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Ongoing Policy Implementation – R.06-02-012


Order Instituting Rulemaking (OIR) 06-02-012 addresses two aspects of implementing the RPS program: completing the design for RPS implementation and coordinating the RPS program with new initiatives and programs. R.06-02-012 is assigned to President Michael R. Peevey and Administrative Law Judge Anne E. Simon and replaced the earlier proceeding R.04-04-026. A list of RPS decisions and rulings in R.04-04-026 can be found in the RPS Decisions & Rulings section.

The Amended Scoping Memo and Ruling of Assigned Commissioner (December 2006) for R.06-02-012 identified the issues to be addressed in that proceeding. Those issues and their status are as follows:

1. Developing rules for the participation of energy service providers (ESPs), community choice aggregators (CCAs), and small utilities in the RPS program, including but not limited to determination of baselines, initial year compliance obligations, and procurement targets.

Status: D.06-10-019 addresses rules for ESPs and CCAs and defers rules for small and multi-jurisdictional utilities to a later decision.

2. Developing rules for the participation of multi-jurisdictional utilities in the RPS program pursuant to § 399.17.

Status: Under consideration.

3. Exploring the use of contracts for the purchase of RPS-eligible electricity that are of less than 10 years' duration.

Status: D.06-10-019 allows short term contracts while D.07-05-028 sets certain limits on short term contracting. D.07-05-028 requires each load serving entity to execute a minimum quantity of long-term contracts and/or contracts with new facilities in any one calendar year before counting procurement from short-term contracts, signed in that year, towards their RPS target. The CPUC is now considering price review standards for short-term contracts and has issued two rulings requesting comments: 05/10/2007; 09/04/2007.

4. Exploring the use of unbundled renewable energy credits (RECs) for RPS compliance by all RPS-obligated load-serving entities (LSEs).

Status: In D.06-10-019 the Commission decided, "Unbundled REC transactions, as defined in today's decision, should not be allowed for RPS compliance at this time" (Conclusion of Law #21). The Commission is now considering the use of tradable RECs; see below.  

5. Exploring the use of tradable RECs for RPS compliance by all RPS-obligated LSEs, including determining what attributes should be included in a REC.

Status: A ruling requesting pre-workshop comments on tradable RECs for RPS compliance was mailed July 19, 2007 and an Energy Division Workshop was held September 5-7, 2007. Workshop presentations and related documents can be found here. A ruling requesting post-workshop comments on tradable RECs for RPS compliance was mailed October 16, 2007. 

6. Exploring the use of procurement entities or other third-party intermediaries to facilitate the procurement of RPS-eligible generation by ESPs, CCAs, small utilities, and multi-jurisdictional utilities.

Status: Under consideration.

7. Determining the appropriate treatment of RECs associated with energy generated by renewable customer-side distributed generation, after examination of two important issues – measurement of renewable output from customer-side distributed generation, and analysis of the impact of ratepayer subsidies of renewable distributed generation – in Rulemaking (R.) 06-03-004.

Status: This was addressed in the proceeding for the California Solar Initiative, R.06-03-004. In D.07-01-018, the CPUC determined that distributed generation facility owners should retain 100% of the RECs associated with their facilities.

8. Determining the status of RECs associated with renewable energy generated by qualifying facilities (QFs) under contract with California utilities.

Status: This was addressed in Senate Bill (SB) 107 and codified in Public Utilities Code § 399.16(a)(5,6). The statute states that no tradable RECs will be created for any contracts signed prior to 1/1/05 or for any QF contracts signed after 1/1/05. Unless the contract says otherwise, the IOU owns the renewable attributes and they are automatically retired for RPS compliance, i.e. the renewable attributes cannot be sold to any other party.

9. Determining the impact of RPS-eligible renewable generation acquired by customers from third parties on the RPS compliance of LSEs serving those customers.

Status: Under consideration.

Last Modified: 1/20/2009

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