BILL ANALYSIS
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THIRD READING
Bill No: SB 107
Author: Simitian (D)
Amended: 5/4/05
Vote: 21
SEN. ENERGY, UTIL. & COMMUNICATIONS COMM. : 7-3, 4/26/05
AYES: Escutia, Alarcon, Bowen, Dunn, Kehoe, Murray,
Simitian
NOES: Morrow, Battin, Cox
NO VOTE RECORDED: Campbell
SENATE APPROPRIATIONS COMMITTEE : 8-5, 5/26/05
AYES: Migden, Alarcon, Alquist, Escutia, Florez, Murray,
Ortiz, Romero
NOES: Aanestad, Ashburn, Battin, Dutton, Poochigian
SUBJECT : Renewable energy
SOURCE : Author
DIGEST : This bill accelerates the Renewables Portfolio
Standard (RPS) requirement from 2017 to 2010. The RPS is a
program that requires investor-owned utilities to, among
other things, achieve a 20 percent renewable electricity
portfolio. The bill also makes other several other
changes.
ANALYSIS : Current law establishes the RPS program,
administered by the Public Utilities Commission (PUC),
which requires investor-owned utilities (IOUs) to, among
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other things, achieve a 20 percent renewable electricity
portfolio by 2017. The Energy Action Plan, adopted by the
state's energy agencies, proposes to accelerate the RPS 20
percent goal to 2010.
This bill accelerates the deadline to 2010. It also
requires the California Energy Commission (CEC) to review
the feasibility of increasing the RSP target to 33 percent
by 2020.
Under current law, local publicly-owned electric utilities
are not subject to the same RPS standards and process as
the IOUs, but are required to implement and enforce their
own RPS programs.
The bill requires the CEC to, using existing resources,
recommend ways to encourage local publicly-owned electric
utilities to implement RPS programs that meet certain
criteria.
Under existing law, IOUs must purchase renewable
electricity from eligible resources in order to satisfy
their RPS obligations (they may not purchase unbundled
renewable energy credits to meet their obligations).
This bill requires the CEC to establish a system for
tracking renewable energy credits. This generally codifies
current practice.
Current law also establishes the public goods charge (PGC),
which is a surcharge imposed on electricity bills to fund
various programs, including the Renewable Energy Program
(REP). $135 million is located annually, of which 10
percent, or $13.5 million, is required to be used for
credits to customers that entered into a direct
transaction, by a specified date, for the purchase of
renewable energy. In 2003, the CEC suspended the customer
credits program and reallocated the funds to other
programs.
This bill repeals the direct access customer credits
program.
The bill also makes a number of other changes.
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Related Legislation
AB 1362 (Levine), pending in the Assembly, permits
unlimited renewable energy credit trading for RPS
compliance.
AB 1585 (Blakeslee), pending in the Assembly, requires the
CEC to study the feasibility of attaining a 33 percent RPS
standard.
Prior Legislation
SB 1478 (Sher) -- 2003-04 Session) . Similar to this bill
and was vetoed by Governor Schwarzenegger. In his veto
message, the Governor stated, among other things, that he
appreciated the effort to attempt to codify his goal of
accelerating the renewable energy portfolio standard;
however, the bill contained an onerous provision related to
energy credit trading. This bill does not limit the number
of energy credit trades.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
Fiscal Impact (in thousands)
Major Provisions 2005-06 2006-07
2007-08 Fund
PUC $ 279 $
558 $ 558 Special*
Costs should be
offset by fee revenues.
CEC $ 42 $
84 $ 84 Special**
*Public Utilities' Reimbursement Account
**Energy Resources Programs Account
SUPPORT : (Verified 5/26/05)
Clean Power Campaign
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East Bay Municipal Utility District
Independent Energy Producers
Sierra Club California
The Utility Reform Network
Union of Concerned Scientists
OPPOSITION : (Verified 5/26/05)
California Council for Environmental and Economic Balance
Calpine
Constellation New Energy
Pacific Gas and Electric Company
Sempra Energy
Southern California Edison
NC:cm 5/28/05 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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