California Code of Regulations › Title 20 - Public Utilities and Energy › Division 2 - State Energy Resources Conservation and Development Commission › Chapter 13 - Enforcement Procedures for the Renewables Portfolio Standard for Local Publicly Owned Electric Utilities › Section 3206 - Optional Compliance Measures

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				In meeting its RPS procurement requirements, the governing board of a POU may
				adopt at a noticed public meeting any of the following measures:
(1) Excess procurement
(A) A POU may adopt rules permitting the POU
				to apply excess procurement accrued in one compliance period to a subsequent
				compliance period, as specified in section
				3206(a)(1)(B)-(H):
(B) Excess procurement may be accrued in a
				compliance period only if the POU has applied sufficient electricity products
				to satisfy its RPS procurement requirements of the compliance period. A POU
				that applies an optional compliance measure described in section
				3206(a)(2)-(4) to
				satisfy its RPS procurement requirements of the compliance period may not
				accrue excess procurement for that compliance period.
(C) Excess procurement accrual will be
				subject to the following limitations for the compliance periods beginning
				January 1, 2011, through December 31, 2020, except as specified in section
				3206(a)(1)(G):
1. Electricity products that meet the
				criteria of section
				3202(a)(1) or
				section 3202(a)(3), and
				are classified in Portfolio Content Category 3 may not be accrued as excess
				procurement.
2. Electricity
				products that meet the criteria of section
				3202(a)(1) and
				that exceed the maximum limit for Portfolio Content Category 3 for the
				compliance period, as specified in section
				3204(c), must be
				subtracted from the calculation of accrued excess procurement.
3. Electricity products procured under
				contracts of less than 10 years in duration in accordance with section
				3206(a)(1)(C)4.
				shall be subtracted from the calculation of accrued excess procurement, unless
				the electricity product meets the criteria in section
				3202(a)(2).
4. For purposes of calculating accrued excess
				procurement for the compliance periods beginning January 1, 2011, through
				December 31, 2020, except as specified in section
				3206(a)(1)(G), if
				electricity products are procured under a contract that has been amended to
				extend the term, the duration of the amended contract will be calculated from
				the original contract execution date to the amended contract end date. If
				electricity products are procured under a contract of less than 10 years in
				duration that has been amended to extend the total term to at least 10 years in
				duration, then electricity products generated as of the month and year in which
				the contract amendment occurs will be eligible to qualify as excess
				procurement.
(D) Excess
				procurement accrual will be subject to the following limitations for the
				compliance periods beginning on or after January 1, 2021, except as specified
				in section
				3206(a)(1)(G):
1. Electricity products that meet the
				criteria of section
				3202(a)(1) or
				section 3202(a)(3), and
				are classified in Portfolio Content Category 2 or Portfolio Content Category 3,
				may not be accrued as excess procurement.
2. Electricity products that meet the
				criteria of section
				3202(a)(1) and
				that exceed the maximum limit for Portfolio Content Category 3 for the
				compliance period, as specified in section
				3204(c), must be
				subtracted from the calculation of accrued excess
				procurement.
(E) A POU
				that opts to allow the application of excess procurement as part of its
				renewable energy resources procurement plan or enforcement program may begin
				accruing excess procurement no earlier than January 1, 2011.
(F) Electricity products accrued as excess
				procurement may be applied toward any future compliance periods, except as
				specified below:
1. Electricity products
				accrued in accordance with section
				3206(a)(1)(C)
				that are classified in Portfolio Content Category 2 may not be applied toward
				the RPS procurement requirements of a compliance period beginning on or after
				January 1, 2028.
(G)
				Notwithstanding section
				3206(b), a POU
				may adopt rules pursuant to this section
				3206(a)(1) no
				later than 30 days after the effective date of these regulations, permitting
				the POU to make an election for voluntary early compliance with section
				3204(d) for the
				compliance period beginning January 1, 2017, in order for the provisions of
				section 3206(a)(1)(C) to
				take effect beginning January 1, 2017. The provisions of section
				3206(a)(1)(C)
				shall take effect beginning January 1, 2017, only if the POU makes an election
				pursuant to its adopted rules and satisfies the requirements of section
				3204(d) for that
				compliance period.
(H) Excess
				procurement accrued in a compliance period shall be calculated as follows:
1. The numerical expression of the excess
				procurement accrual permitted for compliance periods beginning January 1, 2011,
				through December 31, 2016, is:
Excess Procurement = EPX -
				  (RPSX - BX) -
				  (S3X + STCX)
EPX = Electricity products
				  retired for the compliance period X
RPSX = The RPS procurement
				  target calculated in section
				  3204(a) for
				  compliance period X or, if greater than the target, the amount of electricity
				  products applied toward the target. This may include electricity products
				  retired for compliance period X, excess procurement accrued in a prior
				  compliance period, or historic carryover pursuant to section
				  3206(a)(5), that
				  the POU has applied toward the target.
BX = Any excess procurement
				  accrued in a prior compliance period or historic carryover pursuant to section
				  3206(a)(5) that
				  the POU applied toward the RPS procurement target calculated in section
				  3204(a) for
				  compliance period X
S3X = Any remaining retired
				  electricity products that meet the criteria of section
				  3202(a)(1) or
				  section 3202(a)(3), and
				  the definition of Portfolio Content Category 3
STCX = Any remaining retired
				  electricity products that meet the criteria of section
				  3202(a)(1) or
				  section 3202(a)(3), and
				  are associated with contracts less than 10 years in duration in accordance with
				  section 3206(a)(1)(C)4.
2. The numerical expression of the excess
				procurement accrual permitted for the compliance period beginning January 1,
				2017 through December 31, 2020, is either:
i.
				The same equation as specified above in section
				3206(a)(1)(H)1.
				for compliance periods ending before January 1, 2017, or
ii. For POUs that qualify for and elect to
				use section
				3206(a)(1)(G),
				the same equation as specified below in section
				3206(a)(1)(H)3.
				for compliance periods beginning on or after January 1,
				2021.
3. The numerical
				expression of the excess procurement accrual permitted for the compliance
				periods beginning January 1, 2021, is either:
Excess Procurement = EPX -
				  (RPSX - BX) -
				  (S3X + S
				  2
														X)
S2X = Any remaining retired
				  electricity products that meet the criteria of section
				  3202(a)(1) or
				  section 3202(a)(3) and
				  the definition of Portfolio Content Category
				  2
(I)
				Notwithstanding section
				3206(a)(1)(A)-(H),
				a POU that meets the criteria of section
				3204(b)(4) or
				section 3204(b)(5) may
				adopt rules permitting the POU to apply excess procurement accrued in one
				compliance period to a subsequent compliance period, subject to the following
				limitations.
1. Unbundled RECs that do not
				meet the criteria of section
				3202(a)(2) may
				not be accrued as excess procurement.
2. For the compliance periods between January
				1, 2011, through December 31, 2020, except as specified in section
				3206(a)(1)(I)3.,
				electricity products procured under contracts of less than 10 years in duration
				in accordance with section
				3206(a)(1)(C)4.
				shall be subtracted from the calculation of accrued excess procurement, unless
				the electricity product meets the criteria in section
				3202(a)(2).
3. Notwithstanding section
				3206(b), a POU
				may adopt rules no later than 30 days after the effective date of these
				regulations permitting the POU to make an election for voluntary early
				compliance with section
				3204(d) for the
				compliance period beginning January 1, 2017, in order to use the calculation
				for accrued excess procurement in section
				3206(a)(1)(I)6.iii.
				for the compliance period beginning January 1, 2017. A POU may use the
				calculation in section
				3206(a)(1)(I)6.iii.
				for the compliance period beginning January 1, 2017, only if the POU makes an
				election pursuant to its adopted rules and satisfies the requirements of
				section 3204(d) for that
				compliance period.
4. A POU that
				opts to allow the application of excess procurement as part of its renewable
				energy resources procurement plan or enforcement program may begin accruing
				excess procurement no earlier than January 1, 2011.
5. Electricity products accrued as excess
				procurement may be applied toward any future compliance periods.
6. Excess procurement accrued in a compliance
				period shall be calculated as follows:
i. The
				numerical expression of the excess procurement permitted to be accrued for
				compliance periods beginning January 1, 2011, through December 31, 2016, is as
				follows:
Excess Procurement = (EPX) -
				  (RPSX - BX) -
				  (URX + STCX)
EPX = Electricity products
				  retired for compliance period X
RPSX = The RPS procurement
				  target calculated in section
				  3204(a) for
				  compliance period X or, if greater than the target, the amount of electricity
				  products applied toward the target. This may include electricity products
				  retired for compliance period X, excess procurement accrued in a prior
				  compliance period, or historic carryover pursuant to section
				  3206(a)(5), that
				  the POU has applied toward the target.
BX = Any excess procurement
				  accrued in a prior compliance period or historic carryover pursuant to section
				  3206(a)(5) that
				  the POU applied toward the RPS procurement target calculated in section
				  3204(a) for
				  compliance period X
URX = Any remaining
				  electricity products retired for compliance period X that meet the criteria of
				  section 3202(a)(1) or
				  section 3202(a)(3), and
				  the definition of unbundled
ii. The numerical expression of the excess
				procurement permitted for the compliance period beginning January 1, 2017,
				through December 31, 2020, is either:
a. The
				same equation as specified above in section
				3206(a)(1)(I)6.i.
				for compliance periods ending before January 1, 2017, or
b. For POUs that adopt rules and elect to use
				section 3206(a)(1)(I)3.,
				the same equation as specified below in section
				3206(a)(1)(I)6.iii.
iii. The numerical expression of the excess
				procurement permitted for the compliance periods beginning January 1, 2021,
				except as specified in section
				3206(a)(1)(I)3.
				is:
Excess Procurement = (EPX) -
				  (RPSX - BX) -
				  URX