BILL NUMBER: AB 1406AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 16, 2013 INTRODUCED BY Committee on Utilities and Commerce (Bradford (Chair), Bonilla, Fong, Garcia, Quirk, Rendon, Skinner, and Williams) MARCH 13, 2013 An act to repeal Section 25741.5 of the Public Resources Code and to amend Section 399.11 of the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGEST AB 1406, as amended, Committee on Utilities and Commerce. Energy: renewable energy resources. Existing law establishes the California Renewables Portfolio Standard Program, which requires the Public Utilities Commission to implement annual procurement targets for the procurement of eligible renewable energy resources, as defined, for all retail sellers, as defined, to achieve the targets and goals of the program. Existing law makes various legislative findings including, among other findings, a finding that the program is intended to complement the Renewable Energy Resources Program administered by the State Energy Resources Conservation and Development Commission. This bill wouldmake a technical, nonsubstantive change to the program's legislative findings and declarationsrepeal the above specified legislative finding . Existing law requires the State Energy Resources Conservation and Development Commission, by June 30, 2011, to study and provide to the Legislature a report that analyzes run-of-river hydroelectric generation facilities in British Columbia. Existing law repeals this provision on January 1, 2015. This bill would repeal the above provision on January 1, 2014. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 25741.5 of the Public Resources Code is repealed.25741.5. (a) By June 30, 2011, after providing public notice and an opportunity for public comment, including holding at least one public workshop, and following consultation with interested governmental entities, the commission shall study and provide a report to the Legislature that analyzes run-of-river hydroelectric generating facilities in British Columbia, including whether these facilities are, or should be, included as renewable electrical generation facilities pursuant to Section 25741 or eligible renewable energy resources pursuant to Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code. (b) By completing the study and making recommendations, the commission shall consider the effect that inclusion would have upon all of the following: (1) Emissions of carbon dioxide and other greenhouse gases. (2) Emissions of air pollutants. (3) Water quality, recreation, and fisheries. (4) Any other environmental impact caused by run-of-river hydroelectric generating facilities. (c) The report submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code. (d) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2015.SECTION 1.SEC. 2. Section 399.11 of the Public Utilities Code is amended to read: 399.11. The Legislature finds and declares all of the following: (a) To attain a target of generating 20 percent of total retail sales of electricity in California from eligible renewable energy resources by December 31, 2013, and 33 percent by December 31, 2020, it is the intent of the Legislature that the commission and the Energy Commission implement the California Renewables Portfolio Standard Program described in this article. (b) Achieving the renewables portfolio standard through the procurement of various electricity products from eligible renewable energy resources is intended to provide unique benefits to California, including all of the following, each of which independently justifies the program: (1) Displacing fossil fuel consumption within the state. (2) Adding new electrical generating facilities in the transmission network within the Western Electricity Coordinating Council service area. (3) Reducing air pollution in the state. (4) Meeting the state's climate change goals by reducing emissions of greenhouse gases associated with electrical generation. (5) Promoting stable retail rates for electric service. (6) Meeting the state's need for a diversified and balanced energy generation portfolio. (7) Assistance with meeting the state's resource adequacy requirements. (8) Contributing to the safe and reliable operation of the electrical grid, including providing predictable electrical supply, voltage support, lower line losses, and congestion relief. (9) Implementing the state's transmission and land use planning activities related to development of eligible renewable energy resources.(c) The California Renewables Portfolio Standard Program is intended to complement the Renewable Energy Resources Program administered by the Energy Commission and established pursuant to Chapter 8.6 (commencing with Section 25740) of Division 15 of the Public Resources Code.(d)(c) New and modified electric transmission facilities may be necessary to facilitate the state achieving its renewables portfolio standard targets.(e)(d) (1) Supplying electricity to California end-use customers that is generated by eligible renewable energy resources is necessary to improve California's air quality and public health, and the commission shall ensure rates are just and reasonable, and are not significantly affected by the procurement requirements of this article. This electricity may be generated anywhere in the interconnected grid that includes many states, and areas of both Canada and Mexico. (2) This article requires generating resources located outside of California that are able to supply that electricity to California end-use customers to be treated identically to generating resources located within the state, without discrimination. (3) California electrical corporations have already executed, and the commission has approved, power purchase agreements with eligible renewable energy resources located outside of California that will supply electricity to California end-use customers. These resources will fully count toward meeting the renewables portfolio standard procurement requirements. In addition, there are nearly 7,000 megawatts of additional proposed renewable energy resources located outside of California that are awaiting interconnection approval from the Independent System Operator. All of these resources, if procured, will count as eligible renewable energy resources that satisfy the portfolio content requirements of paragraph (1) of subdivision (c) of Section 399.16.