PROPOSITION 7
This initiative measure is submitted to the people of California in accordance
with the provisions of Section 8 of Article II of the California Constitution.
This initiative measure amends sections of the Public Utilities Code and
amends and adds sections to the Public Resources Code; therefore, existing
provisions proposed to be deleted are printed in strikeout type and new
provisions proposed to be added are printed in italic type to indicate that they
are new.
PROPOSED LAW
THE SOLAR AND CLEAN ENERGY ACT OF 2008
SECTION 1. TITLE
This measure shall be known as "The Solar and Clean Energy Act of
2008."
SEC. 2. FINDINGS AND DECLARATIONS
The people of California find and declare the following:
A. Global warming and climate change is now a real crisis. With the polar
ice caps continuing to melt, temperatures rising worldwide, increasing
greenhouse gases, and dramatic climate changes occurring, we are quickly
reaching the tipping point. California is facing a serious threat from rising sea
levels, increased drought, and melting Sierra snowpack that feed our water
supply. California needs solar and clean energy to attack the climate changes
which threaten our state.
B. California suffers from drought, air pollution, poor water quality, and
many other environmental problems. Very little has been done because the
special energy interests block change. Californians must take energy reform
into their own hands. The alternative to dirty energy is solar and clean
energy.
C. California can provide the leadership needed to attack global warming
and climate change.
D. The Solar and Clean Energy Act will help reduce air pollution in
California. With this initiative, we can help clean up our air and build a
healthier, cleaner environment for our children.
E. Our traditional sources of power rely too much on fossil fuels and foreign
energy that are getting more and more expensive and less reliable. This
initiative will encourage investment in solar and clean energy sources that in
the long-run are cheaper and are located here in California, and in the shortterm,
California's investment in solar and clean energy will result in no more
than a 3 percent increase in electric rates--a small price to pay for a healthier
and cleaner environment.
F. The Solar and Clean Energy Act will put California on the path to energy
independence by requiring all electric utilities to produce 50 percent of their
electricity from clean energy sources like solar and wind by 2025. Right now,
over 22 percent of California's greenhouse gases comes from electricity
generation but around 10 percent of California's electricity comes from solar
and clean energy sources, leaving Californians vulnerable to high energy
costs, to political instability in the Middle East, and to being held hostage by
big oil companies.
G. The Solar and Clean Energy Act encourages new technology to produce
electricity. Many people are familiar with the solar power that comes from
panels that can be placed on rooftops, but there is dramatic new technology
that allows solar energy to be generated from concentrations of solar mirrors
in the desert. These mirrors are so efficient that a large square array, eleven
miles on a side, may be able to generate enough electricity to meet all of
California's needs and at a lower cost than we are paying today. The desert
could lead us to energy independence.
H. The current law says we are supposed to have 20 percent solar and clean
energy but we are still at around 10 percent and even big government-owned
utilities like those in Los Angeles and Sacramento lobbied successfully to
exempt themselves from the law. The Solar and Clean Energy Act provides
incentives, tough standards, and penalties for those who do not comply.
I. The Solar and Clean Energy Act will benefit California's economy.
Building facilities for solar and clean energy sources and transmission lines to
transport that electricity will create good jobs that pay the prevailing wage.
These jobs will bring new investments and new jobs to California and
strengthen California's economy.
J. Global warming and California's reliance on fossil fuels and foreign
energy are a matter of statewide concern, as is the implementation of statewide
standards for the sources of electricity production and the permitting of solar
and clean energy plants and related transmission facilities. Accordingly, the
people find that these matters are not municipal affairs, as that term is used in
Section 5 of Article XI of the California Constitution, but are instead matters
of statewide concern.
SEC. 3. PURPOSE AND INTENT
It is the intent of the people of California in enacting this measure to:
A. Address global warming and climate change, and protect the endangered
Sierra snowpack by reducing California's carbon-based greenhouse gas
emissions;
B. Tap proven technologies such as solar, geothermal, wind, biomass, and
small hydroelectric to generate clean energy throughout California and meet
renewable energy targets without raising taxes on any California taxpayer;
C. Require all California utilities--including government-owned utilities
like the Los Angeles Department of Water and Power--to procure electricity
from solar and clean energy resources, in the following timeframes:
1. 20 percent by 2010;
2. 40 percent by 2020; and,
3. 50 percent by 2025;
D. Fast-track all approvals for the development of solar and clean energy
plants and related transmission facilities while guaranteeing all environmental
protections--including the Desert Protection Act;
E. Create production incentives for the development and construction of
solar and clean energy plants and related transmission facilities;
F. Assess penalties upon all utilities that fail to meet renewable resource
targets, and prohibit these utilities from passing on these penalties to
consumers;
G. Permit long-term 20 year contracts for solar and clean energy to assure
marketability and financing of solar and clean energy plants;
H. Cap price impacts on consumers' electricity bills at less than 3 percent.
Over the long-term, studies have shown that consumer electricity costs will
decline;
I. Grant the Public Utilities Commission the powers to enforce compliance
of the renewables portfolio standard upon privately owned utilities, assess
penalties for non-compliance, and prohibit utilities from passing on penalties
to consumers;
J. Grant the California State Energy Resources Conservation and
Development Commission (the Energy Commission) the powers to:
1. Enforce compliance of the renewables portfolio standard upon
government-owned utilities, assess penalties to those utilities for noncompliance,
and prohibit the utilities from passing on penalties to consumers;
2. Adopt rules to fast-track all approvals for the development of solar and
clean energy resources and plants while guaranteeing all environmental
protections--including the Desert Protection Act;
3. Allocate funds to purchase, sell, or lease real property, personal property
or rights-of-way for the development and use of the property and rights-of-way
for the generation and/or transmission of solar and clean energy, and to upgrade
existing transmission lines; and,
4. Identify and designate Solar and Clean Energy Zones--primarily in the
desert.
SEC. 4. Section 387 of the Public Utilities Code is amended to read:
387. (a) Each governing body of a local publicly owned electric utility, as
defined in Section 9604, shall be responsible for implementing and enforcing
a implement the renewables portfolio standard as established and defined in
this article that recognizes the intent of the Legislature to encourage renewable
resources, while taking into consideration the effect of the standard on rates,
reliability, and financial resources and the goal of environmental
improvement.
(b) Each local publicly owned electric utility shall report, on an annual
basis, to its customers and to the State Energy Resources Conservation and
Development Commission, the following:
(1) Expenditures of public goods funds collected pursuant to Section 385 for
eligible renewable energy resource development. Reports shall contain a
description of programs, expenditures, and expected or actual results.
(2) The resource mix used to serve its customers by fuel type. Reports shall
contain the contribution of each type of renewable energy resource with
separate categories for those fuels that are eligible renewable energy resources
as defined in Section 399.12, except that the electricity is delivered to the local
publicly owned electric utility and not a retail seller. Electricity shall be
reported as having been delivered to the local publicly owned electric utility
from an eligible renewable energy resource when the electricity would qualify
for compliance with the renewables portfolio standard if it were delivered to a
retail seller.
(3) The utility's status in implementing a renewables portfolio standard
pursuant to subdivision (a) and the utility's progress toward attaining the
standard following implementation.
SEC. 5. Section 399.25 of the Public Utilities Code is amended to read:
399.25. (a) Notwithstanding any other provision in Sections 1001 to 1013,
inclusive, an application of an electrical corporation for a certificate authorizing
the construction of new transmission facilities shall be deemed to be necessary
to the provision of electric service for purposes of any determination made
under Section 1003 if the commission finds that the new facility is necessary
to facilitate achievement of the renewable power goals established in Article
16 (commencing with Section 399.11).
(b) (a) With respect to a transmission facility described in subdivision (a)
any transmission facilities deemed to be necessary by the Energy Commission
to facilitate achievement of the renewables portfolio standard established in
Article 16 (commencing with Section 399.11) of the Public Utilities Code, the
commission shall take all feasible actions to ensure that the transmission rates
established by the Federal Energy Regulatory Commission are fully reflected
in any retail rates established by the commission. These actions shall include,
but are not limited to:
(1) Making findings, where supported by an evidentiary record, that those
transmission facilities provide benefit to the transmission network and are
necessary to facilitate the achievement of the renewables portfolio standard
established in Article 16 (commencing with Section 399.11).
(2) Directing the utility to which the generator will be interconnected,
where the direction is not preempted by federal law, to seek the recovery
through general transmission rates of the costs associated with the transmission
facilities.
(3) Asserting the positions described in paragraphs (1) and (2) to the Federal
Energy Regulatory Commission in appropriate proceedings.
(4) Allowing recovery in retail rates of any increase in transmission costs
incurred by an electrical corporation a retail seller resulting from the
construction of the transmission facilities that are not approved for recovery in
transmission rates by the Federal Energy Regulatory Commission after the
commission determines that the costs were prudently incurred in accordance
with subdivision (a) of Section 454.
(b) Notwithstanding subdivision (a), a retail seller shall not recover any
costs paid through the Solar and Clean Energy Transmission Account to
facilitate the construction of any transmission facilities.
SEC. 6. Section 399.11 of the Public Utilities Code is amended to read:
399.11. The Legislature people finds find and declares declare all of the
following:
(a) In order to attain a the target targets of generating 20 percent of total
retail sales of electricity in California from eligible renewable energy resources
by December 31, 2010, 40 percent of total retail sales of electricity in California
from eligible renewable energy resources by December 31, 2020, and 50
percent of total retail sales of electricity in California from eligible renewable
energy resources by December 31, 2025, and for the purposes of increasing the
diversity, reliability, public health and environmental benefits of the energy
mix to address global warming and climate change, and to protect the
endangered Sierra snowpack, it is the intent of the Legislature people that the
commission and the State Energy Resources Conservation and Development
Commission implement the California Renewables Portfolio Standard Program
described in this article.
(b) Increasing California's reliance on eligible renewable energy resources
may promote stable electricity prices, protect public health, improve
environmental quality, stimulate sustainable economic development, create
new employment opportunities, and reduce reliance on imported fuels.
(c) The development of eligible renewable energy resources and the delivery
of the electricity generated by those resources to customers in California may
ameliorate air quality problems throughout the state, address global warming
and climate change, protect the endangered Sierra snowpack, and improve
public health by reducing the burning of fossil fuels and the associated
environmental impacts and by reducing in-state fossil fuel consumption.
(d) The California Renewables Portfolio Standard Program is intended to
complement the Renewable Energy Resources Program administered by the
State Energy Resources Conservation and Development Commission and
established pursuant to Chapter 8.6 (commencing with Section 25740) of
Division 15 of the Public Resources Code.
(e) New and modified electric transmission facilities may be necessary to
facilitate the state achieving its renewables portfolio standard targets.
SEC. 7. Section 399.12 of the Public Utilities Code is amended to read:
399.12. For purposes of this article, the following terms have the following
meanings:
(a) "Conduit hydroelectric facility" means a facility for the generation of
electricity that uses only the hydroelectric potential of an existing pipe, ditch,
flume, siphon, tunnel, canal, or other manmade conduit that is operated to
distribute water for a beneficial use.
(b) "Delivered" and "delivery" have the same meaning as provided in
subdivision (a) of Section 25741 of the Public Resources Code.
(c) "Eligible renewable energy resource" means an electric generating a
solar and clean energy facility that meets the definition of "in-state renewable
electricity generation facility" in Section 25741 of the Public Resources Code,
subject to the following limitations:
(1) (A) An existing small hydroelectric generation facility of 30 megawatts
or less shall be eligible only if a retail seller owned or procured the electricity
from the facility as of December 31, 2005. A new hydroelectric facility is not
an eligible renewable energy resource if it will cause an adverse impact on
instream beneficial uses or cause a change in the volume or timing of
streamflow.
(B) Notwithstanding subparagraph (A), a conduit hydroelectric facility of
30 megawatts or less that commenced operation before January 1, 2006, is an
eligible renewable energy resource. A conduit hydroelectric facility of 30
megawatts or less that commences operation after December 31, 2005, is an
eligible renewable energy resource so long as it does not cause an adverse
impact on instream beneficial uses or cause a change in the volume or timing
of streamflow.
(2) A facility engaged in the combustion of municipal solid waste shall not
be considered an eligible renewable energy resource unless it is located in
Stanislaus County and was operational prior to September 26, 1996.
(d) "Energy Commission" means the State Energy Resources Conservation
and Development Commission.
(e) "Local publicly owned electric utility" has the same meaning as provided
in subdivision (d) of Section 9604.
(f) "Procure" means that a retail seller receives delivered electricity
generated by an eligible renewable energy resource that it owns or for which it
has entered into an electricity purchase agreement. Nothing in this article is
intended to imply that the purchase of electricity from third parties in a
wholesale transaction is the preferred method of fulfilling a retail seller's
obligation to comply with this article.
(g) "Renewables portfolio standard" means the specified percentage of
electricity generated by eligible renewable energy resources that a retail seller
is required to procure pursuant to this article.
(h) (1) "Renewable energy credit" means a certificate of proof, issued
through the accounting system established by the Energy Commission
pursuant to Section 399.13, that one unit of electricity was generated and
delivered by an eligible renewable energy resource.
(2) "Renewable energy credit" includes all renewable and environmental
attributes associated with the production of electricity from the eligible
renewable energy resource, except for an emissions reduction credit issued
pursuant to Section 40709 of the Health and Safety Code and any credits or
payments associated with the reduction of solid waste and treatment benefits
created by the utilization of biomass or biogas fuels.
(3) No electricity generated by an eligible renewable energy resource
attributable to the use of nonrenewable fuels, beyond a de minimus quantity,
as determined by the Energy Commission, shall result in the creation of a
renewable energy credit.
(i) "Retail seller" means an entity engaged in the retail sale of electricity to
end-use customers located within the state, including any of the following:
(1) An electrical corporation, as defined in Section 218.
(2) A community choice aggregator. The commission shall institute a
rulemaking to determine the manner in which a community choice aggregator
will participate in the renewables portfolio standard program subject to the
same terms and conditions applicable to an electrical corporation.
(3) An electric service provider, as defined in Section 218.3, for all sales of
electricity to customers beginning January 1, 2006. The commission shall
institute a rulemaking to determine the manner in which electric service
providers will participate in the renewables portfolio standard program. The
electric service provider shall be subject to the same terms and conditions
applicable to an electrical corporation pursuant to this article. Nothing in this
paragraph shall impair a contract entered into between an electric service
provider and a retail customer prior to the suspension of direct access by the
commission pursuant to Section 80110 of the Water Code.
(4) "Retail seller" does not include any of the following:
(A) A corporation or person employing cogeneration technology or
producing electricity consistent with subdivision (b) of Section 218.
(B) The Department of Water Resources acting in its capacity pursuant to
Division 27 (commencing with Section 80000) of the Water Code.
(C) A local publicly owned electric utility.
SEC. 8. Section 399.13 of the Public Utilities Code is amended to read:
399.13. The Energy Commission shall do all of the following:
(a) Certify eligible renewable energy resources that it determines meet the
criteria described in subdivision (b) of Section 399.12.
(b) Design and implement an accounting system to verify compliance with
the renewables portfolio standard by retail sellers, to ensure that electricity
generated by an eligible renewable energy resource is counted only once for
the purpose of meeting the renewables portfolio standard of this state or any
other state, to certify renewable energy credits produced by eligible renewable
energy resources, and to verify retail product claims in this state or any other
state. In establishing the guidelines governing this accounting system, the
Energy Commission shall collect data from electricity market participants that
it deems necessary to verify compliance of retail sellers, in accordance with
the requirements of this article and the California Public Records Act (Chapter
3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government
Code). In seeking data from electrical corporations retail sellers, the Energy
Commission shall request data from the commission. The commission shall
collect data from electrical corporations retail sellers and remit the data to the
Energy Commission within 90 days of the request.
(c) Establish a system for tracking and verifying renewable energy credits
that, through the use of independently audited data, verifies the generation and
delivery of electricity associated with each renewable energy credit and
protects against multiple counting of the same renewable energy credit. The
Energy Commission shall consult with other western states and with the
Western Electricity Coordinating Council in the development of this system.
(d) Certify, for purposes of compliance with the renewable renewables
portfolio standard requirements by a retail seller, the eligibility of renewable
energy credits associated with deliveries of electricity by an eligible renewable
energy resource to a local publicly owned electric utility, if the Energy
Commission determines that the following conditions have been satisfied:
(1) The local publicly owned electric utility that is procuring the electricity
is in compliance with the requirements of Section 387.
(2) The local publicly owned electric utility has established an the annual
renewables portfolio standard targets target comparable to those applicable to
an electrical corporation required by Section 399.15, is procuring sufficient
eligible renewable energy resources to satisfy the targets, and will not fail to
satisfy the targets in the event that the renewable energy credit is sold to
another retail seller.
(e) Institute a rulemaking proceeding to determine the manner in which a
local publicly owned electric utility will comply with Section 387 and implement
the renewables portfolio standard program. The Energy Commission shall
utilize the same processes and have the same powers to enforce the renewables
portfolio standard program with respect to local publicly owned electric
utilities as the commission has with respect to retail sellers, including, but not
limited to, those processes and powers specified in Sections 399.14 and 399.15
related to the review and adoption of a renewable energy procurement plan,
establishment of flexible rules for compliance, and imposition of annual
penalties for failure to comply with a local publicly owned electric utility's
renewable energy procurement plan. The Energy Commission shall not have
any authority to approve or disapprove the terms, conditions, or pricing of any
renewable energy resources contract entered into by a local publicly owned
electric utility, or authority pursuant to Section 2113.
SEC. 9. Section 399.14 of the Public Utilities Code is amended to read:
399.14. (a) (1) The commission shall direct each electrical corporation
retail seller to prepare a renewable energy procurement plan that includes the
matter in paragraph (3), to satisfy its obligations under the renewables portfolio
standard. To the extent feasible, this procurement plan shall be proposed,
reviewed, and adopted by the commission as part of, and pursuant to, a general
procurement plan process. The commission shall require each electrical
corporation retail seller to review and update its renewable energy procurement
plan as it determines to be necessary.
(2) The commission shall adopt, by rulemaking, all of the following:
(A) A process for determining market prices pursuant to subdivision (c) of
Section 399.15. The commission shall make specific determinations of market
prices after the closing date of a competitive solicitation conducted by an
electrical corporation for eligible renewable energy resources.
(B)(A) A process that provides criteria for the rank ordering and selection of
least-cost and best-fit eligible renewable energy resources to comply with the
annual California Renewables Portfolio Standard Program obligations on a
total cost basis. This process shall consider estimates of indirect costs
associated with needed transmission investments and ongoing utility expenses
resulting from integrating and operating eligible renewable energy resources.
(C)(B) (i) Flexible rules for compliance, including rules permitting retail
sellers to apply excess procurement in one year to subsequent years or
inadequate procurement in one year to no more than the following three years.
The flexible rules for compliance shall apply to all years, including years
before and after a retail seller procures at least 20 50 percent of total retail sales
of electricity from eligible renewable energy resources.
(ii) The flexible rules for compliance shall address situations where, as a
result of insufficient transmission, a retail seller is unable to procure eligible
renewable energy resources sufficient to satisfy the requirements of this
article. Any rules addressing insufficient transmission shall require a finding
by the commission that the retail seller has undertaken all reasonable efforts to
do all of the following:
(I) Utilize flexible delivery points.
(II) Ensure the availability of any needed transmission capacity.
(III) If the retail seller is an electric corporation, to construct needed
transmission facilities.
(IV) Nothing in this subparagraph shall be construed to revise any portion
of Section 454.5.
(D)(C) Standard terms and conditions to be used by all electrical
corporations retail sellers in contracting for eligible renewable energy
resources, including performance requirements for renewable generators. A
contract for the purchase of electricity generated by an eligible renewable
energy resource shall, at a minimum, include the renewable energy credits
associated with all electricity generation specified under the contract. The
standard terms and conditions shall include the requirement that, no later than
six months after the commission's approval of an electricity purchase
agreement entered into pursuant to this article, the following information
about the agreement shall be disclosed by the commission: party names,
resource type, project location, and project capacity.
(3) Consistent with the goal of procuring the least-cost and best-fit eligible
renewable energy resources, the renewable energy procurement plan submitted
by an electrical corporation a retail seller shall include all of the following:
(A) An assessment of annual or multiyear portfolio supplies and demand to
determine the optimal mix of eligible renewable energy resources with
deliverability characteristics that may include peaking, dispatchable, baseload,
firm, and as-available capacity.
(B) Provisions for employing available compliance flexibility mechanisms
established by the commission.
(C) A bid solicitation setting forth the need for eligible renewable energy
resources of each deliverability characteristic, required online dates, and
locational preferences, if any.
(4) In soliciting and procuring eligible renewable energy resources, each
electrical corporation retail seller shall offer contracts of no less than 10 20
years in duration, unless the commission approves of a contract of shorter
duration.
(5) In soliciting and procuring eligible renewable energy resources, each
electrical corporation retail seller may give preference to projects that provide
tangible demonstrable benefits to communities with a plurality of minority or
low-income populations.
(b) The commission may authorize a retail seller to enter into a contract of
less than 10 20 years' duration with an eligible renewable energy resource, if
the commission has established, for each retail seller, minimum quantities of
eligible renewable energy resources to be procured either through contracts of
at least 10 20 years' duration or from new facilities commencing commercial
operations on or after January 1, 2005.
(c) The commission shall review and accept, modify, or reject each electrical
corporation's retail seller's renewable energy procurement plan prior to the
commencement of renewable procurement pursuant to this article by an
electrical corporation a retail seller.
(d) The commission shall review the results of an eligible renewable energy
resources solicitation submitted for approval by an electrical corporation a
retail seller and accept or reject proposed contracts with eligible renewable
energy resources based on consistency with the approved renewable energy
procurement plan. If the commission determines that the bid prices are elevated
due to a lack of effective competition among the bidders, the commission shall
direct the electrical corporation retail seller to renegotiate the contracts or
conduct a new solicitation.
(e) If an electrical corporation fails to comply with a commission order
adopting a renewable energy procurement plan, the commission shall exercise
its authority pursuant to Section 2113 to require compliance. The commission
shall enforce comparable penalties on any other retail seller that fails to meet
annual procurement targets established pursuant to Section 399.15.
(f) (1) The commission may authorize a procurement entity to enter into
contracts on behalf of customers of a retail seller for deliveries of eligible
renewable energy resources to satisfy annual renewables portfolio standard
obligations. The commission may not require any person or corporation to act
as a procurement entity or require any party to purchase eligible renewable
energy resources from a procurement entity.
(2) Subject to review and approval by the commission, the procurement
entity shall be permitted to recover reasonable administrative and procurement
costs through the retail rates of end-use customers that are served by the
procurement entity and are directly benefiting from the procurement of eligible
renewable energy resources.
(g) Procurement and administrative costs associated with long-term
contracts entered into by an electrical corporation a retail seller for eligible
renewable energy resources pursuant to this article, and approved by the
commission no more than 10 percent over the market price determined by the
Energy Commission pursuant to subdivision (c) of Section 399.15, shall be
deemed reasonable per se for electricity delivered on or before January 1,
2030, and shall be recoverable in rates.
(h) Construction, alteration, demolition, installation, and repair work on an
eligible renewable energy resource that receives production incentives or
funding pursuant to Section Sections 25742, 25743 or 25751.5 of the Public
Resources Code, including work performed to qualify, receive, or maintain
production incentives is "public works" for the purposes of Chapter 1
(commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(i) The commission shall impose annual penalties up to the amount of the
shortfall in kilowatthours multipied by one cent ($0.01) per kilowatthour on
any retail seller that fails to meet the annual procurement targets established
pursuant to Section 399.15. The commission shall not cap the penalty that may
be imposed on a retail seller under this section. All penalties assessed and
collected pursuant to this section shall be paid or transferred annually to the
Solar and Clean Energy Transmission Account administered by the Energy
Commission pursuant to Section 25751.5 of the Public Resources Code and
shall be used for programs designed to foster the development of new in-state
transmission and renewable electricity generation facilities. Penalties paid or
transferred by any retail seller pursuant to this section shall not be recoverable
by the retail seller either directly or indirectly in rates.
(j) Penalties assessed pursuant to subdivision (i) may be waived upon a
finding by the commission that there is good cause for a retail seller's failure
to comply with a commission order adopting a renewable energy procurement
plan. A finding by the commission that there is good cause for failure to comp1y
with a commission order adopting a renewable energy procurement plan shall
be made if the commission determines that any one of the following conditions
are met:
(1) The deadline or milestone changed due to circumstances beyond the
retail seller's control, including, but not limited to, administrative and legal
appeals, seller non-performance, insufficient response to a competitive
solicitation for eligible renewable energy resources, and lack of effective
competition.
(2) The retail seller demonstrates a good faith effort to meet the target,
including, but not limited to, executed contracts that provide future deliveries
sufficient to satisfy current year deficits.
(3) The target was missed due to unforeseen natural disasters or acts of God
that prevent timely completion of the project deadline or milestone.
(4) The retail seller is unable to receive energy from eligible renewable
energy resources due to inadequate electric transmission lines.
(5) For any year up to and including December 31, 2013, a local publicly
owned electric utility demonstrates that, despite its good faith effort, it has had
insufficient time to meet the annual procurement targets established in Section
399.15.
SEC. 10. Section 399.15 of the Public Utilities Code is amended to read:
399.15. (a) In order to fulfill unmet long-term resource needs, reduce
greenhouse gas emissions, address global warming and climate change,
protect the endangered Sierra snowpack, and lessen California's dependence
on fluctuating fuel prices, the commission shall establish a renewables
portfolio standard requiring all electrical corporationsretail sellers to procure
a minimum quantity of electricity generated by eligible renewable energy
resources as a specified percentage of total kilowatthours sold to their retail
end-use customers each calendar year, subject to limits on the total amount of
costs expended above the market prices determined in subdivision (c), to
achieve the targets established under this article.
(b) The commission shall implement annual procurement targets for each
retail seller as follows:
(1) Notwithstanding Section 454.5, each Each retail seller shall, pursuant to
subdivision (a), increase its total procurement of eligible renewable energy
resources by at least an additional 1 2 percent of retail sales per year so that 20
percent of its retail sales are procured from eligible renewable energy resources
no later than December 31, 2010, 40 percent of its retail sales are procured
from eligible renewable energy resources no later than December 31, 2020,
and 50 percent of its retail sales are procured from eligible renewable energy
resources no later than December 31, 2025. A retail seller with 20 percent of
retails sales procured from eligible renewable energy resources in any year
shall not be required to increase its procurement of renewable energy resources
in the following year.
(2) For purposes of setting annual procurement targets, the commission
shall establish an initial baseline for each retail seller based on the actual
percentage of retail sales procured from eligible renewable energy resources in
2001, and to the extent applicable, adjusted going forward pursuant to Section
399.12.
(3) Only for purposes of establishing these targets, the commission shall
include all electricity sold to retail customers by the Department of Water
Resources pursuant to Section 80100 of the Water Code in the calculation of
retail sales by an electrical corporation a retail seller.
(4) A retail seller is required to accept all bilateral offers for electricity
generated by eligible renewable energy resources that are less than or equal
to the market prices established pursuant to subdivision (c), except that a
retail seller is not obligated to accept a bilateral offer for any year in which the
retail seller has procured sufficient renewable energy resources to meet its
annual target established pursuant to this subdivision. In the event that a retail
seller fails to procure sufficient eligible renewable energy resources in a given
year to meet any annual target established pursuant to this subdivision, the
retail seller shall procure additional eligible renewable energy resources in
subsequent years to compensate for the shortfall, subject to the limitation on
costs for electrical corporations established pursuant to subdivision (d).
(c) The Energy Commission commission shall determine by a rulemaking
proceeding establish a methodology to determine the market price of electricity
for terms corresponding to the length of contracts with eligible renewable
energy resources, and the methodology for making that determination that
considers in consideration of the following:
(1) The long-term market price of electricity for fixed price contracts,
determined pursuant to an electrical corporation's a retail seller's general
procurement activities as authorized by the commission.
(2) The long-term ownership, operating, and fixed-price fuel costs
associated with fixed-price electricity from new generating facilities.
(3) The value of different products including baseload, peaking, and asavailable
electricity.
(4) Natural gas price forecasts that are consistent with forecasts used for
procurement of other resources, including loading order resources.
(5) The value and benefits of renewable resources, including, but not limited
to, hedging value and carbon emissions reductions.
(6) The value and benefits of baseload generation.
(d) A retail seller shall not be required to enter into long-term contracts
with operators of eligible renewable energy resources that exceed by more
than 10 percent the market prices established pursuant to subdivision (c) for
electricity delivered on or before January 1, 2030. The commission shall allow
a retail seller to limit its annual procurement obligation to the quantity of
eligible renewable energy resources that can be procured at no more than 10
percent over the market price established pursuant to subdivision (c). Indirect
costs associated with the purchase of eligible renewable energy resources by
a retail seller, including imbalance energy charges, sale of excess energy,
decreased generation from existing resources, or transmission upgrades, are
recoverable in rates, as authorized by the commission. The commission shall
establish, for each electrical corporation, a limitation on the total costs
expended above the market prices determined in subdivision (c) for the
procurement of eligible renewable energy resources to achieve the annual
procurement targets established under this article.
(1) The cost limitation shall be equal to the amount of funds transferred to
each electrical corporation by the Energy Commission pursuant to subdivision
(b) of Section 25743 of the Public Resources Code and the 51.5 percent of the
funds which would have been collected through January 1, 2012, from the
customers of the electrical corporation based on the renewable energy public
goods charge in effect as of January 1, 2007.
(2) The above market costs of a contract selected by an electrical corporation
may be counted toward the cost limitation if all of the following conditions are
satisfied:
(A) The contract has been approved by the commission and was selected
through a competitive solicitation pursuant to the requirements of subdivision
(d) of Section 399.14.
(B) The contract covers a duration of no less than 10 years.
(C) The contracted project is a new or repowered facility commencing
commercial operations on or after January 1, 2005.
(D) No purchases of renewable energy credits may be eligible for
consideration as an above market cost.
(E) The above market costs of a contract do not include any indirect expenses
including imbalance energy charges, sale of excess energy, decreased
generation from existing resources, or transmission upgrades.
(3) If the cost limitation for an electrical corporation is insufficient to
support the total costs expended above the market prices determined in
subdivision (c) for the procurement of eligible renewable energy resources
satisfying the conditions of paragraph (2), the commission shall allow the
electrical corporation to limit its procurement to the quantity of eligible
renewable energy resources that can be procured at or below the market prices
established in subdivision (c).
(4) Nothing in this section prevents an electrical corporation from
voluntarily proposing to procure eligible renewable energy resources at above
market prices that are not counted toward the cost limitation. Any voluntary
procurement involving above market costs shall be subject to commission
approval prior to the expense being recovered in rates.
(e) The establishment of a renewables portfolio standard shall not constitute
implementation by the commission of the federal Public Utility Regulatory
Policies Act of 1978 (Public Law 95-617).
(f) The Energy Commission commission shall consult with the Energy
Commission commission in calculating market prices under subdivision (c).
and The Energy Commission and the commission shall consult with each other
in establishing other renewables portfolio standard policies.
SEC. 11. Section 1001 of the Public Utilities Code is amended to read:
1001. Except as otherwise provided in Division 15 (commencing with
Section 25000) of the Public Resources Code, no No railroad corporation
whose railroad is operated primarily by electric energy, street railroad
corporation, gas corporation, electrical corporation, telegraph corporation,
telephone corporation, water corporation, or sewer system corporation shall
begin the construction of a street railroad, or of a line, plant, or system, or of
any extension thereof, without having first obtained from the commission a
certificate that the present or future public convenience and necessity require
or will require such construction.
This article shall not be construed to require any such corporation to secure
such certificate for an extension within any city or city and county within
which it has theretofore lawfully commenced operations, or for an extension
into territory either within or without a city or city and county contiguous to
its street railroad, or line, plant, or system, and not theretofore served by a
public utility of like character, or for an extension within or to territory already
served by it, necessary in the ordinary course of its business. If any public
utility, in constructing or extending its line, plant, or system, interferes or is
about to interfere with the operation of the line, plant, or system of any other
public utility or of the water system of a public agency, already constructed,
the commission, on complaint of the public utility or public agency claiming to
be injuriously affected, may, after hearing, make such order and prescribe such
terms and conditions for the location of the lines, plants, or systems affected as
to it may seem just and reasonable.
SEC. 12. Section 25107 of the Public Resources Code is amended to
read:
25107. "Electric transmission line" means any electric powerline carrying
electric power from a thermal powerplant or a solar and clean energy plant
located within the state to a point of junction with any interconnected
transmission system. "Electric transmission line" does not include any
replacement on the existing site of existing electric powerlines with electric
powerlines equivalent to such existing electric powerlines or the placement of
new or additional conductors, insulators, or accessories related to such electric
powerlines on supporting structures in existence on the effective date of this
division or certified pursuant to this division.
SEC. 13. Section 25110 of the Public Resources Code is amended to
read:
25110. "Facility" means any electric transmission line, or thermal
powerplant, or solar and clean energy plant, or both electric transmission line
and thermal powerplant or solar and clean energy plant, and extensions,
modifications, upgrades of existing electric transmission lines, regulated
according to the provisions of this division.
SEC. 14. Section 25137 is added to the Public Resources Code, to read:
25137. "Solar and clean energy plant" means any electrical generating
facility using wind, solar photovoltaic, solar thermal, biomass, biogas,
geothermal, fuel cells using renewable fuels, digester gas, municipal solid
waste conversion, landfill gas, ocean wave, ocean thermal, or tidal current
technologies, with a generating capacity of 30 megawatts or more, or small
hydroelectric generation of 30 megawatts or less, and any facilities appurtenant
thereto. Exploratory, development, and production wells, resource
transmission lines, and other related facilities used in connection with a
renewable project or a renewable development project are not appurtenant
facilities for the purposes of this division.
SEC. 15. Section 25502 of the Public Resources Code is amended to
read:
25502. Each person proposing to construct a thermal powerplant, solar
and clean energy plant, or electric transmission line on a site shall submit to
the commission a notice of intention to file an application for the certification
of the site and related facility or facilities. The notice shall be an attempt
primarily to determine the suitability of the proposed sites to accommodate
the facilities and to determine the general conformity of the proposed sites and
related facilities with standards of the commission and assessments of need
adopted pursuant to Sections 25305 to 25308, inclusive. The notice shall be in
the form prescribed by the commission and shall be supported by such
information as the commission may require.
Any site and related facility once found to be acceptable pursuant to Section
25516 is, and shall continue to be, eligible for consideration in an application
for certification without further proceedings required for a notice under this
chapter.
SEC. 16. Section 25517 of the Public Resources Code is amended to
read:
25517. Except as provided in Section 25501, no construction of any thermal
powerplant, solar and clean energy plant, or electric transmission line shall be
commenced by any electric utility without first obtaining certification as
prescribed in this division. Any onsite improvements not qualifying as
construction may be required to be restored as determined by the commission
to be necessary to protect the environment, if certification is denied.
SEC. 17. Section 25522 of the Public Resources Code is amended to
read:
25522. (a) Except as provided in subdivision (c) of Section 25520.5 and
Section 25550, within 18 months of the filing of an application for certification,
or within 12 months if it is filed within one year of the commission's approval
of the notice of intent, or at any later time as is mutually agreed by the
commission and the applicant, the commission shall issue a written decision as
to the application.
(b) The commission shall determine, within 45 days after it receives the
application, whether the application is complete. If the commission determines
that the application is complete, the application shall be deemed filed for
purposes of this section on the date that this determination is made. If the
commission determines that the application is incomplete, the commission
shall specify in writing those parts of the application which are incomplete and
shall indicate the manner in which it can be made complete. If the applicant
submits additional data to complete the application, the commission shall
determine, within 30 days after receipt of that data, whether the data is
sufficient to make the application complete. The application shall be deemed
filed on the date when the commission determines the application is complete
if the commission has adopted regulations specifying the informational
requirements for a complete application, but if the commission has not adopted
regulations, the application shall be deemed filed on the last date the
commission receives any additional data that completes the application.
SEC. 18. Section 25531 of the Public Resources Code is amended to
read:
25531. (a) The decisions of the commission on any application for
certification of a site and related facility are subject to judicial review by the
Supreme Court of California.
(b) No new or additional evidence may be introduced upon review and the
cause shall be heard on the record of the commission as certified to by it. The
review shall not be extended further than to determine whether the commission
has regularly pursued its authority, including a determination of whether the
order or decision under review violates any right of the petitioner under the
United States Constitution or the California Constitution. The findings and
conclusions of the commission on questions of fact are final and are not subject
to review, except as provided in this article. These questions of fact shall
include ultimate facts and the findings and conclusions of the commission. A
report prepared by, or an approval of, the commission pursuant to Section
25510, 25514, 25516, or 25516.5, or subdivision (b) of Section 25520.5, shall not
constitute a decision of the commission subject to judicial review.
(c) Subject to the right of judicial review of decisions of the commission, no
court in this state has jurisdiction to hear or determine any case or controversy
concerning any matter which was, or could have been, determined in a
proceeding before the commission, or to stop or delay the construction or
operation of any thermal powerplant or solar and clean energy plant except to
enforce compliance with the provisions of a decision of the commission.
(d) Notwithstanding Section 1250.370 of the Code of Civil Procedure:
(1) If the commission requires, pursuant to subdivision (a) of Section 25528,
as a condition of certification of any site and related facility, that the applicant
acquire development rights, that requirement conclusively establishes the
matters referred to in Sections 1240.030 and 1240.220 of the Code of Civil
Procedure in any eminent domain proceeding brought by the applicant to
acquire the development rights.
(2) If the commission certifies any site and related facility, that certification
conclusively establishes the matters referred to in Sections 1240.030 and
1240.220 of the Code of Civil Procedure in any eminent domain proceeding
brought to acquire the site and related facility.
(e) No decision of the commission pursuant to Section 25516, 25522, or
25523 shall be found to mandate a specific supply plan for any utility as
prohibited by Section 25323.
SEC. 19. Section 25540.6 of the Public Resources Code is amended to
read:
25540.6. (a) Notwithstanding any other provision of law, no notice of
intention is required, and the commission shall issue its final decision on the
application, as specified in Section 25523, within 12 months after the filing of
the application for certification of the powerplant and related facility or
facilities, or at any later time as is mutually agreed by the commission and the
applicant, for any of the following:
(1) A thermal powerplant which will employ cogeneration technology, a
thermal powerplant that will employ natural gas-fired technology, or a solar
and clean energy plant solar thermal powerplant.
(2) A modification of an existing facility.
(3) A thermal powerplant or solar and clean energy plant which it is only
technologically or economically feasible to site at or near the energy source.
(4) A thermal powerplant with a generating capacity of up to 100
megawatts.
(5) A thermal powerplant or solar and clean energy plant designed to
develop or demonstrate technologies which have not previously been built or
operated on a commercial scale. Such a research, development, or commercial
demonstration project may include, but is not limited to, the use of renewable
or alternative fuels, improvements in energy conversion efficiency, or the use
of advanced pollution control systems. Such a facility may not exceed 300
megawatts unless the commission, by regulation, authorizes a greater capacity.
Section 25524 does not apply to such a powerplant and related facility or
facilities.
(b) Projects exempted from the notice of intention requirement pursuant to
paragraph (1), (4), or (5) of subdivision (a) shall include, in the application for
certification, a discussion of the applicant's site selection criteria, any
alternative sites that the applicant considered for the project, and the reasons
why the applicant chose the proposed site. That discussion shall not be required
for cogeneration projects at existing industrial sites. The commission may also
accept an application for a noncogeneration project at an existing industrial
site without requiring a discussion of site alternatives if the commission finds
that the project has a strong relationship to the existing industrial site and that
it is therefore reasonable not to analyze alternative sites for the project.
SEC. 20. Section 25541 of the Public Resources Code is amended to
read:
25541. The commission may exempt from this chapter thermal
powerplants with a generating capacity of up to 100 megawatts, and
modifications to existing generating facilities that do not add capacity in
excess of 100 megawatts, and solar and clean energy plants, if the commission
finds that no substantial adverse impact on the environment or energy
resources will result from the construction or operation of the proposed facility
or from the modifications.
SEC. 21. Section 25541.1 of the Public Resources Code is amended to
read:
25541.1. It is the intent of the Legislature people to encourage the
development of thermal powerplants or solar and clean energy plants using
resource recovery (waste-to-energy) technology. Previously enacted incentives
(3) for the production of electrical energy from nonfossil fuels in commercially
scaled projects have failed to produce the desired results. At the same time, the
state faces a growing problem in the environmentally safe disposal of its solid
waste. The creation of electricity by a thermal powerplant or solar and clean
energy plant using resource recovery technology addresses both problems by
doing all of the following:
(a) Generating electricity from a nonfossil fuel of an ample, growing
supply.
(b) Conserving landfill space, thus reducing waste disposal costs.
(c) Avoiding the health hazards of burying garbage.
Furthermore, development of resource recovery facilities creates new
construction jobs, as well as ongoing operating jobs, in the communities in
which they are located.
SEC. 22. Section 25542.5 is added to the Public Resources Code, to read:
25542.5. The Energy Commission shall, on an annual basis, publish a
report that identifies and designates Solar and Clean Energy Zones in the
state of California based on geographic areas identified by the Energy
Commission's Public Interest Energy Research Program as having potential
for solar and clean energy resources.
SEC. 23. Section 25550 is added to the Public Resources Code, to read:
25550. (a) Notwithstanding subdivision (a) of Section 25522, and Section
25540.6, the commission shall establish a process to issue its final certification
for any solar and clean energy plant and related facilities within six months
after the filing of the application for certification that, on the basis of an initial
review, shows that there is substantia1 evidence that the project will not cause
a significant adverse impact on the environment or electrical transmission
and distribution system and will comp1y with all applicable standards,
ordinances, or laws. For purposes of this section, filing has the same meaning
as in Section 25522.
(b) Solar and clean energy plants and related facilities reviewed under this
process shall satisfy the requirements of Section 25520 and other necessary
information required by the commission, by regulation, including the
information required for permitting by each local, state, and regional agency
that would have jurisdiction over the proposed solar and clean energy plant
and related facilities but for the exclusive jurisdiction of the commission and
the information required for permitting by each federal agency that has
jurisdiction over the proposed solar and clean energy plant and related
facilities.
(c) After acceptance of an application under this section, the commission
shall not be required to issue a six-month final decision on the application if it
determines there is substantial evidence in the record that the solar and clean
energy plant and related facilities will likely result in a significant adverse
impact on the environment or electrical system or does not comply with an
applicable standard, ordinance, or law. Under this circumstance, the
commission shall make its decision in accordance with subdivision (a) of
Section 25522 and Section 25540.6, and a new application shall not be
required.
(d) For an application that the commission accepts under this section, all
local, regional, and state agencies that would have had jurisdiction over the
proposed solar and clean energy plant and related facilities, but for the
exclusive jurisdiction of the commission, shall provide their final comments,
determinations, or opinions within 100 days after the filing of the application.
The regional water quality control boards, as established pursuant to Chapter
4 (commencing with Section 13200) of Division 7 of the Water Code, shall
retain jurisdiction over any applicable water quality standard that is
incorporated into any final certification issued pursuant to this chapter.
(e) Applicants of solar and clean energy plants and related facilities that
demonstrate superior environmental or efficiency performance shall receive
priority in review.
(f) With respect to a solar and clean energy plant and related facilities
reviewed under the process established by this section, it shall be shown that
the applicant has a contract with a general contractor and has contracted for
an adequate supply of skilled labor to construct, operate, and maintain the
plant.
(g) With respect to a solar and clean energy plant and related facilities
reviewed under the process established by this section, it shall be shown that
the solar and clean energy plant and related facilities complies with all
regulations adopted by the commission that ensure that an application
addresses disproportionate impacts in a manner consistent with Section
65040.12 of the Government Code.
(h) This section shall not apply to an application filed with the commission
on or before January 1, 2009.
(i) To implement this section, the commission may adopt emergency
regulations in accordance with Chapter 3.5 (commencing with Section 11340)
of Part 2 of Division 3 of Title 2 of the Government Code. For purposes of that
chapter, including without limitation, Section 11349.6 of the Government
Code, the adoption of the regulations shall be considered by the Office of
Administrative Law to be necessary for the immediate preservation of the
public peace, health, safety, and general welfare.
(j) All solar and clean energy plants receiving certification pursuant to this
section shall be considered a public works project subject to the provisions of
Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor
Code, and the Department of Industrial Relations shall have the same authority
and responsibility to enforce those provisions as it has under the Labor
Code.
SEC. 24. Chapter 6.6 (commencing with Section 25560) is added to
Division 15 of the Public Resources Code, to read:
25560. No electrical corporation as defined in Section 218 of the Public
Utilities Code shall begin the construction of a transmission line or of any
extension, modification, or upgrade thereof, without having first obtained
from the commission a certificate that the present or future public convenience
and necessity require or will require such construction.
This chapter shall not be construed to require any such corporation to
secure such certificate for an extension within any city or city and county
within which it has theretofore lawfully commenced operations, or for an
extension into territory either within or without a city or city and county
contiguous to its transmission line or system, and not theretofore served by a
public utility of like character, or for an extension within or to territory
already served by it, necessary in the ordinary course of its business. If any
public utility, in constructing or extending its line or system, interferes or is
about to interfere with the operation of the line or system of any other public
utility or of the water system of a public agency, already constructed, the
commission, on complaint of the public utility or public agency claiming to be
injuriously affected, may, after hearing, and in consultation with the Public
Utilities Commission make such order and prescribe such terms and conditions
for the location of the lines or systems affected as to it may seem just and
reasonable.
25561. (a) The commission shall exempt the construction of any line or
system, or extension thereof, located outside the boundaries of the state from
the requirements of Section 25560, upon the application of the public utility
constructing that line or system, or extension thereof, if the public utility
derives 75 percent or more of its operating revenues from outside the state, as
recorded in the fiscal period immediate1y before the filing of the application,
unless the commission determines that the public interest requires that the
construction should not be exempt from Section 25560.
(b) Except as provided in subdivision (c), the commission shall make the
determination denying the exemption, as specified in subdivision (a), within
90 days after the public utility files the application for exemption with the
commission. If the commission fails to make this determination within that 90-
day period, the construction of that line or system, or extension thereof, is
exempt from the requirements of Section 25560.
(c) The commission and the public utility filing the application for exemption
may, if both agree, extend the time period within which the commission is
required to make the determination denying the exemption, for not more than
an additional 60 days after the expiration of the 90-day period specified in
subdivision (b).
25562. (a) The commission, as a basis for granting any certificate
pursuant to Section 25560, shall give consideration to the following factors:
(1) Community values.
(2) Recreational and park areas.
(3) Historical and aesthetic values.
(4) Influence on environment, except that in the case of any line or system
or extension thereof located in another state which will be subject to
environmental review pursuant to the National Environmental Policy Act of
1969 (Chapter 55 (commencing with Section 4321) of Title 42 of the United
States Code) or similar state laws in the other state, the commission shall not
consider influence on the environment unless any emissions or discharges
therefrom would have a significant influence on the environment of this state.
(5) Proximity to and related effect on populated areas and whether
alternative locations are reasonably available and appropriate.
(6) Value and benefits of baseload generation.
(b) With respect to any electrical transmission line required to be
constructed, modified, or upgraded to provide transmission from a thermal
powerplant or a solar and clean energy plant, and for which a certificate is
required pursuant to the provisions of Division 15 (commencing with Section
25000), the decision granting such other certificate shall be conclusive as to
all matters determined thereby and shall take the place of the requirement for
consideration by the commission of the six factors specified in subdivision (a)
of this section.
(c) As a condition for granting any certificate pursuant to Section 25560,
the commission shall require compliance with the California Desert Protection
Act of 1994 (commencing with Section 410aaa of Title 16 of the United States
Code).
25563. In considering an application for a certificate for an electric
transmission facility pursuant to Section 25560, the commission shall consider
cost-effective alternatives to transmission facilities that meet the need for an
efficient, reliable, and affordable supply of electricity, including, but not
limited to, demand-side alternatives such as targeted energy efficiency,
ultraclean distributed generation, as defined in Section 353.2 of the Public
Utilities Code, and other demand reduction resources. The provisions of this
section shall not apply to any electrical transmission line required to be
constructed, modified, or upgraded to provide transmission from a solar and
clean energy plant.
25564. Every electrical corporation submitting an application to the
commission for a certificate authorizing the new construction of any electric
transmission line or extension, not subject to the provisions of Chapter 6
(commencing with Section 25500), shall include all of the following information
in the application in addition to any other required information:
(a) Preliminary engineering and design information on the project. The
design information provided shall include preliminary data regarding the
operating characteristics of the line or extension.
(b) A project implementation plan showing how the project would be
contracted for and constructed. This plan shall show how all major tasks
would be integrated and shall include a timetable identifying the design,
construction, completion, and operation dates for each major component of
the line or extension.
(c) An appropriate cost estimate, including preliminary estimates of the
costs of financing, construction, and operation of the line or extension.
(d) The corporation shall demonstrate the financial impact of the line or
extension construction on the corporation's ratepayers, stockholders, and on
the cost of the corporation's borrowed capital. The cost analyses shall be
performed for the projected useful life of the line or extension.
(e) A design and construction management and cost control plan which
indicates the contractual and working responsibilities and interrelationships
between the corporation's management and other major parties involved in
the project. This plan shall also include a construction progress information
system and specific cost controls.
25565. Every electrical corporation submitting an application to the
commission for a certificate authorizing the new construction of an electric
transmission line or extension, which is subject to the provisions of Chapter 6
(commencing with Section 25500), shall include in the application the
information specified in subdivisions (b), (c), and (e) of Section 25564, in
addition to any other required information. The corporation may also include
in the application any other information specified in Section 25564.
25566. Before any certificate may issue under this chapter, every applicant
for a certificate shall file in the office of the commission a certified copy of the
applicant's articles of incorporation or charter. Every applicant for a
certificate shall file in the office of the commission such evidence as is required
by the commission to show that the applicant has received the required consent,
franchise, or permit of the proper county, city and county, city, or other public
authority.
25567. (a) The commission may, with or without hearing, issue the
certificate as requested for, or refuse to issue it, or issue it for the construction
of a portion only of the contemplated electric transmission line or extension
thereof, or for the partial exercise only of the right or privilege, and may attach
to the exercise of the rights granted by the certificate such terms and conditions,
including provisions for the acquisition by the public of the franchise or permit
and all rights acquired thereunder and all works constructed or maintained by
authority thereof, as in its judgment the public convenience and necessity
require; provided, however, that before issuing or refusing to issue the
certificate, the commission shall hold one or more hearings addressing any
issues raised in a timely application for a hearing by any person entitled to be
heard.
(b) When the commission issues a certificate for the new construction of an
electric transmission line or extension, the certificate shall specify the
operating and cost characteristics of the transmission line or extension,
including, but not limited to, the size, capacity, cost, and all other characteristics
of the transmission line or extension which are specified in the information
which the electrical corporations are required to submit, pursuant to Section
25564 or 25565.
(c) Notwithstanding any other provision in this chapter, an application for
a certificate authorizing the construction of new transmission facilities shall
be deemed to be necessary to the provision of electric service for purposes of
any determination made under Section 25564 if the commission finds that the
new facility is necessary to facilitate achievement of the renewables portfolio
standard as established in Article 16 (commencing with Section 399.11) of the
Public Utilities Code and the eligible renewable energy resources requirement
as established in Chapter 8.6 (commencing with Section 25740) of this
division.
25568. (a) Whenever the commission issues to an electrical corporation a
certificate authorizing the new construction of a transmission line, or of any
extension, modification, or upgrade thereof estimated to cost greater than fifty
million dollars ($50,000,000), the commission shall specify in the certificate a
maximum cost determined to be reasonable and prudent for the facility. The
commission shall determine the maximum cost using an estimate of the
anticipated construction cost, taking into consideration the design of the
project, the expected duration of construction, an estimate of the effects of
economic inflation, and any known engineering difficulties associated with
the project.
(b) After the certificate has been issued, the corporation may apply to the
commission for an increase in the maximum cost specified in the certificate.
The commission may authorize an increase in the specified maximum cost if it
finds and determines that the cost has in fact increased and that the present or
future public convenience and necessity require construction of the project at
the increased cost; otherwise, it shall deny the application.
(c) After construction has commenced, the corporation may apply to the
commission for authorization to discontinue construction. After a showing to
the satisfaction of the commission that the present or future public convenience
and necessity no longer require the completion of construction of the project,
and that the construction costs incurred were reasonable and prudent, the
commission may authorize discontinuance of construction and the Public
Utilities Commission may authorize recovery of those construction costs
which the commission determines were reasonable and prudent.
(d) In any decision by the Public Utilities Commission establishing rates for
an electrical corporation reflecting the reasonable and prudent costs of the
new construction of any transmission line, or of any extension, modification,
or upgrade thereof, when the commission has found and determined that the
addition or extension is used and useful, the Public Utilities Commission shall
consider whether or not the actual costs of construction are within the
maximum cost specified by the commission.
SEC. 25. Section 25740 of the Public Resources Code is amended to
read:
25740. It is the intent of the Legislature people in establishing this
program, to address global warming and climate change, and protect the
endangered Sierra snowcaps by increasing increase the amount of electricity
generated from eligible renewable energy resources per year, so that it equals
at least 20 percent of total retail sales of electricity in California per year by
December 31, 2010., at least 40 percent of total retail sales of electricity in
California per year by December 31, 2020, and at least 50 percent of total
retail sales of electricity in California per year by December 31, 2025.
SEC. 26. Section 25740.1 is added to the Public Resources Code, to read:
25740.1. The people find that the construction of electric transmission
facilities necessary to facilitate the achievement of California's renewables
portfolio standard targets will provide the maximum economic benefit to all
customer classes that funded the New Renewable Resources Account.
SEC. 27. Section 25743 of the Public Resources Code is amended to
read:
25743. (a) The commission shall terminate all production incentives
awarded from the New Renewable Resources Account prior to January 1,
2002, unless the project began generating electricity by January 1, 2007.
(b) (1) The commission shall, by March 1, 2008, transfer to electrical
corporations serving customers subject to the renewable energy public goods
charge the remaining unencumbered funds in the New Renewable Resources
Account.
(2) The Public Utilities Commission shall ensure that each electrical
corporation allocates funds received from the commission pursuant to
paragraph (1) in a manner that maximizes the economic benefit to all customer
classes that funded the New Renewable Resources Account. In considering
and approving each electrical corporation's proposed allocations, and
consistent with Section 25740.1, the Public Utilities Commission shall
encourage and give the highest priority to allocations for the construction of,
or payment to supplement the construction of, any new or modified electric
transmission facilities necessary to facilitate the state achieving its renewables
portfolio standard targets.
(c) All projects receiving funding, in whole or in part, pursuant to this
section shall be considered public works projects subject to the provisions of
Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor
Code, and the Department of Industrial Relations shall have the same authority
and responsibility to enforce those provisions as it has under the Labor
Code.
SEC. 28. Section 25745 is added to the Public Resources Code, to read:
25745. The Energy Commission shall use its best efforts to attract and
encourage investment in solar and clean energy resources, facilities, research
and development from companies based in the United States to fulfill the
purposes of this chapter.
SEC. 29. Section 25751.5 is added to the Public Resources Code, to read:
25751.5. (a) The Solar and Clean Energy Transmission Account is hereby
established within the Renewable Resources Trust Fund.
(b) Beginning January 1, 2009, the total annual adjustments adopted
pursuant to subdivision (d) of Section 399.8 of the Public Utilities Code shall
be allocated to the Solar and Clean Energy Transmission Account.
(c) Funds in the Solar and Clean Energy Transmission Account shall be
used, in whole or in part, for the following purposes:
(1) The purchase of property or right-of-way pursuant to the commission's
authority under Chapter 8.9 (commencing with Section 25790).
(2) The construction of, or payment to supplement the construction of, any
new or modified electric transmission facilities necessary to facilitate the state
achieving its renewables portfolio standard targets.
(d) Title to any property or project paid for in whole pursuant to this section
shall vest with the commission. Title to any property or project paid for in part
pursuant to this section shall vest with the commission in a part proportionate
to the commission's share of the overall cost of the property or project.
(e) Funds deposited in the Solar and Clean Energy Transmission Account
shall be used to supplement, and not to supplant, existing state funding for the
purposes authorized by subdivision (c).
(f) All projects receiving funding, in whole or in part, pursuant to this
section shall be considered public works projects subject to the provisions of
Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor
Code, and the Department of Industrial Relations shall have the same authority
and responsibility to enforce those provisions as it has under the Labor
Code.
SEC. 30. Chapter 8.9 (commencing with Section 25790) is added to
Division 15 of the Public Resources Code, to read:
25790. The Energy Commission may, for the purposes of this chapter,
purchase and subsequently sell, lease to another party for a period not to
exceed 99 years, exchange, subdivide, transfer, assign, pledge, encumber, or
otherwise dispose of any real or personal property or any interest in property.
Any such lease or sale shall be conditioned on the development and use of the
property for the generation and/or transmission of renewable energy.
25791. Any lease or sale made pursuant to this chapter may be made
without public bidding but only after a public hearing.
SEC. 31. Severability
The provisions of this act are severable. If any provision of this act, or part
thereof, is for any reason held to be invalid under state or federal law, the
remaining provisions shall not be affected, but shall remain in full force and
effect.
SEC. 32. Amendment
The provisions of this act may be amended to carry out its purpose and
intent by statutes approved by a two-thirds vote of each house of the Legislature
and signed by the Governor.
SEC. 33. Conflicting Measures
(a) This measure is intended to be comprehensive. It is the intent of the
people that in the event that this measure and another initiative measure
relating to the same subject appear on the same statewide election ballot, the
provisions of the other measure or measures are deemed to be in conflict with
this measure. In the event this measure shall receive the greater number of
affirmative votes, the provisions of this measure shall prevail in their entirety,
and all provisions of the other measure or measures shall be null and void.
(b) If this measure is approved by voters but superseded by law by any other
conflicting ballot measure approved by the voters at the same election, and the
conflicting ballot measure is later held invalid, this measure shall be self
executing and given full force of law.
SEC. 34. Legal Challenge
Any challenge to the validity of this act must be filed within six months of
the effective date of this act.