AB 34

Under current law, an electric utility or retail electric cooperative (utility or

cooperative) is subject to certain requirements for ensuring that, in a given year, a

specified percentage of the electricity that the utility or cooperative sells to retail

customers is derived from renewable resources. Such requirements are commonly

referred to as "renewable portfolio standards." A utility or cooperative creates

renewable resource credits based on the amount of electricity derived from

renewable resources that the utility or cooperative sells to its customers or members

in a year. Current law allows a utility or cooperative to use the credits to comply with

a renewable portfolio standard for a particular year, bank the credits for use in a

subsequent year, or sell the credits to another utility or cooperative. Current law

defines "renewable resource" to include solar and wind power, geothermal

technology, biomass, and other specified resources. A utility or cooperative may not

create a credit based on electricity derived from a "conventional resource," which

current law defines to include coal, oil, nuclear power, and, with certain exceptions,

natural gas.

This bill allows a utility or cooperative to use electricity derived from nuclear

power to comply with a renewable portfolio standard. The bill achieves that result

by allowing a utility or cooperative to create credits based on the amount of electricity

derived from nuclear power that the utility or cooperative sells to its customers or

members in a year, in addition to the amount of electricity derived from renewable

resources. However, only electricity generated at a nuclear facility in this state may

be used to comply with a renewable portfolio standard. In addition, the electricity

may not be used if it is subject to a power purchase agreement that was entered into

before the bill's effective date.

The bill also eliminates a restriction on the use of credits to comply with

renewable portfolio standards. Under current law, a credit may not be used after the

fourth year in which the credit is created, unless the Public Service Commission

promulgates rules specifying a different time period. This bill eliminates that

restriction.