LOZANO SMITH ALERT NEW CALIFORNIA LAW INCREASES RENEWABLE ENERGY REQUIREMENTS FOR PUBLIC UTILITIES

April 2011
Number 7

On April 12, 2011, Governor Brown signed SB X1 2, which will increase the amount of energy California obtains from renewable sources, such as solar, wind and geothermal electricity generation. Prior law required that investor-owned utilities (Pacific Gas and Electric, Southern California Edison and San Diego Gas and Electric) procure at least 20% of their electricity from renewable resources by the end of 2010. This bill will increase that threshold to at least 33% by 2020, and extend the requirement to include publicly owned utilities and retail sellers of electricity.

While large scale renewable energy projects will get a boost from this mandate, utility companies will also look to smaller scale energy projects, such as roof or groundmounted solar facilities hosted by public agencies, to meet the mandate’s requirements. These projects, often located on a school or college property, have become very popular over the past several years. Vendors, sensing a growing market, are sure to focus on public agencies for renewable energy projects even more than they have in the past. Agencies should carefully evaluate the merits of such proposals and weigh their options, in consultation with legal counsel, before entering into such renewable energy projects.

If you have any questions regarding the new requirements or proposals for renewable energy projects, please do not hesitate to contact one of our eight offices located statewide or consult our website.

Written By:
Devon Lincoln
Associate
Monterey Office
dlincoln@lozanosmith.com.

Michael Dunne
Paralegal
Fresno Office
mdunne@lozanosmith.com

2011 Lozano Smith

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