(a) In meeting its RPS procurement
requirements, the governing board of a POU may adopt at a noticed public
meeting any of the following measures:
(1)
Excess procurement
(A) A POU may adopt rules
permitting the POU to apply excess procurement accrued in one compliance period
to a subsequent compliance period, as specified in section
3206(a)(1)(B)-(H):
(B) Excess procurement may be accrued in a
compliance period only if the POU has applied sufficient electricity products
to satisfy its RPS procurement requirements of the compliance period. A POU
that applies an optional compliance measure described in section
3206(a)(2)-(4) to
satisfy its RPS procurement requirements of the compliance period may not
accrue excess procurement for that compliance period.
(C) Excess procurement accrual will be
subject to the following limitations for the compliance periods beginning
January 1, 2011, through December 31, 2020, except as specified in section
3206(a)(1)(G):
1. Electricity products that meet the
criteria of section
3202(a)(1) or
section 3202(a)(3), and
are classified in Portfolio Content Category 3 may not be accrued as excess
procurement.
2. Electricity
products that meet the criteria of section
3202(a)(1) and
that exceed the maximum limit for Portfolio Content Category 3 for the
compliance period, as specified in section
3204(c), must be
subtracted from the calculation of accrued excess procurement.
3. Electricity products procured under
contracts of less than 10 years in duration in accordance with section
3206(a)(1)(C)4.
shall be subtracted from the calculation of accrued excess procurement, unless
the electricity product meets the criteria in section
3202(a)(2).
4. For purposes of calculating accrued excess
procurement for the compliance periods beginning January 1, 2011, through
December 31, 2020, except as specified in section
3206(a)(1)(G), if
electricity products are procured under a contract that has been amended to
extend the term, the duration of the amended contract will be calculated from
the original contract execution date to the amended contract end date. If
electricity products are procured under a contract of less than 10 years in
duration that has been amended to extend the total term to at least 10 years in
duration, then electricity products generated as of the month and year in which
the contract amendment occurs will be eligible to qualify as excess
procurement.
(D) Excess
procurement accrual will be subject to the following limitations for the
compliance periods beginning on or after January 1, 2021, except as specified
in section
3206(a)(1)(G):
1. Electricity products that meet the
criteria of section
3202(a)(1) or
section 3202(a)(3), and
are classified in Portfolio Content Category 2 or Portfolio Content Category 3,
may not be accrued as excess procurement.
2. Electricity products that meet the
criteria of section
3202(a)(1) and
that exceed the maximum limit for Portfolio Content Category 3 for the
compliance period, as specified in section
3204(c), must be
subtracted from the calculation of accrued excess
procurement.
(E) A POU
that opts to allow the application of excess procurement as part of its
renewable energy resources procurement plan or enforcement program may begin
accruing excess procurement no earlier than January 1, 2011.
(F) Electricity products accrued as excess
procurement may be applied toward any future compliance periods, except as
specified below:
1. Electricity products
accrued in accordance with section
3206(a)(1)(C)
that are classified in Portfolio Content Category 2 may not be applied toward
the RPS procurement requirements of a compliance period beginning on or after
January 1, 2028.
(G)
Notwithstanding section
3206(b), a POU
may adopt rules pursuant to this section
3206(a)(1) no
later than 30 days after the effective date of these regulations, permitting
the POU to make an election for voluntary early compliance with section
3204(d) for the
compliance period beginning January 1, 2017, in order for the provisions of
section 3206(a)(1)(C) to
take effect beginning January 1, 2017. The provisions of section
3206(a)(1)(C)
shall take effect beginning January 1, 2017, only if the POU makes an election
pursuant to its adopted rules and satisfies the requirements of section
3204(d) for that
compliance period.
(H) Excess
procurement accrued in a compliance period shall be calculated as follows:
1. The numerical expression of the excess
procurement accrual permitted for compliance periods beginning January 1, 2011,
through December 31, 2016, is:
Excess Procurement = EPX -
(RPSX - BX) -
(S3X + STCX)
EPX = Electricity products
retired for the compliance period X
RPSX = The RPS procurement
target calculated in section
3204(a) for
compliance period X or, if greater than the target, the amount of electricity
products applied toward the target. This may include electricity products
retired for compliance period X, excess procurement accrued in a prior
compliance period, or historic carryover pursuant to section
3206(a)(5), that
the POU has applied toward the target.
BX = Any excess procurement
accrued in a prior compliance period or historic carryover pursuant to section
3206(a)(5) that
the POU applied toward the RPS procurement target calculated in section
3204(a) for
compliance period X
S3X = Any remaining retired
electricity products that meet the criteria of section
3202(a)(1) or
section 3202(a)(3), and
the definition of Portfolio Content Category 3
STCX = Any remaining retired
electricity products that meet the criteria of section
3202(a)(1) or
section 3202(a)(3), and
are associated with contracts less than 10 years in duration in accordance with
section 3206(a)(1)(C)4.
2. The numerical expression of the excess
procurement accrual permitted for the compliance period beginning January 1,
2017 through December 31, 2020, is either:
i.
The same equation as specified above in section
3206(a)(1)(H)1.
for compliance periods ending before January 1, 2017, or
ii. For POUs that qualify for and elect to
use section
3206(a)(1)(G),
the same equation as specified below in section
3206(a)(1)(H)3.
for compliance periods beginning on or after January 1,
2021.
3. The numerical
expression of the excess procurement accrual permitted for the compliance
periods beginning January 1, 2021, is either:
Excess Procurement = EPX -
(RPSX - BX) -
(S3X + S
2
X)
S2X = Any remaining retired
electricity products that meet the criteria of section
3202(a)(1) or
section 3202(a)(3) and
the definition of Portfolio Content Category
2
(I)
Notwithstanding section
3206(a)(1)(A)-(H),
a POU that meets the criteria of section
3204(b)(4) or
section 3204(b)(5) may
adopt rules permitting the POU to apply excess procurement accrued in one
compliance period to a subsequent compliance period, subject to the following
limitations.
1. Unbundled RECs that do not
meet the criteria of section
3202(a)(2) may
not be accrued as excess procurement.
2. For the compliance periods between January
1, 2011, through December 31, 2020, except as specified in section
3206(a)(1)(I)3.,
electricity products procured under contracts of less than 10 years in duration
in accordance with section
3206(a)(1)(C)4.
shall be subtracted from the calculation of accrued excess procurement, unless
the electricity product meets the criteria in section
3202(a)(2).
3. Notwithstanding section
3206(b), a POU
may adopt rules no later than 30 days after the effective date of these
regulations permitting the POU to make an election for voluntary early
compliance with section
3204(d) for the
compliance period beginning January 1, 2017, in order to use the calculation
for accrued excess procurement in section
3206(a)(1)(I)6.iii.
for the compliance period beginning January 1, 2017. A POU may use the
calculation in section
3206(a)(1)(I)6.iii.
for the compliance period beginning January 1, 2017, only if the POU makes an
election pursuant to its adopted rules and satisfies the requirements of
section 3204(d) for that
compliance period.
4. A POU that
opts to allow the application of excess procurement as part of its renewable
energy resources procurement plan or enforcement program may begin accruing
excess procurement no earlier than January 1, 2011.
5. Electricity products accrued as excess
procurement may be applied toward any future compliance periods.
6. Excess procurement accrued in a compliance
period shall be calculated as follows:
i. The
numerical expression of the excess procurement permitted to be accrued for
compliance periods beginning January 1, 2011, through December 31, 2016, is as
follows:
Excess Procurement = (EPX) -
(RPSX - BX) -
(URX + STCX)
EPX = Electricity products
retired for compliance period X
RPSX = The RPS procurement
target calculated in section
3204(a) for
compliance period X or, if greater than the target, the amount of electricity
products applied toward the target. This may include electricity products
retired for compliance period X, excess procurement accrued in a prior
compliance period, or historic carryover pursuant to section
3206(a)(5), that
the POU has applied toward the target.
BX = Any excess procurement
accrued in a prior compliance period or historic carryover pursuant to section
3206(a)(5) that
the POU applied toward the RPS procurement target calculated in section
3204(a) for
compliance period X
URX = Any remaining
electricity products retired for compliance period X that meet the criteria of
section 3202(a)(1) or
section 3202(a)(3), and
the definition of unbundled
ii. The numerical expression of the excess
procurement permitted for the compliance period beginning January 1, 2017,
through December 31, 2020, is either:
a. The
same equation as specified above in section
3206(a)(1)(I)6.i.
for compliance periods ending before January 1, 2017, or
b. For POUs that adopt rules and elect to use
section 3206(a)(1)(I)3.,
the same equation as specified below in section
3206(a)(1)(I)6.iii.
iii. The numerical expression of the excess
procurement permitted for the compliance periods beginning January 1, 2021,
except as specified in section
3206(a)(1)(I)3.
is:
Excess Procurement = (EPX) -
(RPSX - BX) -
URX
(2) Delay of timely compliance
(A) A POU may adopt rules permitting the POU
to determine that conditions beyond the control of the POU exist to delay
timely compliance with RPS procurement requirements, as defined in section
3204. The POU's adopted rules
shall limit the determination to one or more of the causes for delay specified
in section
3206(a)(2)(A)1.-4.
The POU's determination shall include information showing that the POU would
have met its RPS procurement requirements but for the cause of delay.
1. There is inadequate transmission capacity
to allow sufficient electricity to be delivered from eligible renewable energy
resources, or proposed eligible renewable energy resource projects, to the
extent applicable, using the current operational protocols of the balancing
authority in which the POU operates. A POU that owns transmission or has
transmission rights shall include in its determination information showing how
the inadequate transmission capacity delayed timely compliance and that:
i. The POU has undertaken all reasonable
measures under its control and consistent with its obligations under local,
state, and federal laws and regulations to develop and construct new
transmission lines or upgrades to existing lines intended to transmit
electricity generated by eligible renewable energy resources, in light of its
expectation for cost recovery.
ii.
The POU has taken all reasonable operational measures to maximize
cost-effective purchases of electricity from eligible renewable energy
resources in advance of transmission availability.
2. Permitting, interconnection, or other
circumstances have delayed procured eligible renewable energy resource
projects, or there is an insufficient supply of eligible renewable energy
resources available to the POU. The POU must include in its determination
information showing how the permitting, interconnection, or other circumstances
caused delayed projects or insufficient supply and that:
i. The POU prudently managed portfolio risks,
including, but not limited to, holding solicitations for RPS-eligible resources
with outreach to market participants and relying on a sufficient number of
viable projects to achieve RPS procurement requirements.
ii. The POU sought to develop either its own
eligible renewable energy resources, transmission to interconnect to eligible
renewable energy resources, or energy storage used to integrate eligible
renewable energy resources.
iii. If
the cause for delay or insufficient supply was foreseeable, the POU procured an
appropriate minimum margin of procurement above the level necessary to comply
with the RPS to compensate for foreseeable delays or insufficient supply. The
POU's determination shall identify the minimum margin of procurement that the
POU deemed appropriate to compensate for foreseeable delays or insufficient
supply.
iv. The POU had taken
reasonable measures to procure cost-effective distributed generation and
allowable unbundled RECs.
3. Unanticipated curtailment of eligible
renewable energy resources, if the delay of timely compliance would not result
in an increase in greenhouse gas emissions. The POU's determination shall
include information showing that unanticipated curtailment of eligible
renewable energy resources delayed timely compliance and did not result in an
increase in greenhouse gas emissions.
4. Unanticipated increase in retail sales due
to transportation electrification. For purposes of this section
3206(a)(2)(A)4.,
"transportation electrification" is defined in Public Utilities Code section
237.5.
The POU's determination shall include information showing that it considered
the following:
i. Whether transportation
electrification significantly exceeded forecasts in the POU's service territory
based on the best and most recently available information available to the POU.
Transportation electrification forecasts may include, but are not limited to,
information filed with the State Air Resources Board, the Commission, or
another state agency, forecasts in the POU's integrated resource plan developed
pursuant to Public Utilities Code section
9621,
or other forecasts developed or approved by the POU.
ii. Whether the POU has taken reasonable
measures to procure sufficient resources to account for unanticipated increases
in retail sales due to transportation
electrification.
(3) Cost limitations
(A) A POU may adopt rules for cost
limitations on the procurement expenditures used to comply with its RPS
procurement requirements.
(B)
Adopted cost limitation rules shall be set at a level that the POU has
determined will prevent disproportionate rate impacts.
(C) When applying procurement expenditures
under an adopted cost limitation rule, the POU shall apply only those types of
procurement expenditures that are permitted under the adopted cost limitation
rule.
(D) Adopted cost limitation
rules shall include planned actions to be taken in the event the projected cost
of meeting the RPS procurement requirements exceeds the cost limitation. Such
actions may include, but are not limited to, refraining from entering into new
contracts or constructing facilities for eligible renewable energy resources
beyond the quantity that can be procured within the cost
limitation.
(4) Portfolio
balance requirement reduction
(A) A POU may
adopt rules that allow for the reduction of the portfolio balance requirement
for Portfolio Content Category 1 for a specific compliance period consistent
with Public Utilities Code section
399.16(e).
(B) The need to reduce the portfolio balance
requirements for Portfolio Content Category 1 must have resulted because of
conditions beyond the control of the POU as provided in section
3206(a)(2).
(C) A reduction of the portfolio balance
requirement for Portfolio Content Category 1 below 65 percent for any
compliance period after December 31, 2016, will not be considered consistent
with Public Utilities Code section
399.16(e).
(D) A POU that reduces its portfolio balance
requirements for Portfolio Content Category 1 must adopt these changes at a
publicly noticed meeting, and must include this information in an updated
renewable energy resources procurement plan submitted to the Commission. The
notice to consider the portfolio balance requirement reduction and the
procurement plan must include the following information:
1. The compliance period for which the
reduction may be adopted.
2. The
level to which the POU has reduced the requirement.
3. An explanation of how the needed reduction
resulted from conditions beyond the control of the POU as provided in section
3206(a)(2).
(5) Historic Carryover
(A) A POU may adopt rules that allow for
procurement generated before January 1, 2011, that meets the criteria of
section 3202(a)(2), that
is in excess of the sum of the 2004 - 2010 annual procurement targets defined
in section
3206(a)(5)(D) and
that was not applied to the RPS of another state or to a voluntary claim, to be
applied to the POU's RPS procurement target for the compliance period ending
December 31, 2013, or for any subsequent compliance period.
(B) The historic carryover must be procured
pursuant to a contract or ownership agreement executed before June 1, 2010.
Both the historic carryover and the procurement applied to the POU's annual
procurement targets must be from eligible renewable energy resources that were
RPS-eligible under the rules in place for retail sellers at the time of
execution of the contract or ownership agreement, except that the generation
from such resources need not be tracked in the Western Renewable Energy
Generation Information System. If the contract or ownership agreement is
executed prior to April 21, 2004, the procurement must be from resources that
were RPS-eligible under the rules in the RPS Guidelines in place as of April
21, 2004.
(C) Historic carryover
shall be calculated by subtracting procurement generated between January 1,
2004, and December 31, 2010, in an amount that is equal to the sum of the 2004
- 2010 annual procurement targets defined in section
3206(a)(5)(D) and
the amount of procurement that was sold, claimed for a voluntary program, or
claimed for compliance with the RPS of another state, from the total
procurement generated during that same period. If a POU was not in existence as
of January 1, 2004, historic carryover shall be calculated based on procurement
generated between the first full calendar year during which the POU became
operational and December 31, 2010.
(D) The RPS compliance obligation used to
calculate a POU's historic carryover shall be based on the following:
1. A baseline of an amount equal to 2001
procurement divided by 2001 retail sales, multiplied by 2003 retail sales, plus
1 percent of 2001 retail sales (or, if the POU was not in existence in 2001,
"2001" in this calculation shall be replaced by the first full calendar year in
which the POU was operational, and "2003" in this calculation shall be replaced
by the second full calendar year after which the POU was operational). The
numerical expression of the baseline is:
Baseline = (EP2001 /
RS2001) x RS2003 + (0.01 x
RS2001)
EPx = Electricity products
procured and retired and applied toward the RPS procurement target for the
specified year X
RSx = Retail sales made by the
POU for the specified year X
2. Annual procurement targets for 2004 - 2010
that are equal to the lesser of 20 percent of the previous year's retail sales
or 1 percent of the previous year's retail sales greater than the annual
procurement target for the previous year. The POU's annual procurement target
for 2004 shall be equal to the lesser of 20 percent of 2003 retail sales or the
baseline plus 1 percent of 2003 retail sales, and the annual procurement target
for 2010 shall be an amount equal to 20 percent of 2010 retail sales. For POUs
that were not in existence in 2001, "2003" in this calculation shall be
replaced by the second full calendar year after which the POU became
operational, and "2004" in this calculation shall be replaced by the third full
calendar year after which the POU became operational.
(E) A POU that adopts rules allowing for the
use of historic carryover shall submit all applicable procurement claims for
January 1, 2004 - December 31, 2010 (or the date on which the POU became
operational through December 31, 2010), baseline calculations, annual
procurement target calculations, and any other pertinent documentation to the
Commission within 90 calendar days after the effective date of these
regulations. All applicable procurement claims must be retired and reported to
the Commission within 90 calendar days after the effective date of these
regulations to qualify as historic carryover.
