Discussion

We have identified a number of implementation issues, in D.03-06-071, in the Order Instituting Rulemaking (OIR) for R.04-04-026, and in D.05-11-025, that remain to be determined. We transfer most of these outstanding issues to this new rulemaking. These include the manner in which electric service providers (ESPs), community choice aggregators (CCAs), small utilities, and multi-jurisdictional utilities will participate in the RPS program, based on the principles enunciated in D.05-11-025; and the potential for use of unbundled and/or tradable renewable energy credits (RECs) for compliance with RPS requirements, including the characteristics or attributes of any RECs allowed for RPS compliance and the status of RECs associated with renewable energy generated by qualifying facilities (QFs) and utility-funded distributed generation. In coordination with R.04-03-017 and its successor, we will resolve technical issues related to the use of renewable distributed generation for RPS purposes. We will also use this new rulemaking to coordinate the RPS program with new programs and initiatives, e.g., the California Solar Initiative (CSI), announced in D.05-12-044, and to address any other new issues in implementation of the RPS program that may emerge during the course of the proceeding.

We intend that the current RPS proceeding, R.04-04-026, and its successor, will be the locus for our oversight of the ongoing RPS program, including annual procurement, reporting, compliance, and enforcement. When the design tasks of today's rulemaking have been completed, we will fold the results into R.04-04-026 or its successor and close this proceeding.2 Oversight and administration of the RPS program would then be accomplished through R.04-04-026 or its successor and our general procurement proceeding, R.04-04-003 or its successor.3

We intend to coordinate this new rulemaking closely with R.04-04-026, and its successor; R.04-03-017 (and its successor), our rulemaking on incentives for distributed generation and distributed energy resources; and R.04-04-003 (and its successor), our broad-ranging review of procurement incentives and long-term procurement planning. We will continue coordination among this new proceeding, R.04-04-026, and Investigation (I.) 05-09-005, our proceeding to facilitate proactive development of transmission infrastructure to access renewable energy resources for California. We recognize that this organization of tasks related to the RPS program will require careful coordination among several proceedings. We anticipate that although this coordination will require substantial effort, the reward will be more rapid implementation of the RPS program and fewer bumps in the road to attainment of the RPS goals.

2 The tasks we have outlined may not divide with mathematical precision between the two RPS proceedings, but we anticipate that the coordination process we outline here will allow the assigned commissioner and assigned administrative law judges (ALJs) to ensure that no significant gaps or duplications of effort occur.

3 See § 399.14(a).

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