7. RENEWABLE ENERGY:

Calif. Senate votes to codify 33% RPS target

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The California Senate voted today to enact a 33 percent renewable portfolio standard by 2020 for all electric utilities.

The bill, from Sen. Joe Simitian (D), would codify a standard already in place under an executive order signed by former Gov. Arnold Schwarzenegger (R). Replacing the order with standing law would give regulators more legal teeth to enforce the targets.

Like the 20-percent-by-2010 standard, the 2020 RPS under Simitian's bill would come with "flexible compliance" mechanisms attached that could extend compliance past 2020. The three investor-owned utilities subject to the 2010 mandate have not yet met the 20 percent threshold in terms of operational power, but they are expected to do so by 2013 under contracts already signed.

The 33 percent standard would apply for the first time to public power, including the sprawling Los Angeles Department of Water and Power, which imports much of its load from coal-fired plants outside the state. It would let utilities meet their targets by one of three ways: with directly interconnected renewable energy from in- and out-of-state sources, with energy swaps and with renewable energy certificates.

Laura Wisland, an energy analyst at Union of Concerned Scientists, said the bill is designed with maximum flexibility in mind initially, with utilities ramping up over the decade to eventually meet 75 percent of their renewable obligation with directly interconnected power by 2020.

The new RPS would also let utilities meet requirements every three or four years, revising the yearly targets written into the 2010 RPS.

"It's actually much more flexible," Wisland said. "You have breathing room between years."

Wisland is hopeful the State Assembly will take up the bill before the current special session ends March 11. The special session has been called by Gov. Jerry Brown (D) in an attempt to pass a budget.

Click here to read a Senate floor analysis of the RPS bill.

Sullivan is based in San Francisco.