RPS GOALS Clause Samples

RPS GOALS. PG&E assesses the degree to which a contract is consistent with and will contribute to the state of California’s goals for the RPS Program, and the degree to which a contract will contribute to PG&E’s goals for supplier diversity. The CPUC has articulated specific attributes of renewable generation projects which can be considered in utility procurement evaluations, such as benefits to low-income or minority communities, environmental stewardship, and resource diversity, that do not clearly fall within the other evaluation criteria. Similarly, the CPUC has issued a Water Action Plan, and to the extent a renewable energy project makes use of water on site, its proposed use of water is evaluated for consistency or inconsistency with the CPUC’s recommended water conservation practices.

RPS GOALS. PG&E assesses this offer’s consistency with and contribution to California’s goals for the RPS program and this offer’s support of PG&E’s supplier diversity goals (collectively “RPS Goals”). The RPS Goals assessment considers non-quantitative factors, legislative findings, and declarations that increase California’s reliance on renewable energy, consistency with the CPUC’s Water Action Plan, Executive Order S- 06-06 which established a goal the state would meet twenty percent of its renewable energy needs with electricity produced from biomass, and supplier diversity.

RPS GOALS. PG&E examined the reasonableness of the PPA using the LCBF evaluation criteria from the 2012 RPS solicitation. The general finding is that the PPA ranked favorably compared to the other projects received in PG&E’s 2012 RPS Solicitation. A more

RPS GOALS. In PG&E’s 2013 RPS RFO, the utility applied an evaluation criterion for consistency with and contribution to California’s goals for the RPS program. Offers were evaluated on three dimensions: • California-based projects providing benefits to communities afflicted with poverty, high unemployment, or high emission levels; 7 Sedway Consulting, Inc., “Independent Evaluation Report for Pacific Gas & Electric’s 2006 Renewable Resource Solicitation: First Advice Letter Report”, June 25, 2007, page 1-11. • Impact of the project on California’s water quality and use; • Contribution to the biomass goal of Executive Order S-06-06. The CalRENEW-1 facility is sited on municipal property of the city of Mendota, just east of the municipal airport. Based on the U.S. Census Bureau’s 2008-2012 American Community Survey, Mendota’s median household income is far lower that of the state of California as a whole ($26 vs. $61 thousand per year), and its percentage of individuals living in poverty is far higher than of the state (46% vs. 15%). Mendota has an unemployment rate that is well above that of the state as a whole (26% vs. 11%). Fresno County is a non­ attainment area for PM-2.5 particulates and an extreme non-attainment area for ozone. As a solar photovoltaic facility, CalRENEW-1 likely has minimal impact on water quality and use. It does not contribute to the state’s biomass goal. On that basis ▇▇▇▇▇▇ expects that the project would score high on the RPS Goals criterion as defined in PG&E’s 2013 RPS RFO.

RPS GOALS. The HLP contract amendment would advance PG&E and the state towards the goal stated in Executive Order S-06-06 of providing at least 20% of the state’s renewable power needs from biomass-based generation. ▇▇▇▇▇▇ believes that PG&E currently exceeds that target, but over time there is some risk that biomass as a portion of PG&E’s portfolio will drop below 20% because of impending rapid growth in other sources of renewable generation. ▇▇▇▇▇▇ believes that approval of the contract amendment will significantly increase the likelihood that HLP will continue to provide PG&E customers with generation over the term of the amendment, as opposed to seasonally curtailing or ceasing its production under the pricing of the existing contract. Additionally, the legislative findings stated in Senate Bill 1078 that established the RPS program included a view that increasing the use of renewable energy sources may create employment opportunities. The CPUC’s Decision ▇▇-▇▇-▇▇▇ included benefits to low- income communities as a qualitative attribute that could be taken into consideration by utilities in evaluating competitive offers for new renewable generation. In the absence of a contract amendment there is greater risk to HLP’s employment base. The project is sited in a location with a somewhat higher incidence of poverty and lower median household income than the state as a whole.

RPS GOALS. The DG Fairhaven contract amendment would advance PG&E and the state towards the goal stated in Executive Order S-06-06 of providing at least 20% of the state’s renewable power needs from biomass-based generation. ▇▇▇▇▇▇ believes that PG&E currently exceeds that target, but over time there is some risk that biomass as a portion of PG&E’s portfolio will drop below 20% because of impending rapid growth in other sources of renewable generation. ▇▇▇▇▇▇ believes that approval of this contract amendment will significantly increase the likelihood that DG Fairhaven will continue to provide PG&E customers with its biomass-fueled generation over the term of the amendment, as opposed to curtailing its production. Additionally, the legislative findings stated in Senate Bill 1078 that established the RPS program included a view that increasing the use of renewable energy sources may create employment opportunities. The CPUC’s Decision ▇▇-▇▇-▇▇▇ included benefits to low- income communities as a qualitative attribute that could be taken into consideration by utilities in evaluating competitive offers for new renewable generation. In the absence of a contract amendment there is greater risk to the employment base of the DG Fairhaven facility. Humboldt County has a significantly higher proportion of households living below the poverty level than the state as a whole.

RPS GOALS. PG&E assesses the degree to which a contract is consistent with and will contribute to the state of California’s goals for the RPS Program, and the degree to which a contract will contribute to PG&E’s goals for supplier diversity. The CPUC has articulated specific attributes of renewable generation projects which can be considered in utility procurement evaluations, such as benefits to low-income or minority communities, environmental stewardship, and resource diversity, that do not clearly fall within the other evaluation criteria. Similarly, the CPUC has issued a Water Action Plan, and to the extent a renewable energy project makes use of water on site, its proposed use of water is evaluated for consistency or inconsistency with the CPUC’s recommended water conservation practices. Additionally, the California Legislature articulated program benefits anticipated for the RPS program in the Legislative Findings and Declarations associated with the laws passed to 11 California Public Utilities Commission, Decision ▇▇-▇▇-▇▇▇, “Decision Conditionally Accepting 2009 Renewables Portfolio Standard Procurement Plans and Integrated Resource Plan Supplements”, June 8, 2009, page create the program, and PG&E assesses the degree to which contracts would promote these benefits. The Governor of California issued Executive Order S-06-06 that, among other things, established a goal that the state will meet 20% of its renewable energy needs with electricity generated from biomass. PG&E assesses the extent to which a project supports that goal. PG&E has well-defined corporate objectives for supplier diversity, and evaluates whether the counterparty is, or will make a good faith effort to subcontract with, Women-, Minority-, and Disabled Veteran-owned Business Enterprises. PG&E’s methodology for scoring projects in the RPS solicitations on their support for RPS Goals involves scoring attributes of the proposal and calculating a weighted-average numerical score. This numerical approach is typically not employed to evaluate bilaterally negotiated contracts.

RPS GOALS. In PG&E’s 2012 RPS RFO, the utility applied an evaluation criterion for consistency with and contribution to California’s goals for the RPS program. Offers were evaluated on three dimensions: • California-based projects providing benefits to communities afflicted with poverty, high unemployment, or high emission levels; • Impact of the project on California’s water quality and use; • Contribution to the biomass goal of Executive Order S-06-06. Diablo Winds is located near the cities of Livermore and Tracy; both cities have median household incomes above that of the state of California as a whole, and percentages of population living in poverty below that of the state, as estimated by the U.S. Census Bureau. ▇▇▇▇▇ has an unemployment rate estimated at 12.7% for 2012 that is somewhat above that of the state as a whole. Alameda County is a non-attainment area for the 8-hour ozone standard and the PM-2.5 particulate standard. As a wind generation facility, Diablo Winds has nil to minimal impact on water quality and use. It does not contribute to the state’s biomass goal. On that basis ▇▇▇▇▇▇ would rank Diablo Winds as moderate on the RPS Goals criterion as defined by PG&E for its 2012 solicitation.

RPS GOALS. PG&E assesses the degree to which a contract is consistent with and will contribute to the state of California’s goals for the RPS Program, and the degree to which a contract will contribute to PG&E’s goals for supplier diversity. The CPUC has articulated specific attributes of renewable generation projects which can be considered in utility procurement evaluations, such as benefits to low-income or minority communities, environmental stewardship, and resource diversity, that do not clearly fall within the other evaluation criteria. Similarly, the CPUC has issued a Water Action Plan, and to the extent a renewable energy project makes use of water on site, its proposed use of water is evaluated for consistency or inconsistency with the CPUC’s recommended water conservation practices. Additionally, the California Legislature articulated program benefits anticipated for the RPS program in the Legislative Findings and Declarations associated with the laws passed to create the program, and PG&E assesses the degree to which contracts would promote these benefits. The Governor of California issued Executive Order S-06-06 that, among other things, established a goal that the state will meet 20% of its renewable energy needs with electricity generated from biomass. PG&E assesses the extent to which a project supports that goal. PG&E has well-defined corporate objectives for supplier diversity, and evaluates whether the counterparty is, or will make a good faith effort to subcontract with, Women-, Minority-, and Disabled Veteran-owned Business Enterprises. PG&E’s methodology for scoring projects in the RPS solicitations on their support for RPS Goals involves scoring attributes of the proposal and calculating a weighted-average numerical score. This numerical approach is typically not employed to evaluate bilaterally negotiated contracts.