Current Legislation:
The Renewable Energy Accountability Project
Analysis of SB 142009
SB 14 Update
March 31, 2009
Sacramento, CA Today the California State Senate held a floor vote on SB 14 (Ayes 21, Noes 16), by one vote the bill now moves on for consideration by the State Assembly.
The Assembly has read SB 14 for the first time and is holding the bill at desk, pending referral to the appropriate committee.
Ayes included: Kehoe (D-San Diego), Corbett (D-San Leandro), DeSaulnier (D-Contra Costa), Hancock (D-Berkeley), Leno (D-San Francisco), Wolk (D-Stockton), Yee (D-San Mateo), Alquist (D-San Jose), Calderon (D-Montebello), Cedillo (D-Los Angeles), Ducheny (D-San Diego), Florez (D-Bakersfield), Liu (D-Glendale), Lowenthal (D-Paramount), Oropeza (D-Long Beach), Padilla (D-San Fernando Valley), Pavley (D-Santa Monica), Romero (D-Los Angeles), Simitian (D-Palo Alto), Steinberg (D-Sacramento) and Wiggins (D-Eureka)
Noes included: Cox (R- Roseville), Denham (R-Modesto), Runner (R-Victorville), Walters (R-Laguna Hills), Wyland (R-Carlsbad), Aanestad (R-Chico), Ashburn (R-Kern), Benoit (R-Riverside), Cogdill (R-Mariposa), Correa (D-Santa Ana), Dutton (R-Rancho Cucamonga), Harman (R-Seal Beach), Hollingsworth (R-San Diego), Huff (R-Arcadia), Maldonado (R- Monterey) and Wright (D-Inglewood).
Follow the progress of SB 14 by clicking here.
March 16, 2009
Sacramento, CA Today the State Senate Appropriations Committee voted unanimously to place SB 14 (Simitian) on Suspense File.
If SB 14 remains indefinitely on the Suspense File real progress on achieving energy independence and combating global warming pollution is threatened.
SB 14’s suspense status could be lifted at the next hearing of the Senate Appropriations Committee, scheduled for March 23, 2009. REAP has sent an open letter to State Senate President Pro Tem Darrell Steinberg urging him to move SB 14 forward.
STATE BRIEFING
SB 14 Update
March 3, 2009
Sacramento, CA – Today the Senate Energy, Utilities and Communications Committee voted to pass SB 14 Simitian (Ayes 6, Noes 3); however, the bill was re-referred to the Committee on Rules. Ayes included Padilla (D-San Fernando Valley), Corbett (D-San Leandro), Kehoe (D-San Diego), Lowenthal (D- Paramount), Simitian (D- Palo Alto), and Wiggins (D-Eureka). Noes included Benoit (R-Moreno Valley), Cox (R- Roseville), and Wright (D-S. Inglewood).
Several amendments were made to SB 14 on February 17, 2009:
The Good News is that Publicly Owned Utilities (POUs) will still be required to reach the new RPS goal under SB 14, requiring them to increase their purchases of renewable energy such that at least 33% of retail sales are procured from renewable energy resources by December 31, 2020.
The Bad News is that the Utilities have been given a free pass with a provision that allows the California Public Utilities Commission (CPUC) to grant an exemption to any utility if the commission determines that achieving the target (33%) will result in unjust and unreasonable rates.” (As the agency of state government charged with issuing penalties for noncompliance against the IOUs, the CPUC alone will determine what unjust and unreasonable rates means. If this provision is not amended out of the bill the CPUC would have too much discretion in waiving the Utilities requirements to meet RPS goals.)
http://info.sen.ca.gov/pub/09-10/bill/sen/sb_0001-0050/sb_14_bill_20090217_amended_sen_v97.pdf
Other amendments from February 17, 2009:
Effective Date: Three-year targets will replace the Annual Procurement Target (APT). According to the CPUC, no Investor Owned Utility (IOU) will be able to achieve the 20% RPS goal by 2010 but the CPUC does anticipate that goal will be reached by 2013.
Above and Beyond 33%: Senator Simitian clarified that the 33% mandate is a floor, not a ceiling, for POUs and that an IOU can voluntarily choose to exceed the 33% mandate.
Transmission: Currently, California has two largely independent systems. One is administered by the Independent System Operator (ISO) and the other is owned and administered by POUs. The amended version of the bill will direct the California Energy Commission (CEC) to facilitate the transmission process.
Siting of Generation and Transmission: This amendment would require the CEC to develop a simultaneous application review process with the Department of Fish and Game (DFG) to identify renewable energy development areas and develop a best management practices manual with the goal of reducing the application time by half. Senator Simitian also required that the CPUC, CEC, and ISO consider the recommendations of the Regional Energy Transmission Initiative (RETI) in the siting of new generation and transmission.
CPUC President: Currently, each member of the CPUC is appointed by the Governor and confirmed by the Senate. The Governor also designates the president of the commission. SB 14 required that the Senate confirm the designation of the CPUC president; however, this section has been amended and reverted back to current law.
http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0001-0050/sb_14_cfa_20090227_095503_sen_comm.html
Follow the progress of SB 14 by navigating to: http://www.legislature.ca.gov
We must watch lobbyists closely for any sly amendments that will gut the bill tooth by tooth. Keep watch with us.
Like Proposition 7, SB 14:
RAISES THE RPS: SB 14 raises the RPS to 33% by 2020. (Proposition 7 would have raised the RPS to 40% by 2020 and 50% by 2025.)
INCLUDES PUBLICY OWNED UTILITES IN THE RPS: SB 14 requires all utilities, including publicly owned utilities (POUs) and electric service providers (ESPs) to meet the RPS standards.
FAST TRACKS APPROVAL OF NEW RENEWABLE TRANSMISISON LINES: SB 14 requires the rapid approval of new transmission lines that would facilitate renewable electricity transmission (SB 14 requires the California Public Utilities Commission (PUC) to approve renewable energy transmission facilities within one year.)
REDUCES GREEN HOUSE GAS EMISSIONS: SB 14 requires major action on the part of electric utilities to reduce green house gas emissions.
PROVIDES TECHNOLOGY FORCING FACTORS: SB 14 creates technology forcing factors by increasing the RPS to 33% by 2020, thereby providing incentives for the development of large scale solar, wind, and geothermal plants.
Similar to Proposition 7, SB 14 contains provisions which could enhance RPS compliance:
o PENALTIES: SB 14 directs the California Energy Commission (for POUs) and the CPUC (for IOUs) to work with the California Air Resources Board (CARB) to establish penalties for failure to comply with the RPS. (Proposition 7 would have established specific penalties in statute, enforceable by the Energy Commission.)
o PRICING: SB 14 eliminates the calculation and use of a Market Price Referent (MPR) and the cap on costs, and directs the CPUC to continue to review contract and consider the cost impact of procuring renewable energy including rate impacts, system reliability, the environment, and the economic benefits of renewable procurement. (Proposition 7 would have required the Energy Commission to set the market price of electricity including considering the value and benefits of renewable resources. A renewable energy contract that was no more than 10% higher than the market price would have been considered reasonable under Proposition 7.)
At last, the State Senate today took the first step in achieving 33% renewable electricity by 2020, commented Jim Gonzalez, Chair, REAP
Senator Simitian deserves particular praise for his tireless work to increase the Renewable Portfolio Standard (RPS). Raising the RPS and holding all utilities accountable for achieving higher RPS standards were key goals of Proposition 7, and remain key to reducing global warming and making California the center for the Energy Technology Revolution,Gonzalez continued.
With President Obamas pledge to make require that 25% of the entire nations electricity comes from renewable resources by 2025, California has an unprecedented opportunity to lead the way in making this Energy Technology Revolution a reality. SB 14 is a step in the right direction, Gonzalez concluded.
