Section 3203 - Portfolio Content Categories(a) Portfolio Content Category 1(1) Portfolio Content Category 1 electricity products must be procured bundled to be classified as Portfolio Content Category 1, and the POU may not resell the underlying electricity from the electricity product back to the eligible renewable energy resource from which the electricity product was procured. The electricity products must be generated by an eligible renewable energy resource that is interconnected to a transmission network within the WECC service territory. For purposes of this section 3203, the first point of interconnection to the WECC transmission grid is the substation or other facility where generation tie lines from the eligible renewable energy resource interconnect to the network transmission grid. Portfolio Content Category 1 electricity products must also meet one of the following criteria: (A) Electricity products must be generated by an eligible renewable energy resource that has its first point of interconnection within the metered boundaries of a California balancing authority area.(B) Electricity products must be generated by an eligible renewable energy resource that has its first point of interconnection to an electricity distribution system used to serve end users within the metered boundaries of a California balancing authority area. For purposes of this section 3203, the first point of interconnection to an electricity distribution system is within the service area boundaries of a utility distribution company.(C) Electricity products from the eligible renewable energy resource with a first point of interconnection outside the metered boundaries of a California balancing authority must be scheduled into a California balancing authority without substituting electricity from another source. For purposes of this section 3203, electricity generated by the eligible renewable energy resource must be scheduled into a California balancing authority on an hourly or subhourly basis, and the POU's governing board or other authority, as delegated by the POU governing board, must have approved an agreement, before the electricity is generated, to schedule the electricity from the eligible renewable energy resource into the California balancing authority on an hourly or subhourly basis. If there is a difference between the amount of electricity generated within an hour and the amount of electricity scheduled into a California balancing authority within that same hour, only the lesser of the two amounts shall be classified as Portfolio Content Category 1.(D) Electricity products must be subject to an agreement between a California balancing authority and the balancing authority in which the eligible renewable energy resource is located, executed before the product is generated, to dynamically transfer electricity from the eligible renewable energy resource into the California balancing authority area. For purposes of this section 3203, electricity generated by the eligible renewable energy resource shall be scheduled into a California balancing authority area on an hourly or subhourly basis.(2) Electricity products originally qualifying in Portfolio Content Category 1 and resold must meet the following criteria to remain in Portfolio Content Category 1: (A) The original contract for procurement of the electricity products meets one of the criteria in section 3203(a)(1)(A)-(D).(B) The resale contract transfers only electricity and RECs that have not yet been generated prior to the effective date of the resale contract.(C) The electricity and associated RECs must be transferred by the resale contract to the ultimate buyer, and the electricity must be transferred in real time.(D) For those electricity products that satisfy section 3203(a)(1)(C), the original hourly or subhourly schedule is maintained, and the criteria of section 3203(a)(2)(A)-(C) are met.(3) Electricity products originally qualifying in Portfolio Content Category 1 and resold that do not meet the criteria of section 3203(a)(2)(A)-(D) shall not be counted in Portfolio Content Category 1.(b) Portfolio Content Category 2 (1) Portfolio Content Category 2 electricity products must be generated by an eligible renewable energy resource that is interconnected to a transmission network within the WECC service territory, and the electricity must be matched with incremental electricity that is scheduled into a California balancing authority.(2) Portfolio Content Category 2 electricity products must be procured bundled and must meet all of the following criteria: (A) The first point of interconnection to the WECC transmission grid for both the eligible renewable energy resource and the resource providing the incremental electricity must be located outside the metered boundaries of a California balancing authority area.(B) The incremental electricity used to match the electricity from the eligible renewable energy resource must be incremental to the POU. For purposes of this section 3203, "incremental electricity" means electricity that is generated by a resource located outside the metered boundaries of a California balancing authority area and that is not in the portfolio of the POU claiming the electricity products for RPS compliance prior to the date the contract or ownership agreement for the electricity products from the eligible renewable energy resource, with which the incremental electricity is being matched, is executed by the POU or other authority, as delegated by the POU governing board.(C) The contract or ownership agreement for the incremental electricity is executed by the governing board or other authority, as delegated by the POU governing board, at the same time or after the contract or ownership agreement for the electricity products from the eligible renewable energy resource is executed.(D) The incremental electricity must be scheduled into the California balancing authority within the same calendar year as the electricity from the eligible renewable energy resource is generated.(E) The electricity from the eligible renewable energy resource must be available to be procured by the POU and may not be sold back to that resource.(3) Electricity products originally qualifying in Portfolio Content Category 2 and resold must meet the following criteria to remain in Portfolio Content Category 2: (A) The original contract for procurement of the electricity products meets the criteria of section 3203(b)(2)(A)-(E).(B) The resale contract transfers only electricity and RECs that have not yet been generated prior to the effective date of the resale contract.(C) The resale contract transfers the original arrangement for incremental electricity, including the source and quantity for the incremental electricity.(D) The resale contract retains the scheduling of the incremental electricity into the California balancing authority as set out in the original transaction.(E) The transaction provides incremental electricity for the POU claiming the transaction for RPS compliance.(F) The incremental electricity is scheduled into the California balancing authority.(4) Electricity products originally qualifying in Portfolio Content Category 2 and resold that do not meet the criteria above must be counted in Portfolio Content Category 3.(c) Portfolio Content Category 3 (1) All unbundled renewable energy credits and other electricity products procured from eligible renewable energy resources located within the WECC transmission grid that do not meet the requirements of either Portfolio Content Category 1 or Portfolio Content Category 2 fall within Portfolio Content Category 3.Cal. Code Regs. Tit. 20, § 3203
1. New section filed 8-28-2013; operative 10-1-2013 (Register 2013, No. 35).
2. Amendment of subsection (a)(1)(D) filed 4-12-2016; operative 4-12-2016 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 16). Note: Authority cited: Sections 25213 and 25218(e), Public Resources Code; and Section 399.30, Public Utilities Code. Reference: Sections 399.16 and 399.30, Public Utilities Code.
1. New section filed 8-28-2013; operative 10-1-2013 (Register 2013, No. 35).
2. Amendment of subsection (a)(1)(D) filed 4-12-2016; operative 4/12/2016 pursuant to Government Code section 11343.4(b)(3) (Register 2016, No. 16).