BILL NUMBER: AB 2037	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 18, 2010
	PASSED THE ASSEMBLY  AUGUST 19, 2010
	AMENDED IN SENATE  JULY 15, 2010
	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, V. Manuel Perez. Electricity: air pollution.
   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 does not meet specified air pollution criteria.


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 for which all legally required permits have been
received 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.
   (4) "Shared pollution area" means an airshed encompassing a
portion of California and a portion of an adjacent state or country,
as determined by the United States Environmental Protection Agency.
   (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) If the new electrical generating facility is in California,
the facility meets best available control technology (BACT)
standards, to control air pollution emissions from the operation of
the facility, and complies with air pollution control district or air
quality management district rules and regulations, and state and
federal law.
   (2) If the new electrical generating facility is outside of
California in a shared pollution area, the facility meets best
available control technology (BACT) standards, to control air
pollution emissions from the operation of the facility, that apply in
the air basin in California adjacent to the facility.