BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1585
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1585 (Blakeslee)
          As Amended August 15, 2005
          Majority vote
           
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          |ASSEMBLY:  |77-1 |(May 23, 2005)  |SENATE: |36-4 |(August 23,    |
          |           |     |                |        |     |2005)          |
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           Original Committee Reference:   U. & C.  

           SUMMARY  :  Requires the California Energy Commission (CEC) to  
          review the feasibility of increasing the renewable portfolio  
          standard (RPS) target to 33% by 2017.

           The Senate amendments  provide that the: 

          1)Review should be conducted as part of assessments CEC is  
            required to make as part of 2007 the Integrated Energy Policy  
            Report.

          2)Bill will only becomes operative if SB 107 (Simitian), pending  
            in the Assembly, is enacted by January 1, 2006.

             
           AS PASSED BY THE ASSEMBLY  , this bill required CEC to conduct the  
          review as a separate study and to report the results of this  
          review to the Legislature and the Governor by July 1, 2007.

           FISCAL EFFECT  :  Minor absorbable costs to CEC, which indicates  
          it is already conducting such an evaluation. 
             
           COMMENTS  :  SB 1078 (Sher), Chapter 516, Statutes of 2002,  
          creates California's RPS, under which the investor owned  
          utilities are required to increase their renewable procurement  
          each year by at least 1% of total sales, so that 20% of their  
          sales are from renewable energy sources by December 31, 2017.   
          Once a 20% portfolio is achieved, no further increase is  
          required.  The Energy Action Plan adopted by the Public  
          Utilities Commission, CEC and the state Power Authority pledges  
          that the agencies will accelerate RPS implementation to meet the  
          20% goal by 2010, instead of 2017.  In the 2004 update to its  
          Integrated Energy Policy Report, CEC recommended further  
          advancing the state's commitment to renewable resources by  








                                                                  AB 1585
                                                                  Page  2

          requiring retail sellers of electricity to achieve a 33% RPS by  
          2017.  This bill addresses this recommendation by requiring CEC  
          to further study the feasibility of mandating that goal.  

           
          Analysis Prepared by  :    Edward Randolph / U. & C. / (916)  
          319-2083 


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