On September 10, 2018, California Governor Jerry Brown set California on an ambitious clean energy path signing Senate Bill 100 (SB 100), which requires that by 2045, 100% of California’s electricity be generated from carbon-free sources. In addition, Governor Brown signed off of a new statewide goal to reduce California’s overall greenhouse gas (GHG) emissions to zero by 2045 and then go negative thereafter. SB 100 also requires that its implementation does not increase carbon emissions elsewhere in the western grid and does not permit resource shuffling, a limitation that effectively prevents California from relying on fossil fuel generation from outside the state to serve the state’s electricity needs.
SB 100 makes California the world’s largest economy to commit to generating 100% of its power from clean energy. California has been steadily increasing its renewable portfolio standards, from an initial goal of 20% by 2017 to 60% by 2030, to the 100% by 2045. SB 100 does give California some flexibility. While hydropower and nuclear power do not qualify as renewable energy under renewable portfolio standards, these likely will qualify under SB 100, as they are “zero-carbon”. SB 100 also leaves open the possibility for other carbon-reducing innovations such as carbon capture and sequestration technology should it ever become practical.
SB 100 requires all California state agencies to incorporate this policy into all relevant planning and to issue joint report to the California legislature by January 1, 2021, and every four years thereafter discussing progress toward the goals.
Many opponents of the bill do not believe California can meet these goals unless it joins a larger regional market to have access to carbon-free energy from outside the state. This will mean entering into agreements with these other neighboring states to develop their own large renewable energy projects from which California can use the energy in its grid. It may be difficult to convince some of these states to replace traditional fossil fuel plants with more renewable power. If they can do so, then California may be able to reach a goal of negative carbon emissions in the future.
CCES can help your firm understand your electric bill and your sources of electricity to enable you to be most economic in your energy use and most efficient. Contact us today at 914-584-6720 or at karell@CCESworld.com.