Tag Archives: Policy & Regulation

California’s Chief Utility Regulator: The Future Grid Is All About ‘Distributed Decision-Making’

By Jeff St. John, Greentech Media

Michael Picker has spent part of his 11 months as president of the California Public Utilities Commission managing the aftermath of the alleged misdeeds of his predecessor. But as he oversees some of the biggest changes to California energy policy in over a decade, he’s also spent a good deal of time explaining his vision for greening the state with distributed energy, along with the distributed decision-making to make it work for the grid.

Since he was appointed in December, Picker has been stressing certain key policy philosophies for how the CPUC can help the state reach its carbon reduction and green energy goals. These include a preference for market-based solutions over technology mandates, a heavy emphasis on electric vehicles as part of the mix, and an enthusiasm for technologies that can manage lots and lots of distributed energy resources (DERs) in concert with the grid as a whole.

In a series of talks this month, Picker declined to discuss details of big proceedings under review, such as the CPUC’s net-metering reform, which has pitted the solar industry against the state’s big three investor-owned utilities. But he did sketch out a plan for managing the inevitable growth of intermittent renewable energy, whether from millions of rooftops or ever-cheaper utility-scale solar and wind projects.

Read full article from Greentech Media

Interior Department, State of California Announce Innovative Strategy for Renewable Energy and Conservation on Public Lands in California Desert

U.S. Secretary of the Interior Sally Jewell and California Secretary for Natural Resources John Laird today announced the final environmental review of an innovative landscape-scale blueprint to support renewable energy development and conservation on 10 million acres of federal public lands, managed by the Bureau of Land Management in the California desert. The release of the Final Environmental Impact Statement for Phase I of the Desert Renewable Energy Conservation Plan (DRECP) is a major step forward, and a key part of the collaborative effort to streamline renewable energy while conserving unique and valuable desert ecosystems and promoting outdoor recreation opportunities.

The blueprint is part of a larger, comprehensive effort with California, covering 22 million acres in the state’s desert region. Collectively, these lands contain the potential to generate up to 20,000 megawatts of renewable energy development, while meeting federal and state renewable energy and climate change goals through 2040.

Phase I of the DRECP, which is managed by the Bureau of Land Management, designates Development Focus Areas with high-quality solar, wind and geothermal energy potential, access to transmission and would allow impacts to be managed and mitigated. Applications will benefit from a streamlined permitting process with predictable survey requirements and simplified mitigation measures, and Interior is considering additional financial incentives through an ongoing rulemaking process. The first phase also identifies National Conservation Lands, and designates Areas of Critical Environmental Concern, wildlife allocations and National Scenic and Historic Trail management corridors. These lands would be closed to renewable energy and benefit from adaptive management in the face of climate change.

Read full press release from the U.S. Interior Department and the State of California

 

Inside California’s energy politics, the FERC Order 745 case, and the coming storage cost shift

By Gavin Bade, Utility Dive

[Editor’s Note: The following is part of Utility Dive’s coverage of the 2015 Energy Storage North America conference.]

For many power sector observers, California utilities are the ideal partners for forward-thinking regulators looking to adapt the utility business model to the 21st century. California’s investor-owned utilities proclaim their commitment to clean energy technologies demonstrating how they’ve surpassed mandates, accepted more rooftop solar, or integrated large amounts of storage.

Utility executives from San Diego Gas & Electric (SDG&E), Southern California Edison (SCE), and Pacific Gas & Electric (PG&E), provided apt examples in their keynotes at the Energy Storage North America conference. All these announcements could logically lead observers to conclude that California utilities have been proactive partners in helping set California’s ambitious clean energy goals. Not exactly, two veteran state legislators told Utility Dive at the conference.

Politics of renewable energy policy:

State Sen. Ben Hueso, chair of the Senate energy and utilities committee, ushered SB 350, the bill that set the state’s 50% RPS, through committee earlier this year. He said that the utilities have always fought hard against any mandates behind closed doors, whether it was SB 350 or earlier efforts. Former Assemblymember Nancy Skinner, echoed Hueso’s observations, but said that the power industry doesn’t behave much differently than others in this respect. “No industry likes mandates,” she said, noting that it took three legislative sessions to usher through the state’s previous 33% RPS, which was met with utility pressure behind closed doors.

California’s new RPS, by contrast, was authored and passed in one legislative session, a feat that Skinner said cannot be overstated. Not only does the bill increase the renewables portfolio standard to 50% by 2030, it also specifically calls on utilities to deploy energy storage and combines the renewables goal with an aggressive efficiency standard. So what changed to get such an aggressive bill passed so quickly?

…Clifford Rechtschaffen, a senior advisor to Brown, said the most important thing was that, in the end, “all of the utilities with the tiny exception of some northern California power agencies that had some qualms, they all supported SB 350.” Rechtschaffen said that while the utilities may have shown some resistance as the bill was working its way through the legislature, most of their concerns were operational in nature. “They weren’t quarreling with the notion that we needed to get to 50%,” he said. “They had concerns about how best to do it — some of which we agree with and others which we aren’t completely in line with, but we’re working on those. Storage is a big part of the solution.”

The role of storage in California’s renewable energy economy:

In a keynote panel discussion the California policymakers highlighted energy storage as the technology that can make 50% renewables and beyond possible for California. Once you get to that level of renewables, Rechtschaffen said, “storage is absolutely critical for grid integration. There’s no arguing about that.”

But the situation for storage, especially in the eyes of utilities, wasn’t always so rosy, Rechtschaffen said. Back in 2014, the state’s IOUs were resistant to the PUC’s mandate to deploy over 1,300 MW of storage on the grid by 2020, worried that the technology wasn’t ready and that it would “put storage in a bad light.”

In reality, the opposite happened, and SCE started off the storage procurements by buying 264 MW, when it was only compelled to purchase 50 MW at the time. For the California policymakers, it was a validation of the power of mandates to drive innovation in the power sector.

Read full article from Utility Dive

Related article: Why energy storage is key to a future with ‘no more gas turbines’ (Utility Dive) – Oct. 15, 2015

Brown signs climate law mandating 50% renewable power by 2030

By David R. Baker, The San Francisco Chronicle

By the end of 2030, half of California’s electricity will come from the wind, the sun and other renewable sources under a new law that sets one of the country’s most ambitious clean-energy targets. The legislation, SB 350, signed into law Wednesday by Gov. Jerry Brown, accelerates California’s shift away from fossil fuels as its dominant source of energy and marks another milestone in the state’s fight against climate change.

The law expands a transformation already well under way. For more than a decade, California has required its electrical utility companies to use more renewable power, with the Legislature repeatedly raising the goal. The requirement led to a construction boom for solar power plants and wind farms. But the activity slowed in recent years as developers waited to see whether the Legislature would once again set a higher target. The new law eases that uncertainty, ensuring that California remains a major market for companies that design and build renewable power facilities.

While some business groups have complained that California’s aggressive climate and energy policies could burden local companies with higher costs, the same policies have helped create a thriving clean-technology industry in the state. Supporters of the new law say it sends those companies a signal that the state won’t back off its goals.

Read full article in the San Francisco Chronicle

California Leads a Quiet Revolution

By Beth Gardiner, The New York Times

California is cruising toward its 2020 goal for increasing renewable energy and is setting far more ambitious targets for the future. Its large-scale solar arrays produced more energy in 2014 than those in all other states combined. Half the nation’s solar home rooftops are in the state, and thousands more are added each week.

With its progressive politics, high-tech bent and abundant sunshine, California is fast ramping up its production of clean electricity, setting an example its leaders hope the rest of the country, and other nations, will follow as they seek to cut emissions of climate-warming carbon dioxide. “It’s hard to overstate the importance of California in terms of renewables,” said William Nelson, head of North American analysis at Bloomberg New Energy Finance. “It’s like an experiment in terms of how quickly we can add solar to the grid.”

Fifteen years after an energy crisis, caused partly by deregulation and market manipulation, brought blackouts and price spikes, the shift has been remarkably smooth, many analysts say. Even without counting the big contribution from home solar generation, 26 percent of the state’s power this year will come from clean sources like the sun and wind, Bloomberg New Energy Finance estimates. The national average is about 10 percent. “It’s kind of a quiet revolution,” said Daniel Kammen, director of the Renewable and Appropriate Energy Laboratory at the University of California, Berkeley. “Nothing weird or strange has happened, electricity prices haven’t shot up or down.”

Read full article in the New York Times

State Policy, Utilities Ignite Community Solar Growth

By Rebecca Kern, Bloomberg BNA News

The community solar market is heating up thanks to favorable state legislation and interest from utilities in installing solar panels that provide cost-sharing among consumers who don’t have access to rooftop solar. With nearly 50 percent of the households and businesses unable to host rooftop solar systems, community solar is a largely untapped market for consumers looking to invest in solar, which is becoming cheaper than retail electricity in parts of the country.

Developers, analysts and utilities predict that the pace of community solar will continue to grow in the future as prices of solar decline and more utilities get involved. Solar developers and utility companies are driving a lot of the growth in the community solar market, leading to a projected 59 percent annual growth rate over the next five years. Legislation in a handful of states encouraging the development of community solar systems has also driven a lot of the growth in community solar over the past several years.

Minnesota, California, Massachusetts, Colorado, and New York are the states that “have set forth mandates in a very cookie-cutter program design to attract a lot of companies that are looking to scale up their community solar presence quickly,” Cory Honeyman, a senior analyst at GTM Research, said. Much of the near-term growth in community solar is concentrated in those four or five state markets “that have the right design in place for scale,” and 90 percent of the installations expected in 2015 and 2016 will take place in states with community solar legislation in effect.

Community solar is currently economically viable in parts of the country where electricity rates are high and has the potential to become more competitive in the future, analysts and developers say. The savings that community solar subscribers receive depend on the cost of electricity in the region and the solar resources in the state, and the electricity rates depend on the competitiveness of the electricity market, Glen Andersen, energy program manager at the National Conference of State Legislatures, said. “They have high electricity rates in California, for example, so it does make [community solar] more competitive. But if you were in a state like Kentucky, where electricity rates are really low, whether or not you’re going to see savings over just buying it from the utility is more questionable,” Andersen said.

Read full article from Bloomberg BNA

Related article: Note to Utilities: Here’s Why 2015 is the ‘Tipping Point’ for Community Solar (Aug 11)

 

California Entering Uncharted Territory On Clean Energy

By Sammy Roth, The Desert Sun

The Coachella Valley’s state Senator, Republican Jeff Stone, wrote a bill this year urging Congress to extend a 30 percent tax credit for solar energy. The bill sailed unanimously through the Senate, then passed the Assembly with just one dissenting vote. Stone’s resolution was largely symbolic. But its near-unanimous passage spoke volumes.

While national policymakers spin their wheels debating climate science, California is charging ahead to promote clean energy — with support from Democrats and Republicans alike. More than a quarter of the state’s electricity now comes from renewables, and last month lawmakers approved a 50 percent clean energy mandate.

Nowhere has California’s energy revolution been more visible than in the desert, which will host the SoCal Energy and Water Summit Sept. 30 to Oct. 1. But even with strong bipartisan support for clean energy, contentious political battles lie ahead. Already, the state’s clean energy policies have stirred impassioned debates about electricity costs, desert protection and the future of the utility industry.

Those arguments have pitted large-scale solar against rooftop solar, land conservation against clean energy, and utility companies against the world. Experts say California can achieve its 50 percent target, but there’s little agreement on the best way to do it. State officials will need to answer that complex policy question while navigating an increasingly thorny political landscape, knowing the rest of the world is watching to see what they decide.

Read full article in the Desert Sun

California Passes a Bill Targeting 50% Renewables by 2030

By Julia Pyper, Greentech Media
September 12, 2015

In the final hours of the legislative session, California lawmakers passed a landmark climate bill that will promote greater deployment of clean energy technologies over the next 15 years, but which some supporters say still fell short of expectations.

SB 350 will increase building energy efficiency in the state by 50 percent by 2030. It will also boost the amount of renewable energy utilities need to buy to 50 percent by 2030. The third major component of the bill — a target to reduce oil use in cars and trucks by 50 percent over the next 15 years — was struck down earlier in the week. In addition, to the dismay of both solar companies and utilities, SB 350 does not specify that distributed solar arrays count toward the mandatory component of the renewable energy target.

SB 350 is one of 12 climate bills that have been working their way through the California state legislature.  A separate bill (SB 32) that would have required California to reduce emissions 80 percent below 1990 levels by 2050 failed to pass in the Assembly, despite strong support from the governor, as well as from U.S. Senators Barbara Boxer and Dianne Feinstein.

With the state’s legislative session now over, clean energy advocates are focusing their attention on the California Public Utilities Commission. California’s three investor-owned utilities have filed proposals to reduce compensation for net-metered solar customers, and add monthly charges for the electricity these customers consume. Under a 2013 law (AB 327), the CPUC has until the end of the year to create a successor “NEM 2.0” tariff. Solar advocates, including the state’s leading cleantech investors, are pushing for regulators to keep solar incentives the same through 2020.

Read full article from Greentech Media

Half Of California’s Electricity Will Come From Renewable Energy In 15 Years

By Ryan Koronowski, ThinkProgress.org

Late Friday night, the California State Assembly voted 51-26 to pass SB 350, a landmark bill that would boost renewable energy and make buildings twice as efficient as before. The legislature sent the bill to California Gov. Jerry Brown for his signature, and he is expected to sign it later this month, as the legislation makes real the goals Brown set down earlier this year in his inaugural address.

The state’s Renewable Portfolio Standard (RPS) currently requires utilities to provide 33 percent of their electricity generation from renewable sources, such as solar, wind, and geothermal power, by 2020. SB 350, The Clean Energy and Pollution Reduction Act of 2015, increases that target to 50 percent by 2030. It also requires a 50 percent increase in energy efficiency in buildings by that year.

Brown also issued an executive order in January that aims to reduce the state’s greenhouse gas emissions by 40 percent below 1990 levels by 2030 — a big step to the larger 2050 goal of reducing GHGs by 80 percent under 1990 levels. This legislation accelerates the pace to that target.

Read full article from ThinkProgress.org

California’s desert deserves permanent protection

The Times Editorial Board, The Los Angeles Times

After more than six years of analysis, debate and draft proposals, the U.S. Bureau of Land Management is close to issuing its final plan for nearly 10 million acres that it controls in the California desert, designating sections for recreation, industry, conservation and renewable energy production. If its most recent “preferred option” prevails, this will be a strong blueprint for the future, protecting the desert’s most pristine and environmentally significant land while making good use of perhaps its best natural resource — abundant sun for solar energy. But one thing has been missing in the BLM’s plan so far: a guarantee that the conserved lands will be protected permanently, as such lands have been everywhere else in the country.

Environmentalists expect the BLM’s Desert Renewable Energy Conservation Plan to set aside about a third of its acreage for conservation — 3.5 million acres of land in seven southern California counties. This portion of the acreage is home to iconic species such as the desert tortoise and bighorn sheep, and is the site of petroglyphs and other important historical and archaeological treasures. Slightly less than a tenth of the total land — close to 1 million acres — would be zoned for energy development, largely solar. A second phase of the desert plan, being developed by county and city governments for the areas over which they have jurisdiction, is expected to provide more land for energy development.

Read full editorial in the Los Angeles Times