Electricity: procurement plans: integrated resource plans.
The implementation of AB920 would result in significant changes to the operations of local publicly owned electric utilities, especially those with an annual electrical demand that exceeds 700 gigawatt-hours. The bill mandates that these utilities adopt and periodically update integrated resource plans (IRPs) that align with state energy policies. This impacts how these entities plan for and procure renewable energy, compelling them to show compliance with emissions reduction targets and ensuring that at least 50% of their resources are eligible renewable energy sources by 2030. The bill also requires utilities to assess the benefits of renewable baseload generation and decide whether to procure such capacity.
AB920, introduced by Assembly Member Aguiar-Curry, seeks to amend sections of the Public Utilities Code concerning electricity procurement plans, particularly focusing on the formulation of integrated resource plans. The bill is aimed at ensuring that public utilities incorporate a diverse and balanced portfolio of energy resources. This includes peaking, dispatchable, baseload, and firm capacities, all crucial for achieving reliable electricity supply and optimal integration of renewable energy sources while addressing greenhouse gas emissions in line with California's environmental targets.
The sentiment surrounding AB920 appears to be one of cautious support, particularly among environmental advocates who see value in promoting renewable energy sources and reducing greenhouse gas emissions. However, there are concerns from local utility operators and some legislators regarding the additional regulatory burdens imposed by the bill, arguing that it may limit local autonomy and flexibility in energy procurement. Such tension highlights a broader debate within the state over balancing regulatory oversight with the specific needs and capacities of local energy agencies.
A notable point of contention within the discussions of AB920 is the imposition of state-mandated local programs which some stakeholders believe could create financial burdens for local utilities without adequate state reimbursement. The California Constitution mandates the state to reimburse local agencies for certain costs, but AB920 stipulates that no reimbursement is required for these new mandates, which may lead to operational challenges for local utilities in fulfilling these requirements. This aspect of the bill indicates a potential friction between state energy policy aims and local operational capabilities.