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The RPS requires California's investor-owned electric utilities (IOUs), electric service providers (ESPs) and community choice aggregators (CCAs) to increase procurement from eligible renewable energy resources by at least 1% of their retail sales annually, until they reach 20% by 2010. California's RPS is based on procurement of renewable generation and does not set capacity targets. An investor owned utility satisfies its RPS obligation when eligible renewable energy is generated and delivered to its customers.
The California Public Utilities Commission (CPUC) has finalized implementation rules for the state's large IOUs (Pacific Gas and Electric, Southern California Edison, and San Diego Gas & Electric), ESPs, and CCAs; implementation rules for small and multi-jurisdictional IOUs are under consideration. Municipal utilities are not regulated by the CPUC but are directed by SB 1078 and SB 107, respectively, to design programs with similar goals and report annually to the Energy Commission on their progress. For example, SMUD has set a goal of meeting 20% of its total energy load with renewables by 2011, and LADWP has set a goal of 20% by 2017, with an interim goal of 13% by 2010.
For each RPS obligated load serving entity (LSE) in California, the CPUC sets annual procurement targets (APTs) denoting the amount of renewable energy that the entity must procure each year. The penalty for non-compliance is 5 cents per kWh, up to $25 million per year.
An LSE's APT in a given year is calculated by adding 1% of the previous year's retail sales to that previous year's annual procurement target. For example, an IOU with a 2005 APT of 1,000 GWh and 2005 retail sales of 10,000 GWh would, in 2006, have an APT of 1,000 + (.01*10,000) = 1,100.
Flexible Compliance
D.06-10-050, which adopted reporting and compliance methodology for the RPS program, also established flexible compliance rules through 2009. Those rules include allowances for banking excess renewable procurement and applying it to deficit years, within certain limitations. Details can be found in D.06-10-050 Attachment A Section IV.
D.08-02-008 clarified that flexible compliance applies to all years, pursuant to SB 107.
Compliance Reports
The RPS program requires compliance filings on March 1st and August 1st of each year. The March 1st report is used to determine compliance for the previous year(s). It states historic performance in the RPS program, current year targets and procurement data, and forecasts targets and procurement data for at least three years. The August 1st report states historic performance in the RPS program, current year targets and procurement data, and forecasts targets and procurement levels for each year forward through 2020. The August report may be used by the Commission to make a final determination of compliance for the prior year(s).
FINAL August 2008 Template for RPS Compliance Report for Investor Owned Utilities
FINAL August 2008 Template for RPS Compliance Report for Multi-Jurisdictional Utilities
FINAL August 2008 Template for RPS Compliance Report for Electric Service Providers
FINAL August 2008 Template for RPS Compliance Report for Small Investor Owned Utilities
Past Compliance Filings (confidential information redacted):
SDG&E March 2008 RPS Compliance Report
SCE March 2008 RPS Compliance Report
PG&E March 2008 RPS Compliance Report
Energy Commission Verification Reports
The Energy Commission's Renewables Portfolio Standard Verification Report provides that Commission's findings on the amount of renewable energy procured by select retail sellers of electricity under the RPS program. Once adopted by the Energy Commission, this report is used by the CPUC to set RPS procurement targets and determine compliance with RPS requirements.
In addition to identifying incremental and annual renewable procurement, the report verifies RPS-eligibility of renewable energy facilities and the amount of energy procured; that RPS procurement exclusively serves California's RPS; and that renewable facilities located out-of-state satisfy the Energy Commission's RPS energy delivery requirements.
2005 Verification Report issued in August 2007
2004 Verification Report issued in February 2006
Questions still unanswered? Visit the Compliance, Penalities, & Flexibility FAQ.
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