California Renewables Portfolio Standard Program: portfolio content: unbundled renewable energy credits.
The introduction of AB 2547 is likely to have significant implications for California's energy market. By bolstering the requirements for retail sellers to acquire their renewable energy from direct sources, the bill is designed to foster greater investment in in-state renewable energy generation. This is anticipated to resonate positively in terms of creating jobs in renewable sectors, particularly in disadvantaged communities. Proponents argue that this will not only lead to more reliable renewable energy supply but also contribute to deeper greenhouse gas reductions as the state continues to combat climate change. Moreover, the elimination of reliance on unbundled RECs is expected to ensure that claimed emissions reductions are based on actual energy generation rather than on purchasing compliance credits.
Assembly Bill 2547, introduced by Assembly Member Gonzalez, aims to amend the California Renewables Portfolio Standard (RPS) Program. Its primary objective is to enhance the procurement obligations of retail sellers, which include electrical corporations and electric service providers. Specifically, the bill proposes to increase the requirement for category 1 products, which refers to renewable energy sourced directly from California-based generating facilities, from 75% to 85% for compliance periods starting after December 31, 2020. Meanwhile, it seeks to restrict the purchase of category 3 products, such as unbundled renewable energy credits, effectively prohibiting their use for compliance during the same periods. This change reflects a policy shift toward emphasizing actual renewable generation over mere compliance instruments.
Opponents of AB 2547 may raise concerns regarding the feasibility and economic implications of the stricter procurement requirements. Critics might argue that the move to eliminate unbundled renewable energy credits could disadvantage smaller entities and restrict their compliance options, potentially leading to higher costs for consumers. Additionally, there could be apprehensions about the implications for the stability and affordability of energy supply, especially for regions heavily dependent on unbundled RECs as part of their compliance strategy. The bill may provoke debate over the balance between fostering local renewable energy production and maintaining competitive energy prices for consumers.