Draft Proposal Would Change Renewable Portfolio Standard

by | Feb 18, 2020

A draft proposal circulating in the State Capitol would seek to change the current renewable portfolio standard (RPS) in California. The call for change is not surprising, as the changes would concentrate more of the RPS targets in-state, an argument that labor has made in the past. This time, the idea also calls for an elimination of “Bucket 3.”

The proposal identifies several factors for pushing for this change, but principally, they argue that given the “… maturation of the RPS program, the low cost of new renewable generation, the effectiveness in reducing GHG emissions, the good jobs it is creating, and the policy choices made by many CCAs [Community Choice Aggregation programs], it is time to increase the proportion of the program based on Portfolio Content Category 1, while eliminating compliance based on unbundled RECs [renewable energy credits].”

Key Factors of the Proposal

In order to qualify under the proposed new definitions, an eligible renewable energy resource would need to meet either of the following criteria:

  • Have a first point of interconnection with a California balancing authority, have a first point of interconnection with distribution facilities used to serve end-users within a California balancing authority area, or are scheduled from the eligible renewable energy resource into a California balancing authority without substituting electricity from another source; or,
  • Have an agreement to dynamically transfer electricity to a California balancing authority.

In order to achieve a balanced portfolio, all retail sellers would also have to meet the following requirements for all procurement credited toward each compliance period:

  • Not less than 50 percent for the compliance period ending December 31, 2013, 65 percent for the compliance period ending December 31, 2016, and 75 percent for the compliance period ending December 31, 2020, and 85 percent for each compliance period thereafter, of the eligible renewable energy resource electricity products associated with contracts executed after June 1, 2010, shall meet the product content requirements of paragraph (1) of subdivision (b).
  • Not more than 25 percent for the compliance period ending December 31, 2013, 15 percent for the compliance period ending December 31, 2016, and 10 percent for the compliance period ending December 31, 2020, of the eligible renewable energy resource electricity products associated with contracts executed after June 1, 2010, shall meet the product content requirements of paragraph (3) of subdivision (b). Electricity products meeting the product content requirements of paragraph (3) of subdivision (b) shall not be credited towards any compliance period after December 31, 2020 except as provided in subdivision (e).

There is no identified bill number or author as of this report.

 

Matt Ross

Matt Ross

Matt Ross is a Senior Consultant in the energy industry and has more than a dozen years of experience in state government.
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