California Lawmakers Adopt Landmark Renewable Energy Plan

SAN FRANCISCO -(Dow Jones)- California lawmakers approved one of the world’s most aggressive renewable-energy mandates early Saturday in legislation that would require the state’s utilities to use renewable sources like the sun and wind to generate a third of the power they sell by 2020.

The proposal is a centerpiece of the state’s 2006 plan to combat climate change, which has broad public support. And although it’s more aggressive than a similar federal proposal pending in Congress, the legislation could influence decisions in Washington.

The legislation, in two bills passed by the legislature, will require approval from California Gov. Arnold Schwarzenegger, who has been a vocal advocate for the 33% renewable energy mandate. However, as Schwarzenegger has been under intense lobbying pressure by some power-plant developers to veto the legislation, raising questions about how he will react.

A spokesman for the governor said Schwarzenegger hadn’t yet taken a position on the bills and wouldn’t do so until they landed on his desk.

The plan has been mired in a dispute over the extent to which utilities should be able to buy renewable power generated in remote areas of states like Montana and Wyoming – power they’re unable to use because it’s generated too far away to be delivered. One of the bills, from the state Senate, limits such contracts.

Dow Jones