BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1585|
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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  
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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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