BILL NUMBER: AB 2037 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 13, 2010
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 amended, 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 , as
defined .
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
constructed in California, or in a shared pollution area, as defined
that meets does not meet
specified air pollution criteria , as determined
by local air pollution control districts and air quality management
districts . By
The bill would require the PUC, the Energy Commission, local
air pollution control districts and air quality management districts,
and the State Air Resources Board to explore with federal agencies,
and with other governments, methods to encourage the recognition by
all relevant agencies of offsets achieved anywhere in a shared
pollution area and the use of cross-border trading of
offsets, emission reduction credits, and available mitigation funds.
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 from that unit 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.
(4) "Shared pollution area" means an area encompassing California
and another state or country, determined by the United States
Environmental Protection Agency to share air pollution such that air
pollution emitted in that area, but not within California, affects
public health in California.
(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 constructed in California or in
a shared pollution area if that facility does not meet the following
requirements:
(1) (A) If the facility was constructed in California, the
facility was constructed to meet best available control technology
(BACT) standards, to control air pollution emissions from the
operation of the facility, that applied at the time construction
began in the air basin in California in which the facility was
constructed.
(B) If the facility was constructed outside of California in a
shared pollution area, the facility was constructed to meet best
available control technology (BACT) standards, to control air
pollution emissions from the operation of the facility, that applied
at the time construction began in the air basin in California
adjacent to the facility.
(2) (A) If the facility was constructed in California, offsets to
mitigate air pollution from operation of the facility were obtained
for any pollutant determined to be nonattainment of federal ambient
air quality standards by the United States Environmental Protection
Agency in the air basin in which the facility was constructed, at the
time that construction of the facility began.
(B) If the facility was constructed outside of California in a
shared pollution area, offsets to mitigate air pollution from
operation of the facility were obtained for any pollutant determined
to be nonattainment of federal ambient air quality standards by the
United States Environmental Protection Agency in the air basin in
California adjacent to the facility, at the time that construction of
the facility began.
(C) Offsets shall not be required pursuant to this paragraph if
the air pollution emissions caused by operation of the facility are
otherwise fully mitigated by other measures.
(c) The Public Utilities Commission, the Energy Commission, local
air pollution control districts and air quality management districts,
and the State Air Resources Board shall explore with federal
agencies, and with other governments, methods to encourage the
recognition by all relevant agencies of offsets achieved anywhere in
a shared pollution area, and the use of cross-border trading of
offsets, emission reduction credits, and available mitigation funds.
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.