11. Close R.08-08-009 for Purposes of § 1701.5
The decisions issued in R.08-08-009 have resolved all issues in the Scoping Memo (September 26, 2008), Amended Scoping Memo (November 2, 2009), Second Amended Scoping Memo (March 25, 2010), and Further Amended Scoping Memo (August 24, 2010), except to the extent issues are carried forward herein. (See Issues section above.) As a result, R.08-08-009 is resolved for the purpose of compliance with § 1701.5. However, R.08-08-009 remains open, but only to the extent necessary to address pending petitions for modification, applications for rehearing, and requests for intervenor compensation.
Findings of Fact
1. The deadline for closing R.08-08-009 is May 30, 2011, but RPS program issues will continue beyond that date.
2. A successor proceeding is necessary to continue efficient implementation and administration of the RPS Program.
3. It is reasonable to continue implementation and administration of the RPS Program through a new rulemaking.
4. It is reasonable to incorporate the record from R.08-08-009 into this proceeding.
5. In view of the number and complexity of the items in this and related proceedings, it is reasonable to have this proceeding extend for 24 months from the date of the upcoming assigned Commissioner's Scoping Memo and Ruling in this proceeding.
Conclusions of Law
1. A new rulemaking should be opened to continue RPS program implementation and administration.
2. The record in R.08-08-009 should be incorporated into this proceeding.
3. This proceeding should extend for 24 months from the date of the assigned Commissioner's Scoping Memo.
4. R.08-08-009 should be closed for purposes of § 1701.5.
5. This order should be effective immediately to promote a smooth continuation and transition of matters from R.08-08-009 to this proceeding.
IT IS ORDERED that:
1. This rulemaking is opened to continue implementation and administration of the California Renewables Portfolio Standard Program.
2. The record in Rulemaking 08-08-009 is incorporated into the record in this proceeding.
3. The issues are as stated in the body of this order and Attachment A.
4. The category of this proceeding is preliminarily determined to be ratesetting.
5. Evidentiary hearings are preliminarily determined to be necessary.
6. The schedule is as stated in the body of this order, and may be modified or further specified by the assigned Commissioner or assigned Administrative Law Judge. The assigned Commissioner or assigned Administrative Law Judge may set a date and time for a prehearing conference. Any party recommending that the Commission hold a prehearing conference shall file and serve a motion for prehearing conference within 21 days of the date this order is mailed. The motion shall identify the items the party would seek to address at the prehearing conference, and any other relevant information to assist with the setting and conduct of an efficient and productive prehearing conference.
7. This Order Instituting Rulemaking may extend up to 24 months from the date of the assigned Commissioner's Scoping Memo.
8. Comments on this Order Instituting Rulemaking shall be filed and served within 21 days of the date this Order Instituting Rulemaking is mailed, and reply comments within nine days of the date of comments. Any person objecting to the preliminary scoping memo (including issues, categorization, need for hearing, or schedule) shall state the objection in its comments on the Order Instituting Rulemaking, along with anything else relevant to the scope or efficient handling of this proceeding. Comments shall clearly state and describe the issues the party recommends be considered by the Commission in this proceeding, the recommended priority for taking up these issues, and the proposed schedule for addressing the substance of the issues over 24 months.
9. Active parties in Rulemaking 08-08-009 shall coordinate with other active parties to determine whether or not there is agreement on the issues, priorities, schedule and any other matters to be considered in this proceeding. If there is agreement, parties shall use reasonable efforts to seek to file and serve one joint comment statement reflecting consensus on issues, priorities, schedule and related matters, along with separate comments on other matters to the extent necessary.
10. Respondents are all electrical corporations subject to Public Utilities Code Sections 399.11 et seq., all currently registered electric service providers and all current community choice aggregators.
11. Any electric service provider that, subsequent to the date of this Order Instituting Rulemaking, becomes registered to provide service through direct access transactions within the service territory of one or more of the respondent electrical corporations shall automatically, as a result of that registration, become a respondent to this proceeding effective upon such registration, and must also seek party status if it wishes to actively participate in the proceeding. Any electric service provider withdrawing its registration should notify the assigned Administrative Law Judge within five days of effectuating the withdrawal of its registration.
12. Any community choice aggregator that, subsequent to the date of this Order Instituting Rulemaking, becomes registered to provide service within the service territory of one or more of the respondent electrical corporations through community choice aggregator transactions shall automatically, as a result of that registration, become a respondent to this proceeding effective upon such registration, and must seek party status if it wishes to actively participate in this proceeding. Any community choice aggregator withdrawing its registration should notify the assigned Administrative Law Judge within five days of effectuating the withdrawal of its registration.
13. The service list shall be all respondents, persons and entities now on the service list for Rulemaking (R.) 08-08-009, and in the same category (i.e., party, state service, information only). Respondents, persons or entities now on the service list for R.08-08-009 do not need to take any further action, but shall check the service list and notify the Commission's Process Office of necessary changes or corrections.
14. Persons, including additional respondents, who are not now in, but wish to be added to, the party category of the service list may do so by filing comments on this Order Instituting Rulemaking; making a request at the prehearing conference, if held; or filing and serving a motion. Persons wishing to be added to the state service or information only category may do so by letter to the Process Office. Within 10 days of the date this order is mailed, a party with more than one person listed in the party category of Rulemaking 08-08-009 shall notify the Administrative Law Judge of the one person who shall be the party's representative in the party category.
15. The Executive Director shall cause this Order Instituting Rulemaking to be served on:
a. All respondents (see Ordering Paragraph 10 above);
b. All persons on the service list for each of the following proceedings: Rulemaking (R.) 01-10-024, R.04-04-026, R.06-02-012, R.06-05-027, and R.08-08-009; and
c. All local publicly owned electric utilities.
16. A party that expects to request intervenor compensation for its participation in this rulemaking shall file and serve its notice of intent to claim intervenor compensation in accordance with Rule 17.1. of the Commission's Rules of Practice and Procedure (Rules). Such filing shall be within 30 days of the date this Order Instituting Rulemaking is mailed (or 30 days from a prehearing conference, if held). The notice of intent may be amended within 15 days of the date of issuance of the Scoping Memo, if necessary. (Rule 17.1(b).) A party found eligible for intervenor compensation in Rulemaking (R.) 08-08-009 remains eligible for intervenor compensation in this Order Instituting Rulemaking, and need not file a new notice of intent, but shall file and serve an amendment to its original notice of intent if its planned participation, potential compensation request, or other relevant information, is different than as stated in R.08-08-009. Such amendment, if any, shall be filed within 30 days of the date this Order Instituting Rulemaking is mailed (or 30 days from a prehearing conference, if held), with additional amendment within 15 days of the date of issuance of the Scoping Memo, if necessary.
17. Ex parte communications are governed by Rule 8.1 et seq., of the Commission's Rules of Practice and Procedure specific to ratesetting proceedings.
18. The assigned Commissioner or the assigned Administrative Law Judge may issue rulings as needed to change the schedule for notification to the Administrative Law Judge regarding the name of the lead representative (when more than one is listed in the party category), motions for prehearing conference, comments on this Order Instituting Rulemaking, reply comments, notices of intent (NOI) to claim intervenor compensation, amendments to NOIs, or any other date as necessary and appropriate to efficiently manage this proceeding.
19. The issues stated in the Scoping Memos and Rulings of the assigned Commissioner in Rulemaking (R.) 08-08-009 have been resolved in R.08-08-009, or are transferred to this successor Order Instituting Rulemaking to the extent stated in the preliminary Scoping Memo in this Order Instituting Rulemaking. Therefore, R.08-08-009 is resolved and closed for the purpose of compliance with Public Utilities Code Section 1701.5. However, R.08-08-009 remains open, but only to the extent necessary to address pending petitions for modification, applications for rehearing, and requests for intervenor compensation.
This order is effective today.
Dated May 5, 2011, at San Francisco, California.
MICHAEL R. PEEVEY
President
TIMOTHY ALAN SIMON
MICHEL PETER FLORIO
CATHERINE J.K. SANDOVAL
MARK FERRON
Commissioners
ATTACHMENT A
PRELIMINARY LIST OF RPS PROGRAM CHANGES REQUIRED BY SENATE BILL 2 (2011-12 FIRST EXTRAORDINARY SESSION)
Senate Bill 2 (2011-12 First Extraordinary Session; Stats. 2011, ch. 1) requires the implementation of a higher RPS target and modifies several aspects of program implementation. The bill requires the Commission to (all citations are to the Public Utilities Code as amended by SB 2 (1X)):
1. Modify Renewables Portfolio Standard (RPS) compliance rules
· Adopt new RPS compliance targets by January 1, 2012. (§ 399.15(b).)
· Modify flexible compliance rules, including implementing different banking rules for different types of RPS contracts. (§ 399.13(a)(4)(B).)
· Modify annual compliance reporting requirements. (§ 399.13(a)(3).)
· Resolve seams issues between the 20% RPS and 33% RPS compliance requirements, including implementing the provision that any retail seller procuring RPS eligible energy for at least 14% of retail sales in 2010 shall not have its RPS procurement deficits, if any, added to future procurement requirements. (§ 399.15(a).)
2. Modify renewable energy credit (REC) trading rules
· Modify the definition of a renewable energy credit to eliminate delivery requirement and other changes. (§ 399.12(g), § 399.21(4-5).)
· Modify REC trading rules to provide that, in order to count for RPS compliance, RECs must be retired in the tracking system within 36 months from the initial date of generation of the associated electricity. (§ 399.21(a)(6).)
· Adopt rules for evaluating, and possibly auditing, the portfolio content category of all RPS transactions. (§ 399.16(b).)
· Define new terms, e.g., "firmed and shaped", "incremental energy" and "unbundled" RECs. (§ 399.16(b).)
· Implement usage limitations on REC transactions. (§ 399.16(c).)
· Develop rules for REC contracts executed prior to June 1, 2010, including determining what it means for a contract to "count in full" toward RPS procurement requirements. (§ 399.16(d).)
· Develop a methodology for evaluating whether "procurement content requirements" (e.g., REC usage limits) should be reduced at the request of a retail seller. (§ 399.16(e).)
3. Modify RPS procurement rules
· Modify the bid evaluation methodology (i.e., least-cost best-fit) to include evaluations of project viability and workforce recruitment.
(§ 399.13(a)(4)(A)(iii).)
· Adopt minimum margins of over-procurement. (§ 399.13(a)(4)(D).)
· Modify annual RPS procurement plan requirements to include potential compliance delays, a status update on projects' development schedules, price adjustment mechanisms and risk assessments. (§ 399.13(a)(5).)
· Implement requirement that retail sellers must procure minimum quantity of long-term contracts prior to counting short-term contracts with existing facilities for RPS compliance, in place of requirement in D.07-05-028 setting minimum quantity of long-term contracts and/or short-term contracts with new facilities prior to counting short-term contracts with existing facilities. (§ 399.13(b).)
· Develop a methodology for giving preference to "California-based projects," including defining this term. (§ 399.13(a)(7).)
· Interpret and implement provision that RPS transactions must be submitted for CPUC review "unless previously preapproved by the commission." (§ 399.13(d).)
4. Develop RPS cost containment mechanism
· Develop a methodology for calculating and administering an RPS cost limitation for each large and multi-jurisdictional utility.
(§ 399.15(c-d, f), § 399.17(f).)
· *Prepare report to Legislature by January 1, 2016 assessing whether each utility can achieve RPS targets within the adopted cost limitation.
(§ 399.15(e).)30
· *Develop a methodology to determine, and continuously monitor, whether utilities may be close to exceeding the cost limitation.
(§ 399.15(g).)
5. Modify RPS enforcement rules
· Establish the process and rules for implementing new RPS enforcement regime. (§ 399.15(b)(5).)
6. Modify and develop new rules for small and multi-jurisdictional utilities
· Revise RPS rules for multi-jurisdictional utilities and qualifying successor entities. (§ 399.17.)
· Implement new RPS rules for very small utilities. (§ 399.18.)
7. Other requirements
· *Receive annual reports from utilities that own electrical transmission facilities which identify electrical transmission facilities and upgrades that are reasonably necessary to achieve the RPS. (§ 399.13(a)(2).)
· Implement new requirements for approving utility-owned renewable energy generation facilities. (§ 399.14.)
· *Issue annual cost report and biennial project development report (in consultation with the CEC). (§ 910, §399.19.)
· *Re-determine effective load carrying capacity requirements for resource adequacy purposes. (§ 399.26(d).)
· *Implement new rules for reviewing applications for a certificate of public convenience and necessity for building or upgrading an electrical transmission line. (§ 1005.1.)
(END OF ATTACHMENT A)
30 Items marked by an asterisk will not be addressed in this proceeding. They will be addressed in other proceedings or by staff, as appropriate.
