California Renewables Portfolio Standard Program: local publicly owned electric utilities: adjustment of procurement requirements.
Impact
The impact of SB 1358 introduces stricter regulations for local publicly owned electric utilities regarding their ability to adjust energy procurement strategies. It delineates criteria under which these utilities can alter their compliance with renewable energy standards, which must be approved by the Energy Commission. This adjustment framework is aimed at utilities experiencing challenges in meeting operational capacity while ensuring they still adhere to the increasing renewable energy standards mandated for the state of California.
Summary
Senate Bill 1358 amends Section 399.33 of the Public Utilities Code to refine the California Renewables Portfolio Standard Program. This program governs the minimum procurement requirements for local publicly owned electric utilities (LPEUs), which are now specifically subjected to conditions based on their customer base and the operational capacity of their gas-fired powerplants. The bill permits these utilities, having 10,000 or more customers, to adjust their renewable energy procurement targets if they operate below a defined capacity, provided they meet certain conditions set forth by the Energy Commission.
Contention
Notable points of contention surrounding SB 1358 involve the potential implications for local autonomy in energy management, particularly regarding how local governments and utilities navigate the state's regulatory environment. Proponents of the bill argue that these adjustments are necessary to adapt to immediate operational realities, while critics may see this as a reduction in local control and flexibility, potentially undermining efforts to promote renewable energy developments in a way that is responsive to local conditions and needs. Additionally, there could be concerns about economic impacts for communities reliant on the employment provided by utility operations.