SB 1299

Bill Subjects

Abstract

The California Renewables Portfolio Standard Program requires the Public Utilities Commission to establish a renewables portfolio standard requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, at specified percentages of the total kilowatthours sold to their retail end-use customers during specified compliance periods. The program additionally requires each local publicly owned electric utility, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources to achieve the targets established by the program. The program, consistent with the goals of procuring the least-cost and best-fit eligible renewable energy resources that meet project viability principles, requires that all retail sellers procure a balanced portfolio of electricity products from eligible renewable energy resources, as specified, referred to as the portfolio content requirements. The program requires the commission to authorize the use of renewable energy credits to satisfy the renewables portfolio standard procurement requirements, subject to specified conditions and limitations for unbundled renewable energy credits. One condition placed on renewable energy credits is that they not be created for electricity generated under any electricity purchase contract executed after January 1, 2005, pursuant to the federal Public Utility Regulatory Policies Act of 1978, also known as PURPA. This bill would require that renewable energy credits be created for electricity generated under an electricity purchase contract executed after January 1, 2017, pursuant to PURPA, with those credits being owned by the owner of the eligible renewable energy resource unless otherwise agreed to by the owner. The bill would prohibit the commission from requiring, as a condition of entering into an electricity purchase contract pursuant to PURPA, that the generator sell its renewable energy credits to the electrical corporation pursuant to the contract. The bill would provide that when electricity products and the renewable energy credits associated with those electricity products are sold to the same electrical corporation pursuant to 2 or more separate purchase contracts with identical start and end dates, the credits and electricity products would be treated as bundled. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime. 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 a specified reason.