BILL NUMBER:  SB 1478
  VETOED	DATE: 09/24/2004




To the Members of the California State Senate:

I am returning Senate Bill 1478 without my signature.

Increasing Californias commitment to renewable electricity is a
cornerstone of my administrations energy and environmental action
plans.  My action plans outline my goal of accelerating the
requirement that 20% of a utility energy portfolio be from renewable
sources by 2010 and 33% be from renewable sources by 2020.  The
California Public Utility Commission (PUC) has acted directing the
utilities to meet the accelerated date of compliance during their
ongoing procurement planning process.  Additionally, the PUC has also
acted on my request to establish a loading order for electricity
that has conservation and renewable energy sources ahead of
traditional fossil fuel.

While I appreciate the authors intent to codify my action plan
acceleration of the renewable energy portfolio standard, this bill
has several omissions and establishes an onerous process that will
impede the achievement of this goal.  This bill omits municipal
utilities which service almost 30% percent of the energy consumed in
California from any renewable portfolio requirements.  It also
creates a renewable credit market that has several onerous
restrictions.  Finally, it fails to reco gnize Californias commitment
and reliance on an electricity market that includes the entire
western region of the country.

I look forward to working with the legislature to continue to
increase Californias commitment to renewable energy.  If codification
of my action plan is desired, we should strive for legislation that
results in a vibrant competitive renewable energy market and works to
advance the 20% renewable energy goal by 2010 rather than impede the
progress we have made.

For these reasons I am returning this bill without my signature.

Sincerely,



Arnold Schwarzenegger