Simitian Renewable Energy Bill Signed Into Law

State Sen. Joseph Simitian's renewable energy bill was signed into law Tuesday at the dedication of a new solar panel manufacturing plant. 

The law requires all public and private utilities in the state to obtain a third of their electricity from renewable energy sources by the end of 2020.

"Today is only the beginning," said Simitian, (D-Palo Alto). "We will look back on this day ... as a decade of progress."

Simitian, along with with Gov. Jerry Brown, U.S. Energy Secretary Steven Chu and state legislators, toured the new manufacturing plant in Milpitas that employs more than 100 workers. The plant is a partnership between Flextronics and San Jose-based SunPower Corp.

The law aims to spur jobs, investment and technology in the renewable energy industry, while addressing global warming. 

"Senate Bill 2X sends a signal to renewable energy providers that California wants them here," said Simitian. "They will respond, as they have in the past, with billions of dollars in investments that will provide jobs and tax revenues." 

In addition, the new law raises the requirement for electricity retailers to increase their share of renewable energy sources from 20 percent to a third.

Jane Ratchye, Palo Alto's assistant director of utilities for resource management, said the city won't be greatly affected by the law, because of established renewable energy goals.

"Palo Alto has had a local goal that the council put into place several years ago to be at 33 percent by 2015," she said. "Ours is more aggressive."

"Just last night," she went on, "council approved another contract for a geothermal power project. And that should get us to almost 31 percent by 2013. We have just a little bit more to go to get to the 33 percent goal."

The California Public Utilities Commission (CPUC) is responsible for implementing the new regulations. Until recently, California utilities were required to reach a smaller goal of 20 percent by the end of 2010. 

CPUC commissioner Mike Florio, who attended the event, said that, technically, the utilities did not reach 20 percent, but the details allow "backfilling" over subsequent years. 

"The contracts that come on-line this year and next year count toward 2010," he said. 

While the average consumer won't necessarily notice a difference at home, Florio said the new regulations would position California as a renewable energy state, much like Texas and Louisiana are considered gas states.

He suggested the new regulations could take the electricity industry, which hasn't changed in 50 years, to a whole new level in a decade.

"Think how you used telecommunications 20 years ago," he said, referring to the technology in cellphones and smart phones.

During the press conference, Energy Secretary Chu announced that $50 million was allocated last week to a consortium led by Stanford and UC Berkeley aimed at improving solar photovoltaic performance while bringing costs down.

As he spoke about the "bright energy future," he said that under the leadership of President Obama, "we're jumping in the [clean energy] race and we're planning to win."