California get 33% renewable portfolio standard

Posted on April 21, 2011 by


Last week, California passed a bill into law that will require utilities to generate 33 percent of their power on an annual basis from renewable resources by 2020. This bill (“SBX2”) was passed by strong majority. This law SBX2 establishes the most stringent RPS in the US. It is expected and hoped to trigger similar laws and regulations in other states. California’s Governor Brown indicated that the 33% RPS should be viewed as a floor with 40 percent being “well within our grasp in the near future.”

This law replaces the earlier 20 percent renewable portfolio standard (the “20% RPS”), which went into effect in 2006. The SBX2 is not a simple extension of 20%RPS. It imposes a cap on expenditures for renewable energy resources for complying with the 33% RPS.

The bill has its share of supporters and opponents. The supporters say that this bill will attract jobs, improve air quality, reduce GHG emissions, lessen the state’s reliance on foreign oil, and fuels investment. Opponents believe that the bill will cause electricity prices to rise, worsening California’s struggling economy.

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Posted in: Renewable Energy