California Assembly Bill AB177 Amended / Bill

 BILL NUMBER: AB 177AMENDED BILL TEXT AMENDED IN ASSEMBLY MARCH 21, 2013 INTRODUCED BY Assembly Members V. Manuel Prez and Bradford JANUARY 24, 2013 An act to  amend Sections 345.5 and 454.55 of, and to  add Section 399.23 to  ,  the Public Utilities Code, relating to renewable  energy.   energy resources.  LEGISLATIVE COUNSEL'S DIGEST AB 177, as amended, V. Manuel Prez. Renewable  energy.   resources.  Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations, as defined. The Public Utilities Act requires the PUC, in consultation with the Independent System Operator  (ISO)  , to establish resource adequacy requirements for all load-serving entities, as defined, in accordance with specified objectives. The definition of a "load-serving entity" includes an electrical corporation. That law further requires each load-serving entity to maintain physical generating capacity adequate to meet its load requirements, including peak demand and planning and operating reserves, deliverable to locations and at times as may be necessary to provide reliable electric service. The California Renewables Portfolio Standard Program  (RPS program)   , also known as the RPS program,  requires a retail seller of electricity, as defined, and local publicly owned electric utilities to purchase specified minimum quantities of electricity products from eligible renewable energy resources, as defined, for specified compliance periods, sufficient to ensure that the procurement of electricity products from eligible renewable energy resources achieves 20% of retail sales for the period January 1, 2011, to December 31, 2013, inclusive, 25% of retail sales by December 31, 2016, and 33% of retail sales by December 31, 2020, and in all subsequent years. The RPS program, consistent with the goals of procuring the least-cost and best-fit eligible renewable energy resources that meet project viability principles, requires that all retail sellers procure a balanced portfolio of electricity products from eligible renewable energy resources, as specified (portfolio content requirements). The RPS program requires the PUC to direct each electrical corporation, which are included within the definition of a retail seller, to annually prepare a renewable energy procurement plan containing specified matter and an annual compliance report. The RPS program requires the PUC to adopt, by rulemaking, a process that provides criteria for the rank ordering and selection of least-cost and best-fit eligible renewable energy resources by electrical corporations to comply with the RPS program procurement obligations, on a total cost basis, that take specified matter into account. This bill would state the policy of the state to require all retail sellers of electricity, including  investor   investor   -owned electrical corporations  and  local  publicly owned  electric  utilities, to procure  new   all available  demand-side and clean  , eligible renewable  energy  generation   resources  to achieve  reductions in the emissions of  greenhouse  gas emissions reduction,   gases and the state's  resource adequacy  , and renewable  goals simultaneously  ,  in the most cost-effective manner practicable.  The Public Utilities Act requires the PUC to review and adopt a procurement plan for each electrical corporation in accordance with specified elements, incentive mechanisms, and objectives. The act requires that an electrical corporation's proposed procurement plan include certain elements, including a showing that the electrical corporation will first meet its unmet needs through all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible. The act requires the PUC, in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission), to identify all potentially achievable cost-effective electricity efficiency savings and to establish efficiency targets for electrical corporations to achieve pursuant to their procurement plan.   This bill would require the PUC, in consultation with the Energy Commission, to identify all potentially achievable cost-effective electricity efficiency savings, demand response resources, and eligible renewable energy resources and establish procurement targets to be met by an electrical corporation to achieve pursuant to its procurement plan, over-and-above any separate procurement targets or mandates for these resources established in the Public Utilities Code or by PUC action.  Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the provisions of this bill are within the act, a violation of above requirement would impose a state-mandated local program by expanding the definition of a crime. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION   1.   Section 345.5 of the     Public Utilities Code   is amended to read:  345.5. (a) The Independent System Operator, as a nonprofit, public benefit corporation, shall conduct its operations consistent with applicable state and federal laws and consistent with the interests of the people of the state. (b) To ensure the reliability of electric service and the health and safety of the public, the Independent System Operator shall manage the transmission grid and related energy markets in a manner that is consistent with all of the following: (1) Making the most efficient use of available energy resources. For purposes of this section, "available energy resources" include energy, capacity, ancillary services, and demand bid into markets administered by the Independent System Operator. "Available energy resources" do not include a schedule submitted to the Independent System Operator by an electrical corporation or a local publicly owned electric utility to meet its own customer load. (2) Reducing, to the extent possible, overall economic cost to the state's consumers. (3) Applicable state law intended to protect the public's health and the environment. (4) Maximizing availability of existing electric generation resources  , including all available demand side and clean, eligible renewable energy resources  necessary to meet the needs of the state's electricity consumers. (5) Conducting internal operations in a manner that minimizes cost impact on ratepayers to the extent practicable and consistent with the provisions of this chapter. (6) Communicating with all balancing area authorities in California in a manner that supports electrical reliability. (c) The Independent System Operator shall do all of the following: (1) Consult and coordinate with appropriate state and local agencies to ensure that the Independent System Operator operates in furtherance of state law regarding consumer and environmental protection. (2) Ensure that the purposes and functions of the Independent System Operator are consistent with the purposes and functions of nonprofit, public benefit corporations in the state, including duties of care and conflict-of-interest standards for officers and directors of a corporation. (3) Maintain open meeting standards and meeting notice requirements consistent with the general policies of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) and affording the public the greatest possible access, consistent with other duties of the corporation. The Independent System Operator' s Open Meeting Policy, as adopted on April 23, 1998, and in effect as of May 1, 2002, meets the requirements of this paragraph. The Independent System Operator shall maintain a policy that is no less consistent with the Bagley-Keene Open Meeting Act than its policy in effect as of May 1, 2002. (4) Provide public access to corporate records consistent with the general policies of the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and affording the public the greatest possible access, consistent with the other duties of the corporation. The Independent System Operator's Information Availability Policy, as adopted on October 22, 1998, and in effect as of May 1, 2002, meets the requirements of this paragraph. The Independent System Operator shall maintain a policy that is no less consistent with the California Public Records Act than its policy in effect as of May 1, 2002.  SECTION 1.   SEC. 2.  Section 399.23 is added to the Public Utilities Code, to read: 399.23. (a) The Legislature finds and declares all of the following: (1) There is increasing uncertainty with regard to the availability of California's fleet of older powerplants, creating the need for increased reduction in demand for electricity through energy efficiency, demand response, and adding new sources of clean energy generation. (2) It is in the best interest of the electricity consumers of this state that sufficient clean energy generation supply and demand-side resources are procured to meet electricity demand that provide the highest value, including providing safe, reliable, and affordable electricity supplies and minimizing air quality impacts to consumers in the most cost-effective manner practicable. (3) Clean energy generation with flexible delivery characteristics are essential to maintaining reliable electricity deliveries. (4) There are substantial high-quality renewable resources in the County of Imperial near the Salton Sea, which can help provide cost-effective renewable resources that can reduce greenhouse gas emissions while simultaneously contributing to resources adequacy and reliability needs and providing significant local and regional environmental and economic development benefits. (b)  Notwithstanding other laws,   Without   limitation imposed by any existing procurement targets or requirements, and consistent with the loading order adopted by the Energy Commission and the commission which sets forth state policy for preferred resources to meet electrical load needs,  it is the intent of the  Legislature   Legislature,  and the policy of the  state   state,  that all retail sellers of electricity, including  investor   investor   -owned   electrical corporations  and  local  publicly owned  electric  utilities, shall procure  new   all available  demand side and  clean  clean, eligible renewable  energy  generation  resources to achieve  reductions in the emissions of  greenhouse  gas reduction,   gases and the state' s  resource adequacy  , and renewable  goals  simultaneously   simultaneously,  in the most cost-effective manner practicable.  SEC. 3.   Section 454.55 of the   Public Utilities Code   is amended to read:  454.55.  The   In furtherance of the loading order adopted by the Energy Commission and the commission that sets forth state policy for preferred resources to meet long-term electrical load needs pursuant to Section 454.5, the  commission, in consultation with the  State  Energy  Resources Conservation and Development  Commission, shall identify all potentially achievable cost-effective electricity efficiency savings  ,   demand response resources, and eligible renewable energy resources  and establish  efficiency   procurement  targets  for   to be met by  an electrical corporation  to achieve pursuant to Section 454.5   pursuant to this section, over-and-above any separate procurement targets or mandates for these resources established in this code or by commission action  .  SEC. 2.   SEC. 4.  No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.