Governor Schwarzenegger Visits Solazyme Incorporated to Highlight California Solar Growth Report

Governor Arnold Schwarzenegger today visited Solazyme, Incorporated and highlighted research released on Wednesday by iSuppli Corporation which states that California is on track to more than double its power generated by solar panel installations in 2009.

“This study reinforces that California must continue to invest in green technology while taking advantage of federal incentives,” said Governor Schwarzenegger. “This will not only drive our state’s green economy but it will ensure that we are leading in the fight against climate change. This is why I took action on Tuesday directing the California Air Resources Board to enact regulations to reach our 33 percent renewable energy standards by 2020 and why I signed AB 32 three years ago. California must remain the pioneer in creating clean energy and securing clean jobs.”

According to iSuppli Corporations research, solar energy systems in California are set to more than double in 2009 compared to 2008 because of incentives from the U.S. stimulus package, defying a major downturn in the global market. Installations in California, measured in terms of megawatts of electricity production, are set to rise by approximately 120 percent in 2009, compared to a 26.9 percent decline for the entire world. California’s outperformance is expected to continue in 2010 even as global installation growth will resume.

On Tuesday, the Governor signed an Executive Order (EO) directing the California Air Resources Board to adopt regulations increasing California’s Renewable Portfolio Standard to 33 percent by 2020 – first established by the Governor’s directive last year. The EO upholds California’s leadership in environmental policies and builds on AB 32 goals by ensuring California will have the flexibility needed to use renewable energy sources for 33 percent of our state’s energy consumption by 2020.

The Governor’s order also places the highest priority on renewable resources that will provide the greatest environmental benefits that can be developed quickly and support reliable, efficient and cost-effective electricity system operations including resources and facilities located throughout the Western Interconnection. Working with the Public Utilities Commission (PUC), the Independent System Operator (ISO) and the California Energy Commission (CEC), CARB must adopt these regulations by July 31, 2010.

Last November, Governor Schwarzenegger demonstrated his commitment to accelerating the state’s renewable energy standard and signed Executive Order S-14-08 to streamline California’s renewable energy project approval process and increase the state’s RPS to the most aggressive in the nation at 33 percent renewable power by 2020. The Governor also called on the legislature to pass legislation increasing the state’s RPS to meet that target and, in May, sent legislative leaders a letter outlining what would need to be included in legislation – most importantly, that it increase the state’s renewable energy portfolio standard while protecting ratepayers and creating a healthy market.

Unfortunately, the bills the legislature recently passed are unnecessarily complex, would substantially increase costs on Californians and California’s businesses and, if passed, the state standard could be held up in legal battles because the bills violate the U.S. Constitution’s commerce clause by restricting the sale of energy across state lines. For these reasons, the Governor is took administrative action on Tuesday to increase California’s RPS to the highest in the nation – 33 percent by 2020.

In 2008, the Governor and Treasurer Lockyer created a program that exempts manufacturing equipment for new zero emission vehicle manufacturers from sales tax. This program resulted in Tesla Motors decision to manufacture its new vehicle here in California. Building on this success, the Governor and the Treasurer co-sponsored a bill this past session that would expand this exemption for all clean tech manufacturers. This exemption would be administered through the California Alternative Energy and Advanced Transportation Financing Authority (CAETFA).

In 2007, the Governor called for an acceleration of the RPS, and signed SB 107 by Senator Joe Simitian (D-Palo Alto) requiring investor owned utilities to have 20 percent of their electricity come from renewable sources by 2010. Previously, state law passed in 2002 required that this target be achieved by 2017.

In 2006, the Governor signed the Global Warming Solutions Act of 2006, California’s landmark bill that established a first-in-the-world comprehensive program of regulatory and market mechanisms to achieve real, quantifiable and cost-effective reductions of greenhouse gas emissions. The law will reduce carbon emissions in California to 1990 levels by the year 2020. AB 32 requires CARB to develop regulations and market mechanisms that will ultimately reduce California’s greenhouse gas emissions by 25 percent by 2020. Mandatory caps will begin in 2012 for significant sources and ratchet down to meet the 2020 goals. The Governor has also called for the state to reduce carbon emissions to 80 percent below 1990 levels by the year 2050.

The Governor has led California in establishing laws and policies aimed at helping to promote renewable energy and fight global warming, including:

* In September 2008, Gov. Schwarzenegger signed AB 1451 by Assemblyman Mark Leno (D-San Francisco), AB 2466 by Assemblyman John Laird (D-Santa Cruz) and AB 2267 by Assemblyman Felipe Fuentes (D-Sylmar) to build on California’s commitment to increase renewable energy use. AB 1451 builds on the state’s solar power usage by continuing a property tax exclusion for projects that utilize solar panel energy and expanding the exclusion to builder-installed solar energy systems in new homes. AB 2267 builds on the state’s green economy by requiring the CPUC to grant incentives to eligible California-technology manufacturers. This bill also requires the Energy Commission to give priority to California-based companies when granting awards and will not only create jobs for hardworking Californians but will attract more clean-tech and green-tech companies to the state. AB 2466 will increase energy efficiency and help protect the environment by authorizing local governments to receive a utility bill credit for surplus renewable electricity generated at one site against the electricity consumption at other sites.
* In 2007, Governor Schwarzenegger furthered his historic leadership to reduce greenhouse gas emissions and lower California’s reliance on foreign oil by signing Executive Order S-01-07 that established the world’s first Low Carbon Fuel Standard for transportation fuels sold in California. The standard will reduce carbon content in all passenger vehicle fuels sold in California by at least 10 percent by 2020 and more thereafter.
* In 2006, the Governor announced his Million Solar Roofs Plan to provide 3,000 megawatts of additional clean energy and reduce the output of greenhouse gases by three million tons, equivalent to taking one million cars off the road. Now known as the California Solar Initiative, the $3.3 billion incentive plan for homeowners and building owners who install solar electric systems will lead to one million solar roofs in California by 2017.
* Announced as a component of the California Solar Initiative in 2007, the New Solar Homes Partnership (NHSP) aims to create a self-sustaining market for solar homes and gain builder commitment to install solar energy systems. A new home that qualifies for the NSHP is at least 15 percent more efficient than the current building standards.

California’s push to fight global warming and increase renewable energy will also boost our economy. According to an economic study by the University of California at Berkeley and Next 10, California’s policies will create as many as 403,000 jobs in the next 12 years and household incomes will increase by $48 billion.

Topics: California, clean energy, energy, environment, Governance, Governor Arnold Schwarzenegger, green economy, society, Solar, solar energy, Solar Growth Report, technology, United States, US

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