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COM/DGX/tcg Date of Issuance 3/17/2008

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Investigation on the Commission's Own Motion to actively promote the development of transmission infrastructure to provide access to renewable energy resources for California.

FILED

PUBLIC UTILITIES COMMISSION

MARCH 13, 2008

SAN FRANCISCO OFFICE

INVESTIGATION 08-03-010

Order Instituting Rulemaking on the Commission's Own Motion to actively promote the development of transmission infrastructure to provide access to renewable energy resources for California.

FILED

PUBLIC UTILITIES COMMISSION

MARCH 13, 2008

SAN FRANCISCO OFFICE

RULEMAKING 08-03-009

ORDER INSTITUTING INVESTIGATION AND RULEMAKING

1. Overview

Through this Order Instituting Investigation (OII) and Rulemaking (OIR), we will continue our efforts to facilitate the development of adequate transmission infrastructure to provide access to renewable resources for California. This Investigation and Rulemaking will seek to improve transmission access to renewable energy generation, consider additional streamlining of existing regulatory processes, and serve as a forum for addressing issues identified in the California Renewable Energy Transmission Initiative (RETI) that may require Commission investigation or formal decision. This Investigation and Rulemaking will build upon and coordinate with the progress made in Investigation (I.) 05-09-005, our prior proceeding devoted to promoting the development of transmission infrastructure to renewable resource areas, as well as other transmission and renewable-related proceedings, including, without limitation, I.00-11-001, Rulemaking (R.) 04-04-026, R.06-02-012 and R.06-05-027.

The aggressive renewable energy procurement targets established by California's Renewables Portfolio Standard (RPS) legislation,1 included in the Governor's strategies to achieve California's greenhouse gas emission reduction goals,2 and required to meet the mandates in California's Global Warming Solutions Act,3 make adequate transmission for renewable energy an issue of critical importance.

Given the various entities involved in developing and approving plans to bring transmission to renewable resource areas, their respective areas of expertise and jurisdiction, and the complexity of these issues, we envision a collaborative approach in this Investigation and Rulemaking. The participation of the California Independent System Operator (CAISO) and the California Energy Commission will be important, given their respective roles in transmission planning and identifying renewable resource potential in the state. We also intend to reach out to the United States Department of Energy (DOE), the Federal Energy Regulatory Commission (FERC), and state and federal land use management agencies for their input and assistance in efforts to further streamline the transmission permitting process.

1 SB 1078 established an RPS of 20% by 2017. The Energy Action Plan, adopted by the Commission and the California Energy Commission (CEC) in May 2003, accelerated the completion date to 2010. SB 107, passed in 2006, codified that policy.

2 Executive Order S-3-05, signed by the Governor on June 1, 2005, establishes greenhouse gas emission reduction goals for California and identifies acceleration of the renewable energy goals to 33% of energy sales by 2020 as one strategy to meet those goals. See "Strategies Underway in California That Reduce Greenhouse Gas Emissions" at http://www.climatechange.ca.gov/climate_action_team/factsheets/2005-06_GHG_STRATEGIES_FS.PDF

3 Assembly Bill 32, Ch. 488, Stats. 2006.

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