BILL ANALYSIS
AB 2037
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2037 (V. Manuel Perez and Salas)
As Amended July 15, 2010
Majority vote
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|ASSEMBLY: |44-26|(May 10, 2010) |SENATE: |21-13|(August 18, |
| | | | | |2010) |
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Original Committee Reference: U. & C.
SUMMARY : Prohibits a load-serving entity or local publicly-owned
electric utility from entering into, and the California Public
Utilities Commission (PUC) from approving, a long-term financial
commitment for a new electrical generating facility constructed in
California or in a shared pollution area if that facility does not
meet Best Available Control Technology (BACT) standards and air
pollution emission requirements.
The Senate amendments remove the requirement that the PUC explore
methods to encourage the recognition by all relevant agencies of
offsets achieved anywhere in a shared pollution area, and redefine
shared pollution area.
EXISTING LAW :
1)Requires air districts to adopt and implement local and regional
programs to reduce air pollution and to achieve state and federal
ambient air standards.
2)Prohibits PUC from approving a long-term financial commitment by
an electrical corporation, unless any baseload generation supplied
under the long-term commitment complies with CEC's greenhouse gas
emission performance standards.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar to
the version passed by the Senate, but included the requirement that
the PUC explore methods to encourage the recognition by all relevant
agencies of offsets achieved anywhere in a shared pollution area.
FISCAL EFFECT : According to the Assembly Appropriations Committee,
minor ongoing costs to PUC, in the range tens of thousands of
dollars, to review proposed long-term financial commitments between
public utilities and generating facilities to ensure compliance with
AB 2037
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BACT standards or possession of sufficient offsets. Actual costs
will depend upon the number of proposed to be built that fall under
PUC jurisdiction and that require additional review, a number likely
to be very small. In any case, PUC already reviews proposed
contracts between public utilities and generating facilities, so any
additional workload should be minor.
COMMENTS : Some power plants located in Mexico reside in the same
air basin as California's border region. As a result, the adverse
air emissions generated from the Mexico-based power plants affect
California residents. By disallowing a California utility from
engaging in a long-term contract with dirty-burning power plants, it
might provide an incentive for any new powerplants on the Mexico
side of the border to comply with California's BACT and air
pollution control standards.
Analysis Prepared by : Gina Adams / U. & C. / (916) 319-2083
FN: 0005402