There is a rumor that the Schwarzenegger Administration is in the process of preparing an executive order and legislative package to expand the Renewable Portfolio Standard (RPS -- this is the requirment that in state utilities procure a specific amount of generation from renewable sources) from 20% to 33% by 2020. There may be three options to get to 33%: 1) a legal mandate, 2) a goal set in law (thorough legislation) or 3) set by the Air Resources Board in the AB 32 Scoping Plan. There will be three elements in implementing this policy. There will be an executive order (EO) with two primary elements on transmission and siting. There will be a third element which will be a legislative package of bills.
The devil is always in the details, but if the move to 33% will truly streamline the siting process, which is the only reason to do this, then I would say that this is not only necessary, but it would become the only way that the state might actually achieve this goal. Of course, no investment will be attracted if contracts are not offered to attract that business. I do hope everyone is mindful of that.
While I understand tha this is still under development, sources close to the proces indicated that this has moved from a conceptual draft and is closer to being official in the coming weeks. Stay tuned!
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