CPUC Role in AB 32 Implementation LIOB – 2 nd June, 2010 San Diego, CA

ARB Cap and Trade Support The Air Resources Board (ARB) is in the process of developing regulations to support the state’s carbon reduction goals enacted through the Global Warming Solutions Act of In November 2009, ARB released its draft regulation for a carbon cap and trade program and is currently holding workshops and collecting public comments. CPUC is assisting by providing analysis of impact of these proposals on the electricity sector.

The Western Climate Initiative (WCI) is an agreement between ten states and provinces to develop a regional carbon cap and trade system. The WCI is working on the final detailed design elements, which will be released later this year. CPUC assists this effort by representing California (and providing recommendations to ensure consistency with California’s programs). Western Climate Initiative Support

Energy Efficiency The ARB Scoping Plan calls for 32,000 GWh of reduced energy demand from California’s Electricity Sector. The CPUC’s Energy Efficiency strategy is to pursue all cost-effective energy efficiency through achievement of the Big Bold Strategies and other opportunities identified in the Long Term Energy Efficiency Strategic Plan (September 2008). In addition, the CPUC supports the CEC in its calculations of the amount of energy efficiency embedded in the Integrated Energy Policy Report in order to more accurately reflect progress towards achieving our energy efficiency goals.

California Solar Initiative The California Solar Initiative (CSI) offers solar incentives to energy users (except new homes) in investor-owned utility territories in California. The CSI goal is to install 1,940 MW of new solar by 2017 (the overall target for all solar in the state is 3000 MW) and is included as a complementary policy in the ARB’s Scoping Plan. The CPUC assists ARB in quantifying expected greenhouse gas reductions from this resource.

33% Renewable Energy Standard  The CPUC has assisted ARB in developing and analyzing this standard which would require all California retail electricity providers to have a minimum of 33% renewable energy in the electricity they deliver to their customers.

Combined Heat and Power ARB calls for an increase of 4000 MW of CHP-generated electricity on the grid by Implementing feed-in-tariff (FIT) for highly efficient new CHP facilities that are small (less than 20 MW in size); 2. Removing market and regulatory barriers to CHP 3. Conducting an analysis of CHP potential in GHG reduction.

Vehicle Electrification The Commission is developing regulations to facilitate electric vehicle adoption in California. The rulemaking, initiated in August 2009, will consider tariff, infrastructure, and policy issues needed to ready the electricity system for the projected statewide market growth in light-duty passenger plug-in hybrid electric vehicles and battery electric vehicles. The Commission is currently developing a decision on the question of CPUC jurisdiction over third party electric charging service providers and streamlining of the charging equipment installation process and will begin considering EV tariff and infrastructure issues in the summer or fall.