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California renewable energy bill is signed

By John Holland and Adam Weintraub, The Associated Press, The Modesto Bee, April 12, 2011

Big hydro projects not included as renewable sources

Gov. Jerry Brown on Tuesday signed a bill affirming the state's goal of getting at least a third of its electricity from renewable sources by 2020.

The Modesto and Turlock irrigation districts are well on their way toward the mandate, thanks mainly to wind turbines, but they failed in their bid to have large hydroelectric systems counted.

The measure sets into law a goal proclaimed by Gov. Schwarzenegger in a 2009 executive order. Both governors have supported solar, wind, biomass and other renewable sources in place of fossil fuels, which are blamed for pollution and climate change.

"There are people who think we can drill our way to happiness and prosperity," Brown said. "Instead of just taking oil from thousands of miles away, we're taking the sun and converting it."

Brown signed the bill during the dedication of a factory in Milpitas that will make panels that turn sunlight into electricity. One of the partners is SunPower Corp., which has proposed a large solar installation on McHenry Avenue north of Modesto and another near Santa Nella.

Critics said the mandate will mean rate increases for utility customers because renewables tend to cost more than conventional sources.

"Industry in California already pays electricity rates about 50 percent higher than the rest of the country," said Gino DiCaro, spokesman for the California Manufacturers and Technology Association. "With 33 percent, those rates are going to go up even more."

The bill requires the California Public Utilities Commission to set reasonable limits for what utilities should have to pay and allows the standards to be relaxed if not enough renewable power or transmission capacity is available to meet them.

The bill, carried by state Sen. Joe Simitian, D-Palo Alto, excludes hydro plants larger than 30 megawatts, including the one shared by the MID and the TID at Don Pedro Reservoir.

State Sen. Anthony Cannella, R-Ceres, has introduced a bill that would recognize large hydro as a clean energy source that should be included in the renewable mandate.

The MID already is at 18 percent renewable, almost all of it from wind turbines in Solano County, Oregon and Washington. The figure is expected to rise to 26 percent by the end of this year, mainly with wind additions.

The 25-megawatt solar project would add an additional 2 percent. The MID board agreed last year to buy the output from the panels, planned for 160 acres at McHenry Avenue and Ladd Road. The project needs approval from Stanislaus County officials.

The TID gets 28 percent of its power from renewable sources, almost all of it from a Washington wind project.

Pacific Gas & Electric Co. projected its 2010 renewable share at 17 percent to 19 percent. The main sources include biomass, geothermal, wind and small hydroelectric systems.

SunPower also has proposed a 110-megawatt project for Southern California Edison, straddling the California Aqueduct near Santa Nella.

The 100-employee factory in Milpitas is a partnership with Flextronics Corp., a manufacturer based in Singapore. It will turn out enough panels to supply 25,000 homes a year, SunPower founder Richard Swanson said at the bill signing.

"This plant proves that solar can power America while creating jobs and driving economic growth," he said.

Also on hand was U.S. Energy Secretary Steven Chu.

"By requiring utilities to get one-third of electricity from renewables by 2020, California will unleash clean energy innovation and clean energy investment," he said.

Bee staff writer John Holland can be reached at (209) 578-2385 or jholland@modbee.com.

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