California Renewable Energy Bill Reemerges, But AB 32 In Jeopardy

A California renewable energy bill that had been given up for dead last year is alive and well, following a 9 to 2 vote Thursday in favor by the Assembly Utilities and Commerce Committee.

The bill (SB 722), introduced by State Senator Joe Simitian (D-Palo Alto) would require the state to obtain 33% of its electricity from clean, renewable sources such as wind and solar power by 2020. The Legislature passed a similar bill last year, but Gov. Schwarzenegger vetoed it and signed an executive order with the same policy goal instead.

Simitian reintroduced his bill on March 10 after the administration, Legislature, utilities, renewable energy providers, environmental groups and other stakeholders agreed to intensify their efforts to renegotiate a policy that can get through the statehouse, according to the Union of Concerned Scientists.

“Today’s vote shows renewed momentum to pass this bill into law,” said Laura Wisland, an energy analyst with the Union of Concerned Scientists (UCS). “The parties understand that a renewable energy mandate in statute is a superior solution because an executive order–no matter how well intentioned–could easily be undone by a future governor.”

Under current law, California’s investor-owned utilities are required to obtain 20% of their electricity from renewable sources by the end of this year. This policy, which is known as the state’s Renewables Portfolio Standard, is considered a critical component of the clean energy policies under California’s Global Warming Solutions Act (AB 32), which aims to reduce the state’s global warming pollution to 1990 levels by 2020.

AB 32 in Peril

But the future of AB 32 is in question. California’s secretary of state, Debra Bowen, this week certified a ballot measure for the November 2 general election that would suspend the ground-breaking law until unemployment drops below 5.5% for four consecutive quarters (currently over 12%). 

The law, signed in 2006, requires the state to reduce greenhouse gas emissions to 1990 levels by 2020. Major polluters such as refineries, utilities and factories would pay fees and have to make substantial investments in advanced equipment. It mandates emissions reports, the expansion of renewable energy and cleaner fuels. 

Opponents, such as Republican candidate and former eBay CEO Meg Whitman, say the law would cripple the economy, lead to more job losses and put California businesses at a disadvantage to other states.

Oil companies funded the petition campaign – which resulted in 800,000 signatures – to get the measure on the November ballot.

"This initiative sponsored by greedy Texas oil companies would cripple California’s fastest growing economic sector, reverse our renewable energy policy and decimate our environmental progress for the benefit of these oil companies’ profit margins," Schwarzenegger said in a statement.

"I will not allow this to happen on my watch. We will continue moving this state forward with our comprehensive energy policy that creates jobs, reduces our reliance on foreign oil and ensures the California we love will be the California we hand over to the next generation."

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