California has over 75 different laws and incentive programs to promote clean energy and reduce the usage of fossil fuels and nuclear power. These include the sweeping “Renewable Portfolio Standard,” (RPS) which requires that the state’s utilities buy one third of their electricity from renewable sources, to local incentive programs at the city level. In short, if California simply follows its own laws and policies, the state will continue to reduce its usage of natural gas. Following through on California’s laws and policies will mean that there should be no need for LNG terminals anywhere on the West Coast.

A few of these include:

AB32 – Global Warming Solutions Act: This law was signed by Governor Schwarzenegger in September, 2006. The law will cap greenhouse gas emissions at 1990 levels by 2020, which is a 25 percent reduction. This will require the elimination of 174 million metric tons of greenhouse gases by utilities, oil refineries, steel mills, and other heavy industries. The law requires the Air Resources Board to adopt regulations to meet the goal. Actual reductions will be required beginning in 2012.

The Renewable Portfolio Standard: Signed into law by Governor Gray Davis in 2002, this law, considered the best in the nation, became effective in 2003. As originally written, the RPS would require retail sellers of electricity to purchase 20 percent of their electricity from renewable resources by 2017. Because of perceived progress towards this goal, the California Energy Commission (CEC) and Public Utilities Commission (CPUC) recently accelerated the 20 percent goal to 2010, and a goal of 33 percent by 2020. Should the state meet its 33 percent goal, renewable sources will provide the state with about 33,000 gigwatt hours (GWh) of additional generation by 2016. That is about the equivalent of the projected increase in natural gas demand over the same time period.

The California Energy Action Plan Loading Order: In 2003, California’s energy agencies produced a document which was intended to provide a road-map for energy planning for the agencies to follow. This is called the Energy Action Plan (EAP), which was updated in 2005 with the “Energy Action Plan II.” Within the EAP is the “loading order” which describes the priority by which the state should meet new energy demands. The loading order’s first priority is “energy efficiency and demand response” as a preferred means to meet energy needs. The second priority is renewable sources of power and distributed generation, such as combined heat and power applications. And to the extent that efficiency and renewables cannot meet demand, the last priority is the use of what the loading order refers to as “clean and efficient fossil fuel generation.”

Million Solar Roofs Initiative: In January, 2006, the CPUC approved the California Solar Initiative (CSI), committing a combined $3.2 billion in incentive funds to drive consumers toward solar power over the next 11 years. The initiative provides rebates for homeowners, businesses, farmers and government projects investing in rooftop solar. It aims to install 3,000 MW of solar power on buildings statewide. In August, 2006, the initiative was strengthened with the passage of SB1, the “Million Solar Roofs” law. In addition to the incentives, the law requires:

·At a minimum, all new homes built in California must include solar panels as a standard option for homebuyers. This would be similar to the way marble or tile countertops have become standard options.

·Net Metering: A key financial driver for consumers is the ability to get a credit on monthly electric bills for excess power generated by a solar system sold back to the energy grid. The law lifts the previous cap on net metering to offer a further incentive for rooftop solar.

California Green Building Initiative: In December 2004, Governor Schwarzenegger signed an executive order mandating energy efficiency measures. The order has a goal of reducing energy use in state-owned buildings by 20 percent by 2015 (from a 2003 baseline) and encourages the private commercial sector to set the same goal. According to the order, the goal will be accomplished by adhering to the standards of the United States Green Building Council (USGBC), which evaluates the use of building design, lighting, heating and cooling, and use of solar to minimize outside energy usage. The energy saved in state buildings alone will amount to 1,935 Gigawatt hours by 2015. This does not account for commercial buildings.

All of these -- and more -- can be found on the Database of State Incentives for Renewables and Efficiency (DSIRE)

California’s Current Electricity Portfolio

Below is a graph showing where California's electricity came from in 2005, broken down by source.