Bill Creating Green Tags and Advancing RPS Mandate Revived

Vetoed legislation that would have advanced the amount of green power has been largely reincarnated. SB 107, by Senators Don Perata (D-Oakland) and Joe Simitian (D-Palo Alto), would create renewable energy credits and accelerate the renewables portfolio standard?s (RPS) 20 percent mandate to 2010 instead of 2017. The bill mirrors much of SB 1478 by former senator Byron Sher. When that bill was vetoed last year, it caused an uproar in the renewables community. Under the new bill, the RPS mandate would be applied not only to investor-owned utilities but also to community aggregators and retail sellers. Public power agencies?which aggressively protect their independence?would not be subject to its requirements. The measure, however, would keep tabs on the growth in munis? green power portfolios. Under the newly introduced bill, titled the Renewable Energy Resource Program, the California Energy Commission would be required to create a program tracking, accounting for, and verifying green tags, which represent the green attribute of a renewable power supply and are traded in a marketplace. The bill would also have the commission enforce criteria to avoid double-counting or bogus trades. The CEC would be required to consult with the Western Electricity Reliability Council. The two agencies have collaborated on the development of a program to track the buying and selling of the environmental benefit of the alternative power in 11 states and Canada and Baja California, Mexico ( Circuit , Aug. 20, 2004). A green tag program is seen as crucial for San Diego Gas & Electric to meet the RPS mandate. The utility?s territory has little renewable power from wind or geothermal. And while the sun shines in the area, there are no big solar developments that the utility can procure to add to its portfolio. Transmission constraints prevent SDG&E from importing much renewable energy from outside its territory. The bill would also require the California Public Utilities Commission to set ground rules for utilities using renewables credits. Utilities would be prohibited from trading the green attribute of the renewable power that counts toward their RPS baseline. SB 107 would also require state agencies to fast-track transmission projects needed to bring renewables on line. It would also limit the investor-owned utilities? use of supplemental funds provided by public-goods money to cover the cost of green power that exceeds the accepted benchmark price. Supplemental payments would also apply only to green supplies contracted for via a competitive bid. A limited amount of out-of-state renewables?if they meet the RPS eligibility requirement and come on line next year?would be allowed. SB 107 will not be heard before February 20.

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Bill Creating Green Tags and Advancing RPS Mandate Revived

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