BILL NUMBER: AB 2037	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members V. Manuel Perez and Salas

                        FEBRUARY 17, 2010

   An act to add Chapter 3.5 (commencing with Section 8350) to
Division 4.1 of the Public Utilities Code, relating to electricity.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2037, as introduced, V. Manuel Perez. Electricity: air
pollution.
   (1) Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations, as defined. The existing Public Utilities Act requires
the PUC to review and approve, modify, or reject a procurement plan
for each electrical corporation in accordance with specified
elements, incentive mechanisms, and objectives. Existing law
prohibits any load-serving entity, and any local publicly owned
electric utility, from entering into a long-term financial commitment
for baseload generation, unless that baseload generation complies
with a greenhouse gases emission performance standard. Existing law
requires the PUC, by February 1, 2007, through a rulemaking
proceeding and in consultation with the State Energy Resources
Conservation and Development Commission (Energy Commission) and the
State Air Resources Board (state board), to establish a greenhouse
gases emission performance standard for all baseload generation of
load-serving entities. Existing law requires the Energy Commission,
by June 30, 2007, at a duly noticed public hearing and in
consultation with the PUC and the state board, to establish a
greenhouse gases emission performance standard for all baseload
generation of local publicly owned electric utilities.
   This bill would prohibit a load-serving entity or local publicly
owned electric utility from entering into, and would prohibit the PUC
from approving for an electrical corporation, a long-term financial
commitment with or for a new electrical generation facility that
meets specified criteria, as determined by local air pollution
control districts and air quality management districts. By imposing
additional requirements on local air pollution control districts and
air quality management districts, the bill would impose a
state-mandated local program.
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 3.5 (commencing with Section 8350) is added to
Division 4.1 of the Public Utilities Code, to read:
      CHAPTER 3.5.  AIR POLLUTION PERFORMANCE STANDARD FOR NEW
GENERATION


   8350.  (a) For purposes of this section, the following terms have
the following meanings:
   (1) "Load-serving entity" has the same meaning as that term is
defined in Section 8340.
   (2) "Long-term financial commitment" has the same meaning as that
term is defined in Section 8340.
   (3) "New electrical generating facility" means an electrical
generating unit constructed after January 1, 2011. If an electrical
generating unit is added to an existing powerplant after January 1,
2011, only the incremental capacity added after January 1, 2011, is a
new electrical generating facility.
   (b) A load-serving entity or local publicly owned electric utility
shall not enter into, and the commission shall not approve for an
electrical corporation, a long-term financial commitment with or for
a new electrical generating facility that meets all of the criteria
in subdivision (c), as determined by the local air pollution control
district or air quality management district with jurisdiction over
the air basin described in paragraph (3) of subdivision (c).
   (c) (1) The new electrical generating facility is to be or was
constructed without receiving certification from the Energy
Commission.
   (2) The new electrical generating facility is to be or was
constructed without meeting all applicable California air pollution
regulations and standards, including, but not limited to, best
available control technology (BACT) and any offsets required under
state law to mitigate any additional pollution, or the equivalent of
California air pollution regulations and standards.
   (3) The new electrical generating facility will cause or
contribute, or causes or contributes, to nonattainment with state or
federal ambient air quality standards due to emissions of air
pollution within, or transported to, an air basin within this state.
  SEC. 2.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.