Gino DiCaro

33% renewables by 2020 proposed again

By Gino DiCaro, VP, Communications

Capitol Update, Feb. 18, 2011 Share this on FacebookTweet thisEmail this to a friend

Last year, Senator Joe Simitian’s SB 722 to increases the utility renewable portfolio standard requirement from 20 to 33 percent failed to pass out of the legislature in its final days. He has re-introduced the bill, SB 23 in regular session and SBx1 2 in special session (giving it some urgency). It was heard and passed from the Senate Energy, Utilities and Communications Committee last Tuesday. CMTA is vigorously opposed

The California Air Resources Board (CARB) has already adopted a rule to require a 33 percent renewable energy standard to help meet AB 32 goals for greenhouse gas reductions.  This bill would impose an alternative that is more costly for ratepayers by prohibiting the use of out-of-state resources for much of the compliance obligation, thus reducing competition and raising costs to consumers.

CARB has also adopted a cap and trade regulation under AB 32 that covers electric generation.  That rule will provide the correct incentives for utilities and other purchasers of electricity to achieve emission reductions through a broad range of energy efficiency and low-emitting generation projects that make sense on a cost and reliability basis, a more cost-effective approach than picking technologies for special treatment in SBx1 2.

Many California customers purchase electricity through energy service providers – a competitive choice to manage their bills. The legislation does not provide a feasible compliance pathway for energy service providers.

With 50 percent higher electricity rates already, industry can ill afford this bill.

SBx1 2 will next be heard in the Senate Appropriations Committee.

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