BILL ANALYSIS
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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
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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,
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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
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