ARNOLD ACTS ON NEW ENERGY

Schwarzenegger orders more renewable energy -- his way; The governor says California electric utilities must get 33% of their power from renewable sources by 2020, but he plans to veto Democratic bills that push to produce it in state.

"The state's electric utilities will be required to get at least a third of their power from wind, solar and other renewable resources by 2020, under an executive order signed… by Gov. Arnold Schwarzenegger…

"But his call for California to set the nation's toughest renewable energy standard didn't generate much enthusiasm from Democratic lawmakers and environmentalist activists, who have labored for the last nine months to pass a pair of bills that they contended would boost the development of new "green" industries in the Golden State…Schwarzenegger [will] veto the Democratic bills [SB14 and AB64], which were backed by some but not all of the state's utilities."

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"The Los Angeles Department of Water and Power, Pacific Gas & Electric Co. and Sempra Energy supported the bills, while Southern California Edison Co. and the Sacramento Municipal Utility District asked the governor for vetoes. The bills also drew support from labor unions and consumer advocates and opposition from manufacturers and independent energy-generating companies.

"The two sides did not disagree about the need or the practicality of setting an ambitious 33% renewable energy target…[and that it will] improve air quality, combat global warming and lessen dependence on foreign oil…[The] conflict was over what California should do to reach the goal and the cost of making it happen…[The Governor and other opponents say the bills will] unfairly discriminate against alternative power produced in other Western states…[make it difficult] for electric utilities to get all the renewable power they need, when they want it…[and] make electricity too expensive for residential, commercial and industrial ratepayers."

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"The governor…[objects to limiting] utilities from using credits purchased from out-of-state wind and solar projects to cover more than 30% of their renewable obligations…The proposed limit, labor unions and ratepayer advocates insist, is needed to ensure that the bulk of renewable projects are built and operated in California, providing high-paying jobs…[A]t a Sacramento solar power facility…[Governor Schwarzenegger issued] an executive order…[for] state pollution regulators to begin the complex process of drafting rules to more than triple the state's reliance on alternative power over the next decade…Executives from non-utility energy companies surrounded the governor…Environmental advocates [stayed away]…

"The proposed regulations [which could be ready by the middle of next summer] are legally authorized under AB 32, California's landmark 2006 global warming law, said Mary Nichols, chairwoman of the California Air Resources Board…Democrats have raised questions about whether the rules would have the same binding legal effect as a law approved by the Legislature…Current law requires investor-owned utilities such as Edison to produce 20% of their power from wind, solar and geothermal energy by 2010, a target they are expected to miss…Environmentalists…pledged to work with the governor to make sure the goal of 33% renewable energy is reached…"