Pérez Advances New Statewide Energy Procurement Policy



Sacramento_Capitol(SACRAMENTO) – Today, Assemblyman V. Manuel Pérez put forth a legislative proposal for a new coordinated approach to state energy procurement that emphasizes affordability and reliability, while helping the state meet its greenhouse gas emission goals and improve air quality through the enhanced use of renewable energy.


“Currently energy procurement in California is guided by multiple policies that have disconnected goals related to greenhouse gas emission reductions, environmental protection, and the economy,” explained Pérez.  “The state needs a clear, unified policy that coordinates these goals, while addressing the real system needs of affordability and reliability.”


Amendments made yesterday to AB 177 clarify that the 33% by 2020 current Renewable Portfolio Standard (RPS) is intended to be a floor, not a ceiling, for energy procurement.  It directs all retail sellers of electricity to adopt a long-term procurement strategy to achieve a target of procuring 51% of their electricity from renewable resources by December 31, 2030.  It further sets in statute the longer-term target of reducing emissions of greenhouse gases by 80% below 1990 levels by 2050, a policy already adopted by the State Air Resources Board.  The bill also incorporates the current loading order policy adopted by the California Energy Commission, the California Public Utilities Commission, and the Legislature, which requires all cost effective energy efficiency, demand response, and renewables available be procured to meet system resource needs.


State policies adopted by the Legislature and through Executive Order to reduce fossil fuel dependence and expand renewable energy are reshaping California’s electricity system.  At the same time, the replacement and/or retirement of several Southern California power plants have created opportunities to think differently and modernize statewide energy procurement and resource planning.  Pérez sees this as an ideal time to advance the dialogue on this critical matter facing the state.


“I believe that AB 177 establishes the right framework to get this important conversation going,” continued Pérez, “and I look forward to working with our policy committees in the summer and fall to further refine this proposal.”


Pérez represents the 56th Assembly district, a region with an abundance of renewable resource potential.  He is the author of a series of bills to facilitate responsible renewable energy development that balances economic opportunity, environmental protection, and job creation.


To read the text of AB 177, please visit the state’s legislative information website.