California Gov. Jerry Brown signs into law ambitious renewable energy mandate
California Gov. Jerry Brown signs into law ambitious renewable energy mandate
http://www.mercurynews.com/business/ci_17828401?nclick_check=1
By Dana Hull
dhull@mercurynews.com
Posted: 04/12/2011 02:38:21 PM PDT
California's cleantech economy took center stage Tuesday as Gov. Jerry Brown signed into law an ambitious mandate that
requires the state's utilities to get 33 percent of their electricity from renewable sources by 2020.
The move, which gives California the most aggressive renewable energy requirement in the nation, is expected to create cleantech jobs as utilities race to secure contracts with clean energy power producers.
"Instead of taking oil from thousands of miles away we're taking the sun," said Brown before the signing ceremony at
SunPower's (
SPWRA) new solar manufacturing facility in Milpitas. "This is about California leading the country, and America potentially leading the world."
Energy Secretary Steven Chu also brought good news Tuesday, and announced at the signing that SunPower and NRG Solar have been awarded a $1.2 billion conditional loan guarantee from the Department of Energy for the California Valley Solar Ranch, a 250-megawatt power plant in San Luis Obispo County. The solar plant is expected to create 350 jobs and generate enough power for 60,000 homes.
"The efficiencies created by the California Valley Solar Ranch project will help lower the cost of solar power and encourage more utility-scale solar deployment," said Chu. "The
project will also create hundreds of jobs and will generate clean, renewable power to fulfill increased energy demand."
San Jose-based SunPower designs and manufactures solar cells and solar panels for residential, commercial and utility clients. The company has more than 5,100 employees worldwide,
including about 4,300 in the Philippines, where SunPower has two factories near Manila.
But with the solar market in California rapidly expanding, SunPower is eager to manufacture closer to home and recently opened its first domestic solar manufacturing facility in Milpitas. The Milpitas factory is operated in partnership with Flextronics, an electronics manufacturing services provider, and is expected to create 100 jobs.
Under current California law, the state's three largest utilities are required to procure 20 percent of their power from renewable sources. In 2009, former Gov. Arnold Schwarzenegger signed an executive order that raised the bar to 33 percent by 2020.
But Brown's signing of the law--his first major legislation since taking office--carries far more weight than an executive order. It also extends to all utilities in the state, including municipal utilities in Palo Alto, Santa Clara and Sacramento.
"This is going to electrify California's economy and reduce air pollution and global warming," said Jim Metropulos of the Sierra Club, which has been advocating for the law.
Renewable energy sources like solar, wind, biomass, geothermal, wave and tidal power and small hydroelectric dams all count toward meeting the law, called the "Renewable Portfolio Standard.'' Utilities can use a mix of renewable power sources to meet the new goals. Solar power is expected to be a big winner.
"Solar is much more valuable to utilities," said Adam Browning of the Vote Solar Initiative in San Francisco. "The sun shines during the middle of the day, which corresponds to peak demand."
The renewables law was also heralded by consumer advocates, because it contains provisions designed to protect consumers from rising and often volatile fossil fuel prices and requires state regulators with the California Public Utilities Commission to approve any renewable energy contracts.
"We'll make sure that ratepayers are protected," said CPUC Commissioner Mike Florio, who was a consumer advocate for three decades. "Part of our charge in implementing the bill is establishing cost control measures."
Tuesday also marked a big victory for State Sen. Joe Simitian (D-Palo Alto), who has pushed for the 33 percent standard for four years.
"We want the commitment to renewable energy to be real, but we also want the flexibility to make it work," said Simitian. "If we send a clear signal to the market, the market will respond--with investment, tax revenue and jobs."
