of Culver City, California
Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council consider taking a position on Senate Bill 350: the
Clean Energy and Pollution Reduction Act of 2015, as amended on July 16, 2015
(SB 350).
BACKGROUND:
In Governor Brown’s State of the State address in January 2015, he announced his
ambitious new energy and climate goals for California. The Governor called for
statewide targets of up to a 50% reduction in petroleum use in cars and trucks, 50%
electricity generation from renewable sources, and the doubling of the energy
efficiency of buildings, all by 2030. (http://focus.senate.ca.gov/climate/sb350-facts)
In February, Senate President Pro Tempore Kevin de León introduced Senate Bill
350, the Clean Energy and Pollution Reduction Act of 2015, which, if enacted,
codifies and implement the Governor’s goals. (Attachment 1)
SB 350’s Background and Purpose
Under existing law, the Public Utilities Commission (PUC) has regulatory authority
over public utilities, including electrical corporations, while local publicly owned
electric utilities, as defined, are under the direction of their governing boards. Under
existing law, a violation of the Public Utilities Act is a crime. This bill would require
Meeting Date: 07/27/15 Item Number: A-2
CITY COUNCIL AGENDA ITEM: Consideration of a City Council Position on
Senate Bill 350: the Clean Energy and Pollution Reduction Act of 2015, as
Amended on July 16, 2015.
Contact Person/Dept.:
Shelly Wolfberg, Assistant to the City
Manager
Phone Number:
(310) 253-6000
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [ ] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Meetings and Agendas – City Council (07/22/15); Diane Forte,
Southern California Edison (07/22/15)
Department Approval:
Martin R. Cole (07/22/15)
City Attorney Approval:
Carol Schwab (by H. Baker) (07/22/15)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (07/22/15)
City Manager Approval:
John M. Nachbar (07/22/15) City of Culver City, California
Agenda Item Report
that the amount of electricity generated per year from eligible renewable energy
resources be increased to an amount equal to at least 50% by December 31, 2030.
SB 350 would require the PUC, by January 1, 2017, to establish the quantity of
electricity products from eligible renewable energy resources to be procured by each
retail seller for specified compliance periods sufficient to ensure that the
procurement of electricity products from eligible renewable energy resources
achieves 50% of retail sales by December 31, 2030.
The bill would require the governing boards of local publicly owned electric utilities to
ensure that specified quantities of electricity products from eligible renewable energy
resources be procured for specified compliance periods to ensure that the
procurement of electricity products from eligible renewable energy resources
achieve 50% of retail sales by December 31, 2030. SB 350 would exclude all
facilities engaged in the combustion of municipal solid waste from the definition of
eligible renewable energy resources. The bill would require community choice
aggregators and electric service providers to prepare and submit renewable energy
procurement plans. The bill would revise other aspects of the California Renewables
Portfolio Standard (RPS) Program, including, among other things, the enforcement
provisions and would require penalties collected from retail sellers for non-
compliance to be deposited in the Electric Program Investment Charge Fund.
The bill would require the PUC to direct electrical corporations to include in their
proposed procurement plans a strategy for procuring a diverse portfolio of resources
that provide a reliable electricity supply. The bill would require the PUC and the
California Energy Commission to take certain actions in furtherance of meeting the
State's clean energy and pollution reduction objectives. SB 350 would state the
policy of the State of California to encourage transportation electrification to achieve
ambient air quality standards and the State’s climate goals.
Existing law requires the State Air Resources Board to adopt and implement various
standards related to emissions from motor vehicles. SB 350 would require those
standards to be in furtherance of achieving a reduction in petroleum use in motor
vehicles by 50% by January 1, 2030.
SB 350’s Fiscal Effects (According to the Senate Appropriations Committee)
1. First year costs of $440,000, and $400,000 ongoing from various special
funds to ARB to create a petroleum use baseline and to implement
necessary measures to reduce use.
2. Unknown cost pressures to current programs from various special funds to
achieve a 50% petroleum reduction.
3. Annual costs of $7.24 million from the General Fund for the CEC for ongoing
updates of its energy efficiency plans for existing buildings and to implement
the plans. City of Culver City, California
Agenda Item Report
4. Annual costs of $900,000 from the Energy Resources Program Account
(General Fund) for the CEC for new responsibilities ensuring compliance
with RPS standards by the POUs.
5. Annual costs of $2.3 million for five years from the Public Utilities
Reimbursement Account (special) for PUC contract needs.
6. Annual costs of $471,000 for two years and $157,000 in the third year from
the Public Utilities Reimbursement Account (special) for PUC proceedings to
adjust existing RPS and Long Term Procurement Plan programs.
7. Ongoing staffing needs of $350,000 annually from the Public Utilities
Reimbursement Account (special) for PUC staffing needs for ongoing
enforcement of the higher RPS standards.
8. Unknown ratepayer costs to the General Fund and various special funds to
the state as a ratepayer of electricity to the extent that electricity prices may
be affected by increasing the RPS standard.
9. Unknown cost pressures to the Public Utilities Reimbursement Account
(special) and the Energy Resources Program Account (General Fund) to the
PUC and the CEC to review renewable integration needs and to consider
grid integration in proceedings implementing RPS requirements.
On June 3, 2015, SB 350 was approved in the Senate (Senator Mitchell voting AYE)
and is now up for a vote in the Assembly before reaching the Governor’s desk for his
action (presumably a signature enacting SB 350 into law). On July 20, 2015, the
City received a letter from Senate President Pro Tempore De León requesting that
the City Council support SB 350, in hopes that the legislation is signed into law this
year. (Attachment 2)
DISCUSSION:
The guiding principles included in the City Council-adopted Legislative Advocacy
Program are intended to provide direction on matters that affect the funding,
programs, projects, and operations of the City of Culver City as a governmental
organization. According to the Legislative Advocacy Program (Attachment 3), the
following policies apply to SB 350:
1. Support efforts to preserve municipalities’ opportunities to provide energy
alternatives to residents and businesses and to maintain a utility-established
rate structure that is fair and equitable for the City and its residents.
2. Support reasonable environmental regulations aimed at enhancing air and
water quality, reducing stormwater pollution, and providing opportunities for
corresponding funding mechanisms.
3. Support legislation that improves air quality in Culver City and surrounding
areas. City of Culver City, California
Agenda Item Report
4. Support funding for greenhouse gas inventories, climate action plans, and other
work that will help further the goals of AB 32 and related legislation.
5. Support legislation and grants that encourage the use of innovative, efficient,
and renewable alternative fuels for vehicles.
6. Support legislation that promotes reliable, affordable, and renewable energy
for businesses and residents.
7. Oppose any legislation that would place a mandate on the City without
providing the funds necessary to carry out the mandated program. Render
mandates invalid if not fully funded.
8. Oppose any legislation that would place a mandate on the City without
providing the funds necessary to carry out the mandated program. Render
mandates invalid if not fully funded.
As noted above, the Legislative Advocacy Program does provide some guidance on
the subjects addressed by SB 350. However, SB 350, if enacted into law, would
make significant changes to the status quo. Because of these significant changes
and their related fiscal impacts to the City, staff does not feel it has sufficient
guidance to prepare a letter expressing the City’s policy on the matters expressed in
SB 350. Therefore, the item is presented to the City Council for consideration.
If the City Council adopts a position on SB 350, the City Manager will cause a
position letter to be prepared and signed by the Mayor that will be distributed
accordingly.
FISCAL ANALYSIS:
There is no fiscal impact for the City Council to take a position on this bill. However,
if SB 350 is signed into law, the future potential impacts to Culver City’s utility costs
for municipal facilities are unknown at this time. Additionally, because this bill would
require the State Air Resources Board to adopt various standards related to
emissions from motor vehicles to be in furtherance of achieving a reduction in
petroleum use in motor vehicles by 50% by January 1, 2030, there could be potential
impacts to the City’s fleet assets and operations.
ATTACHMENTS:
1. SB 350 Bill Language
2. July 17, 2015 Letter from Senate President Pro Tempore De León
3. Culver City Legislative Advocacy Program, Adopted on January 12, 2015
City of Culver City, California
Agenda Item Report
MOTION:
That the City Council:
1. Request that the City Manager prepare a letter in support of SB 350 for the
Vice Mayor’s Signature; or,
2. Request that the City Manager prepare a letter in opposition of SB 350 for the
Vice Mayor’s Signature; or,
3. Provide other direction as deemed necessary.
MEETING DATE: July 27, 2015
AGENDA ITEM: Consideration of a City Council Position on Senate Bill
350: the Clean Energy and Pollution Reduction Act of
2015, as Amended on July 16, 2015.
ATTACHMENTS
Pages
1 SB 350 Bill Language 1-44
2 July 17, 2015 Letter from Senate President Pro Tempore De León 45-46
3 Culver City Legislative Advocacy Program, Adopted on January 12,
2015
47-56
AMENDED IN ASSEMBLY JULY 16, 2015
AMENDED IN ASSEMBLY JULY 8, 2015
SENATE BILL No. 350
Introduced by Senators De León and Leno
(Coauthors: Senators Hancock and Monning)
February 24, 2015
An act to amend Section 43013 of, and to add Section 44258.5 to,
the Health and Safety Code, to amend Sections 25000.5 and 25943 of
the Public Resources Code, and to amend Sections 399.11, 399.12,
399.13, 399.15, 399.16, 399.18, 399.21, 399.30, 701.1, and 740.8 of,
to add Sections 237.5, 454.51, and 740.12 to, and to add Article 17
(commencing with Section 400) to Chapter 2.3 of Part 1 of Division 1
of, the Public Utilities Code, relating to energy.
legislative counsel
’
s digest
SB 350, as amended, De León. Clean Energy and Pollution Reduction
Act of 2015.
(1) Under existing law, the Public Utilities Commission (PUC) 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 boards. Under
existing law, a violation of the Public Utilities Act is a crime.
Existing law establishes the California Renewables Portfolio Standard
(RPS) Program, which is codified in the Public Utilities Act and
expresses the intent of the Legislature that Act, with the target to
increase the amount of electricity generated per year from eligible
renewable energy resources be increased to an amount that equals at
least 33% of the total electricity sold to retail customers in California
per year by December 31, 2020. Existing law requires the PUC, by
97
1January 1, 2012, to establish the quantity of electricity products from
eligible renewable energy resources to be procured by each retail seller
for specified compliance periods, sufficient to ensure that the
procurement of electricity products from eligible renewable energy
resources achieves 25% of retail sales by December 31, 2016, and 33%
of retail sales by December 31, 2020, and that retail sellers procure not
less than 33% of retail sales in all subsequent years. F or these purposes,
a retail seller is defined to include electrical corporations, electric
service providers, and community choice aggregators. The RPS Program
requires an electrical corporation to submit to the PUC, for its approval,
a renewable energy procurement plan. Existing law includes as an
eligible renewable energy resource a specified facility engaged in the
combustion of municipal solid waste.
Existing law makes the requirements of the RPS Program applicable
to a local publicly owned electric utilities, utility, as defined, except
that the utility’s governing board is responsible for implementation of
those requirements, instead of the PUC, and certain enforcement
authority with respect to local publicly owned electric utilities is given
to the State Energy Resources Conservation and Development
Commission (Energy Commission) and State Air Resources Board,
instead of the PUC.
This bill would additionally express the intent of the Legislature for
the purposes of the RPS Program require that the amount of electricity
generated per year from eligible renewable energy resources be
increased to an amount equal to at least 50% by December 31, 2030,
and would require the PUC, by January 1, 2017, to establish the quantity
of electricity products from eligible renewable energy resources to be
procured by each retail seller for specified compliance periods sufficient
to ensure that the procurement of electricity products from eligible
renewable energy resources achieves 50% of retail sales by December
31, 2030. The bill would require the governing boards of local publicly
owned electric utilities to ensure that specified quantities of electricity
products from eligible renewable energy resources to be procured for
specified compliance periods to ensure that the procurement of
electricity products from eligible renewable energy resources achieve
50% of retail sales by December 31, 2030. The bill would exclude all
facilities engaged in the combustion of municipal solid waste from
being eligible renewable energy resources. The bill would require
community choice aggregators and electric service providers to prepare
and submit renewable energy procurement plans. The bill would revise
97
— 2 — SB 350
2other aspects of the RPS Program, including, among other things, the
enforcement provisions and would require penalties collected from
retail sellers for noncompliance to be deposited in the Electric Program
Investment Charge Fund. The bill would require the PUC to direct
electrical corporations to include in their proposed procurement plans
a strategy for procuring a diverse portfolio of resources that provide a
reliable electricity supply. The bill would require the PUC and the
Energy Commission to take certain actions in furtherance of meeting
the state’s clean energy and pollution reduction objectives.
This bill would authorize the PUC to authorize a procurement entity,
and would authorize a local publicly owned utility, to procure an
unspecified percentage of retail sales of onsite generation meeting
certain requirements within the area served by the procurement entity
to serve local electricity needs.
Existing law requires the PUC, in cooperation with specified entities,
to evaluate and implement policies to promote development of
equipment and infrastructure needed to facilitate the use of electricity
and natural gas to fuel low-emission vehicles. Existing law requires
those policies to prohibit utilities from passing the costs and expenses
related to programs for the development of that equipment or
infrastructure through to ratepayers unless the PUC finds and determines
that those programs are in the interest of ratepayers. Existing law defines
“interests” of the ratepayers for this purpose.
This bill would revise the definition of “interests” of the ratepayers.
The bill would require the PUC, in consultation with specified entities,
to direct electric corporations to propose multiyear programs and
investments to accelerate widespread transportation electrification as
a means to achieve certain goals. The bill would require the commission
to review data concerning current and future electric transportation
adoption rates and charging infrastructure utilization rates no less than
every 3 years.
Because the above provisions are codified in the Public Utilities Act,
a violation of these provisions would impose a state-mandated local
program by expanding the definition of a crime or establishing a new
crime.
By placing additional requirements upon local publicly owned electric
utilities, this bill would impose a state-mandated local program.
(2) Existing law requires the State Air Resources Board to adopt and
implement various standards related to emissions from motor vehicles.
97
SB 350 — 3 —
3This bill would require those standards to be in furtherance of
achieving a reduction in petroleum use in motor vehicles by 50% by
January 1, 2030. The bill would require the state board, by January 1,
2017, to prepare a strategy and implementation plan to achieve this
reduction.
Existing law requires the State Air Resources Board to adopt
greenhouse gas emission limits and emissions reduction measures, by
regulations, to achieve the maximum technologically feasible and
cost-effective reductions in greenhouse gas emissions in furtherance of
achieving the statewide greenhouse gas emissions limit. Existing law
requires the state board, in adoption regulations, to, among other things,
design the regulations to include distribution of emissions allowance,
where appropriate, to minimize the costs and maximize total benefits
to California.
The Charge Ahead California Initiative states goals of, among other
things, placing in service at least 1,000,000 zero-emission and
near-zero-emission vehicles by January 1, 2023, and increasing access
for disadvantaged, low-income, and moderate-income communities and
consumers to zero-emission and near-zero-emission vehicles.
This bill would require the state board to identify and adopt
appropriate policies to remove regulatory disincentives facing retail
sellers and local publicly owned electric utilities from facilitating the
achievement of greenhouse gas emissions reduction in other sectors
through increased investments in transportation and building
electrification that includes allocation of greenhouse gas emissions
allowances to retail sellers and local publicly owned electric utilities
to account for increased greenhouse gas emissions in the electric sector
from transportation electrification.
(3) Existing law states the policy of the state to exploit all practicable
and cost-effective conservation and improvements in the efficiency of
energy use and distribution, and to achieve energy security, diversity
of supply sources, and competitiveness of transportation energy markets
based on the least environmental and economic costs.
This bill would additionally state the policy of the state to exploit
those conservation and improvements in furtherance of reducing
petroleum use in the transportation sector by 50% by January 1, 2030.
The bill would state the policy of the state to encourage transportation
electrification natural gas vehicles as a short-term measure, fuel cell
vehicles, and transportation innovations as means to achieve certain to
achieve ambient air quality standards and the state’s climate goals.
97
— 4 — SB 350
4(4) Existing law requires the Energy Commission to establish a
regulatory proceeding to develop and implement a comprehensive
program to achieve greater energy savings in California’s existing
residential and nonresidential building stock and to periodically update
criteria for the program.
This bill would require the Energy Commission, by January 1, 2017,
and at least once every 3 years thereafter, to adopt an update to the
program in furtherance of achieving a doubling of energy efficiency in
buildings by January 1, 2030. The bill would require the Energy
Commission to adopt, implement, and enforce certain policy regarding
ratepayer-funded energy efficiency programs.
(5) 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.
This bill would provide that no reimbursement is required by this act
for specified reasons.
V ote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. This act shall be known and may be cited as the
line 2 Clean Energy and Pollution Reduction Act of 2015.
line 3 SEC. 2. (a) The Legislature finds and declares that the
line 4 Governor has called for a new set of objectives in clean energy,
line 5 clean air, and pollution reduction for 2030 and beyond. Those
line 6 objectives consist of the following:
line 7 (1) To increase from 33 percent to 50 percent, the procurement
line 8 of our electricity from renewable sources.
line 9 (2) To reduce today’s petroleum use in cars and trucks by up
line 10 to 50 percent.
line 11 (3) To double the efficiency of existing buildings.
line 12 (b) It is the intent of the Legislature in enacting this act to codify
line 13 the targets described under subdivision (a) to ensure they are
line 14 permanent, enforceable, and quantifiable.
line 15 SEC. 3. Section 43013 of the Health and Safety Code is
line 16 amended to read:
line 17 43013. (a) The state board shall adopt and implement motor
line 18 vehicle emission standards, in-use performance standards, and
line 19 motor vehicle fuel specifications for the control of air contaminants
97
SB 350 — 5 —
5 line 1 and sources of air pollution which the state board has found to be
line 2 necessary, cost effective, and technologically feasible, to carry out
line 3 the purposes of this division and in furtherance of achieving a
line 4 reduction in petroleum use in motor vehicles by 50 percent by
line 5 January 1, 2030, unless preempted by federal law.
line 6 (b) The state board shall, consistent with subdivision (a), adopt
line 7 standards and regulations for light-duty and heavy-duty motor
line 8 vehicles, medium-duty motor vehicles, as determined and specified
line 9 by the state board, portable fuel containers and spouts, and off-road
line 10 or nonvehicle engine categories, including, but not limited to,
line 11 off-highway motorcycles, off-highway vehicles, construction
line 12 equipment, farm equipment, utility engines, locomotives, and, to
line 13 the extent permitted by federal law, marine vessels.
line 14 (c) Prior to adopting standards and regulations for farm
line 15 equipment, the state board shall hold a public hearing and find and
line 16 determine that the standards and regulations are necessary, cost
line 17 effective, and technologically feasible. The state board shall also
line 18 consider the technological effects of emission control standards
line 19 on the cost, fuel consumption, and performance characteristics of
line 20 mobile farm equipment.
line 21 (d) Notwithstanding subdivision (b), the state board shall not
line 22 adopt any standard or regulation affecting locomotives until the
line 23 final study required under Section 5 of Chapter 1326 of the Statutes
line 24 of 1987 has been completed and submitted to the Governor and
line 25 Legislature.
line 26 (e) Prior to adopting or amending any standard or regulation
line 27 relating to motor vehicle fuel specifications pursuant to this section,
line 28 the state board shall, after consultation with public or private
line 29 entities that would be significantly impacted as described in
line 30 paragraph (2) of subdivision (f), do both of the following:
line 31 (1) Determine the cost-effectiveness of the adoption or
line 32 amendment of the standard or regulation. The cost-effectiveness
line 33 shall be compared on an incremental basis with other mobile source
line 34 control methods and options.
line 35 (2) Based on a preponderance of scientific and engineering data
line 36 in the record, determine the technological feasibility of the adoption
line 37 or amendment of the standard or regulation. That determination
line 38 shall include, but is not limited to, the availability, effectiveness,
line 39 reliability, and safety expected of the proposed technology in an
line 40 application that is representative of the proposed use.
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— 6 — SB 350
6 line 1 (f) Prior to adopting or amending any motor vehicle fuel
line 2 specification pursuant to this section, the state board shall do both
line 3 of the following:
line 4 (1) To the extent feasible, quantitatively document the
line 5 significant impacts of the proposed standard or specification on
line 6 affected segments of the state’s economy. The economic analysis
line 7 shall include, but is not limited to, the significant impacts of any
line 8 change on motor vehicle fuel efficiency, the existing motor vehicle
line 9 fuel distribution system, the competitive position of the affected
line 10 segment relative to border states, and the cost to consumers.
line 11 (2) Consult with public or private entities that would be
line 12 significantly impacted to identify those investigative or preventive
line 13 actions that may be necessary to ensure consumer acceptance,
line 14 product availability, acceptable performance, and equipment
line 15 reliability. The significantly impacted parties shall include, but are
line 16 not limited to, fuel manufacturers, fuel distributors, independent
line 17 marketers, vehicle manufacturers, and fuel users.
line 18 (g) (1) No later than January 1, 2017, the state board, after one
line 19 or more public workshops, shall prepare a strategy and
line 20 implementation plan to achieve a reduction in petroleum use in
line 21 motor vehicles by 50 percent by January 1, 2030, and provide a
line 22 copy of the strategy and plan to the appropriate policy committees
line 23 of the Legislature.
line 24 (2) Beginning January 1, 2020, and every three years thereafter,
line 25 the state board shall provide an update to the strategy and plan that
line 26 reflects any changes made to the strategy and plan.
line 27 (h) To the extent that there is any conflict between the
line 28 information required to be prepared by the state board pursuant to
line 29 subdivision (f) and information required to be prepared by the state
line 30 board pursuant to Chapter 3.5 (commencing with Section 11340)
line 31 of Part 1 of Division 3 of Title 2 of the Government Code, the
line 32 requirements established under subdivision (f) shall prevail.
line 33 (i) It is the intent of the Legislature that the state board act as
line 34 expeditiously as is feasible to reduce nitrogen oxide emissions
line 35 from diesel vehicles, marine vessels, and other categories of
line 36 vehicular and mobile sources which significantly contribute to air
line 37 pollution problems.
line 38 SEC. 4. Section 44258.5 is added to the Health and Safety
line 39 Code, to read:
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SB 350 — 7 —
7 line 1 44258.5. (a) For the purposes of this section, the following
line 2 terms mean the following:
line 3 (1) “Local publicly owned electric utility” has the same meaning
line 4 as defined in Section 224.3 of the Public Utilities Code.
line 5 (1)
line 6 (2) “Retail seller” has the same meaning as set forth in Section
line 7 399.12 of the Public Utilities Code.
line 8 (2)
line 9 (3) “Transportation electrification” has the same meaning as
line 10 set forth in Section 237.5 of the Public Utilities Code.
line 11 (b) The state board shall identify and adopt appropriate policies
line 12 to remove regulatory disincentives facing retail sellers and local
line 13 publicly owned electric utilities from facilitating the achievement
line 14 of greenhouse gas emission reductions in other sectors through
line 15 increased investments in transportation electrification. Those
line 16 policies shall include, but are not limited to, an allocation of
line 17 greenhouse gas emissions allowances to retail sellers and local
line 18 publicly owned electric utilities to account for increased greenhouse
line 19 gas emissions in the electric sector from transportation
line 20 electrification.
line 21 SEC. 5. Section 25000.5 of the Public Resources Code is
line 22 amended to read:
line 23 25000.5. (a) The Legislature finds and declares that
line 24 overdependence on the production, marketing, and consumption
line 25 of petroleum based fuels as an energy resource in the transportation
line 26 sector is a threat to the energy security of the state due to
line 27 continuing market and supply uncertainties. In addition, petroleum
line 28 use as an energy resource contributes substantially to the following
line 29 public health and environmental problems: air pollution, acid rain,
line 30 global warming, and the degradation of California’s marine
line 31 environment and fisheries.
line 32 (b) Therefore, it is the policy of this state to fully evaluate the
line 33 economic and environmental costs of petroleum use, and the
line 34 economic and environmental costs of other transportation fuels
line 35 and options, including the costs and values of environmental
line 36 impacts, and to establish a state transportation energy policy that
line 37 results in the least environmental and economic cost to the state.
line 38 In pursuing the “least environmental and economic cost” strategy,
line 39 it is the policy of the state to exploit all practicable and
line 40 cost-effective conservation and improvements in the efficiency of
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— 8 — SB 350
8 line 1 energy use and distribution, and to achieve energy security,
line 2 diversity of supply sources, and competitiveness of transportation
line 3 energy markets based on the least environmental and economic
line 4 cost, and in furtherance of reducing petroleum use in the
line 5 transportation sector by 50 percent by January 1, 2030.
line 6 (c) It is also the policy of this state to minimize the economic
line 7 and environmental costs due to the use of petroleum-based and
line 8 other transportation fuels by state agencies. In implementing a
line 9 least-cost economic and environmental strategy for state fleets, it
line 10 is the policy of the state to implement practicable and cost-effective
line 11 measures, including, but not necessarily limited to, the purchase
line 12 of the cleanest and most efficient automobiles and replacement
line 13 tires, the use of alternative fuels in its fleets, and other conservation
line 14 measures.
line 15 (d) For the purposes of this section, “petroleum based fuels”
line 16 means fuels derived from liquid unrefined crude oil, including
line 17 natural gas liquids, liquefied petroleum gas, or the energy fraction
line 18 of methyl tertiary-butyl ether (MTBE) or other ethers that is not
line 19 attributed to natural gas.
line 20 SEC. 6. Section 25943 of the Public Resources Code is
line 21 amended to read:
line 22 25943. (a) (1) By March 1, 2010, the commission shall
line 23 establish a regulatory proceeding to develop and implement a
line 24 comprehensive program to achieve greater energy savings in
line 25 California’s existing residential and nonresidential building stock.
line 26 This program shall comprise a complementary portfolio of
line 27 techniques, applications, and practices that will achieve greater
line 28 energy efficiency in existing residential and nonresidential
line 29 structures that fall significantly below the current standards in Title
line 30 24 of the California Code of Regulations, as determined by the
line 31 commission.
line 32 (2) The comprehensive program may include, but need not be
line 33 limited to, a broad range of energy assessments, building
line 34 benchmarking, energy rating, cost-effective energy efficiency
line 35 improvements, public and private sector energy efficiency
line 36 financing options, public outreach and education efforts, and green
line 37 workforce training.
line 38 (3) The commission shall adopt, implement, and enforce a
line 39 responsible contractor policy for use across all ratepayer-funded
line 40 energy efficiency programs that involve installation or
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SB 350 — 9 —
9 line 1 maintenance, or both installation and maintenance, by building
line 2 contractors to ensure that retrofits meet high-quality performance
line 3 standards and reduce energy savings lost or foregone due to
line 4 poor-quality workmanship.
line 5 (b) To develop and implement the program specified in
line 6 subdivision (a), the commission shall do both of the following:
line 7 (1) Coordinate with the Public Utilities Commission and consult
line 8 with representatives from the Bureau of Real Estate, the
line 9 Department of Housing and Community Development,
line 10 investor-owned and publicly owned utilities, local governments,
line 11 real estate licensees, commercial and homebuilders, commercial
line 12 property owners, small businesses, mortgage lenders, financial
line 13 institutions, home appraisers, inspectors, energy rating
line 14 organizations, consumer groups, environmental and environmental
line 15 justice groups, and other entities the commission deems
line 16 appropriate.
line 17 (2) Hold at least three public hearings in geographically diverse
line 18 locations throughout the state.
line 19 (c) In developing the requirements for the program specified in
line 20 subdivision (a), the commission shall consider all of the following:
line 21 (1) The amount of annual and peak energy savings, greenhouse
line 22 gas emission reductions, and projected customer utility bill savings
line 23 that will accrue from the program.
line 24 (2) The most cost-effective means and reasonable timeframes
line 25 to achieve the goals of the program.
line 26 (3) The various climatic zones within the state.
line 27 (4) An appropriate method to inform and educate the public
line 28 about the need for, benefits of, and environmental impacts of, the
line 29 comprehensive energy efficiency program.
line 30 (5) The most effective way to report the energy assessment
line 31 results and the corresponding energy efficiency improvements to
line 32 the owner of the residential or nonresidential building, including,
line 33 among other things, the following:
line 34 (A) Prioritizing the identified energy efficiency improvements.
line 35 (B) The payback period or cost-effectiveness of each
line 36 improvement identified.
line 37 (C) The various incentives, loans, grants, and rebates offered
line 38 to finance the improvements.
line 39 (D) Available financing options including all of the following:
line 40 (i) Mortgages or sales agreement components.
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10 line 1 (ii) On-bill financing.
line 2 (iii) Contractual property tax assessments.
line 3 (iv) Home warranties.
line 4 (6) Existing statutory and regulatory requirements to achieve
line 5 energy efficiency savings and greenhouse gas emission reductions.
line 6 (7) A broad range of implementation approaches, including both
line 7 utility and nonutility administration of energy efficiency programs.
line 8 (8) Any other considerations deemed appropriate by the
line 9 commission.
line 10 (d) The program developed pursuant to this section shall do all
line 11 of the following:
line 12 (1) Minimize the overall costs of establishing and implementing
line 13 the comprehensive energy efficiency program requirements.
line 14 (2) Ensure, for residential buildings, that the energy efficiency
line 15 assessments, ratings, or improvements do not unreasonably or
line 16 unnecessarily affect the home purchasing process or the ability of
line 17 individuals to rent housing. A transfer of property subject to the
line 18 program implemented pursuant to this section shall not be
line 19 invalidated solely because of the failure of a person to comply
line 20 with a provision of the program.
line 21 (3) Ensure, for nonresidential buildings, that the energy
line 22 improvements do not have an undue economic impact on California
line 23 businesses.
line 24 (4) Determine, for residential buildings, the appropriateness of
line 25 the Home Energy Rating System (HERS) program to support the
line 26 goals of this section and whether there are a sufficient number of
line 27 HERS-certified raters available to meet the program requirements.
line 28 (5) Determine, for nonresidential structures, the availability of
line 29 an appropriate cost-effective energy efficiency assessment system
line 30 and whether there are a sufficient number of certified raters or
line 31 auditors available to meet the program requirements.
line 32 (6) Coordinate with the California Workforce Investment Board,
line 33 the Employment Training Panel, the California Community
line 34 Colleges, and other entities to ensure a qualified, well-trained
line 35 workforce is available to implement the program requirements.
line 36 (7) Coordinate with, and avoid duplication of, existing
line 37 proceedings of the Public Utilities Commission and programs
line 38 administered by utilities.
line 39 (e) A home energy rating or energy assessment service does not
line 40 meet the requirements of this section unless the service has been
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SB 350 — 11 —
11 line 1 certified by the commission to be in compliance with the program
line 2 criteria developed pursuant to this section and is in conformity
line 3 with other applicable elements of the program.
line 4 (f) (1) The commission shall periodically update the criteria
line 5 and adopt any revision that, in its judgment, is necessary to improve
line 6 or refine program requirements after receiving public input.
line 7 (2) On or before January 1, 2017, and at least once every three
line 8 years thereafter, the commission shall adopt an update to the
line 9 program in furtherance of achieving an overall doubling of the
line 10 energy efficiency of buildings by January 1, 2030.
line 11 (g) Before implementing an element of the program developed
line 12 pursuant to subdivision (a) that requires the expansion of statutory
line 13 authority of the commission or the Public Utilities Commission,
line 14 the commission and the Public Utilities Commission shall obtain
line 15 legislative approval for the expansion of their authorities.
line 16 (h) The commission shall report on the status of the program in
line 17 the integrated energy policy report pursuant to Section 25302.
line 18 (i) The commission shall fund activities undertaken pursuant
line 19 to this section from the Federal Trust Fund consistent with the
line 20 federal American Recovery and Reinvestment Act of 2009 (Public
line 21 Law 111-5) or other sources of nonstate funds available to the
line 22 commission for the purposes of this section.
line 23 (j) For purposes of this section, the following terms mean the
line 24 following:
line 25 (1) “Energy assessment” means a determination of an energy
line 26 user’s energy consumption level, relative efficiency compared to
line 27 other users, and opportunities to achieve greater efficiency or
line 28 improve energy resource utilization.
line 29 (2) “Energy efficiency” means delivering equal or more services
line 30 with less energy input from an energy source.
line 31 SEC. 7. Section 237.5 is added to the Public Utilities Code, to
line 32 read:
line 33 237.5. “Transportation electrification” means the use of
line 34 electricity from the electric electrical grid to power all or part of
line 35 vehicles, vessels, trains, boats, or other equipment that are mobile
line 36 sources of air pollution and greenhouse gases.
line 37 SEC. 8. Section 399.11 of the Public Utilities Code is amended
line 38 to read:
line 39 399.11. The Legislature finds and declares all of the following:
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12 line 1 (a) In order to attain a target of generating 20 percent of total
line 2 retail sales of electricity in California from eligible renewable
line 3 energy resources by December 31, 2013, 33 percent by December
line 4 31, 2020, and 50 percent by December 31, 2030, it is the intent of
line 5 the Legislature that the commission and the Energy Commission
line 6 implement the California Renewables Portfolio Standard Program
line 7 described in this article.
line 8 (b) Achieving the renewables portfolio standard through the
line 9 procurement of various electricity products from eligible renewable
line 10 energy resources is intended to provide unique benefits to
line 11 California, including all of the following, each of which
line 12 independently justifies the program:
line 13 (1) Displacing fossil fuel consumption within the state.
line 14 (2) Adding new electrical generating facilities in the
line 15 transmission network within the Western Electricity Coordinating
line 16 Council service area.
line 17 (3) Reducing air pollution in the state.
line 18 (4) Meeting the state’s climate change goals by reducing
line 19 emissions of greenhouse gases associated with electrical generation.
line 20 (5) Promoting stable retail rates for electric service.
line 21 (6) Meeting the state’s need for a diversified and balanced
line 22 energy generation portfolio.
line 23 (7) Assistance with meeting the state’s resource adequacy
line 24 requirements.
line 25 (8) Contributing to the safe and reliable operation of the
line 26 electrical grid, including providing predictable electrical supply,
line 27 voltage support, lower line losses, and congestion relief.
line 28 (9) Implementing the state’s transmission and land use planning
line 29 activities related to development of eligible renewable energy
line 30 resources.
line 31 (c) The California Renewables Portfolio Standard Program is
line 32 intended to complement the Renewable Energy Resources Program
line 33 administered by the Energy Commission and established pursuant
line 34 to Chapter 8.6 (commencing with Section 25740) of Division 15
line 35 of the Public Resources Code.
line 36 (d) New and modified electric transmission facilities may be
line 37 necessary to facilitate the state achieving its renewables portfolio
line 38 standard targets.
line 39 (e) (1) Supplying electricity to California end-use customers
line 40 that is generated by eligible renewable energy resources is
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SB 350 — 13 —
13 line 1 necessary to improve California’s air quality and public health,
line 2 and the commission shall ensure rates are just and reasonable, and
line 3 are not significantly affected by the procurement requirements of
line 4 this article. This electricity may be generated anywhere in the
line 5 interconnected grid that includes many states, and areas of both
line 6 Canada and Mexico.
line 7 (2) This article requires generating resources located outside of
line 8 California that are able to supply that electricity to California
line 9 end-use customers to be treated identically to generating resources
line 10 located within the state, without discrimination.
line 11 (3) California electrical corporations have already executed,
line 12 and the commission has approved, power purchase agreements
line 13 with eligible renewable energy resources located outside of
line 14 California that will supply electricity to California end-use
line 15 customers. These resources will fully count toward meeting the
line 16 renewables portfolio standard procurement requirements.
line 17 SEC. 9. Section 399.12 of the Public Utilities Code is amended
line 18 to read:
line 19 399.12. For purposes of this article, the following terms have
line 20 the following meanings:
line 21 (a) “Conduit hydroelectric facility” means a facility for the
line 22 generation of electricity that uses only the hydroelectric potential
line 23 of an existing pipe, ditch, flume, siphon, tunnel, canal, or other
line 24 manmade conduit that is operated to distribute water for a
line 25 beneficial use.
line 26 (b) “Balancing authority” means the responsible entity that
line 27 integrates resource plans ahead of time, maintains load-interchange
line 28 generation balance within a balancing authority area, and supports
line 29 interconnection frequency in real time.
line 30 (c) “Balancing authority area” means the collection of
line 31 generation, transmission, and loads within the metered boundaries
line 32 of the area within which the balancing authority maintains the
line 33 electrical load-resource balance.
line 34 (d) “California balancing authority” is a balancing authority
line 35 with control over a balancing authority area primarily located in
line 36 this state and operating for retail sellers and local publicly owned
line 37 electric utilities subject to the requirements of this article and
line 38 includes the Independent System Operator (ISO) and a local
line 39 publicly owned electric utility operating a transmission grid that
line 40 is not under the operational control of the ISO. A California
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14 line 1 balancing authority is responsible for the operation of the
line 2 transmission grid within its metered boundaries which may not be
line 3 limited by the political boundaries of the State of California.
line 4 (e) “Eligible renewable energy resource” means an electrical
line 5 generating facility that meets the definition of a “renewable
line 6 electrical generation facility” in Section 25741 of the Public
line 7 Resources Code, subject to the following:
line 8 (1) (A) An existing small hydroelectric generation facility of
line 9 30 megawatts or less shall be eligible only if a retail seller or local
line 10 publicly owned electric utility procured the electricity from the
line 11 facility as of December 31, 2005. A new hydroelectric facility that
line 12 commences generation of electricity after December 31, 2005, is
line 13 not an eligible renewable energy resource if it will cause an adverse
line 14 impact on instream beneficial uses or cause a change in the volume
line 15 or timing of streamflow.
line 16 (B) Notwithstanding subparagraph (A), a conduit hydroelectric
line 17 facility of 30 megawatts or less that commenced operation before
line 18 January 1, 2006, is an eligible renewable energy resource. A
line 19 conduit hydroelectric facility of 30 megawatts or less that
line 20 commences operation after December 31, 2005, is an eligible
line 21 renewable energy resource so long as it does not cause an adverse
line 22 impact on instream beneficial uses or cause a change in the volume
line 23 or timing of streamflow.
line 24 (C) A facility approved by the governing board of a local
line 25 publicly owned electric utility prior to June 1, 2010, for
line 26 procurement to satisfy renewable energy procurement obligations
line 27 adopted pursuant to former Section 387, shall be certified as an
line 28 eligible renewable energy resource by the Energy Commission
line 29 pursuant to this article, if the facility is a “renewable electrical
line 30 generation facility” as defined in Section 25741 of the Public
line 31 Resources Code.
line 32 (D) (i) A small hydroelectric generation unit with a nameplate
line 33 capacity not exceeding 40 megawatts that is operated as part of a
line 34 water supply or conveyance system is an eligible renewable energy
line 35 resource only for the retail seller or local publicly owned electric
line 36 utility that procured the electricity from the unit as of December
line 37 31, 2005. No unit shall be eligible pursuant to this subparagraph
line 38 if an application for certification is submitted to the Energy
line 39 Commission after January 1, 2013. Only one retail seller or local
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SB 350 — 15 —
15 line 1 publicly owned electric utility shall be deemed to have procured
line 2 electricity from a given unit as of December 31, 2005.
line 3 (ii) Notwithstanding clause (i), a local publicly owned electric
line 4 utility that meets the criteria of subdivision (j) of Section 399.30
line 5 may sell to another local publicly owned electric utility electricity
line 6 from small hydroelectric generation units that qualify as eligible
line 7 renewable energy resources under clause (i), and that electricity
line 8 may be used by the local publicly owned electric utility that
line 9 purchased the electricity to meet its renewables portfolio standard
line 10 procurement requirements. The total of all those sales from the
line 11 utility shall be no greater than 100,000 megawatthours of
line 12 electricity.
line 13 (iii) The amendments made to this subdivision by the act adding
line 14 this subparagraph are intended to clarify existing law and apply
line 15 from December 10, 2011.
line 16 (2) (A) A facility engaged in the combustion of municipal solid
line 17 waste shall not be considered an eligible renewable energy
line 18 resource.
line 19 (B) Subparagraph (A) does not apply to contracts entered into
line 20 before January 1, 2016, for the procurement of renewable energy
line 21 resources from a facility located in Stanislaus County that was
line 22 operational prior to September 26, 1996.
line 23 (f) “Procure” means to acquire through ownership or contract.
line 24 (g) “Procurement entity” means any person or corporation
line 25 authorized by the commission to enter into contracts to procure
line 26 eligible renewable energy resources on behalf of customers of a
line 27 retail seller pursuant to subdivision (f) of Section 399.13.
line 28 (h) (1) “Renewable energy credit” means a certificate of proof
line 29 associated with the generation of electricity from an eligible
line 30 renewable energy resource, issued through the accounting system
line 31 established by the Energy Commission pursuant to Section 399.25,
line 32 that one unit of electricity was generated and delivered by an
line 33 eligible renewable energy resource.
line 34 (2) “Renewable energy credit” includes all renewable and
line 35 environmental attributes associated with the production of
line 36 electricity from the eligible renewable energy resource, except for
line 37 an emissions reduction credit issued pursuant to Section 40709 of
line 38 the Health and Safety Code and any credits or payments associated
line 39 with the reduction of solid waste and treatment benefits created
line 40 by the utilization of biomass or biogas fuels.
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16 line 1 (3) (A) Electricity generated by an eligible renewable energy
line 2 resource attributable to the use of nonrenewable fuels, beyond a
line 3 de minimis quantity used to generate electricity in the same process
line 4 through which the facility converts renewable fuel to electricity,
line 5 shall not result in the creation of a renewable energy credit. The
line 6 Energy Commission shall set the de minimis quantity of
line 7 nonrenewable fuels for each renewable energy technology at a
line 8 level of no more than 2 percent of the total quantity of fuel used
line 9 by the technology to generate electricity. The Energy Commission
line 10 may adjust the de minimis quantity for an individual facility, up
line 11 to a maximum of 5 percent, if it finds that all of the following
line 12 conditions are met:
line 13 (i) The facility demonstrates that the higher quantity of
line 14 nonrenewable fuel will lead to an increase in generation from the
line 15 eligible renewable energy facility that is significantly greater than
line 16 generation from the nonrenewable fuel alone.
line 17 (ii) The facility demonstrates that the higher quantity of
line 18 nonrenewable fuels will reduce the variability of its electrical
line 19 output in a manner that results in net environmental benefits to the
line 20 state.
line 21 (iii) The higher quantity of nonrenewable fuel is limited to either
line 22 natural gas or hydrogen derived by reformation of a fossil fuel.
line 23 (B) Electricity generated by a small hydroelectric generation
line 24 facility shall not result in the creation of a renewable energy credit
line 25 unless the facility meets the requirements of subparagraph (A) or
line 26 (D) of paragraph (1) of subdivision (e).
line 27 (C) Electricity generated by a conduit hydroelectric generation
line 28 facility shall not result in the creation of a renewable energy credit
line 29 unless the facility meets the requirements of subparagraph (B) of
line 30 paragraph (1) of subdivision (e).
line 31 (D) Electricity generated by a facility engaged in the combustion
line 32 of municipal solid waste shall not result in the creation of a
line 33 renewable energy credit. This subparagraph does not apply to
line 34 renewable energy credits that were generated before January 1,
line 35 2016, by a facility engaged in the combustion of municipal solid
line 36 waste located in Stanislaus County that was operational prior to
line 37 September 26, 1996, and sold pursuant to contacts entered into
line 38 before January 1, 2016.
line 39 (i) “Renewables portfolio standard” means the specified
line 40 percentage of electricity generated by eligible renewable energy
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SB 350 — 17 —
17 line 1 resources that a retail seller or a local publicly owned electric utility
line 2 is required to procure pursuant to this article.
line 3 (j) “Retail seller” means an entity engaged in the retail sale of
line 4 electricity to end-use customers located within the state, including
line 5 any of the following:
line 6 (1) An electrical corporation, as defined in Section 218.
line 7 (2) A community choice aggregator. A community choice
line 8 aggregator shall participate in the renewables portfolio standard
line 9 program subject to the same terms and conditions applicable to an
line 10 electrical corporation.
line 11 (3) An electric service provider, as defined in Section 218.3.
line 12 The electric service provider shall be subject to the same terms
line 13 and conditions applicable to an electrical corporation pursuant to
line 14 this article. This paragraph does not impair a contract entered into
line 15 between an electric service provider and a retail customer prior to
line 16 the suspension of direct access by the commission pursuant to
line 17 Section 80110 of the Water Code.
line 18 (4) “Retail seller” does not include any of the following:
line 19 (A) A corporation or person employing cogeneration technology
line 20 or producing electricity consistent with subdivision (b) of Section
line 21 218.
line 22 (B) The Department of Water Resources acting in its capacity
line 23 pursuant to Division 27 (commencing with Section 80000) of the
line 24 Water Code.
line 25 (C) A local publicly owned electric utility.
line 26 (k) “WECC” means the Western Electricity Coordinating
line 27 Council of the North American Electric Reliability Corporation,
line 28 or a successor to the corporation.
line 29 SEC. 10. Section 399.13 of the Public Utilities Code is
line 30 amended to read:
line 31 399.13. (a) (1) The commission shall direct each electrical
line 32 corporation to annually prepare a renewable energy procurement
line 33 plan that includes the matter in paragraph (5), to satisfy its
line 34 obligations under the renewables portfolio standard. To the extent
line 35 feasible, this procurement plan shall be proposed, reviewed, and
line 36 adopted by the commission as part of, and pursuant to, a general
line 37 procurement plan process. The commission shall require each
line 38 electrical corporation to review and update its renewable energy
line 39 procurement plan as it determines to be necessary. The commission
line 40 shall require all other retail sellers to prepare and submit renewable
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18 line 1 energy procurement plans that address the requirements identified
line 2 in paragraph (5).
line 3 (2) Every electrical corporation that owns electrical transmission
line 4 facilities shall annually prepare, as part of the Federal Energy
line 5 Regulatory Commission Order 890 process, and submit to the
line 6 commission, a report identifying any electrical transmission
line 7 facility, upgrade, or enhancement that is reasonably necessary to
line 8 achieve the renewables portfolio standard procurement
line 9 requirements of this article. Each report shall look forward at least
line 10 five years and, to ensure that adequate investments are made in a
line 11 timely manner, shall include a preliminary schedule when an
line 12 application for a certificate of public convenience and necessity
line 13 will be made, pursuant to Chapter 5 (commencing with Section
line 14 1001), for any electrical transmission facility identified as being
line 15 reasonably necessary to achieve the renewable energy resources
line 16 procurement requirements of this article. Each electrical
line 17 corporation that owns electrical transmission facilities shall ensure
line 18 that project-specific interconnection studies are completed in a
line 19 timely manner.
line 20 (3) The commission shall direct each retail seller to prepare and
line 21 submit an annual compliance report that includes all of the
line 22 following:
line 23 (A) The current status and progress made during the prior year
line 24 toward procurement of eligible renewable energy resources as a
line 25 percentage of retail sales, including, if applicable, the status of any
line 26 necessary siting and permitting approvals from federal, state, and
line 27 local agencies for those eligible renewable energy resources
line 28 procured by the retail seller, and the current status of compliance
line 29 with the portfolio content requirements of subdivision (c) of
line 30 Section 399.16, including procurement of eligible renewable energy
line 31 resources located outside the state and within the WECC and
line 32 unbundled renewable energy credits.
line 33 (B) If the retail seller is an electrical corporation, the current
line 34 status and progress made during the prior year toward construction
line 35 of, and upgrades to, transmission and distribution facilities and
line 36 other electrical system components it owns to interconnect eligible
line 37 renewable energy resources and to supply the electricity generated
line 38 by those resources to load, including the status of planning, siting,
line 39 and permitting transmission facilities by federal, state, and local
line 40 agencies.
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SB 350 — 19 —
19 line 1 (C) Recommendations to remove impediments to making
line 2 progress toward achieving the renewable energy resources
line 3 procurement requirements established pursuant to this article.
line 4 (4) The commission shall adopt, by rulemaking, all of the
line 5 following:
line 6 (A) A process that provides criteria for the rank ordering and
line 7 selection of least-cost and best-fit eligible renewable energy
line 8 resources to comply with the California Renewables Portfolio
line 9 Standard Program obligations on a total cost basis. This process
line 10 shall take into account all of the following:
line 11 (i) Estimates of indirect costs associated with needed
line 12 transmission investments.
line 13 (ii) The cost impact of procuring the eligible renewable energy
line 14 resources on the electrical corporation’s electricity portfolio.
line 15 (iii) The viability of the project to construct and reliably operate
line 16 the eligible renewable energy resource, including the developer’s
line 17 experience, the feasibility of the technology used to generate
line 18 electricity, and the risk that the facility will not be built, or that
line 19 construction will be delayed, with the result that electricity will
line 20 not be supplied as required by the contract.
line 21 (iv) Workforce recruitment, training, and retention efforts,
line 22 including the employment growth associated with the construction
line 23 and operation of eligible renewable energy resources and goals
line 24 for recruitment and training of women, minorities, and disabled
line 25 veterans.
line 26 (v) (I) Estimates of electrical corporation expenses resulting
line 27 from integrating and operating eligible renewable energy resources,
line 28 including, but not limited to, any additional wholesale energy and
line 29 capacity costs associated with integrating each eligible renewable
line 30 resource.
line 31 (II) No later than December 31, 2015, the commission shall
line 32 approve a methodology for determining the integration costs
line 33 described in subclause (I).
line 34 (B) Rules permitting retail sellers to accumulate, beginning
line 35 January 1, 2011, excess procurement in one compliance period to
line 36 be applied to any subsequent compliance period. The rules shall
line 37 apply equally to all retail sellers. In determining the quantity of
line 38 excess procurement for the applicable compliance period, the
line 39 commission shall deduct from actual procurement quantities the
line 40 total amount of procurement associated with contracts of less than
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20 line 1 10 years in duration and electricity products meeting the portfolio
line 2 content of paragraph (3) of subdivision (b) of Section 399.16.
line 3 (C) Standard terms and conditions to be used by all electrical
line 4 corporations in contracting for eligible renewable energy resources,
line 5 including performance requirements for renewable generators. A
line 6 contract for the purchase of electricity generated by an eligible
line 7 renewable energy resource, at a minimum, shall include the
line 8 renewable energy credits associated with all electricity generation
line 9 specified under the contract. The standard terms and conditions
line 10 shall include the requirement that, no later than six months after
line 11 the commission’s approval of an electricity purchase agreement
line 12 entered into pursuant to this article, the following information
line 13 about the agreement shall be disclosed by the commission: party
line 14 names, resource type, project location, and project capacity.
line 15 (D) An appropriate minimum margin of procurement above the
line 16 minimum procurement level necessary to comply with the
line 17 renewables portfolio standard to mitigate the risk that renewable
line 18 projects planned or under contract are delayed or canceled. This
line 19 paragraph does not preclude an electrical corporation from
line 20 voluntarily proposing a margin of procurement above the
line 21 appropriate minimum margin established by the commission.
line 22 (5) Consistent with the goal of increasing California’s reliance
line 23 on eligible renewable energy resources, the renewable energy
line 24 procurement plan shall include all of the following:
line 25 (A) An assessment of annual or multiyear portfolio supplies
line 26 and demand to determine the optimal mix of eligible renewable
line 27 energy resources with deliverability characteristics that may include
line 28 peaking, dispatchable, baseload, firm, and as-available capacity.
line 29 (B) Potential compliance delays related to the conditions
line 30 described in paragraph (5) of subdivision (b) of Section 399.15.
line 31 (C) A bid solicitation setting forth the need for eligible
line 32 renewable energy resources of each deliverability characteristic,
line 33 required online dates, and locational preferences, if any.
line 34 (D) A status update on the development schedule of all eligible
line 35 renewable energy resources currently under contract.
line 36 (E) Consideration of mechanisms for price adjustments
line 37 associated with the costs of key components for eligible renewable
line 38 energy resource projects with online dates more than 24 months
line 39 after the date of contract execution.
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SB 350 — 21 —
21 line 1 (F) An assessment of the risk that an eligible renewable energy
line 2 resource will not be built, or that construction will be delayed,
line 3 with the result that electricity will not be delivered as required by
line 4 the contract.
line 5 (6) In soliciting and procuring eligible renewable energy
line 6 resources, each electrical corporation shall offer contracts of no
line 7 less than 10 years duration, unless the commission approves of a
line 8 contract of shorter duration.
line 9 (7) In soliciting and procuring eligible renewable energy
line 10 resources for California-based projects, each electrical corporation
line 11 shall give preference to renewable energy projects that provide
line 12 environmental and economic benefits to communities afflicted
line 13 with poverty or high unemployment, or that suffer from high
line 14 emission levels of toxic air contaminants, criteria air pollutants,
line 15 and greenhouse gases.
line 16 (b) A retail seller may enter into a combination of long- and
line 17 short-term contracts for electricity and associated renewable energy
line 18 credits. The commission may authorize a retail seller to enter into
line 19 a contract of less than 10 years’ duration with an eligible renewable
line 20 energy resource, if the commission has established, for each retail
line 21 seller, minimum quantities of eligible renewable energy resources
line 22 to be procured through contracts of at least 10 years’ duration.
line 23 (c) The commission shall review and accept, modify, or reject
line 24 each electrical corporation’s renewable energy resource
line 25 procurement plan prior to the commencement of renewable energy
line 26 procurement pursuant to this article by an electrical corporation.
line 27 (d) Unless previously preapproved by the commission, an
line 28 electrical corporation shall submit a contract for the generation of
line 29 an eligible renewable energy resource to the commission for review
line 30 and approval consistent with an approved renewable energy
line 31 resource procurement plan. If the commission determines that the
line 32 bid prices are elevated due to a lack of effective competition among
line 33 the bidders, the commission shall direct the electrical corporation
line 34 to renegotiate the contracts or conduct a new solicitation.
line 35 (e) If an electrical corporation fails to comply with a commission
line 36 order adopting a renewable energy resource procurement plan, the
line 37 commission shall exercise its authority to require compliance.
line 38 (f) (1) The commission may authorize a procurement entity to
line 39 enter into contracts on behalf of customers of a retail seller for
line 40 electricity products from eligible renewable energy resources to
97
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22 line 1 satisfy the retail seller’s renewables portfolio standard procurement
line 2 requirements. The commission shall not require any person or
line 3 corporation to act as a procurement entity or require any party to
line 4 purchase eligible renewable energy resources from a procurement
line 5 entity.
line 6 (2) Subject to review and approval by the commission, the
line 7 procurement entity shall be permitted to recover reasonable
line 8 administrative and procurement costs through the retail rates of
line 9 end-use customers that are served by the procurement entity and
line 10 are directly benefiting from the procurement of eligible renewable
line 11 energy resources.
line 12 (3) The commission may authorize a procurement entity to
line 13 procure ____ percent of retail sales of onsite generation within the
line 14 area served by the procurement entity to serve local electricity
line 15 needs. Onsite renewable generation shall be eligible renewable
line 16 energy resources certified by the Energy Commission pursuant to
line 17 Section 399.25 with a tracking system described in subdivision
line 18 (c) of Section 399.25. Estimation of energy production from onsite
line 19 generation shall not be used to demonstrate compliance with this
line 20 article.
line 21 (g) Procurement and administrative costs associated with
line 22 contracts entered into by an electrical corporation for eligible
line 23 renewable energy resources pursuant to this article and approved
line 24 by the commission are reasonable and prudent and shall be
line 25 recoverable in rates.
line 26 (h) Construction, alteration, demolition, installation, and repair
line 27 work on an eligible renewable energy resource that receives
line 28 production incentives pursuant to Section 25742 of the Public
line 29 Resources Code, including work performed to qualify, receive, or
line 30 maintain production incentives, are “public works” for the purposes
line 31 of Chapter 1 (commencing with Section 1720) of Part 7 of Division
line 32 2 of the Labor Code.
line 33 SEC. 11. Section 399.15 of the Public Utilities Code is
line 34 amended to read:
line 35 399.15. (a) In order to fulfill unmet long-term resource needs,
line 36 the commission shall establish a renewables portfolio standard
line 37 requiring all retail sellers to procure a minimum quantity of
line 38 electricity products from eligible renewable energy resources as
line 39 a specified percentage of total kilowatthours sold to their retail
line 40 end-use customers each compliance period to achieve the targets
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SB 350 — 23 —
23 line 1 established under this article. For any retail seller procuring at least
line 2 14 percent of retail sales from eligible renewable energy resources
line 3 in 2010, the deficits associated with any previous renewables
line 4 portfolio standard shall not be added to any procurement
line 5 requirement pursuant to this article.
line 6 (b) The commission shall implement renewables portfolio
line 7 standard procurement requirements only as follows:
line 8 (1) Each retail seller shall procure a minimum quantity of
line 9 eligible renewable energy resources for each of the following
line 10 compliance periods:
line 11 (A) January 1, 2011, to December 31, 2013, inclusive.
line 12 (B) January 1, 2014, to December 31, 2016, inclusive.
line 13 (C) January 1, 2017, to December 31, 2020, inclusive.
line 14 (D) January 1, 2021, to December 31, 2024, inclusive.
line 15 (E) January 1, 2025, to December 31, 2027, inclusive.
line 16 (F) January 1, 2028, to December 31, 2030, inclusive.
line 17 (2) (A) No later than January 1, 2017, the commission shall
line 18 establish the quantity of electricity products from eligible
line 19 renewable energy resources to be procured by the retail seller for
line 20 each compliance period. These quantities shall be established in
line 21 the same manner for all retail sellers and result in the same
line 22 percentages used to establish compliance period quantities for all
line 23 retail sellers.
line 24 (B) In establishing quantities for the compliance period from
line 25 January 1, 2011, to December 31, 2013, inclusive, the commission
line 26 shall require procurement for each retail seller equal to an average
line 27 of 20 percent of retail sales. For the following compliance periods,
line 28 the quantities shall reflect reasonable progress in each of the
line 29 intervening years sufficient to ensure that the procurement of
line 30 electricity products from eligible renewable energy resources
line 31 achieves 25 percent of retail sales by December 31, 2016, 33
line 32 percent by December 31, 2020, 40 percent by December 31, 2024,
line 33 45 percent by December 31, 2027, and 50 percent by December
line 34 31, 2030. The commission shall establish appropriate multiyear
line 35 compliance periods for all subsequent years that require retail
line 36 sellers to procure not less than 50 percent of retail sales of
line 37 electricity products from eligible renewable energy resources.
line 38 (C) Retail sellers shall be obligated to procure no less than the
line 39 quantities associated with all intervening years by the end of each
line 40 compliance period. Retail sellers shall not be required to
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24 line 1 demonstrate a specific quantity of procurement for any individual
line 2 intervening year.
line 3 (3) The commission may require the procurement of eligible
line 4 renewable energy resources in excess of the quantities specified
line 5 in paragraph (2).
line 6 (4) Only for purposes of establishing the renewables portfolio
line 7 standard procurement requirements of paragraph (1) and
line 8 determining the quantities pursuant to paragraph (2), the
line 9 commission shall include all electricity sold to retail customers by
line 10 the Department of Water Resources pursuant to Division 27
line 11 (commencing with Section 80000) of the Water Code in the
line 12 calculation of retail sales by an electrical corporation.
line 13 (5) The commission shall waive enforcement of this section if
line 14 it finds that the retail seller has demonstrated any of the following
line 15 conditions are beyond the control of the retail seller and will
line 16 prevent compliance:
line 17 (A) There is inadequate transmission capacity to allow for
line 18 sufficient electricity to be delivered from proposed eligible
line 19 renewable energy resource projects using the current operational
line 20 protocols of the Independent System Operator. In making its
line 21 findings relative to the existence of this condition with respect to
line 22 a retail seller that owns transmission lines, the commission shall
line 23 consider both of the following:
line 24 (i) Whether the retail seller has undertaken, in a timely fashion,
line 25 reasonable measures under its control and consistent with its
line 26 obligations under local, state, and federal laws and regulations, to
line 27 develop and construct new transmission lines or upgrades to
line 28 existing lines intended to transmit electricity generated by eligible
line 29 renewable energy resources. In determining the reasonableness of
line 30 a retail seller’s actions, the commission shall consider the retail
line 31 seller’s expectations for full-cost recovery for these transmission
line 32 lines and upgrades.
line 33 (ii) Whether the retail seller has taken all reasonable operational
line 34 measures to maximize cost-effective deliveries of electricity from
line 35 eligible renewable energy resources in advance of transmission
line 36 availability.
line 37 (B) Permitting, interconnection, or other circumstances that
line 38 delay procured eligible renewable energy resource projects, or
line 39 there is an insufficient supply of eligible renewable energy
line 40 resources available to the retail seller. In making a finding that this
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SB 350 — 25 —
25 line 1 condition prevents timely compliance, the commission shall
line 2 consider whether the retail seller has done all of the following:
line 3 (i) Prudently managed portfolio risks, including relying on a
line 4 sufficient number of viable projects.
line 5 (ii) Sought to develop one of the following: its own eligible
line 6 renewable energy resources, transmission to interconnect to eligible
line 7 renewable energy resources, or energy storage used to integrate
line 8 eligible renewable energy resources. This clause shall not require
line 9 an electrical corporation to pursue development of eligible
line 10 renewable energy resources pursuant to Section 399.14.
line 11 (iii) Procured an appropriate minimum margin of procurement
line 12 above the minimum procurement level necessary to comply with
line 13 the renewables portfolio standard to compensate for foreseeable
line 14 delays or insufficient supply.
line 15 (iv) Taken reasonable measures, under the control of the retail
line 16 seller, to procure cost-effective distributed generation and allowable
line 17 unbundled renewable energy credits.
line 18 (C) Unanticipated curtailment of eligible renewable energy
line 19 resources if the waiver would not result in an increase in
line 20 greenhouse gas emissions.
line 21 (D) Unanticipated increase in retail sales due to transportation
line 22 electrification. In making a finding that this condition prevents
line 23 timely compliance, the commission shall consider all of the
line 24 following:
line 25 (i) Whether transportation electrification significantly exceeded
line 26 forecasts in that retail seller’s service territory based on the best
line 27 and most recently available information filed with the State Air
line 28 Resources Board, the Energy Commission, or other state agency.
line 29 (ii) Whether the retail seller has taken reasonable measures to
line 30 procure sufficient resources to account for unanticipated increases
line 31 in retail sales due to transportation electrification.
line 32 (6) If the commission waives the compliance requirements of
line 33 this section, the commission shall establish additional reporting
line 34 requirements on the retail seller to demonstrate that all reasonable
line 35 actions under the control of the retail seller are taken in each of
line 36 the intervening years sufficient to satisfy future procurement
line 37 requirements.
line 38 (7) The commission shall not waive enforcement pursuant to
line 39 this section, unless the retail seller demonstrates that it has taken
97
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26 line 1 all reasonable actions under its control, as set forth in paragraph
line 2 (5), to achieve full compliance.
line 3 (8) If a retail seller fails to procure sufficient eligible renewable
line 4 energy resources to comply with a procurement requirement
line 5 pursuant to paragraphs (1) and (2) and fails to obtain an order from
line 6 the commission waiving enforcement pursuant to paragraph (5),
line 7 the commission shall assess penalties for noncompliance. A
line 8 schedule of penalties shall be adopted by the commission that shall
line 9 be comparable for electrical corporations and other retail sellers.
line 10 For electrical corporations, the cost of any penalties shall not be
line 11 collected in rates. Any penalties collected under this article shall
line 12 be deposited into the Electric Program Investment Charge Fund
line 13 and used for the purposes described in Chapter 8.1 (commencing
line 14 with Section 25710) of Division 15 of the Public Resources Code.
line 15 (9) Deficits associated with the compliance period shall not be
line 16 added to a future compliance period.
line 17 (c) The commission shall establish a limitation for each electrical
line 18 corporation on the procurement expenditures for all eligible
line 19 renewable energy resources used to comply with the renewables
line 20 portfolio standard. This limitation shall be set at a level that
line 21 prevents disproportionate rate impacts.
line 22 (d) If the cost limitation for an electrical corporation is
line 23 insufficient to support the projected costs of meeting the
line 24 renewables portfolio standard procurement requirements, the
line 25 electrical corporation may refrain from entering into new contracts
line 26 or constructing facilities beyond the quantity that can be procured
line 27 within the limitation, unless eligible renewable energy resources
line 28 can be procured without exceeding a de minimis increase in rates,
line 29 consistent with the long-term procurement plan established for the
line 30 electrical corporation pursuant to Section 454.5.
line 31 (e) (1) The commission shall monitor the status of the cost
line 32 limitation for each electrical corporation in order to ensure
line 33 compliance with this article.
line 34 (2) If the commission determines that an electrical corporation
line 35 may exceed its cost limitation prior to achieving the renewables
line 36 portfolio standard procurement requirements, the commission shall
line 37 do both of the following within 60 days of making that
line 38 determination:
line 39 (A) Investigate and identify the reasons why the electrical
line 40 corporation may exceed its annual cost limitation.
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SB 350 — 27 —
27 line 1 (B) Notify the appropriate policy and fiscal committees of the
line 2 Legislature that the electrical corporation may exceed its cost
line 3 limitation, and include the reasons why the electrical corporation
line 4 may exceed its cost limitation.
line 5 (f) The establishment of a renewables portfolio standard shall
line 6 not constitute implementation by the commission of the federal
line 7 Public Utility Regulatory Policies Act of 1978 (Public Law
line 8 95-617).
line 9 SEC. 12. Section 399.16 of the Public Utilities Code is
line 10 amended to read:
line 11 399.16. (a) V arious electricity products from eligible renewable
line 12 energy resources located within the WECC transmission network
line 13 service area shall be eligible to comply with the renewables
line 14 portfolio standard procurement requirements in Section 399.15.
line 15 These electricity products may be differentiated by their impacts
line 16 on the operation of the grid in supplying electricity, as well as
line 17 meeting the requirements of this article.
line 18 (b) Consistent with the goals of procuring the least-cost and
line 19 best-fit electricity products from eligible renewable energy
line 20 resources that meet project viability principles adopted by the
line 21 commission pursuant to paragraph (4) of subdivision (a) of Section
line 22 399.13 and that provide the benefits set forth in Section 399.11, a
line 23 balanced portfolio of eligible renewable energy resources shall be
line 24 procured consisting of the following portfolio content categories:
line 25 (1) Eligible renewable energy resource electricity products that
line 26 meet either of the following criteria:
line 27 (A) Have a first point of interconnection with a California
line 28 balancing authority, have a first point of interconnection with
line 29 distribution facilities used to serve end users within a California
line 30 balancing authority area, or are scheduled from the eligible
line 31 renewable energy resource into a California balancing authority
line 32 without substituting electricity from another source. The use of
line 33 another source to provide real-time ancillary services required to
line 34 maintain an hourly or subhourly import schedule into a California
line 35 balancing authority shall be permitted, but only the fraction of the
line 36 schedule actually generated by the eligible renewable energy
line 37 resource shall count toward this portfolio content category.
line 38 (B) Have an agreement to dynamically transfer electricity to a
line 39 California balancing authority.
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28 line 1 (2) Firmed and shaped eligible renewable energy resource
line 2 electricity products providing incremental electricity and scheduled
line 3 into a California balancing authority.
line 4 (3) Eligible renewable energy resource electricity products, or
line 5 any fraction of the electricity generated, including unbundled
line 6 renewable energy credits, that do not qualify under the criteria of
line 7 paragraph (1) or (2).
line 8 (c) In order to achieve a balanced portfolio, all retail sellers
line 9 shall meet the following requirements for all procurement credited
line 10 toward each compliance period:
line 11 (1) Not less than 50 percent for the compliance period ending
line 12 December 31, 2013, 65 percent for the compliance period ending
line 13 December 31, 2016, and 75 percent for the compliance period
line 14 ending December 31, 2020, of the eligible renewable energy
line 15 resource electricity products associated with contracts executed
line 16 after June 1, 2010, shall meet the product content requirements of
line 17 paragraph (1) of subdivision (b). Each retail seller shall continue
line 18 to satisfy the product content requirements applicable to
line 19 procurement quantities associated with the compliance period
line 20 ending December 31, 2020, and ensure that, for compliance periods
line 21 ending after December 31, 2020, not less than 75 percent of the
line 22 incremental renewable procurement requirements in each
line 23 compliance period shall be satisfied with eligible renewable energy
line 24 resource electricity products meeting the requirements of paragraph
line 25 (1) of subdivision (b).
line 26 (2) Not more than 25 percent for the compliance period ending
line 27 December 31, 2013, 15 percent for the compliance period ending
line 28 December 31, 2016, and 10 percent for the compliance period
line 29 ending December 31, 2020, of the eligible renewable energy
line 30 resource electricity products associated with contracts executed
line 31 after June 1, 2010, shall meet the product content requirements of
line 32 paragraph (3) of subdivision (b). For the compliance periods ending
line 33 after December 31, 2020, not more than 10 percent of the
line 34 incremental renewable procurement requirements in each
line 35 compliance period shall be satisfied with eligible renewable energy
line 36 resource electricity products meeting the requirements of paragraph
line 37 (3) of subdivision (b).
line 38 (3) Any renewable energy resources contracts executed on or
line 39 after June 1, 2010, not subject to the limitations of paragraph (1)
97
SB 350 — 29 —
29 line 1 or (2), shall meet the product content requirements of paragraph
line 2 (2) of subdivision (b).
line 3 (4) For purposes of electric service providers only, the
line 4 restrictions in this subdivision on crediting eligible renewable
line 5 energy resource electricity products to each compliance period
line 6 shall apply to contracts executed after January 13, 2011.
line 7 (d) Any contract or ownership agreement originally executed
line 8 prior to June 1, 2010, shall count in full toward the procurement
line 9 requirements established pursuant to this article, if all of the
line 10 following conditions are met:
line 11 (1) The renewable energy resource was eligible under the rules
line 12 in place as of the date when the contract was executed.
line 13 (2) For an electrical corporation, the contract has been approved
line 14 by the commission, even if that approval occurs after June 1, 2010.
line 15 (3) Any contract amendments or modifications occurring after
line 16 June 1, 2010, do not increase the nameplate capacity or expected
line 17 quantities of annual generation, or substitute a different renewable
line 18 energy resource. The duration of the contract may be extended if
line 19 the original contract specified a procurement commitment of 15
line 20 or more years.
line 21 (e) A retail seller may apply to the commission for a reduction
line 22 of a procurement content requirement of subdivision (c). The
line 23 commission may reduce a procurement content requirement of
line 24 subdivision (c) to the extent the retail seller demonstrates that it
line 25 cannot comply with that subdivision because of conditions beyond
line 26 the control of the retail seller as provided in paragraph (5) of
line 27 subdivision (b) of Section 399.15. The commission shall not, under
line 28 any circumstance, reduce the obligation specified in paragraph (1)
line 29 of subdivision (c) below 65 percent for any compliance period
line 30 obligation after December 31, 2016.
line 31 SEC. 13. Section 399.18 of the Public Utilities Code is
line 32 amended to read:
line 33 399.18. (a) This section applies to an electrical corporation
line 34 that as of January 1, 2010, met either of the following conditions:
line 35 (1) Served 30,000 or fewer customer accounts in California and
line 36 had issued at least four solicitations for eligible renewable energy
line 37 resources prior to June 1, 2010.
line 38 (2) Had 1,000 or fewer customer accounts in California and was
line 39 not connected to any transmission system or to the Independent
line 40 System Operator.
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30 line 1 (b) For an electrical corporation or its successor, electricity
line 2 products from eligible renewable energy resources may be used
line 3 for compliance with this article, notwithstanding any procurement
line 4 content limitation in Section 399.16, provided that all of the
line 5 following conditions are met:
line 6 (1) The electrical corporation or its successor participates in,
line 7 and complies with, the accounting system administered by the
line 8 Energy Commission pursuant to subdivision (b) of Section 399.25.
line 9 (2) The Energy Commission verifies that the electricity
line 10 generated by the facility is eligible to meet the requirements of
line 11 Section 399.15.
line 12 (3) The electrical corporation continues to satisfy either of the
line 13 conditions described in subdivision (a).
line 14 SEC. 14. Section 399.21 of the Public Utilities Code is
line 15 amended to read:
line 16 399.21. (a) The commission, by rule, shall authorize the use
line 17 of renewable energy credits to satisfy the renewables portfolio
line 18 standard procurement requirements established pursuant to this
line 19 article, subject to the following conditions:
line 20 (1) The commission and the Energy Commission shall ensure
line 21 that the tracking system established pursuant to subdivision (c) of
line 22 Section 399.25, is operational, is capable of independently
line 23 verifying that electricity earning the credit is generated by an
line 24 eligible renewable energy resource, and can ensure that renewable
line 25 energy credits shall not be double counted by any seller of
line 26 electricity within the service territory of the WECC.
line 27 (2) Each renewable energy credit shall be counted only once
line 28 for compliance with the renewables portfolio standard of this state
line 29 or any other state, or for verifying retail product claims in this state
line 30 or any other state.
line 31 (3) All revenues received by an electrical corporation for the
line 32 sale of a renewable energy credit shall be credited to the benefit
line 33 of ratepayers.
line 34 (4) Renewable energy credits shall not be created for electricity
line 35 generated pursuant to any electricity purchase contract with a retail
line 36 seller or a local publicly owned electric utility executed before
line 37 January 1, 2005, unless the contract contains explicit terms and
line 38 conditions specifying the ownership or disposition of those credits.
line 39 Procurement under those contracts shall be tracked through the
line 40 accounting system described in subdivision (b) of Section 399.25
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SB 350 — 31 —
31 line 1 and included in the quantity of eligible renewable energy resources
line 2 of the purchasing retail seller pursuant to Section 399.15.
line 3 (5) Renewable energy credits shall not be created for electricity
line 4 generated under any electricity purchase contract executed after
line 5 January 1, 2005, pursuant to the federal Public Utility Regulatory
line 6 Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.). Procurement
line 7 under the electricity purchase contracts shall be tracked through
line 8 the accounting system implemented by the Energy Commission
line 9 pursuant to subdivision (b) of Section 399.25 and count toward
line 10 the renewables portfolio standard procurement requirements of
line 11 the purchasing retail seller.
line 12 (6) A renewable energy credit shall not be eligible for
line 13 compliance with a renewables portfolio standard procurement
line 14 requirement unless it is retired in the tracking system established
line 15 pursuant to subdivision (c) of Section 399.25 by the retail seller
line 16 or local publicly owned electric utility within 36 months from the
line 17 initial date of generation of the associated electricity.
line 18 (b) The commission shall allow an electrical corporation to
line 19 recover the reasonable costs of purchasing, selling, and
line 20 administering renewable energy credit contracts in rates.
line 21 SEC. 15. Section 399.30 of the Public Utilities Code is
line 22 amended to read:
line 23 399.30. (a) To fulfill unmet long-term generation resource
line 24 needs, each local publicly owned electric utility shall adopt and
line 25 implement a renewable energy resources procurement plan that
line 26 requires the utility to procure a minimum quantity of electricity
line 27 products from eligible renewable energy resources, including
line 28 renewable energy credits, as a specified percentage of total
line 29 kilowatthours sold to the utility’s retail end-use customers, each
line 30 compliance period, to achieve the targets of subdivision (c).
line 31 (b) The governing board shall implement procurement targets
line 32 for a local publicly owned electric utility that require the utility to
line 33 procure a minimum quantity of eligible renewable energy resources
line 34 for each of the following compliance periods:
line 35 (1) January 1, 2011, to December 31, 2013, inclusive.
line 36 (2) January 1, 2014, to December 31, 2016, inclusive.
line 37 (3) January 1, 2017, to December 31, 2020, inclusive.
line 38 (4) January 1, 2021, to December 31, 2024, inclusive.
line 39 (5) January 1, 2025, to December 31, 2027, inclusive.
line 40 (6) January 1, 2028, to December 31, 2030, inclusive.
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32 line 1 (c) The governing board of a local publicly owned electric utility
line 2 shall ensure all of the following:
line 3 (1) The quantities of eligible renewable energy resources to be
line 4 procured for the compliance period from January 1, 2011, to
line 5 December 31, 2013, inclusive, are equal to an average of 20 percent
line 6 of retail sales.
line 7 (2) The quantities of eligible renewable energy resources to be
line 8 procured for all other compliance periods reflect reasonable
line 9 progress in each of the intervening years sufficient to ensure that
line 10 the procurement of electricity products from eligible renewable
line 11 energy resources achieves 25 percent of retail sales by December
line 12 31, 2016, 33 percent by December 31, 2020, 40 percent by
line 13 December 31, 2024, 45 percent by December 31, 2027, and 50
line 14 percent by December 31, 2030. The Energy Commission shall
line 15 establish appropriate multiyear compliance periods for all
line 16 subsequent years that require the local publicly owned electric
line 17 utility to procure not less than 50 percent of retail sales of
line 18 electricity products from eligible renewable energy resources.
line 19 (3) A local publicly owned electric utility shall adopt
line 20 procurement requirements consistent with Section 399.16.
line 21 (4) A local publicly owned electric utility may procure ____
line 22 percent of retail sales of onsite generation within the area served
line 23 by that utility to serve local electricity needs. Onsite renewable
line 24 generation shall be eligible renewable energy resources certified
line 25 by the Energy Commission pursuant to Section 399.25 with a
line 26 tracking system described in subdivision (c) of Section 399.25.
line 27 Estimation of energy production from onsite generation shall not
line 28 be used to demonstrate compliance with this article.
line 29 (d) The governing board of a local publicly owned electric utility
line 30 may adopt the following measures:
line 31 (1) Rules permitting the utility to apply excess procurement in
line 32 one compliance period to subsequent compliance periods in the
line 33 same manner as allowed for retail sellers pursuant to Section
line 34 399.13.
line 35 (2) Conditions that allow for delaying timely compliance
line 36 consistent with subdivision (b) of Section 399.15.
line 37 (3) Cost limitations for procurement expenditures consistent
line 38 with subdivision (c) of Section 399.15.
line 39 (e) The governing board of the local publicly owned electric
line 40 utility shall adopt a program for the enforcement of this article.
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SB 350 — 33 —
33 line 1 The program shall be adopted at a publicly noticed meeting offering
line 2 all interested parties an opportunity to comment. Not less than 30
line 3 days’ notice shall be given to the public of any meeting held for
line 4 purposes of adopting the program. Not less than 10 days’ notice
line 5 shall be given to the public before any meeting is held to make a
line 6 substantive change to the program.
line 7 (f) (1) Each local publicly owned electric utility shall annually
line 8 post notice, in accordance with Chapter 9 (commencing with
line 9 Section 54950) of Part 1 of Division 2 of Title 5 of the Government
line 10 Code, whenever its governing body will deliberate in public on its
line 11 renewable energy resources procurement plan.
line 12 (2) Contemporaneous with the posting of the notice of a public
line 13 meeting to consider the renewable energy resources procurement
line 14 plan, the local publicly owned electric utility shall notify the
line 15 Energy Commission of the date, time, and location of the meeting
line 16 in order to enable the Energy Commission to post the information
line 17 on its Internet Web site. This requirement is satisfied if the local
line 18 publicly owned electric utility provides the uniform resource
line 19 locator (URL) that links to this information.
line 20 (3) Upon distribution to its governing body of information
line 21 related to its renewable energy resources procurement status and
line 22 future plans, for its consideration at a noticed public meeting, the
line 23 local publicly owned electric utility shall make that information
line 24 available to the public and shall provide the Energy Commission
line 25 with an electronic copy of the documents for posting on the Energy
line 26 Commission’s Internet Web site. This requirement is satisfied if
line 27 the local publicly owned electric utility provides the uniform
line 28 resource locator (URL) that links to the documents or information
line 29 regarding other manners of access to the documents.
line 30 (g) A public utility district that receives all of its electricity
line 31 pursuant to a preference right adopted and authorized by the United
line 32 States Congress pursuant to Section 4 of the Trinity River Division
line 33 Act of August 12, 1955 (Public Law 84-386) shall be in compliance
line 34 with the renewable energy procurement requirements of this article.
line 35 (h) For a local publicly owned electric utility that was in
line 36 existence on or before January 1, 2009, that provides retail electric
line 37 service to 15,000 or fewer customer accounts in California, and is
line 38 interconnected to a balancing authority located outside this state
line 39 but within the WECC, an eligible renewable energy resource
line 40 includes a facility that is located outside California that is
97
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34 line 1 connected to the WECC transmission system, if all of the following
line 2 conditions are met:
line 3 (1) The electricity generated by the facility is procured by the
line 4 local publicly owned electric utility, is delivered to the balancing
line 5 authority area in which the local publicly owned electric utility is
line 6 located, and is not used to fulfill renewable energy procurement
line 7 requirements of other states.
line 8 (2) The local publicly owned electric utility participates in, and
line 9 complies with, the accounting system administered by the Energy
line 10 Commission pursuant to this article.
line 11 (3) The Energy Commission verifies that the electricity
line 12 generated by the facility is eligible to meet the renewables portfolio
line 13 standard procurement requirements.
line 14 (i) Notwithstanding subdivision (a), for a local publicly owned
line 15 electric utility that is a joint powers authority of districts established
line 16 pursuant to state law on or before January 1, 2005, that furnish
line 17 electric services other than to residential customers, and is formed
line 18 pursuant to the Irrigation District Law (Division 11 (commencing
line 19 with Section 20500) of the Water Code), the percentage of total
line 20 kilowatthours sold to the district’s retail end-use customers, upon
line 21 which the renewables portfolio standard procurement requirements
line 22 in subdivision (b) are calculated, shall be based on the authority’s
line 23 average retail sales over the previous seven years. If the authority
line 24 has not furnished electric service for seven years, then the
line 25 calculation shall be based on average retail sales over the number
line 26 of completed years during which the authority has provided electric
line 27 service.
line 28 (j) A local publicly owned electric utility in a city and county
line 29 that only receives greater than 67 percent of its electricity sources
line 30 from hydroelectric generation located within the state that it owns
line 31 and operates, and that does not meet the definition of a “renewable
line 32 electrical generation facility” pursuant to Section 25741 of the
line 33 Public Resources Code, shall be required to procure eligible
line 34 renewable energy resources, including renewable energy credits,
line 35 to meet only the electricity demands unsatisfied by its hydroelectric
line 36 generation in any given year, in order to satisfy its renewable
line 37 energy procurement requirements.
line 38 (k) (1) A local publicly owned electric utility that receives
line 39 greater than 50 percent of its annual retail sales from its own
line 40 hydroelectric generation that is not an eligible renewable energy
97
SB 350 — 35 —
35 line 1 resource shall not be required to procure additional eligible
line 2 renewable energy resources in excess of either of the following:
line 3 (A) The portion of its retail sales not supplied by its own
line 4 hydroelectric generation. For these purposes, retail sales supplied
line 5 by an increase in hydroelectric generation resulting from an
line 6 increase in the amount of water stored by a dam because the dam
line 7 is enlarged or otherwise modified after December 31, 2012, shall
line 8 not count as being retail sales supplied by the utility’s own
line 9 hydroelectric generation.
line 10 (B) The cost limitation adopted pursuant to this section.
line 11 (2) For the purposes of this subdivision, “hydroelectric
line 12 generation” means electricity generated from a hydroelectric
line 13 facility that satisfies all of the following:
line 14 (A) Is owned solely and operated by the local publicly owned
line 15 electric utility as of 1967.
line 16 (B) Serves a local publicly owned electric utility with a
line 17 distribution system demand of less than 150 megawatts.
line 18 (C) Involves a contract in which an electrical corporation
line 19 receives the benefit of the electric generation through June of 2014,
line 20 at which time the benefit reverts back to the ownership and control
line 21 of the local publicly owned electric utility.
line 22 (D) Has a maximum penstock flow capacity of no more than
line 23 3,200 cubic feet per second and includes a regulating reservoir
line 24 with a small hydroelectric generation facility producing fewer than
line 25 20 megawatts with a maximum penstock flow capacity of no more
line 26 than 3,000 cubic feet per second.
line 27 (3) This subdivision does not reduce or eliminate any renewable
line 28 procurement requirement for any compliance period ending prior
line 29 to January 1, 2014.
line 30 (4) This subdivision does not require a local publicly owned
line 31 electric utility to purchase additional eligible renewable energy
line 32 resources in excess of the procurement requirements of subdivision
line 33 (c).
line 34 (l) A local publicly owned electric utility shall retain discretion
line 35 over both of the following:
line 36 (1) The mix of eligible renewable energy resources procured
line 37 by the utility and those additional generation resources procured
line 38 by the utility for purposes of ensuring resource adequacy and
line 39 reliability.
97
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36 line 1 (2) The reasonable costs incurred by the utility for eligible
line 2 renewable energy resources owned by the utility.
line 3 (m) The Energy Commission shall adopt regulations specifying
line 4 procedures for enforcement of this article. The regulations shall
line 5 include a public process under which the Energy Commission may
line 6 issue a notice of violation and correction against a local publicly
line 7 owned electric utility for failure to comply with this article, and
line 8 for referral of violations to the State Air Resources Board for
line 9 penalties pursuant to subdivision (n).
line 10 (n) (1) Upon a determination by the Energy Commission that
line 11 a local publicly owned electric utility has failed to comply with
line 12 this article, the Energy Commission shall refer the failure to comply
line 13 with this article to the State Air Resources Board, which may
line 14 impose penalties to enforce this article consistent with Part 6
line 15 (commencing with Section 38580) of Division 25.5 of the Health
line 16 and Safety Code. Any penalties imposed shall be comparable to
line 17 those adopted by the commission for noncompliance by retail
line 18 sellers.
line 19 (2) Any penalties collected by the State Air Resources Board
line 20 pursuant to this article shall be deposited in the Air Pollution
line 21 Control Fund and, upon appropriation by the Legislature, shall be
line 22 expended for reducing emissions of air pollution or greenhouse
line 23 gases within the same geographic area as the local publicly owned
line 24 electric utility.
line 25 SEC. 16. Article 17 (commencing with Section 400) is added
line 26 to Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code,
line 27 to read:
line 28
line 29 Article 17. Clean Energy and Pollution Reduction
line 30
line 31 400. The commission and the Energy Commission shall do all
line 32 of the following in furtherance of meeting the state’s clean energy
line 33 and pollution reduction objectives:
line 34 (a) Take into account the use of distributed generation to the
line 35 extent that it provides economic and environmental benefits in
line 36 disadvantaged communities as identified pursuant to Section 39711
line 37 of the Health and Safety Code.
line 38 (b) Take into account the opportunities to decrease costs and
line 39 increase benefits, including pollution reduction and grid integration,
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SB 350 — 37 —
37 line 1 using technologies with zero onsite greenhouse gas emissions in
line 2 proceedings associated with meeting the objectives.
line 3 (c) Where feasible, authorize procurement of resources to
line 4 provide grid reliability services that minimize reliance on system
line 5 power and fossil fuel resources and, where feasible, cost-effective,
line 6 and consistent with other state policy objectives, increase the use
line 7 of large- and small-scale energy storage with a variety of
line 8 technologies, targeted energy efficiency, demand response, eligible
line 9 renewable energy resources, or other technologies with zero onsite
line 10 greenhouse gas emissions to protect system reliability.
line 11 (d) Review technology incentive, research, development,
line 12 deployment, and market facilitation programs overseen by the
line 13 commission and the Energy Commission and make
line 14 recommendations to advance state clean energy and pollution
line 15 reduction objectives and provide benefits to disadvantaged
line 16 communities as identified pursuant to Section 39711 of the Health
line 17 and Safety Code.
line 18 (e) To the extent feasible, give first priority to the manufacture
line 19 and deployment of clean energy and pollution reduction
line 20 technologies that create employment opportunities, including high
line 21 wage, highly skilled employment opportunities, and increased
line 22 investment in the state.
line 23 (f) Establish a publicly available tracking system to provide
line 24 up-to-date information on progress toward meeting the clean energy
line 25 and pollution reduction goals of the Clean Energy and Pollution
line 26 Reduction Act of 2015.
line 27 (g) Establish an advisory group consisting of representatives
line 28 from disadvantaged communities identified in Section 39711 of
line 29 the Health and Safety Code. The advisory group shall review and
line 30 provide advice on programs proposed to achieve clean energy and
line 31 pollution reduction and determine whether those proposed
line 32 programs will be effective and useful in disadvantaged
line 33 communities.
line 34 SEC. 17. Section 454.51 is added to the Public Utilities Code,
line 35 to read:
line 36 454.51. The commission shall direct each electrical corporation
line 37 to include in its proposed procurement plan a strategy for procuring
line 38 a diverse portfolio of resources that provide a reliable electricity
line 39 supply, including renewable energy integration needs, using zero
line 40 carbon-emitting resources to the maximum extent reasonable. The
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38 line 1 net capacity costs of those resources shall be allocated on a fully
line 2 nonbypassable basis consistent with the treatment of costs
line 3 identified in paragraph (2) of subdivision (c) of Section 365.1.
line 4 SEC. 18. Section 701.1 of the Public Utilities Code is amended
line 5 to read:
line 6 701.1. (a) (1) The Legislature finds and declares that, in
line 7 addition to other ratepayer protection objectives, a principal goal
line 8 of electric and natural gas utilities’ resource planning and
line 9 investment shall be to minimize the cost to society of the reliable
line 10 energy services that are provided by natural gas and electricity,
line 11 and to improve the environment and to encourage the diversity of
line 12 energy sources through improvements in energy efficiency and
line 13 development of renewable energy resources, such as wind, solar,
line 14 biomass, geothermal energy, and widespread transportation
line 15 electrification.
line 16 (2) The amendment made to this subdivision by the Clean
line 17 Energy and Pollution Reduction Act of 2015 does not expand the
line 18 authority of the commission beyond that provided by other law.
line 19 (b) The Legislature further finds and declares that, in addition
line 20 to any appropriate investments in energy production, electrical
line 21 and natural gas utilities should seek to exploit all practicable and
line 22 cost-effective conservation and improvements in the efficiency of
line 23 energy use and distribution that offer equivalent or better system
line 24 reliability, and which are not being exploited by any other entity.
line 25 (c) In calculating the cost effectiveness of energy resources,
line 26 including conservation and load management options, the
line 27 commission shall include, in addition to other ratepayer protection
line 28 objectives, a value for any costs and benefits to the environment,
line 29 including air quality. The commission shall ensure that any values
line 30 it develops pursuant to this section are consistent with values
line 31 developed by the State Energy Resources Conservation and
line 32 Development Commission pursuant to Section 25000.1 of the
line 33 Public Resources Code. However, if the commission determines
line 34 that a value developed pursuant to this subdivision is not consistent
line 35 with a value developed by the State Energy Resources
line 36 Conservation and Development Commission pursuant to
line 37 subdivision (c) of Section 25000.1 of the Public Resources Code,
line 38 the commission may nonetheless use this value if, in the
line 39 appropriate record of its proceedings, it states its reasons for using
line 40 the value it has selected.
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SB 350 — 39 —
39 line 1 (d) In determining the emission values associated with the
line 2 current operating capacity of existing electric powerplants pursuant
line 3 to subdivision (c), the commission shall adhere to the following
line 4 protocol in determining values for air quality costs and benefits to
line 5 the environment. If the commission finds that an air pollutant that
line 6 is subject to regulation is a component of residual emissions from
line 7 an electric powerplant and that the owner of that powerplant is
line 8 either of the following:
line 9 (1) Using a tradable emission allowance, right, or offset for that
line 10 pollutant, which (A) has been approved by the air quality district
line 11 regulating the powerplant, (B) is consistent with federal and state
line 12 law, and (C) has been obtained, authorized, or acquired in a
line 13 market-based system.
line 14 (2) Paying a tax per measured unit of that pollutant.
line 15 The commission shall not assign a value or cost to that residual
line 16 pollutant for the current operating capacity of that powerplant
line 17 because the alternative protocol for dealing with the pollutant
line 18 operates to internalize its cost for the purpose of planning for and
line 19 acquiring new generating resources.
line 20 (e) (1) The values determined pursuant to subdivision (c) to
line 21 represent costs and benefits to the environment shall not be used
line 22 by the commission, in and of themselves, to require early
line 23 decommissioning or retirement of an electric utility powerplant
line 24 that complies with applicable prevailing environmental regulations.
line 25 (2) Further, the environmental values determined pursuant to
line 26 subdivision (c) shall not be used by the commission in a manner
line 27 which, when those values are aggregated, will result in advancing
line 28 an electric utility’s need for new powerplant capacity by more than
line 29 15 months.
line 30 (f) This subdivision shall apply whenever a powerplant bid
line 31 solicitation is required by the commission for an electric utility
line 32 and a portion of the amount of new powerplant capacity, which is
line 33 the subject of the bid solicitation, is the result of the commission’s
line 34 use of environmental values to advance that electric utility’s need
line 35 for new powerplant capacity in the manner authorized by paragraph
line 36 (2) of subdivision (e). The affected electric utility may propose to
line 37 the commission any combination of alternatives to that portion of
line 38 the new powerplant capacity that is the result of the commission’s
line 39 use of environmental values as authorized by paragraph (2) of
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40 line 1 subdivision (c). The commission shall approve an alternative in
line 2 place of the new powerplant capacity if it finds all of the following:
line 3 (1) The alternative has been approved by the relevant air quality
line 4 district.
line 5 (2) The alternative is consistent with federal and state law.
line 6 (3) The alternative will result in needed system reliability for
line 7 the electric utility at least equivalent to that which would result
line 8 from bidding for new powerplant capacity.
line 9 (4) The alternative will result in reducing system operating costs
line 10 for the electric utility over those which would result from the
line 11 process of bidding for new powerplant capacity.
line 12 (5) The alternative will result in equivalent or better
line 13 environmental improvements at a lower cost than would result
line 14 from bidding for new powerplant capacity.
line 15 (g) This section does not require an electric utility to alter the
line 16 dispatch of its powerplants for environmental purposes.
line 17 (h) This section does not preclude an electric utility from
line 18 submitting to the commission any combination of alternatives to
line 19 meet a commission-identified need for new capacity, if the
line 20 submission is otherwise authorized by the commission.
line 21 (i) This section does not change or alter any provision of
line 22 commission decision 92-04-045, dated April 22, 1992.
line 23 SEC. 19. Section 740.8 of the Public Utilities Code is amended
line 24 to read:
line 25 740.8. As used in Section 740.3, “interests” of ratepayers,
line 26 short- or long-term, mean direct benefits that are specific to
line 27 ratepayers in the form of any of the following:
line 28 (a) Safer, more reliable, or less costly gas or electrical service,
line 29 consistent with Section 451.
line 30 (b) More efficient use of the electric system.
line 31 (c) Improve integration of renewable energy generation.
line 32 (d) Activities that both directly benefit ratepayers and that
line 33 promote at least one of the following:
line 34 (1) Energy efficiency.
line 35 (2) Reduction of health and environmental impacts from air
line 36 pollution.
line 37 (3) Reduction of greenhouse gas emissions related to electricity
line 38 and natural gas production and use.
line 39 (4) Increased use of alternative fuels.
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SB 350 — 41 —
41 line 1 SEC. 20. Section 740.12 is added to the Public Utilities Code,
line 2 to read:
line 3 740.12. (a) (1) The Legislature finds and declares all of the
line 4 following:
line 5 (A) Transportation electrification, natural gas vehicles as a
line 6 short-term measure, fuel cell vehicles, and transportation
line 7 innovations Advanced clean vehicles and fuels are needed to reduce
line 8 petroleum use, to meet air quality standards, to improve public
line 9 health, and to achieve greenhouse gas emissions reduction goals.
line 10 (B) Widespread transportation electrification is needed to
line 11 achieve the goals of the Charge Ahead California Initiative
line 12 (Chapter 8.5 (commencing with Section 44258) of Part 5 of
line 13 Division 26 of the Health and Safety Code).
line 14 (C) Reducing emissions of greenhouse gases to 40 percent below
line 15 1990 levels by 2030 and to 80 percent below 1990 levels by 2050
line 16 will require widespread transportation electrification.
line 17 (D) Widespread transportation electrification requires electrical
line 18 corporations to increase access to the use of electricity as a
line 19 transportation fuel.
line 20 (E) Deploying electric vehicles should assist in integrating
line 21 generation from eligible renewable energy resources and reduce
line 22 fuel costs for vehicle drivers who charge in a manner consistent
line 23 with electric electrical grid conditions.
line 24 (F) Deploying electric vehicle charging infrastructure should
line 25 facilitate increased sales of electric vehicles by making charging
line 26 easily accessible and should provide the opportunity to access
line 27 electricity as a fuel that is cleaner than gasoline or other fossil
line 28 fuels.
line 29 (G) Deploying natural gas and fuel cell infrastructure should
line 30 facilitate increased sales of natural gas or fuel cell vehicles by
line 31 making refueling easily accessible and should provide the
line 32 opportunity to access fuels that are cleaner than gasoline.
line 33 (H)
line 34 (G) According to the State Alternative Fuels Plan analysis by
line 35 the Energy Commission and the State Air Resources Board, light-,
line 36 medium-, and heavy-duty vehicle electrification results in
line 37 approximately 70 percent fewer greenhouse gases emitted, over
line 38 85 percent fewer ozone-forming air pollutants emitted, and 100
line 39 percent fewer petroleum used. These reductions will become larger
line 40 as renewable generation increases.
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42 line 1 (2) It is the policy of the state and the intent of the Legislature
line 2 to encourage transportation electrification as a means to achieve
line 3 ambient air quality standards and the state’s climate goals.
line 4 Agencies designing and implementing regulations, guidelines,
line 5 plans, and funding programs to reduce greenhouse gas emissions
line 6 should take the finding described in subparagraph (H) (G) of
line 7 paragraph (1) into account.
line 8 (b) The commission, in consultation with the State Air Resources
line 9 Board and the Energy Commission, shall direct electrical
line 10 corporations to propose multiyear programs and investments to
line 11 accelerate widespread transportation electrification to reduce
line 12 dependence on petroleum, meet air quality standards, achieve the
line 13 goals set forth in the Charge Ahead California Initiative (Chapter
line 14 8.5 (commencing with Section 44258) of Part 5 of Division 26 of
line 15 the Health and Safety Code), and reduce emissions of greenhouse
line 16 gases to 40 percent below 1990 levels by 2030 and to 80 percent
line 17 below 1990 levels by 2050. The commission shall approve
line 18 programs and investments that deploy charging infrastructure, as
line 19 distribution system costs, if they are consistent with this section
line 20 and Section 740.3.
line 21 (c) The commission shall review data concerning current and
line 22 future electric transportation adoption rates and charging
line 23 infrastructure utilization rates no less than every three years and
line 24 prior to any further authorization for an electrical corporation to
line 25 collect additional new program costs related to transportation
line 26 electrification in ratepayer rates. If market barriers unrelated to
line 27 the investment made by an electric corporation prevent electric
line 28 transportation from adequately utilizing available charging
line 29 infrastructure, the commission shall not permit additional
line 30 investments in transportation electrification without adequate
line 31 assurance that the investments would not result in stranded costs
line 32 recoverable from ratepayers.
line 33 SEC. 21. No reimbursement is required by this act pursuant to
line 34 Section 6 of Article XIIIB of the California Constitution because
line 35 a local agency or school district has the authority to levy service
line 36 charges, fees, or assessments sufficient to pay for the program or
line 37 level of service mandated by this act or because costs that may be
line 38 incurred by a local agency or school district will be incurred
line 39 because this act creates a new crime or infraction, eliminates a
line 40 crime or infraction, or changes the penalty for a crime or infraction,
97
SB 350 — 43 —
43 line 1 within the meaning of Section 17556 of the Government Code, or
line 2 changes the definition of a crime within the meaning of Section 6
line 3 of Article XIII B of the California Constitution.
O
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444546
Legislative Advocacy Program
City of Culver City
City Council
Adopted January 12, 2015
Contact:
Shelly Wolfberg, Assistant to the City Manager: 310-253-6008
shelly.wolfberg@culvercity.org www.culvercity.org
47The purpose of the City of Culver City’s Legislative Advocacy Program is to provide policy
guidance to the City Council Members and Staff regarding advocacy on positions
regarding legislation. The Legislative Advocacy Program also serves as tool to maximize
the City’s grant seeking efforts. The guiding principles included herein are intended to
provide direction on matters that affect the funding, programs, projects, and operations of
the City of Culver City as a governmental organization.
Economic Stability & Financial Development
Tax Base
? Support legislation that protects the distribution of sales tax to the City.
? Support legislation that addresses issues created by Culver City’s status as a “low
property tax” City.
? Support efforts to simplify the collection of sales taxes nationwide and provide an
equitable method for collecting sales taxes for Internet and catalog sales.
? Support efforts to exempt cities from paying State sales tax.
? Oppose any actions that the state or federal government may take to divert
revenues from cities.
? Oppose legislation that compromises the City’s ability to require and/or collect
appropriate business license fees from Culver City businesses.
? Support legislation that assists the City in its efforts to create an overall revenue
structure which balances stable and economically sensitive sources.
State and Federal Mandates
? Support legislation that provides funding for state and federal mandates placed
upon local government.
? Oppose any legislation that would place a mandate on the City without providing
the funds necessary to carry out the mandated program. Render mandates invalid
if not fully funded.
? Oppose any legislation that would require any mandated obligations to continue
after funding for the mandate has been eliminated.
City Revenues
? Support legislation that would favorably address the State/local government fiscal
relationship, including the reasonable, adequate, and sufficient allocation of former
48Tax Increment Funds to the Successor Agency to the Culver City Redevelopment
Agency and the Culver City Housing Authority.
? Oppose legislation that would reduce revenue which the City receives from or
which is collected on behalf of the City by the state.
? Oppose any legislation that would reduce the City’s autonomy and flexibility in
dealing with the financing of public services.
Employment
? Support legislation which ensures and enhances quality public services by fulfilling
the human resource and employee relations needs of the City.
? Support efforts to reform workers’ compensation statutes that streamline the
system and provide adequate benefits for injured workers, while continuing to
control employer costs.
? Monitor mandates relative to health care costs and services.
Community Development
Housing
? Support legislation that allows local government to make decisions regarding
housing density levels.
? Support legislative efforts to provide federal/state funding and seek grants that
support the creation of and maintenance of existing affordable housing within the
City.
? Support advocacy efforts to raise the funding levels and allowable fair market rents
for the City’s Federal Section 8 Housing Choice Voucher Program to improve
access to rental housing units by low income households and increase the number
of households served.
Economic Development
? Support legislation that fosters the City’s efforts to spur economic development,
revitalize neighborhoods, and remove blight.
? Oppose legislation that impairs the City’s ability to carry out its mission of improving
the economic vitality of the area while preserving the quality of life.
? Oppose mandates or restrictions placed on the use of economic development
funds.
49? Oppose efforts to usurp local zoning authority.
? Support efforts to develop and promote policies, legislation and grants that help
urban areas foster greater economic opportunity.
? Support efforts to retain, expand, and attract businesses to the City that create
jobs compatible with the local workforce and tax revenues for the local economy.
? Support efforts to ensure that requirements and government mandates for local
businesses are reasonable.
Environment
Air/Water Quality
? Support efforts and seek grants, including partnerships with the private sector,
schools, public agencies, and non-profit organizations, to provide assistance with
environmental clean-up projects.
? Support efforts to advance clean-up of and improvements for waterways that affect
the City.
? Seek state and federal funds to support the assessment of water quality and the
cleaning of Ballona Creek.
? Support reasonable environmental regulations aimed at enhancing air and water
quality, reducing stormwater pollution, and providing opportunities for
corresponding funding mechanisms.
? Support efforts to ensure that Total Maximum Daily Load (TMDL) requirements,
which represent the maximum amount of a pollutant that a water body can receive
and still meet water quality standards, are achievable and cost-effective as well as
efforts to provide the funding necessary to meet them. Support legislation that
protects municipalities from litigation if they are making good faith efforts to meet
requirements.
? Support legislation that improves air quality in Culver City and surrounding areas.
? Support legislation and grants that encourage the use of innovative, efficient, and
renewable alternative fuels for vehicles.
? Support measures that would increase the City’s ability to comply with
environmental regulations.
? Support efforts to help municipalities plan for and fund alternative fuel (including
electric) vehicle infrastructure.
50? Support statewide efforts to ban or impose fees on the distribution of polystyrene
containers.
? Support funding for greenhouse gas inventories, climate action plans, and other
work that will help further the goals of AB 32 and related legislation.
? Support efforts to ensure that air quality, groundwater and public health are
protected during oil and gas drilling.
? Oppose hydraulic fracturing and the disposal of fracking wastewater by injection
wells.
? Support legislation that would place financial responsibility for the disposal of
products on product manufacturers rather than local jurisdictions.
Energy
? Support efforts to preserve municipalities’ opportunities to provide energy
alternatives to residents and businesses and to maintain a utility-established rate
structure that is fair and equitable for the City and its residents.
? Support legislation that promotes reliable, affordable, and renewable energy for
businesses and residents.
? Support Community Choice Aggregation legislation and policies, which would
allow cities and counties to aggregate the buying power of individual customers
within a defined jurisdiction in order to secure alternative energy supply contracts.
Oppose fees and penalties that tend to make Community Choice Aggregation cost
prohibitive.
? Support legislation that promotes funding solar energy and photovoltaic
technology as well as energy conservation-related upgrades to public facilities and
the private sector.
? Support legislation to eliminate site-specific “net metering” requirements for
municipalities that wish to acquire solar, wind or other renewable energy systems.
Current restrictions prevent or make it difficult for the City to produce solar power
at one facility and take credit for it on the bill at another facility.
Community Safety
Public Safety & Crime Prevention
? Support the Police Department’s mission of providing visible patrol; criminal
investigations; follow up investigations; traffic accident investigations; and
specialized investigations such as identity theft, vice offenses, and similar crimes.
51? Support efforts to advance the Police Department’s goals to enhance community
safety through the deterrence/prevention of crime, the apprehension of offenders,
and the education of the public in self-protective measures to minimize
victimization.
? Support the Fire Department’s mission of providing Emergency Medical Services;
fire suppression and rescue services; hazardous material spill mitigation; fire
prevention; arson investigation; and public education.
? Support legislation and pursue grants to fund new technology and equipment and
improve and replace existing technology and equipment for Police and Fire,
including resources to support the Interagency Communications Interoperability
System (ICIS).
? Support legislation and pursue grants that would provide funding for public safety
facilities, including resources to support the construction of a replacement Drill
Tower/Classroom facility.
? Support legislation that provides funding for equipment, training, educational
materials and exercises that enhance local capabilities to mitigate, prepare,
respond, and recover from small to large scale incidents and emergencies.
? Support efforts to maintain City reimbursements for personnel costs paid to public
safety employees for training and required appearances in state and/or County
courts.
? Support the availability of regional healthcare facilities, such as Southern California
Hospital at Culver City.
Neighborhood Development
Homeless Assistance
? Support efforts to reduce homelessness and increase services to the homeless
both locally and regionally.
? Seek grant funding to assist with the City’s homeless programs.
? Support legislation to help cities address homeless encampments in a way that
balances the needs and rights of the homeless with local health and safety
concerns.
Arts
? Support the expansion of arts opportunities to the public.
52? Support legislative efforts and grant opportunities that help fund the City’s
community arts programming.
Parks & Recreation
? Support legislation to preserve and enhance Culver City’s quality of life by:
improving and protecting our parks and natural resources through best
environmental practices; working constantly to make our parks safe, clean and
healthful; facilitating and providing recreation and leisure opportunities; promoting
health, wellness and human development; strengthening our sense of cultural unity
through recognizing our cultural diversity; and strengthening our community’s
image and sense of place through collaboration with community members and
groups.
? Support legislation, grants, and funding for parks and recreation, programs,
maintenance, parkland acquisition, and capital improvements, to increase the
quality of life for Culver City residents.
? Explore legislation and seek grants that are intended to serve dense urban areas.
? Support legislation that limits the City's liability at park and recreation facilities to
instances when the City has acted negligently.
Senior & Social Services
? Support efforts to maintain or increase funding for senior housing and nutrition
programs, disabled services, paratransit services, and intergenerational care
programs.
? Support legislation that funds educational, recreational and physical fitness related
programs for seniors.
? Support legislation and seek grants that provide financial relief for cities in making
facilities and other public places accessible as mandated by the Americans with
Disability Act (ADA).
? Support Community Development Block Grant (CDBG) funding at least at the
current annual funding levels.
Youth & Education
? Support legislation and grants that promote services for the City’s youth including
youth employment, mentoring, diversion, and intervention programs.
? Support legislation and seek grants that enhance the services provided to children,
parents, and families, including early education programs.
53? Support and collaborate with Culver City Unified School District to secure funding
that assists in enhancement and further development of education and the Youth
Health Center.
Transportation
? Support efforts to maintain and increase funding for transportation operations,
programs and projects throughout the City including public transit, alternative
transportation, bicycle and pedestrian projects, to enhance safety, reduce
congestion, and increase efficient circulation in the City.
? Promote goals and objectives in the City Council Adopted Bicycle and Pedestrian
Master Plan, including “Complete Streets”.
? Advocate for the preservation and enhancement of funding for the Safe Routes to
Schools Program.
? Support efforts to increase funding for regional rail projects.
? Support efforts to fund the I-10/Robertson Interchange and other projects that will
help relieve traffic congestion in the Westside subregion.
? Support efforts to enhance and protect state, local and federal funding for Culver
City’s mass transit and transportation projects.
Public Works
? Support legislative efforts to ensure that the City maintains public rights-of-way
control and to allow the City to collect fair compensation for its use.
? Support efforts to maintain and increase funding for streets, roads and alley
maintenance and transportation infrastructure programs throughout the City.
? Support efforts to maintain and increase funding for bicycle and pedestrian-related
improvements.
? Support efforts to reduce barriers to local governments implementing bicycle and
pedestrian infrastructure, including innovative treatments.
? Support legislation that seeks to expand the use of recycled or reclaimed water
? Oppose legislation that would compromise local control in regards to refuse
collection, recycling, hazardous materials handling, landfill operations, and the
safe transport of waste both interstate and intrastate.
? Oppose legislation that would compromise local control in regards to sewer
operations and treatment.
54? Advocate for funding for the City’s aging sewer system.
? Support legislation that preserves the right of local government to set fee
structures.
? Support efforts to identify increased funding and grants for traffic mitigation and
congestion management.
? Oppose legislation that would put additional responsibility on municipalities for the
maintenance of sidewalks and other public infrastructure without adequate
funding.
? Support local control over construction contract management, including retention
amounts and prevailing wages.
Telecommunications
? Support legislation that provides individual universal access to the Internet.
? Support legislative efforts to ensure that the City receives the maximum benefit
from Internet commerce.
? Support legislation that maintains, facilitates, and protects Municipal Broadband
Wireless Deployment.
Additional Issues
Preemption of Local Authority
? Oppose any legislation intended to preempt the current authority possessed by the
City and delegate that authority to the State or other government agencies.
? Support legislation that protects and/or expands the City’s authority and rights over
its affairs.
Entertainment
? Support legislative efforts to keep film, television, and commercial advertisement
production and post-production in the State of California, especially in Culver City.
? Support the California Legislature and the federal government in their efforts at the
federal level to maintain film and television production in the United States.
City’s Liability
? Support legislation and policies that shield cities from being treated as deep
pockets.
55? Support legislation that limits liability to instances when cities have acted
negligently.
? Support legislation limiting the instances when cities have to pay damages without
having acted negligently.
? Oppose legislation which impairs the City’s ability to meet existing legal and
contractual obligations.
Government Transparency, Participation, Accessibility, and Public Notification
? Support legislation and funding that provides for greater opportunities for
transparency, enhanced delivery of government information, government
accountability and public access for the community.
? Support legislation and funding which increases opportunities for collaborative
problem solving, information accessibility and inclusion in participatory processes
whenever possible.
? Support legislation that allows electronic communications (e-mail, social media) as
an accepted form of communication for mandated notifications.
Code Enforcement
? Oppose legal requirements and constraints that would inhibit the City’s ability to
perform nuisance abatement related to conditions, activities and places.
56