California’s Renewable Energy Programs
California, with its abundant natural resources, has had a long history of support for renewable energy. In 2007, 11.8 percent of all electricity came from renewable resources such as wind, solar, geothermal, biomass and small hydroelectric facilities. Large hydro plants generated another 11.7 percent of our electricity.
Around the turn of the 20th century, tens-of-thousands of homes in Southern California took advantage of the “California sunshine” to heat water for their homes. The oil crises of the 1970s gave rise to concerns over dependencE on fossil fuels. At that time, federal and state tax credits helped establish a new solar and wind industry. Wind turbine farms cropped up on the slopes of hills in three primary locations.
Following deregulation of the electric utilities in 1998, the California Energy Commission was placed in charge of a new Renewable Energy Program to help increase total renewable electricity production statewide. This followed decades of bi-partisan legislative and gubernatorial support for renewable energy, helping to make California a recognized leader in the field.
From 1998 to December 31, 2006, the Energy Commission’s Emerging Renewables Program funded grid-connected, solar/photovoltaic electricity systems under 30 kilowatts on homes and businesses in the investor-owned utilities’ service areas. The California Public Utilities Commission (CPUC) funded larger self-generation projects for businesses.
The Energy Commission’s program provided market-based incentives for new and existing utility-scale facilities powered by renewable energy. It also offered consumer rebates for those installing new renewable energy systems. The program also helps educate the public regarding renewable energy.
In January 2006, the CPUC created the California Solar Initiative (CPUC ruling – R.04-03-017), which moved the consumer renewable energy rebate program for existing homes from the Energy Commission to the utility companies under the direction of the CPUC. This incentive program, for renewable systems of less than one megawatt, began in January 2007 and provides a total of $3.3 billion over 10 years.
Beginning in 2007, the California Energy Commission started managing $400 million targeted for solar on new residential building construction. The funds from the Energy Commission will help renewable projects between 2007 and 2011. Called the New Solar Homes Partnership, it focuses on new residential construction.
Committee overseeing Renewable Energy:
James D. Boyd
Vice Chair and Presiding Member
Renewables Committee
Robert B. Weisenmiller
Commissioner and Associate Member
Renewables Committee
Utility Companies and Renewable Energy
In 2002, California established its Renewable Portfolio Standard Program, with the goal of increasing the percentage of renewable energy in the state’s electricity mix to 20 percent by 2017. 2003 Integrated Energy Policy Report recommended accelerating that goal to 20 percent by 2010, and the 2004 Energy Report Update further recommended increasing the target to 33 percent by 2020. The state’s Energy Action Plan supported this goal.
In 2006 under Senate Bill 107, California’s Renewables Portfolio Standard (RPS) was created and codified the 20 percent goal. It is one of the most ambitious renewable energy standards in the country. The RPS program requires electric utilities and provicders to increase procurement from eligible renewable energy resources by at least 1 percent of their retail sales annually, until they reach 20% by 2010.
On November 17, 2008, Governor Arnold Schwarzenegger signed Executive Order S-14-08 requiring that California utilities reach the 33 percent renewables goal by 2020.
Timeline for Electricity from Renewable Resources
- 2002: Senate Bill 1078 establishes the RPS program, requiring 20 percent renewable energy by 2017.
- 2003: Energy Action Plan I accelerated the 20 percent deadline to 2010.
- 2005: Energy Action Plan II recommends a further goal of 33 percent by 2020.
- 2006: Senate Bill 107 codified the accelerated 20 percent by 2010 deadline into law.
- 2008: Governor Schwarzenegger issues Executive Order requiring 33 percent renewables by 2020.
- 2010: Electric utilities must generate 20 percent of their electricity from renewable resources.
- 2020: Electric utilities must generate 33 percent of their electricity from renewable resources.
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