[CEM 1068 / March 5, 2010]

CARB Considers Voluntary Offset Protocols for Formal Adoption; Local Air Boards Left in Regulatory Cloud

The California Air Resources Board withdrew adoption of four protocols for calculating emissions reductions and offset credits from voluntary projects administered by the nonprofit Climate Action Reserve. It is anticipated that the protocols will be reintroduced as compliance-grade protocols after undergoing California Environmental Quality Act Review. But without a formal accounting method for voluntary offset projects, local air districts with offset protocols for air pollutants, such as the South Coast Air Quality Management District, are wondering what to do.

TRECs Debate Centers on Out-of-State Energy Deals Versus In-State Economic Benefits

A proposed decision at the California Public Utilities Commission would allow tradable renewable-energy credits (TRECs) to count for up to 40 percent of the procurement target for the 20 percent renewables portfolio standard. But investor-owned utilities and power producers are miffed that the decision defines as REC-only many out-of-California deals for renewables. Utilities want to count these out-of-state contracts with some flavor of energy delivery (including of fossil fuels) toward renewable-energy targets, and have asked to exclude these contracts from the 40 percent TREC limit. But critics say that proposal would let utilities count fossil-fuel energy toward renewables targets, and that such deals are hard to track and provide no benefit to California.

Cal-ISO Sees Lessons Learned From Small DR

Many details need to be resolved for small, aggregated demand-response projects to participate in California's wholesale market, the California Independent System Operator reported. While pilot projects from investor-owned utilities showed small, aggregated DR can successfully bid ancillary services into the wholesale market, Cal-ISO's systems are not equipped to handle frequent changes to DR programs, and the market may overlook them in any case because the total resource is so small.

Utility Carries Burden of Edison International Profit

Earnings at Southern California Edison increased during the fourth quarter of 2009 and for the full year. But parent company Edison International saw virtually flat earnings in the fourth quarter of 2009 and a double-digit drop in its annual profits. Edison Mission Group continued to be impacted by the lower wholesale power prices and reduced earnings from merchant coal.

Also In California Energy Markets This Week . . .

• Moeller: FERC Needs More Transmission Authority
• Legislature Watch: Solar Permits, Energy Storage
• ACC Gives Nod to LS Power Solar Projects
• Rockefeller Introduces Bill to Delay EPA GHG Limits

...And Much More!

---

This information is excerpted from California Energy Markets. If you aren't a current subscriber, see for yourself how NewsData's independent reporters put events in an accurate and meaningful context -- request a sample of either or both California Energy Markets and Clearing Up.

---

Please contact webmaster@newsdata.com with questions or comments about this site. Contact the editor if you have questions or comments about California Energy Markets content.