Penalties for noncompliance with the state\u2019s 33 percent renewable energy mandate and rules for waiving the requirements were adopted unanimously by the California Public Utilities Commission Dec. 4. The final rules set for the three renewable compliance periods to 2020 apply to investor-owned utilities and retail energy sellers\u2014large and small. \u201cAll in all, it looks like we are in good shape for 33 percent renewable compliance,\u201d said commissioner Carla Peterman. Virtually all the utilities and energy providers met or exceeded their compliance mandates last year, according to an unaudited report by the commission\u2019s Energy Division. To meet the 2020 one-third alternative energy requirement, utilities and retail sellers are to meet specified increases in renewable supplies in three cycles; 2011-13, 2014-16, and 2017-19. Regulators grappled with the temporary $25 million penalty cap set for retailer sellers who fall short of their green energy obligations. \u201cThe core of the issue of varying the size of the penalty cap is whether it is fair to smaller retail sellers to have a penalty cap that is larger (in some cases, many times larger) than their total renewables procurement obligation, translated into dollar terms at $50\/renewable credit.\u201d For those retail sellers, there is effectively no penalty cap at all,\u201d states the decision. Thus, it set the penalty at $50\/renewable energy credit for retail sellers, which includes PacifiCorp and Shell Energy. A credit equals 1 MWh. For Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric, the penalty cap is $75 million for the first compliance period; $75 million for the second compliance period; $100 million for the third compliance period; and $25 million for each annual compliance period beginning in 2021. The rules adopted this week also set out a process for seeking waivers-from the renewables obligations. They require that: \u2022\tWaiver requests be considered only after issuance of the California Energy Commission\u2019s compliance verification report; \u2022\tNoncompliance is because of circumstances outside a retail seller\u2019s control; \u2022\tThe seller attempted \u201creasonable compliance\u201d; and \u2022\tThe retail seller specifies the number of renewable energy credits for which it seeks the waiver, largely to avoid double counting of the green tags in consecutive compliance periods. The new rules also allow for some reallocation among the renewables procurement compliance buckets, which includes unbundled renewable credits, and green credits used for firming and shaping.