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HomeMy WebLinkAbout04.b. Receive update on Senate Bill (SB) 100 California Renewables Portfolio Standard Program Page 1 of 2 Item 4.b. CENTRAL SAN April 20, 2020 TO: REAL ESTATE, ENVIRONMENTAL AND PLANNING COMMITTEE FROM: MELODY LABELLA, RESOURCE RECOVERY PROGRAM MANAGER REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ROGER S. BAILEY, GENERAL MANAGER SUBJECT: RECEIVE UPDATE ON SENATE BILL (SB) 100 CALIFORNIA RENEWABLES PORTFOLIO STANDARD PROGRAM Staff is providing this memo in response to Real Estate, Environmental and Planning (REEP) Committee Chair Pilecki's request for information on how SB 100 will overall affect Central San. SB 100 Renewables Portfolio Standard (RPS) Program, signed into law by former Governor Jerry Brown on September 10, 2018, established the 100 Percent Clean Energy Act of 2018, which increased the RPS requirement in California from 50 percent by 2030 to 60 percent, and created the policy of planning to meet all of the state's retail electricity supply with a mix of RPS-eligible and zero-carbon resources by December 31, 2045, for a total of 100 percent clean energy. As this law only applies to electricity retailers, the potential impact to Central San may be an increased cost for electrical grid purchases in the future. However, it is important to note that PG&E is already well underway to achieving these renewable energy milestones. For example, in 2018, PG&E's base power mix included 39 percent renewable energy. See Attachment 1 for details on PG&E's 2018 Power Content Label. Plus, if Central San moves forward with its own solar energy project on the Lagiss Property, the vast majority of Central San's future power purchases would be locked in by a long-term (typically 25 years) power purchase agreement and not subject to PG&E's increases for the cost of power. This would not be the case for power transmission costs, as Central San would still be subject to any future PG&E cost increases due to investments in the power grid, such as any PG&E improvements to increase system reliability and minimize power safety shutdowns due to fire risk. Central San's solar energy consultant, Russell Driver of ARC Alternatives, will participate in the April 20, 2020 REEP Committee meeting and offer his expert opinion on how SB 100 may affect Central San in the future. ATTACHMENTS: 1. PG&E's 2018 Power Content Label April 20, 2020 REEP Committee Meeting Agenda Packet- Page 14 of 22 Page 2 of 2 Version:July 2019 2018 POWER CONTENT LABEL Pacific Gas and Electric Company www.pge.co m/b i l l i n se its RESOURCESENERGY Choice Choice Power Mix** Eligible Renewable 39% 100% 69% 31% Biomass & Biowaste 4% 0% 2% 2% Geothermal 4% 0% 2% 5% Eligible Hydroelectric 3% 0% 1% 2% Solar 18% 100% 59% 11% Wind 10% 0% 5% 11% Coal 0% 0% 0% 3% Large Hydroelectric 13% 0% 6% 11% Natural Gas 15% 0% 7% 35% Nuclear 34% 0% 17% 9% Other 0% 0% 0% <1% Unspecified sources of power* 0% 0% 0% 11% TOTAL 100% 100% 100% 100% * "Unspecified sources of power" means electricity from transactions that are not traceable to specific generation sources. ** Percentages are estimated annually by the California Energy Commission based on the electricity generated in California and net imports as reported to the Quarterly Fuel and Energy Report database and the Power Source Disclosure program. For specific information about this Pacific Gas and Electric Company electricity product, contact: 415-973-0640 For general information about the Power Content Label, please visit: http://www.energy.ca.�ov/pcl/ For additional questions, please contact the California Energy Toll-free in California: 844-454-2906 Outside California: 916-653-0237 Commission at: April 20, 2020 REEP Committee Meeting Agenda Packet- Page 15 of 22