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# Policy Issues Associated with the Development of Renewable Energy in 

# the US- Mexico Border Region

Andrew McAllister Director of Policy & Strategy California Center for Sustainable Energy

June 16, 2011 Good Neighbor Environmental Board Meeting

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# About CCSE

• Independent non - profit 501 (c)(3) organization • Core activities • Program Administration: State and utility programs promoting clean generation, energy efficiency, alternative fuel vehicles • CA Solar Initiative , SGIP – Retrofit Programs in SDG&E service territory • Clean Vehicle Rebate Program – for the CA Air Resources Board • Whole- Home Retrofit / Energy Upgrade California – part of IOU EE programs • Clean energy technical assistance for: • Local governments, other public entities • Private entities: companies and non - profits • Market support: contractors, manufacturers and other industry stakeholder • Policy Support: regional planning; legislative & regulatory support • Education: efficiency, renewables, climate, green building, transportation • Emphasis on serving local jurisdictions, market stakeholders, end users • www.energycenter.org

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# California Policy Drivers (1) 1. Net Energy Metering (“behind the meter”) • Up to 1MW 

## • Growing, established markets for solar • Other technologies making headway • wind, fuel cells, storage, others 

## • Directed biogas is on a learning curve.... • NEM systems are not automatically eligible for Renewable Portfolio Standard

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# California NEM PV Installations

• San Diego region: ~75+ MW installed; well over 10,000 systems. Source: CPUC June 2010 San Diego Region PV Statewide NEM PV

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# NEM Solar: Growing, Evolving Markets

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# California Policy Drivers (2) 2. Renewable Portfolio Standard (RPS)

• Current RPS requirement: 20% by 2010 • Retail energy sellers must procure 20% renewable energy by 2010 

### • As of January, 2011: • 75% must consist of (bundled) MWh generated on the system side of the meter and delivered to CA (ISO) • Many out-of-state projects to date • 25% can be REC purchases: must be registered and tracked through WREGIS

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# 7 Almost at 33% on a contract basis – but some face risk 

# Utilities on Track for RPS Targets....

Source: CPUC, 2010

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Solar participation has increased most dramatically 

# RPS Solicitation Bids by Fuel Type

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## Breakdown of Solar Bids by Technology

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# RPS Moving to 33%.....

• SBX1 2 (Simitian, 2011): 33% RPS. • Signed by Gov. Brown • Will become law 90 days after close of the current Special Session of the CA legislature • Creates a lot of work for the CPUC! • Must revisit the January, 2011 TREC decision to align existing REC rules with SBX1 2. • Grey area regarding treatment of existing REC contracts • Possibly limited opportunity for new REC contracts 

## • Much talk about moving to a 40% RPS world!

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# Supporting Programs for RPS 1. Feed - In Tariff: SB 32, currently in implementation • Up to 5 MW; 750 MW statewide cap 2. IOU PV Programs: “In - basin” Utility / 3 rd- party- Owned • 1100 MW statewide. Competitive bid w/ price cap • In SDG&E territory, generally up to 5 MW per project; total of 100 MW (26 utility-owned, 76 Independent Power Producers) 3. Renewables Auction Mechanism (RAM) • up to 20 MW per project; 1000 MW statewide cap) 4. Qualifying Facilities (QFs) • All RPS -eligible technologies (and CHP) • No size limit, but contracts for increments of 20MW 5. Governor Brown’s 20GW renewable/12GW DG goal

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# Barriers to Bringing RPS - eligible Projects Online

• High rate of project termination/delay due to: • Permitting (CEC and/or County) • Site Control (e.g. federal lands) • Project financing • Equipment supply & procurement • Transmission limitations (for some projects) • Developer experience • Fuel supply • Contracting enforcement, due diligence • For REC purchases from projects in Mexico, would require jurisdictional alignment around contracting and enforcement

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# Thank You! andrew.mcallister@energycenter.org