Bill would add new technologies to RPS compliance

From the Legislative Reference Bureau analysis of Assembly Bill 401 (and its companion Senate Bill 273:

Under current law, an electric utility or retail electric cooperative (electric provider) is subject to certain requirements for ensuring that, in a given year, a specified percentage of the electricity that the electric provider sells to retail customers or members is derived from renewable resources. . . .

This bill allows an electric provider to create an additional credit that the electric provider can use or sell like the credit allowed under current law. The bill requires the Public Service Commission (PSC) to promulgate rules that allow an electric provider to create a credit based on the electric provider’s use in a year of the following resources: solar energy, including solar water heating and direct solar applications such as solar light pipe technology; geothermal energy; biomass or biogas. However, the electric provider’s use of the foregoing resources is eligible for a credit only if both of the following are satisfied: 1) the use displaces the electric provider’s use of electricity that is derived from coal, oil, nuclear power or natural gas, except for natural gas used in a fuel cell; and 2) the displacement is verifiable and measurable, as determined by the PSC. In addition, the PSC’s rules must also allow an electric provider to create a credit based on a customer’s or member’s use of resources that satisfies the foregoing requirements.

A number of organizations have registered positions on the bill.