05-03-2013 BPU RPT 08 - Laserfiche WebLink

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W A T E R I E N E R G Y I L I F E RIVERSIDE PUBLIC UTILITIES 191& Board Memorandum P U R 1 1 C 0 1 1 1 1 1 1 F S BOARD OF PUBLIC UTILITIES DATE: May 3, 2013 ITEM NO: 8 SUBJECT: ADOPTION OF PROCUREMENT PLAN FOR THE CALIFORNIA RENEWABLE ENERGY RESOURCES ACT ISSUE: The item for Board of Public Utilities consideration is approval of a Renewable Portfolio Standard ( "RPS ") Procurement Plan for Riverside Public Utilities as required by the California Renewable Energy Resources Act. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve and adopt the attached Riverside Public Utilities Renewable Portfolio Standard Procurement Plan; and 2. Delegate implementation of the Renewable Portfolio Standard Procurement Plan to the City Manager, or his designee. BACKGROUND In the past ten years, the California Legislature has enacted increasingly more stringent renewable energy legislation governing the procurement of renewable energy by California electric utilities. In 2002, California Senate Bill ( "SB ") 1078 required California Investor Owned Utilities ( "IOUs ") to procure 20% of their retail customer needs using renewable resources by 2017. California SB 107, enacted in 2006, accelerated the renewable procurement goal for IOUs to 20% by 2010. Although Riverside was not required to establish RPS goals by these early legislative mandates, Riverside has nevertheless voluntarily procured renewable resources to meet increasing percentages of Riverside's retail energy requirements. On April 12, 2011, the California Renewable Energy Resources Act ( "SBX1 -2 ") was enacted. Unlike previous State laws, SBX1 -2 is applicable to Publicly Owned Utilities ( "POUs "). This Act revised the State Renewable Energy Resources Program to set targets for electricity generated by renewable resources of at least 33% of statewide retail sales by December 31, 2020. SBX1 -2 also defines targets for three separate compliance periods, and three categories of renewable resources with progressively increasing requirements for the category primarily composed of renewable generating resources located within California. Oversight of compliance with SBX1 -2 by POUs is provided in part by their respective local governing bodies and in part by the California Energy Commission ( "CEC "). Oversight of compliance by IOUs is provided by the California Public Utilities Commission ( "CPUC "). The CEC and CPUC continue to conduct regulatory rulemaking processes to fully implement SBX1 -2; these processes are expected to conclude by summer 2013.