Simitian Renewable Energy Bill Signed Into Law

Senator Joseph Simitian's renewable energy bill was signed into law today at the dedication of a new solar panel manufacturing plant. 

The law requires all public and private utilities in the state to obtain a third of their electricity from renewable energy sources by the end of 2020.

"Today is only the beginning," said Simitian. "We will look back on this day...as a decade of progress."

Simitian with Governor Jerry Brown, U.S. Energy Secretary Steven Chu, and state legislators toured the new manufacturing plant in Milpitas that employs more than 100 workers. The plant is a partnership between Flextronics and San Jose-based SunPower Corp.

The law aims to spur jobs, investment and technology in the renewable energy industry, while addressing global warming. 

"Senate Bill 2X sends a signal to renewable energy providers that California wants them here," said Simitian. "They will respond, as they have in the past, with billions of dollars in investments that will provide jobs and tax revenues." 

In addition, the new law raises the current requirement for electricity retailers to increase their share of renewable energy sources from 20 percent to a third.

PG&E spokesman Denny Boyles said that PG&E is both an owner-operator of renewable energy facilities and a purchaser of renewable energy that is covered by this specific bill.

The utility is planning to build and operate a number of solar facilities over the next five years that would produce up to 250 megawatts of energy, Boyles said. Three are working through the permit ad construction process near Fresno. In addition, PG&E has a small pilot project on line outside of Vacaville. That project, which was undertaken as a test to see how the permit process, construction and operation of a solar photovoltaic facility unfolds, is a 2.5 megawatt facility that serves 250 homes.
 
PG&E also hopes to sign contracts with other providers to purchase energy covered by the legislation, Boyles said. The utility has been on record of supporting the move to renewable energy, he said.

"We supported the 20 percent goal by 2017, then the accelerated goal of 2010, and then 33 percent goal," Boyles said.

Also among the next steps, the utility wants to work closely with the governor's office on the implementation legislation, which will delve into the details of how the megawatts for the renewable portfolio standard are counted, what kind of procurement flexibility there will be, and what kind of time line for compliance will be set, given that facilities need to get permits, then get constructed and be made operational. How this is done can affect the cost to the consumer, he said.

The California Public Utilities Commission is responsible for implementing the new regulations. Until recently California utilities were required to reach a smaller goal of 20 percent by the end of 2010. 

CPUC Commissioner Mike Florio, who attended the event, said technically the utilities did not reach 20 percent, but the details allow "backfilling" over subsequent years. 

"The contracts that come on-line this year and next year count towards 2010," he said. 

While the average consumer won't necessarily notice a difference at home, Florio said the new regulations would position California as a renewable energy state, much like Texas and Louisiana are considered gas states. He suggested the new regulations could take the electricity industry, which hasn't changed in 50 years, he said, to a whole new level in a decade.

"Think how you used telecommunications 20 years ago," he said, referring to the technology in cell phones and smart phones.

During the press conference U.S. Energy Secretary Steven Chu announced last week $50 million was allocation to a consortium led by Stanford and UC Berkeley aimed at improving solar photovoltaic performance and, at the same time, bring costs down.

As he spoke about the "bright energy future," he said, under the leadership of the president, "we're jumping in the (clean energy) race and we're planning to win."