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AB-1733 California Renewables Portfolio Standard Program: clean energy credits.(2019-2020)

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Date Published: 03/25/2019 09:00 PM
AB1733:v98#DOCUMENT

Amended  IN  Assembly  March 25, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1733


Introduced by Assembly Member Salas

February 22, 2019


An act to amend Section 399.25 of, and add Section 399.23 to, the Public Utilities Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1733, as amended, Salas. California Renewables Portfolio Standard Program. Program: clean energy credits.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards. The California Renewables Portfolio Standard Program requires the Public Utilities Commission to establish a renewables portfolio standard requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, so that the total kilowatthours of those products sold to their retail end-use customers achieves 25% of retail sales by December 31, 2016, 33% by December 31, 2020, 44% by December 31, 2024, 52% by December 31, 2027, and 60% by December 31, 2030. The program additionally requires each local publicly owned electric utility to procure a minimum quantity of electricity products from eligible renewable energy resources to achieve the procurement requirements established by the program.

This bill would state the intent of the Legislature to enact legislation that relates to the California Renewables Portfolio Standard Program.

Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to (1) certify eligible renewable energy resources, (2) design and implement an accounting system to verify compliance with the renewables portfolio standard by retail sellers, (3) establish a system for tracking and verifying renewable energy credits that, through the use of independently audited data, verifies the generation and delivery of electricity associated with each credit and protects against multiple counting of the same credit, and (4) certify the eligibility of credits associated with deliveries of electricity to a local publicly owned electric utility.
This bill would authorize a source of electrical generation that is not an eligible renewable energy resource to apply to the State Air Resources Board for certification to receive clean energy credits and would require the state board to certify a source of electrical generation to receive clean energy credits if (1) the source is located within an area that is classified as being in nonattainment of state or federal ambient air quality standards and (2) encouraging generation of electricity from the source provides health benefits within the area and contributes to the safe and reliable operation of the electrical grid. The bill would authorize a clean energy credit to be sold and used to meet the requirements of the California Renewables Portfolio Standard Program in place of a renewable energy credit. The bill would require the Energy Commission to establish a system for tracking and verifying renewable energy credits and clean energy credits that, through the use of independently audited data, verifies the generation and delivery of electricity associated with each renewable energy credit and clean energy credit and protects against multiple counting of the same renewable energy credit or clean energy credit.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 399.23 is added to the Public Utilities Code, to read:

399.23.
 (a) A source of electrical generation that is not an eligible renewable energy resource may apply to the State Air Resources Board for certification to receive clean energy credits. The state board shall certify a source of electrical generation to receive clean energy credits if both of the following are true:
(1) The source of electrical generation is located within an area that is classified as being in nonattainment of state or federal ambient air quality standards.
(2) Encouraging generation of electricity from the source provides health benefits within the area and contributes to the safe and reliable operation of the electrical grid.
(b) The State Air Resources Board may consult with the commission, Energy Commission, and Independent System Operator in determining whether encouraging generation of electricity from the source contributes to the safe and reliable operation of the electrical grid.
(c) A clean energy credit may be sold and may be used to meet the requirements of this article in place of a renewable energy credit.
(d) It is the intent of the Legislature to incentivize clean renewable generation in nonattainment areas, although that generation does not meet the criteria to be “eligible” pursuant to this article, where doing so will assist in achieving cleaner air.

SEC. 2.

 Section 399.25 of the Public Utilities Code is amended to read:

399.25.
 The Energy Commission shall do all of the following:
(a) Certify eligible renewable energy resources that it determines meet the criteria described in subdivision (e) of Section 399.12.
(b) Design and implement an accounting system to verify compliance with the renewables portfolio standard by retail sellers and local publicly owned electric utilities, to ensure that electricity generated by an eligible renewable energy resource is counted only once for the purpose of meeting the renewables portfolio standard of this state or any other state, to certify renewable energy credits produced by eligible renewable energy resources, and to verify retail product claims in this state or any other state. In establishing the guidelines governing this accounting system, the Energy Commission shall collect data from electricity market participants that it deems necessary to verify compliance of retail sellers and local publicly owned electric utilities, in accordance with the requirements of this article and the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code). In seeking data from electrical corporations, the Energy Commission shall request data from the commission. The commission shall collect data from electrical corporations and remit the data to the Energy Commission within 90 days of the request.
(c) Establish a system for tracking and verifying renewable energy credits and clean energy credits that, through the use of independently audited data, verifies the generation of electricity associated with each renewable energy credit or clean energy credit and protects against multiple counting of the same renewable energy credit or clean energy credit. The Energy Commission shall consult with other western states and with the WECC in the development of this system.
(d) Certify, for purposes of compliance with the renewables portfolio standard requirements by a retail seller, the eligibility of renewable energy credits associated with eligible renewable energy resources procured by a local publicly owned electric utility, if the Energy Commission determines that all of the conditions of Section 399.31 have been met.

SECTION 1.

It is the intent of the Legislature to enact legislation that relates to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code).