BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1585| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1585 Author: Blakeslee (R) Amended: 08/15/05 in Senate Vote: 21 SENATE ENERGY, U.&C. COMMITTEE : 10-0, 6/30/05 AYES: Escutia, Morrow, Alarcon, Battin, Bowen, Cox, Dunn, Kehoe, Murray, Simitian NO VOTE RECORDED: Campbell SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 77-1, 5/23/05 - See last page for vote SUBJECT : Renewable energy resources Conservation SOURCE : The Schwarzenegger Administration DIGEST : This bill requires the California Energy Commission (CEC) to review the feasibility of increasing the renewable resources target to 33 percent by 2020. ANALYSIS : Existing law, the Renewables Portfolio Standard (RPS), requires each investor-owned utility (IOU) to increase its existing level of renewable energy resources by one percent of sales per year until renewable energy resources account for 20 percent of its portfolio, with a deadline of 2017 for achieving 20 percent. Existing law requires the CEC to prepare an integrated CONTINUED AB 1585 Page 2 energy policy report every two years. Existing law requires the report to contain an overview of major energy trends and issues facing the state, including, but not limited to, supply, demand, pricing, reliability, efficiency, and impacts on public health and safety, the economy, resources, and the environment. This bill requires the CEC to review the feasibility of increasing the renewable resources target to 33 percent by 2020, and to include this review in the biennial Integrated Energy Policy Report scheduled to be adopted November 1, 2007. The report would be required to evaluate a number of specified issues, including the potential impact on electricity rates and the progress made by all retail electricity providers and local publicly owned electric utilities in meeting the goal of 20 percent by 2010. The bill only becomes operative if SB 107 (Simitian) is enacted by January 1, 2006, and will only remain in effect until January 1, 2008. Background The RPS requires IOUs and certain other retail energy providers, collectively referred to as "retail sellers," to buy renewable electricity to the extent Public Goods Charge funds are available to pay for any costs exceeding a market price set by the Public Utilities Commission (PUC). Each IOU is required to increase its renewable procurement each year by at least one percent of total sales, so that 20 percent of its sales are renewable energy resources by December 31, 2017. With some exceptions, renewable energy resources must be located in California to be counted toward an IOU's RPS requirements. The "Energy Action Plan" adopted by the PUC, the CEC and the California Power Authority pledges that the agencies will accelerate RPS implementation to meet the 20 percent goal by 2010, instead of 2017. In his statements on energy, the Governor has endorsed "20 percent by 2010" and proposed an additional goal of 33 percent by 2020. However, the Governor vetoed SB 1478 (Sher) last year, AB 1585 Page 3 which amended the RPS statutes to reflect the 2010 deadline. SB 107 (Simitian) advances the RPS deadline from 2017 to 2010 and contains other related provisions. The bill is currently in the Senate Appropriations Committee. AB 1362 (Levine) also advances the RPS deadline to 2010 and is double-joined to SB 107. The bill is current on the Senate Third Reading File. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 8/15/05) The Schwarzenegger Administration (source) Public Utilities Commission Southern California Edison The Utility Reform Network Department of Finance ASSEMBLY FLOOR : AYES: Aghazarian, Arambula, Baca, Benoit, Berg, Bermudez, Blakeslee, Bogh, Calderon, Canciamilla, Chan, Chavez, Chu, Cogdill, Cohn, Coto, Daucher, De La Torre, DeVore, Dymally, Emmerson, Evans, Frommer, Garcia, Goldberg, Hancock, Harman, Haynes, Jerome Horton, Shirley Horton, Houston, Huff, Jones, Karnette, Keene, Klehs, Koretz, La Malfa, Laird, Leno, Leslie, Levine, Lieber, Liu, Matthews, Maze, McCarthy, Montanez, Mountjoy, Mullin, Nakanishi, Nation, Nava, Negrete McLeod, Niello, Oropeza, Parra, Pavley, Plescia, Richman, Ridley-Thomas, Sharon Runner, Ruskin, Saldana, Salinas, Spitzer, Strickland, Torrico, Tran, Umberg, Vargas, Villines, Walters, Wolk, Wyland, Yee, Nunez NOES: La Suer NO VOTE RECORDED: Bass, Gordon NC:cm 8/17/05 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE AB 1585 Page 4 **** END ****