Today’s packed Senate Energy, Utilities and Communications hearing showed just how many people hope to bring more clean power to California.
Right now is our best chance to give California’s clean-energy future a solid foundation. That’s why our state’s renewable portfolio standard should be at least 33 percent by 2020.
We can make that standard even stronger by requiring that newly generated power come from truly clean sources. It just makes sense to consider the potential impacts of building new dams and hydroelectric facilities, or of converting waste into energy. These proposals have a price tag that will be paid not only by ratepayers, but by California’s wild rivers and clean air.
Now is also a great time to start thinking about an enforcement strategy for bringing California into the clean-energy future. As Senator Simitian mentioned while defending the bill, California’s Public Utilities Commission never has issued a single penalty for utilities that fail to meet state standards for new renewable power. Not one.
That’s why it’s a good time to hold those commissioners to a higher standard as well, with regard to conflict-of-interest. We can’t continue the revolving-door policy that encourages the regulated to become the regulators.
Sierra Club California just submitted a letter urging California’s energy officials to embrace “feed-in tariffs” in a big way.
Feed-in tariffs are incentive structures used to encourage generation of renewable energy by compensating for price differences between renewable power and fossil fuel electricity. As applied in Germany, this system sets a fair price for renewable power, encouraging widespread generation and use.
But for now, the state has proposed a limited version of feed-in tariffs, limiting them to smaller plants (less than 20 megawatts in size). We are telling the air board and the energy commission to raise that limit, and to give feed in tariffs more power to increase the amount of renewable energy generated in the state.
We’re also working with lawmakers to generate measures that would encourage California to embrace this powerful new philosophy – and that encourage the state to raise its clean power production goal to 33% by 2020.
Yesterday, Gov. Arnold Schwarzenegger signed an executive order calling on the state to streamline its renewable energy process, ideally making it easier to produce and sell renewable power. He also is expected to sign a memorandum of understanding among resources-protection agencies, prompting more sustainable siting of clean-energy plants.
The governor’s action comes at a critical time for the state of California. Most experts agree that clean energy will provide new “green jobs” to lift the Golden State’s economy, while reducing the pollution that causes global warming. Still, groups and individuals who want to protect our state’s wilderness resources worry that these same facilities could hurt animals, plants and wilderness areas in their path.
“Everyone agrees that generating more renewable power will energize our economy and reduce pollution, but we can’t ignore the impacts to wilderness in our quest to generate more clean energy in California,” said Jim Metropulos, Senior Advocate, Sierra Club California. “Sierra Club California hopes that involving agencies like the Department of Fish and Game and the U.S. Fish and Wildlife Service that protect these resources will lead to a better understanding of how we can build a clean-energy future that doesn’t hurt our precious ecosystem in the process.”
Sierra Club California has long called on lawmakers and the Schwarzenegger Administration to increase the standard to at least 33 percent by 2020. This summer, the California Air Resources Board joined that call, asserting that raising the standard would reduce the pollution that causes global warming.
Simply raising the required amount of renewable power generated by utilities won’t accomplish everything, Metropulos said. Sierra Club California urges additional reforms to ensure the continued success of a renewable energy program.
First, our state currently ties the price of clean energy to its future projected price of natural gas, known as the market price referent, which the state consistently underestimates. This forces would-be clean energy projects to compete against an artificially low fossil-fuel-based standard – an archaic, unsustainable practice that California must reverse.
In designing a new approach to renewable energy, the Schwarzenegger Administration and the California Legislature would do well to look to programs that already work. In Germany, a program known as “feed-in tariffs” sets up fixed prices for renewable energy, rewarding investors leery of our “boom or bust” system. Meanwhile, throughout California, communities are scrambling to get into “community choice aggregation,” pooling their buying power to get more bang for the buck.
As they move to expand renewable power generation in the state, state lawmakers and regulators always must keep in mind whether renewable sources of energy are equally sustainable in terms of environmental impacts or energy supply. For example, outdated methods of drawing on geothermal energy involve essentially poking holes in the ground and allowing the underground steam to escape into the atmosphere. This process releases both greenhouses gases as well as toxic materials.
“California has the power to retake the lead in developing new sources of clean, renewable power, as long as Gov. Schwarzenegger and the Legislature fix flaws in current renewable power standard law,” said Metropulos. “Adopting a truly sustainable standard that protects wild places while fully empowering clean-energy projects represents the best pathway to a clean-energy future.”
If California competed in an Olympic event for renewable power generation, we’d only take fifth place!
That’s what our allies at Environment California announced today at the State Capitol. We’re joining them in their call for the California Legislature to power up its efforts to pass a renewable portfolio standards bill that would call for a full third of California’s power to come from renewable sources by the year 2020.
Schwarzenegger has joined the team of allies trying to hurdle California’s renewable generation capacity toward 33%. Speaking for him, California Energy Commissioner Karen Douglas joined a panel that also included representatives of the Center for Energy Efficiency and Renewable Technologies; the Union of Concerned Scientists; Environmental Defense Fund and a score of environmental, public health and environmental justice groups.
Raisng the bar for renewables would pay off across a number of issue areas, the groups agree.
"Increasing the renewable portfolio standard would lower greenhouse gas emissions, clean our air and create an estimated 200,000 new jobs for Californians," says Jim Metropulos, Sierra Club California's Senior Advocate.
A 33% renewable portfolio standard should be a top priority for the Legislature, the group agreed.
“If developing renewable energy were an Olympic sport, California surprisingly wouldn’t even win a bronze medal,” said Bernadette Del Chiaro, clean energy advocate for Environment California. “It is high time California gets back in the race by upping our mandate and commitment to removing barriers to renewable energy.”
PHOTO: CEERT's V. John White answers a reporter's question as representatives from Environment California, Sierra Club California and other groups back him.
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