AB 204

This bill provides that heat that is a byproduct of a manufacturing process is

considered a renewable resource for the purpose of the renewable portfolio standards

law. Under current law, an electric utility or retail electric cooperative is subject to

certain requirements for ensuring that, in a given year, a specified percentage of

electricity that the utility or cooperative sells to retail customers is derived from

renewable resources, commonly referred to as “renewable portfolio standards.” To

meet its specified percentage, a utility or cooperative uses renewable resource credits

(RRCs) that it may create or purchase from others. A utility or cooperative creates

an RRC when it generates electricity from a renewable resource. Current law defines

“renewable resource” to include solar and wind power, geothermal technology,

biomass, and other specified resources. Under this bill, heat as described above is

also a renewable resource.

Current law also allows a utility or cooperative, or its customers or members,

to create an RRC based on their use of certain energy sources, to the extent that the

use displaces the use of electricity derived from conventional resources. This bill

provides that heat as described above that is used as thermal energy for another

purpose may be used to create an RRC, to the extent that its use displaces the use

of electricity derived from conventional resources.