AB 893: California Renewables Portfolio Standard Program.

Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations. The Public Utilities Act imposes various duties and responsibilities on the commission with respect to the purchase of electricity and requires the PUC to review and adopt a renewable energy procurement plan for each electrical corporation pursuant to the California Renewables Portfolio Standard Program. The California Renewables Portfolio Standard Program requires a retail seller, as defined, to purchase specified minimum quantities of electricity products from eligible renewable energy resources, as defined, for specified compliance periods. A violation of the Public Utilities Act is a crime.

This bill would require each retail seller of electricity and each local publicly owned electric utility to procure a proportionate share of electricity products from a statewide total of 5,000 4,250 megawatts of qualified renewable energy resources, defined by the bill as a subset of eligible renewable energy resources that consists of certain bioenergy and geothermal energy resources with high performance relative to capacity, and certain solar and wind energy resources that are eligible for specified federal tax credits. The bill would require portions of that 5,000 4,250 megawatts to be procured from specified qualified renewable energy resources. The bill would require, no later than May 31, 2019, each retail seller to file with the PUC a plan for complying with this procurement requirement, as specified. If a community choice aggregator or electric service provider, by June August 1, 2019, fails to demonstrate it has secured sufficient enforceable and financeable procurement commitments to meet its proportionate share, the bill would require the applicable electrical corporation to procure the amount of any shortfall on behalf of the end-use customers of the community choice aggregator or direct access provider. The bill would require, no later than June 30, 2019, each local publicly owned electric utility to adopt a plan for complying with this procurement requirement, as specified. Under the bill, the electricity procured by retail sellers and local publicly owned electric utilities from these qualified renewable energy resources would count toward meeting their obligations under the California Renewables Portfolio Standard Program to purchase specified minimum quantities of electricity products from eligible renewable energy resources. Because a violation of these provisions would be a crime under the Public Utilities Act, the bill would impose a state-mandated local program. By imposing a new procurement requirement on local publicly owned electric utilities, this bill would impose a state-mandated local program.

Existing law requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake various actions in furtherance of meeting the states clean energy and pollution reduction objectives.

This bill would require the PUC and the Energy Commission to provide the Legislature, by March 31, 2019, with a joint assessment, as specified, of options for establishing a central statewide entity to procure electricity for all end-use retail customers in the state.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for specified reasons.