2. Introduction
As can be seen from the background and history set forth below, the definition of a REC has had a relatively long but not fully resolved history in the RPS program. We have taken a number of steps, including a workshop held by Energy Division on TRECs for RPS compliance, and associated comments submitted by many parties, to reach closure on the definition and use of RECs.
Through legislative action and on our own initiative, the Commission has also been moving forward in several areas that implicate RECs. In Decision (D.) 07-01-018, we determined (without deciding on the content of the REC) that participation in net-metering, the California Solar Initiative, and the Self-Generation Incentive Program is not conditioned on transfer of the RECs associated with customer side renewable distributed generation to the interconnected utility. In D.07-07-027, we implemented Pub. Util. Code § 399.20,2 providing for tariffs or standard contracts for utilities' purchase of RPS-eligible generation from certain water and wastewater facilities, with the generation counting toward the utilities' RPS targets. We discussed the value of these arrangements for RPS compliance in terms of RECs, again without deciding on the content of the REC.
Issues related to RECs have also appeared in our consideration of reducing emissions of GHG. In D.06-12-032, we approved a new Pacific Gas and Electric Company (PG&E) program called ClimateSmart, which provides PG&E customers with an opportunity to offset the GHG emissions occurring from their use of electricity and natural gas. In Resolution (Res.) G-3410 (June 12, 2008), we approved an expansion of the allowable offsets in the ClimateSmart program to include manure management programs. In doing so, we clarified that an RPS-eligible REC does not include the GHG emission reductions attributable to methane capture and destruction, because these emission reductions constitute "treatment benefits" that, as set out in § 399.12(h)(2), are expressly excluded from the attributes that must be conveyed with a REC for RPS compliance purposes. We further noted that comprehensive treatment of RECs would occur in this proceeding, but that the change sought by PG&E would not interfere with our consideration of the larger issues here. In our proceeding on GHG policy, Rulemaking (R.) 04-06-009, we affirmed in D.08-03-018 that the relationship of RECs and GHG emissions attributes would be addressed in this proceeding.
Finally, the development of the Western Renewable Energy Generation Information System (WREGIS)3 has been completed and WREGIS is in its implementation phase. WREGIS is a REC-based accounting system that will track renewable energy throughout the Western Electricity Coordinating Council (WECC). The California Energy Commission (CEC) will use WREGIS to verify eligible RPS procurement.
2 Unless otherwise indicated, all subsequent citations to sections refer to the Public Utilities Code, and all citations to rules refer to the Commission's Rules of Practice and Procedure, which are codified at Chapter 1, Division 1 of Title 20 of the California Code of Regulations.
3 Information and forms related to WREGIS may be found at the WREGIS web site, http://www.wregis.org/.
