Reaching Our Renewable Energy Goals

Last week, the Senate unfortunately failed to act on Senate Bill 3663 – a comprehensive energy reform bill before the August recess. In light of this disappointing delay, it is now more necessary than ever to focus our efforts to develop, and successfully implement, clean energy legislation at the state level.

While some question the value of investments in a green-collar industry, many law makers, as well as individuals and companies, are pushing for stronger development of this sector. And because we believe it is time for the U.S. to take the lead in clean energy development, it is important to consider how California can help create a cleaner, brighter future by accelerating the growth of a clean energy industry at the state level now.

In our state, the California Public Utilities Commission (CPUC) plays a key role in establishing a number of energy initiatives, including those related to renewables, energy efficiency and the environment.

One of the most important initiatives for advancing a clean energy industry is California’s Renewables Portfolio Standard (RPS), which imposes an RPS target of 33% by 2020.

The first milestone of California’s RPS law requires the state’s three largest investor-owned utilities – Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric – to obtain 20% of their retail electricity sales from clean sources by the end of 2010. With less than four months left to make that happen, we cannot really expect that the power companies will hit their target. One obvious issue is that there is no consequence if the utilities do not meet their 2010 RPS target. In that context, is there any hope for meeting the 2020 target?

Currently, California Senate Bill 722 is making its way through the state legislature. It would require utility companies to obtain 33% of their power from renewable sources by the 2020 deadline and also remove the existing cap which restricts the amount of renewable energy that the CPUC can order a utility company to purchase or build. By establishing uniform criteria for renewable projects and for the planning process, this bill can make the RPS more attainable; the Legislative Analyst’s Office shares that conclusion. See LAO Analysis of State Energy Issues.

This, along with legislation like AB 32, the Global Warming Solutions Act – which has ample support from a variety of sources, including the Union of Concerned Scientists – is one of the strongest clean energy initiatives on the table today.

To further validate the need for clean energy legislation, a study released in July by the University of California, Berkeley demonstrated that the benefits of a feed-in-tariff would create $2 billion in tax revenue for the state of California, stimulate up to $50 billion worth of investments, create 280,000 jobs and help enable the state to reach its RPS goal of 33% by 2020.

These bills, and other clean energy legislation, like the California Solar Initiative, are the path to a future that is less dependent on fossil fuels and non-renewable sources and much more beneficial to the environment, the economy and our future.