JUICE: In Sacramento, a Flood of Energy Bills

State lawmakers from both parties have introduced more than a hundred energy and climate change bills. Many overlap, are works in progress, and several will be totally rewritten before the end of session. Despite the high stack of bills, however, energy legislators are focusing on a few key subjects, with renewable energy at the top of the list. Other key priorities are passing bills aimed at creating green jobs, improving energy efficiency, and facilitating the expenditure of federal stimulus money. Then there is the possible reorganization of state energy agencies, the phase out of once-through cooling at power plants, and rekindling direct access (i.e., the customers’ ability to choose service providers). Also in the pipeline are bills seeking to expand green buildings and solar energy, as well as provisions to lift the rate freeze on energy-light ratepayers--those below 130 percent of baseline. Enactment of a 33 percent renewable standard mandate is backed by the governor’s office. The mandate, which is the subject of SB 14 by Senator Joe Simitian (D-Palo Alto), passed the Senate energy and appropriation committees. Increasing the renewable portfolio standard from 20 percent in 2010 to 35 percent is the goal of AB 64 by Assemblymember Paul Krekorian (D-Glendale) (see story below). Both renewable measures are intertwined with a range of complex issues, from upgrading and siting existing and new transmission lines to containing the cost of wind, solar and other alternative power resources. “A bill without cost containment will get nowhere,” said one Capitol insider. Transmission siting authority, in particular, streamlining attempts are also in play. Some want to revive previous efforts to shift siting authority from the California Public Utilities Commission to the Energy Commission, which includes the governor’s previous energy agency reorganization plan. Previous plans to unite the Energy Commission and other state energy agencies failed. AB 1016 by Assemblymember Michael Villines (R-Fresno) would implement the governor’s proposal to consolidate the energy agencies under a state Department of Energy. It would transfer high voltage permitting to a new CEC. Some renewable advocates support the effort because of hopes it will accelerate siting solar, wind, and other renewable energy projects. If a transmission authority swap managed to fly, a critical issue would be the timing. Changing agencies while major lines are in the process of being sited could create more problems than it avoids. The fate of AB 1016 depends on the governor’s effort. Cost containment is also the subject of some energy efficiency measures. Thus, bills seek to address concerns about the cost of investor-owned utilities administering efficiency programs. Green job promotion is now in the spotlight with federal stimulus money expected to create more jobs in the renewable and energy efficiency arena. A number of bills seek to set training requirements, while others clarify who will pay for it and who sets the criteria. Also linked to renewable energy supplies is legislation seeking to expand the role of established long-term prices for green energy. Various bills propose to lift the current 1.5 MW project size cap on eligibility for what are known as “feed-in tariffs,” which pay homeowners and businesses a set, public, price for about 20 years of output. Bills promoting this standard offer, long-term renewable contract vary from a 3 MW to 20 MW ceiling on eligible project capacity. The 20 MW limit on a feed-in payment structure seeks to avoid triggering the Federal Energy Regulatory Commission’s tariff. A few bills being formulated also are expected to shape how federal stimulus money is directed. Issues include the need for the Legislature to authorize state agencies to spend unprecedented sums of federal money, as well as staffing up state agencies to do so. There also are several bills to expand green buildings. At the state level, there’s one that reintroduces a measure requiring energy audits in homes for sale. The debate is over when the audit should occur and who should pay. Last year, the real estate industry got the legislation waylaid. Also on the table is the revival of direct access. Allowing customers to select non-utility entities to provide electricity was halted during the 2000-01 energy crisis. Pressure has been growing to allow customers to choose who serves them power--an investor-owned utility or another electricity service provider. There are other bills in the mix. One would eliminate the requirement that the state certify massive nuclear power projects--those up to 2,000 MW. Another would repeal the state’s global warming reduction standard under AB 32.

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JUICE: In Sacramento, a Flood of Energy Bills

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