BILL ANALYSIS Ó
SB 919
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SENATE THIRD READING
SB
919 (Hertzberg)
As Amended August 1, 2016
Majority vote
SENATE VOTE: 35-0
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Utilities |15-0 |Gatto, Patterson, | |
| | |Burke, Chávez, Dahle, | |
| | |Eggman, Cristina | |
| | |Garcia, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Hadley, | |
| | | | |
| | | | |
| | |Roger Hernández, | |
| | |Obernolte, Quirk, | |
| | |Santiago, Ting, | |
| | |Williams | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Water |15-0 |Levine, Gallagher, | |
SB 919
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| | |Bigelow, Dodd, | |
| | |Eggman, Cristina | |
| | |Garcia, Eduardo | |
| | |Garcia, Gomez, | |
| | |Harper, Lopez, | |
| | |Mathis, Nazarian, | |
| | |Olsen, Salas, | |
| | |Williams | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |20-0 |Gonzalez, Bigelow, | |
| | |Bloom, Bonilla, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, Eggman, | |
| | |Gallagher, Eduardo | |
| | |Garcia, Holden, | |
| | |Jones, Obernolte, | |
| | |Quirk, Santiago, | |
| | |Wagner, Weber, Wood, | |
| | |Chau | |
| | | | |
| | | | |
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SUMMARY: Requires the California Public Utilities Commission
(CPUC), in consultation with the California Independent System
Operator (CAISO), to address, by January 1, 2018, the oversupply
of renewable energy resources through the development of a
tariff or other economic incentive for the electricity purchased
by customers operating facilities that create or augment local
water supplies.
This bill defines "facilities that create or augment local water
supplies" to include desalination, brackish water desalting,
water recycling, water reuse, stormwater and dry weather runoff
capture and use, and groundwater recharge facilities.
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FISCAL EFFECT: According to the Assembly Appropriations
Committee, according to the CPUC, the requirements of this bill
can be addressed through existing proceedings including the Long
Term Procurement Planning, the Water-Energy Nexus Order
Instituting Rulemaking, and the Time-of-Use Order Instituting
Rulemaking. However, the deadline in this bill may require
staff to shift from working on long term over-supply mitigation
to focusing on meeting the requirements of the bill.
COMMENTS:
1)Rationale: Scientists predict California's changing climate
will increase the frequency, length, and severity of future
droughts. The solution will require new sustainable, local
water supplies, such as water recycling, ocean desalination,
stormwater capture, and brackish desalting (i.e., cleaning up
water that is too salty to drink, but not as salty as
seawater).
Due to California's successful renewable energy programs,
regulators have identified an "oversupply" of power during the
day. The result is low (or negative) wholesale prices for
renewable energy, a trend that is increasing in frequency but
is not reflected in retail prices. Oversupply increases costs
to ratepayers and represents a failure of the regulatory
system to send proper price signals.
According to the author, there is a solution to this mismatch
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in demand for power at water facilities in the daytime and the
cost of electricity. This bill encourages the development and
diversification of local water supplies by directing renewable
energy 'oversupply' to those water suppliers.
2)Renewable Energy Oversupply: In 2013, the CAISO published the
"duck chart," which shows a significant drop in mid-day net
load on a spring day as solar photovoltaics are added to the
state's electric grid. The chart raised concerns that the
state's electric grid will not be able to maintain
reliability, particularly on days characterized by the duck
shape. This could result in "overgeneration" and curtailed
renewable energy, increasing its costs and reducing its
environmental benefits.
This bill provides for the use of such mechanisms as
time-of-use rates, demand response, or dynamic pricing, to
help create demand for electricity at times when it would be
helpful for electric grid management.
Analysis Prepared by:
Sue Kateley / U. & C. / (916) 319-2083 FN:
0003903
SB 919
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