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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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Large IOU RPS Actual and Forecasted Generation

0

10

20

30

40

50

60

70

80

90

100

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Energy (MWh) / year

Online Generation Expiring Generation Contracted Generation

Pending Approval Under Negotiation Annual RPS Target

2020 33% RPS Target

2010 20% RPS Target

Almost 

at 33% 

on a 

contract 

basis –

but 

some 

face risk

Utilities on Track for RPS Targets....

Source: CPUC, 2010
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Large IOU RPS Solicitation Bids 

by Fuel Type

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20

40

60

80

100

2003 2004 2005 2006 2007 2008 2009

Solicitation Year

Energy (TWh) / year

Wind Solar Small Hydro Geothermal Biogas Biomass

Source: California Public Utilities Commission, 1st Quarter 2010

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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20

30

40

50

60

2007 2008 2009

Solicitation Year

Energy (TWh) / year

Solar PV Solar Thermal

Source: California Public Utilities Commission, 1st Quarter 2010

63%

58%

35%

65%

42%

37%
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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 / 3rd-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