Existing law relative to electrical restructuring, within the Public Utilities Act, establishes the Independent System Operator to ensure the efficient use and reliable operation of the electric transmission grid. The California Renewables Portfolio Standard Program requires the Public Utilities Commission (PUC) 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 sold to their retail end-use customers achieves 25% of retail sales by December 31, 2016, 33% by December 31, 2020, 40% by December 31, 2024, 45% by December 31, 2027, and 50% by December 31, 2030. The program additionally requires each local publicly owned electric utility, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources to achieve the procurement requirements established by the program. The Renewable Energy Transmission Initiative is a statewide initiative to help identify transmission projects to accommodate the states renewable energy goals.

Existing law, law relative to electrical restructuring, within the Public Utilities Act, establishes the Independent System Operator to ensure the efficient use and reliable operation of the electric transmission grid. The Clean Energy and Pollution Reduction Act of 2015 establishes a target of 50% for the amount of electricity generated and sold to retail customers per year from eligible renewable energy resources, to be achieved by December 31, 2030. The California Renewables Portfolio Standard Program requires the Public Utilities Commission (PUC) 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 sold to their retail end-use customers achieves 25% of retail sales by December 31, 2016, 33% by December 31, 2020, 40% by December 31, 2024, 45% by December 31, 2027, and 50% by December 31, 2030. The program additionally requires each local publicly owned electric utility, as defined, 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 require the Public Utilities Commission PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to evaluate, while taking into consideration ratepayer costs and benefits, potential eligible renewable energy resource projects in the San Joaquin Valley, as specified, and, Valley that provide specified benefits or attributes. The bill would require the PUC and the Energy Commission, on or before January 31, 2017, using that evaluation, to recommend to the Independent System Operator an amount of renewable energy production electricity to be generated from eligible renewable energy resources in the San Joaquin Valley that reasonably maximizes, consistent with the states overall need for renewable energy, electricity and the California Renewables Portfolio Standard Program, the amount of renewable energy produced in the San Joaquin Valley. electricity to be generated from eligible renewable energy resources that accomplishes specified objectives. The bill would require the PUC and the Energy Commission, on or before January 31, 2017, using the results of the evaluation, to recommend to the Independent System Operator any network transmission upgrades needed to fulfill the above-described generation quantity recommendations and would require that the transmission upgrade recommendations seek to minimize the need for new transmission by prioritizing the use of existing transmission corridors consistent with specified principles developed by the Energy Commission.

Existing law, the Public Utilities Act, establishes the Independent System Operator to ensure the efficient use and reliable operation of the electric transmission grid. The Clean Energy and Pollution Reduction Act of 2015 establishes a target of 50% for the amount of electricity generated and sold to retail customers per year from eligible renewable energy resources, to be achieved by December 31, 2030.

This bill would require the Public Utilities Commission and the State Energy Resources Conservation and Development Commission to evaluate evaluate, while taking into consideration ratepayer costs and benefits, potential renewable energy projects on least-conflict lands in the San Joaquin Valley, as specified, and, on or before January 31, 2017, using that evaluation, to recommend to the Independent System Operator an amount of renewable energy production in the San Joaquin Valley that reasonably maximizes, consistent with the states overall need for renewable energy, the use of least-conflict lands as identified by amount of renewable energy produced in the San Joaquin Valley Solar Convening. Valley.

Existing law, the Public Utilities Act, establishes the Independent System Operator to ensure the efficient use and reliable operation of the electric transmission grid. The Clean Energy and Pollution Reduction Act of 2015 establishes a target of 50% for the amount of electricity generated and sold to retail customers per year from eligible renewable energy resources, to be achieved by December 31, 2030.

This bill would require the Public Utilities Commission and the State Energy Resources Conservation and Development Commission to evaluate potential renewable energy projects on least-conflict lands in the San Joaquin Valley, as specified, and, on or before January 31, 2017, using that evaluation, to recommend to the Independent System Operator an amount of renewable energy production in the San Joaquin Valley that reasonably maximizes, consistent with the states overall need for renewable energy, the use of least-conflict lands as identified by the San Joaquin Valley Solar Convening.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 2630 (Salas) - San Joaquin Valley Clean Energy and Jobs Act

This bill does not meet the criteria for referral to the Suspense File.

Bill Summary:

AB 2630 requires consideration of the May 2016 Solar Convening Report, titled “A Path Forward: Identifying Least Conflict Solar PV Development in California’s San Joaquin Valley” (Report) and the principles of transmission corridor planning developed by the California Energy Commission (CEC) (Garamendi Principles) when undertaking transmission planning activities and activities as part of the Renewable Energy Transmission Initiative (RETI).

Fiscal Impact:

• Minor costs to review and consider the report and principles. (See staff comments)

Background:

Solar’s role in meeting renewable energy goals. California is committed to meeting half of its electricity demand by 2030 from renewable sources. In 2015, SB 350 (De Leon, Chapter 547, Statutes of 2015) mandated that 50 percent of the state’s electricity usage come from sources such as solar, wind, geothermal, and biomass. Solar photovoltaic continues to play a large role in helping the state achieve these goals, with a large focus on solar development in the San Joaquin Valley (Valley) due to its abundant sunshine, geographic proximity to demand and existing transmission, and large parcels of developable land.

A Path Forward. In 2015, the Conservation Biology Institute, Berkeley Law’s Center for Law, Energy and the Environment, and Terrell Watt Planning Associates, with input from the Governor’s Office of Planning and Research, undertook a stakeholder-led process, called the “Solar and the San Joaquin Valley Identification of Least-Conflict Lands Project”. The resulting Report, among other things, identified 470,000 acres of least-conflict land, amounting to roughly 5 percent of the 9.5 million acres in the stakeholder study area. Stakeholders also identified the lack of adequate transmission serving the Valley as the single largest challenge to achieving the region’s solar potential in a way that would minimize impact on sensitive lands.

The California Independent System Operator. The California Independent System Operator (CAISO) oversees the operation of California's bulk electric power system, transmission lines, and electricity market generated and transmitted by its member utilities. The CAISO is one of the largest ISOs in the world, delivering 300 million megawatt-hours of electricity each year and managing about 80 percent of California's electric flow. CAISO was created in 1998 when the state restructured its electricity markets following the passage of the federal Energy Policy Act of 1992, which removed barriers to competition in the wholesale generation of the electricity business.

The Garamendi Principles.  Senate Bill 2431 (Garamendi, Chapter 1457, Statutes of 1988) enacted state transmission siting policies, known as the Garamendi Principle, which (1) encourage the use of existing rights-of-way by upgrading existing transmission facilities where technically and economically justifiable; (2) when construction of new transmission lines is required, encourage expansion of existing rights-of-way, when technically and economically feasible; (3) provide for the creation of new rights-of-way when justified by environmental, technical, or economic reasons as determined by the appropriate licensing agency; and (4) where there is a need to construct additional transmission capacity, seek agreement among all interested utilities on the efficient use of that capacity.

The Renewable Energy Transmission Initiative. The RETI was established in 2008 to identify the transmission projects needed to support the renewable generation required to meet the 33 percent target. The RETI assessed the need for new transmission to connect renewable resource areas to California consumers.

To facilitate electric transmission coordination and planning, the CEC, California Public Utilities Commission (CPUC), and the CAISO have initiated the RETI 2.0. RETI 2.0 is an open, transparent, and science-based process that will explore renewable generation resources in California and throughout the West, consider critical land use and environmental constraints, and identify potential transmission opportunities that could access and integrate renewable energy with the most environmental, economic, and community benefits.

RETI 2.0 is not a regulatory proceeding. However, it’s intended to inform future transmission planning proceedings with stakeholder-supported strategies to help reach the state's 2030 energy and environmental goals.

Proposed Law:

This bill:

1. Requires the CAISO, when undertaking transmission planning activities, to consider the Report and Garamendi Principles.
2. Requires the CEC, CPUC, and CAISO, when undertaking activities as part of the RETI transmission planning activities, to consider the Report and the Garamendi Principles.

Staff Comments:

• The author is considering amendments that may incorporate language or intent similar to that in previous versions of the bill. The estimated cost associated with implementation was $200,000 to $500,000.

-- END --

SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS

Senator Ben Hueso, Chair

2015 - 2016 Regular

Bill No: Hearing Date: 6/27/2016

SUBJECT:

DIGEST: This bill requires the California Public Utilities Commission (CPUC) and the California Energy Commission (CEC) to recommend to the California Independent System Operator (CAISO) an amount of electricity to be generated from resources in the San Joaquin Valley and any associated, necessary transmission upgrades.

ANALYSIS:

Existing law:

1. Creates CAISO and charges it with ensuring efficient use and reliable operation of the transmission grid. (Public Utilities Code §345 et seq.)
2. Requires the CEC, at least every two years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. The CEC shall use these assessments and forecasts to develop and evaluate energy policies and programs that conserve resources, protect the environment, ensure energy reliability, enhance the state’s economy, and protect public health and safety. These assessments and forecasts shall be done in consultation with the appropriate state and federal agencies including, but not limited to, the CPUC and CAISO. (Public Resources Code §25301 et seq.)
3. Directs the CEC, in consultation with the CPUC, CAISO, transmission owners, users, and consumers, to adopt a strategic plan for the state’s electric transmission grid using existing resources. The strategic plan shall identify and recommend actions required to implement investments needed to ensure reliability, relieve congestion, and meet future growth in load and generation, including, but not limited to, renewable resources, energy efficiency, and other demand reduction measures. (Public Resources Code §25324)
4. States that no electric utility shall begin the construction of a line without having first obtained from the CPUC a certificate that the present or future public convenience and necessity require or will require such construction. Requires the CPUC, in making a determination on issuance of a certificate, to consider the following:
   1. Community values.
   2. Recreational and park areas.
   3. Historical and aesthetic values.
   4. Influence on the environment.

(Public Utilities Code §§1001 and 1002)

1. Requires electric utilities to procure 50 percent of their retail sales of electricity from renewable energy by 2030. This is known as the Renewable Portfolio Standard (RPS). (Public Utilities Code §399.11 et seq.)
2. Requires each investor-owned utility (IOU) to file with the CPUC, and requires the CPUC to review and accept, modify or reject, each IOU’s proposed electricity procurement plan. Among other elements, the procurement plan must include a showing that it will achieve the IOU procuring eligible renewable energy resources in an amount sufficient to meet its procurement requirements pursuant to the RPS. (Public Utilities Code §454.5)

This bill:

1. Makes numerous findings and declarations about California’s environmental and energy goals, the economic condition of the San Joaquin Valley, and other statements, including:
   1. Unlocking the renewable energy potential of the San Joaquin Valley by providing more equitable investment in a clean energy economy should be a key priority of California policymakers.
   2. Given the proximity to existing transmission corridors, solar projects in the San Joaquin Valley can be developed in a way that minimizes the need for new transmission by prioritizing the use of existing transmission corridors consistent with the principles of transmission corridor planning developed by the CEC pursuant to the “Garamendi Principles.”
   3. As future clean energy investments are planned and implemented, state officials must ensure an appropriate share is targeted to improve environmental quality, expand economic development, contribute to environmental solutions, and create jobs in the San Joaquin Valley.
2. Requires the CPUC and CEC to evaluate potential eligible renewable energy resource projects in the San Joaquin Valley, prioritizing projects that provide the following land-use benefits or attributes:
   1. The economically viable and environmentally beneficial reuse of drainage-impaired agricultural lands.
   2. The retirement of drainage-impaired agricultural land and facilitation of regional agricultural drainage solutions.
   3. The facilitation of surface water supply redirection from drainage-impaired agricultural lands to other productive agricultural land.
3. Requires CPUC and CEC, on or before January 31, 2017, to recommend to CAISO an amount of electricity to be generated from eligible renewable energy resources in the San Joaquin Valley that reasonably maximizes the amount of electricity to be generated from eligible renewable energy resources, consistent with the state’s overall need for electricity and the requirements of this article, and that accomplishes all of the following:
   1. Takes into account the 470,000 acres identified in the Governor’s May 2016 Solar Convening Report, entitled “A Path Forward: Identifying Least-Conflict Solar PV Development in California’s San Joaquin Valley,” along with all other lands in the Central Valley that have entitlements for solar development.
   2. Provides eligible renewable energy resources within the San Joaquin Valley with full capacity deliverability status.
   3. Minimizes the need for new transmission by prioritizing the use of existing transmission corridors consistent with the principles of transmission corridor planning developed by the CEC pursuant to the Garamendi Principles.
4. Requires CPUC and CEC, on or before January 31, 2017, to recommend to CAISO any network transmission upgrades needed to fulfill the recommendations regarding renewable energy development in the San Joaquin Valley. This recommendation shall seek to minimize the need for new transmission by prioritizing the use of existing transmission corridors consistent with the Garamendi Principles.

Background

Demand forecast, identification of need, transmission planning and procurement: an integrated process. The transmission planning processes of the state’s energy agencies – the CEC, CPUC, and CAISO – are independent and complimentary. The CEC biennially develops a 10-year forecast of statewide electricity demand, which it publishes in its Integrated Energy Policy Report (IEPR). The CPUC, through its long-term planning process (LTPP), reviews and approves the procurement plans of the state’s IOUs, which detail the renewable energy resources throughout the state the IOUs will rely on to meet their RPS requirements. The CEC and CPUC, respectively, relay the IEPR and the LTPP portfolios to CAISO, which form key elements of its annual transmission planning process. As a result of that process, CAISO approves new and upgraded electricity transmission required to meet economic need or to achieve the state’s policies, such as the requirements of the RPS. Consistent with its obligation under its authority provided by the Federal Energy Regulatory Commission, CAISO approves only those transmission projects that meet specified energy needs and ensure just and reasonable rates.

Working off CAISO’s approved transmission projects, the state’s IOUs propose construction or upgrades of specific transmission lines. The CPUC, as the state regulator of utility rates, reviews each project proposed by an IOU. In doing so, the CPUC acts as the lead permitting agency and considers the environmental effects of the proposed transmission project and, for a larger transmission project (over 200 kilovolts), the need for the project and its economics. If the CPUC approves an IOU’s transmission project, the IOU may recover the cost of the project from its ratepayers.

Transmission planning: Renewable Energy Transmission Initiative (RETI), set, go.  The CEC, CPUC and CAISO have initiated the RETI 2.0. The stakeholder process is to consider potential renewable energy resources in California and the West, as well as land use and environmental constraints, and identify potential transmission opportunities to access and integrate renewable energy with the most environmental, economic, and community benefits. According to CEC, RETI 2.0 will frame and inform future transmission planning proceedings to help reach the state's energy and environmental goals.

The Garamendi Principals. In 1988, SB 2431 (Garamendi, Chapter 1457, Statutes of 1988) declared it in the best interests of the state to accomplish the following, known as the Garamendi Principles:

• Encourage the use of existing rights‐of‐way by upgrading existing transmission facilities where technically and economically justifiable.
• When construction of new transmission lines is required, encourage expansion of existing rights‐of‐way, when technically and economically feasible.
• Provide for the creation of new rights‐ of‐way when justified by environmental, technical, or economic reasons, as determined by the appropriate licensing agency.
• Where there is a need to construct additional transmission, seek agreement among all interested utilities on the efficient use of that capacity.

Outcome of the San Joaquin Valley Solar Convening – least conflict? In 2015, at the request of the Governor’s Office of Planning and Research (OPR), the Conservation Biology Institute, Berkeley Law’s Center for Law, Energy and the Environment, and Terrell Watt Planning Associates undertook a stakeholder process – known as the San Joaquin Valley Solar Convening – to explore how multiple and diverse parties could quickly (within six months) identify least-conflict lands for solar photovoltaic (PV) development in the San Joaquin Valley. The process brought together four stakeholder groups: (1) environmental conservationists, (2) agricultural farmland conservationists, (3) solar industry representatives, and (4) transmission groups. The goal of the project, as described by project coordinators, was to identify potential areas for solar PV development in the San Joaquin Valley that each stakeholder group viewed as least-conflict.

The results of the project were released in May of this year.^[1] The product is a series of what project coordinators call “least-conflict maps” for each stakeholder group that led to a final composite map.

Project coordinators acknowledge that stakeholder groups each approached the exercise with diverse methods and outputs. They described the effort as a “non-binding, non-regulatory planning effort.” Some stakeholder participants – notably, those representing solar interests – remark that the project results were a “snapshot in time,” represent “combined but not consensus results,” and, “most importantly, it did not arrive at a true conclusion regarding which lands in the San Joaquin Valley are least conflict.”

Process confused, but the outcome is clear. As described above, much of the work of the state’s energy agencies – the CEC, the CPUC, and CAISO – are independent and complimentary. The CEC forecasts demand; the CPUC approves the IOUs’ portfolios of renewable energy projects; CAISO, relying on the work of the CEC and CPUC, approves transmission projects that are economic and needed; the CPUC approves proposals by IOUs for specific transmission line construction or upgrade that is consistent with CAISO transmission project approval. This bill confuses and conflates these agencies’ roles in transmission planning.

First, this bill directs the CEC and CPUC to evaluate potential eligible renewable energy resource projects in the San Joaquin Valley according to specific land-use related criteria. This bill then requires the agencies, using the results of their evaluation, to recommend to CAISO (a) an amount of renewable energy resources in the San Joaquin Valley and (b) any network transmission upgrades needed to fulfill the renewable energy recommendations. As described above, neither agency currently recommends to CAISO either an amount of renewable energy resources to be procured from any region in the state or transmission upgrades needed to accommodate such procurement.

The requirements of this bill are based on several key premises. These premises can be found in this bill’s findings and declarations.

• Unlocking the renewable energy potential of the San Joaquin Valley by providing more equitable investment in a clean energy economy should be a key priority of California policymakers.
• The San Joaquin Valley Solar Convening project identified land ready for solar development with the least conflict.
• Solar projects in the San Joaquin Valley can be developed in a way that minimizes the need for new transmission by prioritizing the use of existing transmission corridors consistent with the principles of transmission corridor planning known as the Garamendi Principles.

Each premise is questionable, at least, or disputed by participants to the convening or regulatory agencies.

First, is unclear why state policymakers should prioritize development of renewable energy in the San Joaquin Valley over development of those resources in other areas of the state. This bill accurately describes economic and environmental conditions in the San Joaquin Valley. Those conditions, however, are not unique to the San Joaquin Valley. Other areas of the state, too, suffer from persistent, high unemployment and poverty, drought, and poor air quality. Many of these areas also possess rich renewable energy resources that have not been developed, in some cases because of a lack of transmission.

Second, it is clear from the recent input of participants to the San Joaquin Solar Convening that the project did not identify lands least subject to conflict, at least not in any definitive sense. Representatives of the solar industry describe the process, at best, as a first step that might, after additional work and more and broader stakeholder input, successfully identify least-conflict lands in the San Joaquin Valley. Despite this disagreement, this bill directs the CEC and CPUC, in making its recommendations to the CPUC, to take into account the 470,000 acres identified in the preceding. This requirement seems premature, especially as it is attached to prescriptive requirements of the state agencies.

Finally, it is true that solar projects in the San Joaquin Valley can be developed in a way that minimizes the need for new transmission by prioritizing the use of existing transmission corridors. This bill references the Garamendi principles. Those principals, as described above, include the following:

• Encourage the use of existing rights‐of‐ way by upgrading existing transmission facilities where technically and economically justifiable.

• When construction of new transmission lines is required, encourage expansion of existing rights‐of‐way, when technically and economically feasible.
• Provide for the creation of new rights‐ of‐way when justified by environmental, technical, or economic reasons, as determined by the appropriate licensing agency.

The CAISO, with encouragement of many members of the Legislature who represent the San Joaquin Valley, has considered the economic need of developing new or upgraded transmission lines in the valley using existing rights of way. Recently, CAISO determined, consistent with the Garamendi principals, that additional transmission development in the valley using existing rights of way is not economically justified, at least not at this time: sufficient transmission capacity exists to meet current and projected electricity demand. The CAISO has noted, however, that, should renewable resources be further developed in the San Joaquin Valley, there may be economic need to develop new transmission lines to better connect the valley with load centers closer to the Bay Area. Such transmission lines might not follow existing rights of way.

The state has progressed in meeting its renewable energy goals. It has a well-defined process for identifying the need for electricity transmission. This bill would not improve upon that process. However, it is not unreasonable to require the state’s energy agencies to take into account the Solar Convening Report when undertaking transmission-related activities. The report may be, as some describe it, a first step. Undeniably, it represents a tremendous amount of effort and collaboration by multiple stakeholders. The output of that effort and collaboration should not be dismissed. And it is a low threshold to require the energy agencies to take the report “into consideration;” it requires no specific outcome. Therefore, the author may wish delete the existing provisions of this bill entirely and amend it to read, as follows:

Section 1: findings and declarations.

It is the intent of the Legislature that the state’s processes for identifying and planning for electric transmission shall take into account the Governor’s May 2016 Solar Convening Report, entitled “A Path Forward: Identifying Least-Conflict Solar PV Development in California’s San Joaquin Valley” and the principles of transmission corridor planning developed by the State Energy Resources Conservation and Development Commission in response to Senate Bill 2431 (Chapter 1457 of the Statutes of 1988), known as the Garamendi Principles.

Section 2: Section 399.23 is added to the Public Utilities Code, to read:

399.23. (a) The CAISO, when undertaking transmission planning activities, shall take into account the Governor’s May 2016 Solar Convening Report, entitled “A Path Forward: Identifying Least-Conflict Solar PV Development in California’s San Joaquin Valley” and the principles of transmission corridor planning developed by the State Energy Resources Conservation and Development Commission in response to Senate Bill 2431 (Chapter 1457 of the Statutes of 1988), known as the Garamendi Principles.

(b) The CEC, CPUC and the CAISO, when undertaking activities as part of the Renewable Energy Transmission Initiative, shall take into account the Governor’s May 2016 Solar Convening Report, entitled “A Path Forward: Identifying Least-Conflict Solar PV Development in California’s San Joaquin Valley” and the Garamendi Principles.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

San Luis and Delta – Mendota Water Authority (Source)

Westlands Water District (Source)

Agricultural Energy Consumers Association

Audubon California

California Farm Bureau Federation

City of Hanford

Defenders of Wildlife

Natural Resources Defense Council

Westlands Solar Park

OPPOSITION:

Advanced Energy Economy

Independent Energy Producers Association

Large-scale Solar Association

ARGUMENTS IN SUPPORT: According to the author:

Last year, California enacted legislation to require that the state reach a 50 percent RPS by 2030, creating new demand for large utility scale solar development.

Due to the lack of reliable water supplies, drainage issues and other challenges to agriculture in the Central Valley, there is a lot of potential for renewable development on unproductive farmland throughout the Central Valley and permanently retired lands within Wetlands.

The U.S. Department of Energy's National Renewable Energy Laboratory (NREL) publishes renewable energy potential maps for the United States by county. NREL shows that the San Joaquin Valley has the third highest rating on the solar potential scale. NREL estimates solar would produce enough energy to power up to 1,000,000 homes in the San Joaquin Valley.

Last year, the University of California (UC) Berkeley and the Governor's OPR initiated the San Joaquin Valley Solar Convening, a multi-party stakeholder effort to discuss ways that the clean energy economy could be realized in the Central Valley.

UC Berkeley conducted a survey that identified the major concerns that must be addressed to increase clean energy development in the San Joaquin Valley. Some of the major issues found included the lack of transmission capacity in promising areas; protection of endangered species; high land costs and lack of available sites; and lack of a statewide solar development plan.

AB 2630 would require the CEC and the CPUC to examine the impact of the 50 percent RPS, while taking into consideration ratepayer costs and benefits, to inform the state's actions toward unlocking new renewable development in the Central Valley.

ARGUMENTS IN OPPOSITION: Opponents contend this bill would unnecessarily complicate the process by which renewable projects and transmission lines are planned for and developed, all on the basis of a report requires additional consideration that does not represent a consensus view of all stakeholders.

-- END --

1. https://www.law.berkeley.edu/wp-content/uploads/2016/05/A-PATH-FORWARD-May-2016.pdf. ↑

ASSEMBLY THIRD READING

ATR Bill Id:AB 2630

Author:(Salas)

As Amended Ver:April 13, 2016

Majority vote

SUMMARY: Requires the California Public Utilities Commission (CPUC) and the California Energy Commission (CEC) to evaluate potential renewable energy projects in the San Joaquin Valley, while also taking into consideration ratepayer costs and benefits. Specifically, this bill:

1. Requires the evaluation of projects that contain the following benefits to be prioritized:
2. The economically viable and environmentally beneficial re-use of drainage impaired agricultural lands;
3. The retirement of drainage-impaired agricultural lands;
4. The facilitation of surface water supply redirection from drainage-impaired agricultural lands to other productive agricultural lands.
5. Requires the CPUC and CEC, by January 31, 2017, to use the results of the evaluation to recommend to the California Independent System Operator (CAISO) an amount of renewable energy production in the San Joaquin Valley that reasonably maximizes, consistent with the state's overall need for renewable energy, the amount of renewable energy produced in the San Joaquin Valley.

FISCAL EFFECT: According to the Assembly Appropriations Committee:

1. Increased one-time costs of $385,000 (CPUC Utilities Fund) to establish and conduct a proceeding to resolve the differences between the requirements of this bill and existing regulatory processes.
2. Unknown, increased costs for the CEC. This bill codifies some existing activities at the CEC, so, while it is not a completely new requirement, additional resources would be required to meet the timelines in the bill.

COMMENTS:

1. Purpose: According to the author, "Due to the lack of reliable water supplies, drainage issues and other challenges to agriculture in the Central Valley, there is a lot of potential for renewable development on unproductive farmland throughout the Central Valley and permanently retired lands within Westlands Water District."

This bill requires the CPUC and CEC to evaluate potential renewable energy projects in the San Joaquin Valley.

1. Background: SB 350 (De León), Chapter 547, Statutes of 2015, establishes targets to increase sales of renewable electricity from 33% to at least 50% by 2030. This effort will require extensive planning throughout the state and the western United States.

To meet the original Renewable Portfolio Standards (RPS) goals of 33%, thousands of megawatts of renewable energy projects have been approved for construction in the Mojave Desert and Carrizo Plain. However, the author contends the San Joaquin Valley has been neglected for their renewable energy potential. The first San Joaquin Valley area project, known as the Westlands Competitive Renewable Energy Zone (CREZ), has the potential to contribute clean energy to meet California's carbon reduction goals.

1. Other Communities with Similar Potential: There are numerous communities throughout the state with similar potential as the San Joaquin Valley that should also be prioritized for prospective energy infrastructure projects. If the main driver to conduct this evaluation is the unemployment rate, then we would find that Colusa County tops the list with an unemployment rate of 21.6%, Imperial Valley with 18.6%, Plumas County with 13.7%, and so on.

Throughout the state there are counties with unique economic needs, but of course not all of them have the same potential to produce renewable energy. Two large communities that stand out with strong solar potential and concentrations of poverty are the San Joaquin and Imperial Valley.

1. There are already mechanisms in order to appropriately determine procurement why an extra study? The state of California already has regulatory planning pathways to identify transmission planning, renewable procurement, and where renewable energy is most likely to occur. The CAISO, CPUC, CEC collaborate to develop inputs for the annual transmission process. The CPUC develops portfolios of renewable energy for CAISO based on contracted generation and projected renewable generation.
2. Implementation Concerns: This bill may be inconsistent with the transition to integrated resource planning required by SB 350 and may result in the duplication of work already completed. Additionally, the CPUC indicates the January 1, 2017, deadline may not be achievable due to the analysis and required by the bill. The author may wish to work with the CPUC to address these issues.

Analysis Prepared by: Jose Torres / U. & C. / (916) 319-2083 FN: 0003222

Date of Hearing: May 25, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 2630

Author:(Salas) – As Amended Ver:April 13, 2016

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the California Public Utilities Commission (PUC) and the California Energy Commission (CEC) to evaluate potential renewable energy projects in the San Joaquin Valley, while also taking into consideration ratepayer costs and benefits. Specifically, this bill:

1. Requires the evaluation of projects that contain the following benefits to be prioritized:
2. The economically viable and environmentally beneficial reuse of drainage impaired agricultural lands;
3. The retirement of drainage-impaired agricultural lands;
4. The facilitation of surface water supply redirection from drainage-impaired agricultural lands to other productive agricultural lands.
5. Requires the PUC and CEC, by January 31, 2017, to use the results of the evaluation to recommend to the Independent System Operator (ISO) an amount of renewable energy production in the San Joaquin Valley that reasonably maximizes, consistent with the state’s overall need for renewable energy, the amount of renewable energy produced in the San Joaquin Valley.

FISCAL EFFECT:

1. Increased one-time costs of $385,000 (PUC Utilities Fund) to establish and conduct a proceeding to resolve the differences between the requirements of this bill and existing regulatory processes.
2. Unknown, increased costs for the CEC. This bill codifies some existing activities at the CEC, so, while it is not a completely new requirement, additional resources would be required to meet the timelines in the bill.

COMMENTS:

1. Purpose. According to the author, Due to the lack of reliable water supplies, drainage issues and other challenges to agriculture in the Central Valley, there is a lot of potential for renewable development on unproductive farmland throughout the Central Valley and permanently retired lands within Westlands Water District.

This bill requires the PUC and CEC to evaluate potential renewable energy projects in the San Joaquin Valley.

1. Background. SB 350 (De León), Chapter 547, Statutes of 2015) establishes targets to increase sales of renewable electricity from 33% to at least 50 percent by 2030. This effort will require extensive planning throughout the state and the western region of the United States.

To meet the original Renewable Portfolio Standards (RPS) goals of 33%, thousands of megawatts of renewable energy projects have been approved for construction in the Mojave Desert and Carrizo Plain. The author contends the San Joaquin Valley has been neglected for their renewable energy potential. The first San Joaquin Valley area project, known as the Westlands Competitive Renewable Energy Zone (CREZ), has the potential to contribute clean energy to meet California's carbon reduction goals.

1. Other Communities with Similar Potential. There are numerous communities throughout the state with similar potential as the San Joaquin Valley that should also be prioritized for prospective energy infrastructure projects. If the main driver to conduct this evaluation is the unemployment rate, then we would find that Colusa County tops the list with an unemployment rate of 21.6%, Imperial Valley with 18.6%, Plumas County with 13.7%, and so on.

Throughout the state there are counties with unique economic needs, but of course not all of them have the same potential to produce renewable energy. Two large communities that stand out with strong solar potential and concentrations of poverty are the San Joaquin and Imperial Valley. The author may wish to expand this bill to evaluate other areas of the state.

1. Implementation Concerns. This bill may be inconsistent with the transition to integrated resource planning required by SB 350 and may result in the duplication of work already completed. Additionally, the PUC indicates the January 1, 2017, deadline may not be achievable due to the analysis and required by the bill. The author may wish to work with the PUC to address these issues.

Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081

Date of Hearing: April 18, 2016

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Das Williams, Chair

ABPCA Bill Id:AB 2630 (

Author:Salas) – As Amended Ver:April 13, 2016

SUBJECT: San Joaquin Valley Clean Energy and Jobs Act

SUMMARY: Requires the Public Utilities Commission (PUC) and the California Energy Commission (CEC) to evaluate, while taking into consideration ratepayer costs and benefits, potential renewable energy projects in the San Joaquin Valley. Requires the PUC and CEC to use the results of the evaluation to recommend to the Independent System Operator (ISO) an amount of renewable energy production in the San Joaquin Valley that reasonably maximizes, consistent with the state’s overall need for renewable energy, the amount of renewable energy produced in the San Joaquin Valley.

EXISTING LAW:

1. Pursuant to the California Renewables Portfolio Standard (RPS), requires "retail sellers" of electricity, i.e., investor-owned utilities (IOUs), energy service providers (ESPs) and community choice aggregators (CCAs), as well as publicly-owned utilities (POUs), to procure 50% of their retail electricity sales from eligible renewable energy resources by 2030 and thereafter, including interim targets of 25% by 2016, 33% by 2020, 40% by 2024, and 45% by 2027.
2. Pursuant to the Warren-Alquist Act of 1974, grants the CEC exclusive authority to license thermal powerplants 50 megawatts and larger (including related facilities such as fuel supply lines, water pipelines and transmission lines that tie the plant to the grid). The CEC must consult with specified agencies, including the Department of Fish and Game (DFG), but the CEC may override any contrary state or local decision. The CEC process is a certified regulatory program [determined by the Resources Secretary to be the functional equivalent of California Environmental Quality Act (CEQA)], so the CEC is exempt from having to prepare an environmental impact report. Its certified program, however, does require environmental analysis of the project, including an analysis of alternatives and mitigation measures to minimize any significant adverse effect the project may have on the environment. The Act generally excludes photovoltaic (PV) facilities of any size from CEC jurisdiction. PV facilities are ordinarily reviewed under CEQA by applicable local and state agencies.

THIS BILL:

1. Requires the PUC and the CEC to evaluate, while taking into consideration ratepayer costs and benefits, potential renewable energy projects in the San Joaquin Valley.
2. Requires the evaluation to prioritize projects that provide the following benefits:
   1. The economically viable and environmentally beneficial reuse of drainage-impaired agricultural lands.
   2. The retirement of drainage-impaired agricultural land and facilitation of regional agricultural drainage solutions.
   3. The facilitation of surface water supply redirection from drainage-impaired agricultural lands to other productive agricultural land.
3. Requires the PUC and CEC to use the results of the evaluation to recommend to the ISO an amount of renewable energy production in the San Joaquin Valley that reasonably maximizes, consistent with the state’s overall need for renewable energy, the amount of renewable energy produced in the San Joaquin Valley.

FISCAL EFFECT: Unknown

COMMENTS:

1. Author's statement:

Last year, California enacted legislation to require that the state reach a 50% RPS by 2030, creating new demand for large utility scale solar development.

Due to the lack of reliable water supplies, drainage issues and other challenges to agriculture in the Central Valley, there is a lot of potential for renewable development on unproductive farmland throughout the Central Valley and permanently retired lands within Westlands Water District.

The U.S. Department of Energy's National Renewable Energy Laboratory (NREL) publishes renewable energy potential maps for the United States by county. NREL shows that the San Joaquin Valley has the third highest rating on the solar potential scale. NREL estimates solar would produce enough energy to power up to 1,000,000 homes in the San Joaquin Valley.

Last year, the University of California (UC) Berkeley and the Governor's Office of Planning and Research initiated the San Joaquin Valley Solar Convening, a multi-party stakeholder effort to discuss ways that the clean energy economy could be realized in the Central Valley.

UC Berkeley conducted a survey that identified the major concerns that must be addressed to increase clean energy development in the San Joaquin Valley. Some of the major issues found included the lack of transmission capacity in promising areas; protection of endangered species; high land costs and lack of available sites; and lack of a statewide solar development plan.

1. Double referral. This bill passed the Assembly Utilities and Commerce Committee by a vote of 15-0 on April 6, 2016.

REGISTERED SUPPORT / OPPOSITION:

Support

San Luis and Delta-Mendota Water Authority (Sponsor)

Westlands Water District (Sponsor)

Agricultural Energy Consumers Association

City of Hanford

Defenders of Wildlife

Natural Resources Defense Council

Westlands Solar Park, LLC

Opposition

None on file

Analysis Prepared by: Lawrence Lingbloom / NAT. RES. / (916) 319-2092

Date of Hearing: April 6, 2016

ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE

Mike Gatto, Chair

ABPCA Bill Id:AB 2630 (

Author:Salas) – As Introduced Ver:February 19, 2016

SUBJECT: San Joaquin Valley Clean Energy and Jobs Act

SUMMARY: Requires the Public Utilities Commission (CPUC) and California Energy Commission (CEC) to evaluate potential renewable energy projects on least-conflict lands in the San Joaquin Valley. Specifically, this bill:

1. Requires the CPUC and CEC to evaluate potential renewable energy projects on least-conflict lands in the San Joaquin Valley. The projects that provide the following benefits shall be prioritized:
   1. Economically viable and beneficial reuse of drainage-impaired agricultural lands.
   2. Retirement of drainage-impaired land and the facilitation of regional agricultural drainage solutions.
   3. Facilitate surface water supply redirection from drainage-impaired agricultural lands to other productive agricultural land.
2. Requires the CPUC and CEC on or before January 31, 2017, to recommend to the Independent System Operator (CAISO) an amount of renewable energy that reasonably maximizes, consistent with the state’s overall need for renewable energy, and the use of least-conflict lands as identified by the San Joaquin Valley Solar Convening.

EXISTING LAW:

1. Requires that each electrical corporation continue to operate its electric distribution grid in its service territory in a safe, reliable, efficient, and cost-effective manner. (Public Utilities Code Section 399.2)
2. Requires each electrical corporation to make reasonable investments in its electric distribution grid. Each electrical corporation shall continue to have a reasonable opportunity to fully recover from all customers of the electrical corporation, in a manner determined by the commission pursuant to this code, all of the following:
   1. Reasonable investments in its electric distribution grid.
   2. A reasonable return on the investments in its electric distribution grid.
   3. Reasonable costs to operate its electric distribution grid. (Public Utilities Code Section 399.2)
3. Requires the CPUC to specify the allocation of electricity, including quantity, characteristics, and duration of electricity delivery, that the Department of Water Resources shall provide under its power purchase agreements to the customers of each electrical corporation, which shall be reflected in the electrical corporation’s proposed procurement plan. Each electrical corporation shall file a proposed procurement plan with the commission not later than 60 days after the commission specifies the allocation of electricity. The proposed procurement plan shall specify the date that the electrical corporation intends to resume procurement of electricity for its retail customers, consistent with its obligation to serve. After the commission’s adoption of a procurement plan, the CPUC shall allow not less than 60 days before the electrical corporation resumes procurement pursuant to this section. (Public Utilities Code Section 454.5)
4. Requires a competitive procurement process under which the electrical corporation may request bids for procurement-related services, including the format and criteria of that procurement process. (Public Utilities Code Section 454.5)
5. Establishes short-term and long-term goals and electricity procurement guidelines for electrical corporations, which are filed with the CPUC for approval. (Public Utilities Code Section 454.5)
6. Requires that all rates for any service or product charged by an electrical corporation be just and reasonable. (Public Utilities Code Section 451)

FISCAL EFFECT: Unknown

COMMENTS:

1. Author's Statement: "Due to the lack of reliable water supplies, drainage issues and other challenges to agriculture in the Central Valley, there is a lot of potential for renewable development on unproductive farmland throughout the Central Valley and permanently retired lands within Wetlands. The U.S. Department of Energy's National Renewable Energy Laboratory (NREL) publishes renewable energy potential maps for the United States by county. NREL demonstrates that the San Joaquin Valley has the third highest rating on the solar potential scale. NREL estimates solar would produce enough energy to power up to 1,000,000 homes in the San Joaquin Valley. Last year, the University of California (UC) Berkeley and the Governor's Office of Planning and Research initiated the San Joaquin Valley Solar Convening, a multi-party stakeholder effort to discuss ways that the clean energy economy could be realized in the Central Valley. UC Berkeley conducted a survey that identified the major concerns that must be addressed to increase clean energy development in the San Joaquin Valley. Some of the major issues found included the lack of transmission capacity in promising areas; protection of endangered species; high land costs and lack of available sites; and lack of a statewide solar development plan."
2. Background: In April 2015, Governor Edmund G. Brown Jr. issued Executive Order B-30-15 to establish a new target to reduce greenhouse gas emissions 40% below 1990 levels by 2030, and to 80% below 1990 levels by 2050. To meet California's greenhouse gas reduction goals it’s critical to move to a largely carbon-free electricity system that is well coordinated to balance out the supply and demand across the electric grid. In an effort to meet these goals, the Clean Energy and Pollution Reduction Act of 2015 (SB 350 (De León), Chapter 547, Statutes of 2015) was signed into law on October 7, 2015, which established targets to increase sales of renewable electricity to at least 50 percent by 2030. This effort will require extensive planning throughout the state and the western region of the United States.

In an effort to meet the original goals of 33% renewable electricity, thousands of megawatts of renewable energy projects have been approved for construction in the Mojave Desert and Carrizo Plain. However, many believe that the San Joaquin Valley has been neglected for their renewable energy potential. The first San Joaquin Valley area project, known as the Westlands Competitive Renewable Energy Zone (CREZ), has the potential to contribute clean energy to meet California's carbon reduction goals.

Historically, the San Joaquin Valley has been a disadvantaged community disproportionately neglected by the green economy. According to the screening tool created by the Office of Environmental Health Hazard Assessment, CalEnviroScreen 2.0, this area also has at least 8 out of the top 10 most disadvantaged communities. Therefore, it would be reasonable to suggest that there needs to be a stronger focus on energy projects in this area. However, there are other factors that are important for energy procurement and transmission planning that the state considers, such as impact on rates and customer energy bills. Furthermore, there are other disadvantaged communities throughout the state that also have high renewable energy potential and also have a lot of need, such as the Imperial Valley.

1. Impact on Ratepayers: The bill itself will not have an immediate impact on the ratepayers because, according to the California Independent System Operator (CAISO), the transmission lines in the San Joaquin Valley have the potential to handle 2,000 MW to 3,000 MW. According to CAISO, 3,000 MW is a large portion of the 12,000 MW to 14,000 MW of renewable energy necessary to reach the 50% renewable requirement.

As this bill requires an evaluation only, it does not alter procurement or transmission planning at this time. However, this bill does imply that this region is preferred over other regions of the state that may also be rich in clean energy opportunities. At the same time, procurement and transmission planning should also consider ratepayer costs and benefits. The author may wish to consider an amendment to include an assessment of the costs and benefits to ratepayers.

1. Renewable Energy Procurement in California: In 2014, California became the first state in the nation to get more than 5% of its utility-scale electricity generation from solar resources. California Independent System Operator (CAISO) shows that, left unaddressed, generation from renewable power will grow to a point where there will be excess generation on the electric grid both in mid-day and days when demand for electricity is low (spring and fall). This is driven mainly by the selection of primarily one generation technology in the RPS contract process: the CPUC's most recent RPS report shows that as much as 75% of all RPS procurement coming on line in 2015 is solar technology.^[1]
2. Jobs for the Central Valley?: According to CA Employment Development Department (EDD), the San Joaquin Valley has some of the highest rates of unemployment in California with Kern at 10.9%, Kings at 11.3%, and Fresno at 10.5%. However, the Imperial Valley also ranks at the top of that list with a ranking of 18.6%.
3. Other communities with similar potential: There are different communities with similar potential as the San Joaquin Valley, but it would be important to set proper parameters so much like the San Joaquin Valley they are also prioritized with prospective energy infrastructure projects. If the main reason to conduct this evaluation was the unemployment rate, then we would find that Colusa County tops the list with an unemployment rate of 21.6%, Imperial Valley with 18.6%, Plumas County with 13.7%, Merced with 12.6%, and so on. Throughout the state there are counties with unique economic needs but of course not all of them have the same potential to produce renewable energy. Two large communities that stand out with strong solar potential and concentrations of poverty are the San Joaquin and Imperial Valley. However, throughout California and even within these valleys there are communities with more need than others. Therefore, it’s important to create some sort of parameters that render the evaluation comprehensive enough to be included when evaluating California’s infrastructure needs to achieve the 50% RPS standard. In addition, it’s also important to have an evaluation that can adjust to, both population growth, and the anticipated continual expansion of renewable energy in the future, so the San Joaquin Valley and other similar communities are not overlooked in the near and interim future. There is already an existing tool, CalEviroScreen 2.0, that measures the unemployment rate and uses 19 other indicators (environmental and socio-economical) to identify disadvantaged communities. This tool along with existing CEC, CPUC, and CAISO procedures may be the best parameters to capture those communities with the most need and the best investment for renewable energy.
4. Chicken or Egg Problem: As the author's office describes, it is worth noting that the San Joaquin Valley has substantial potential for energy growth based on the criteria they have outlined in this bill. However, for a project to be viable per the CPUC process it must hold a contract to deliver power to a state utility or a power purchase agreement (PPA). Per CPUC planning process if projects are not in the portfolio the transmission needed is considered a low priority. Essentially, this is why it becomes a scenario of what was first: the chicken or the egg. If you do not have enough transmission you do not have a PPA, and as a result you are not included in the CPUC portfolio. However, if you are not included in the CPUC portfolio then you do not get prioritized for a CAISO transmission either. As it stands, there is currently a build out capacity of 3,000 MW in that area, which has the energy to power 2.25 million homes.
5. Least Conflict Lands: Retired Farmland? Something else?: According to a study by EcoNorthwest, there are about 279,00 to 299,000 drainage impaired acres in the Central Valley. Drainage impaired lands typically have low productivity, poor drainage, and high selenium concentration in shallow waters. They recommend taking these areas out of irrigated production and instead using them for dry farming, solar production, and habitat restoration. These lands offer the unique opportunity of having the least detrimental impact on the environment.

As written, this bill uses but does not define does define least-conflict land. It is unclear that this means and whether this refers to land that is no longer productive enough for agricultural use of any type or if it means that there is little conflict between the community and developers as to changing the use from agricultural to commercial uses. As a result, additional work is needed to clarify what is intended by this bill and whether the CPUC is the correct entity to be determining what is or is not least-conflict land.

The author may wish to consider an amendment to strike references to least-conflict land throughout the bill.

1. There are already mechanisms in order to appropriately determine procurement why an extra study?: The state of California already has regulatory planning pathways to identify transmission planning, renewable procurement, and where renewable energy is most likely to occur. The CAISO, CPUC, CEC collaborate to develop inputs for the annual transmission process. The CPUC develops portfolios of renewable energy for CAISO based on contracted generation and projected renewable generation.

According to the CPUC:

To facilitate electric transmission coordination and planning, the CEC, CPUC, and the CAISO have initiated the Renewable Energy Transmission Initiative 2.0, also known as RETI 2.0. RETI 2.0 is an open, transparent, and science-based process that will explore the abundant renewable generation resources in California and throughout the West, consider critical land use and environmental constraints, and identify potential transmission opportunities that could access and integrate renewable energy with the most environmental, economic, and community benefits.

This bill also has the potential to encourage preferential, non-economic treatment of particular regions and resources; create delays with the existing or planned generation and transmission planning processes involving CPUC, CAISO, and CEC; be inconsistent with the transition to integrated resource planning required by statute. For example, the CPUC already works with the CEC and CAISO in an annual planning process to identify plausible patterns of future renewable energy development and future transmission needs and, according to the CPUC, the CPUC has already worked with the CEC to obtain the geographic dataset reflecting the least-conflicts area developed in the San Joaquin Valley Solar Convening referenced in this bill. The CPUC reports that it has evaluated the ability of the region specified in AB2630 to contribute to RPS goals and publicly released, in the RPS proceeding, a draft portfolio reflecting 800 MW of new solar photovoltaic (PV) resources in the San Joaquin Valley by 2026.

1. Arguments in Support: According to the sponsors of this bill, San Luis & Delta-Mendota Water Authority and the Wetlands Water District, "The state needs more clean energy and the Central Valley needs clean jobs. The Central Valley's unemployment rates remain stubbornly high, e.g. Kern, Fresno, Kings, Merced and Madera counties continue having double‐digit unemployment rates."
2. Related Legislation:

AB 33 (Quirk), 2015: Requires the California Air Resources Board (CARB) to develop future emissions reduction goals for the purposes of the second scoping plan. Pending in the Senate Energy, Utilities, and Communications Committee.

SB 32 (Pavley), 2015: Requires CARB to approve a statewide GHG emission limit that is equivalent to 80% below the 1990 level to be achieved by 2050. Pending in the Assembly Natural Resources Committee.

1. Prior Legislation:

SB 350 (De León), Chapter 547, Statutes of 2015: Clean Energy and Pollution Reduction Act of 2015 sets two targets for 2030 -- requiring California to receive half of its electricity from renewable sources such as solar and doubling energy efficiency.

1. Double Referred: This bill is double referred to the Assembly Natural Resources Committee.
2. Suggested amendments:

The Legislature finds and declares all of the following:

(a) The California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code) established a policy to reduce emissions of greenhouse gases to 1990 levels by 2020 and to continue reductions of emissions of greenhouse gases beyond 2020.

(b) The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) established further clean energy policies to reduce emissions of greenhouse gases and expand renewable energy to at least 50 percent of total retail sales of electricity in California by December 31, 2030.

(c) The San Joaquin Valley remains mired in chronic double digit unemployment, unprecedented rates of poverty, a severe ongoing drought, and poor air quality.

(d) California’s energy sector is undergoing significant advancement and transformation driven by evolving regulation, expanding renewable energy goals, and increasing greenhouse gas emissions reduction efforts.

(e) While rich in natural resources and clean energy opportunities, the San Joaquin Valley has largely been left behind in California’s clean energy revolution. The overwhelming majority of the state’s new transmission assets have been sited in other regions, particularly southern California, and renewable energy investment, jobs, and economic and environmental benefits have followed grid access.

(f) Unlocking the renewable energy potential of the San Joaquin Valley by providing more equitable investment in a clean energy economy should be a key priority of California policymakers.

(g) Timely investment and improved transmission access are critical to the San Joaquin Valley and will allow the region to more effectively and efficiently develop clean energy opportunities, create jobs, and derive cobenefits for disadvantaged communities.

(h) The Governor’s office is nearing completion of the San Joaquin Valley Solar Convening to identify high potential least-conflict lands for solar energy development in the San Joaquin Valley that maximize renewable energy benefits and minimize environmental biological and habitat impacts.

(i) Development of renewable energy projects on least-conflict lands will provide for the economically viable and environmentally beneficial reuse of physically impaired agricultural soils, facilitate solutions to agricultural drainage problems by retiring marginal agricultural land from irrigated agriculture, and redirect increasing scarce surface water supplies from impaired lands to more productive agricultural land.

(j) As future clean energy investments are planned and implemented, state officials must ensure an appropriate share is targeted to improve environmental quality, expand economic development, contribute to environmental solutions, and create jobs in the San Joaquin Valley.

399.23. (a) The Public Utilities Commission and the State Energy Resources Conservation and Development Commission shall evaluate potential renewable energy projects on least-conflict lands in the San Joaquin Valley while also evaluating ratepayer costs and ratepayer benefits. Evaluation of projects that provide the following benefits shall be prioritized:

1. The economically viable and environmentally beneficial reuse of drainage-impaired agricultural lands.
2. The retirement of drainage-impaired agricultural land and facilitation of regional agricultural drainage solutions.
3. The facilitation of surface water supply redirection from drainage-impaired agricultural lands to other productive agricultural land.

(b) Using the results of the evaluation, on or before January 31, 2017, the Public Utilities Commission and the State Energy Resources Conservation and Development Commission shall recommend to the Independent System Operator an amount of renewable energy production in the San Joaquin Valley that reasonably maximizes, consistent with the state’s overall need for renewable energy., the use of least-conflict lands. as identified by the San Joaquin Valley Solar Convening.

REGISTERED SUPPORT / OPPOSITION:

Support

San Luis & Delta-Mendota Water Authority

Wetlands Water District

Natural Resources Defense Council

Opposition

None on file.

Analysis Prepared by: Jose Torres / U. & C. / (916) 319-2083

1. http://www.cpuc.ca.gov/uploadedFiles/CPUC_Website/Content/Utilities_and_Industries/Energy/Reports_and_White_Papers/FINAL12302015Section913_6Report.pdf ↑