Amended in Senate April 8, 2013

Senate Bill No. 715

Introduced by Senator Lara

February 22, 2013

An act to amend Section begin delete 10001 of the Public Utilities Code, relating to public utilities. end delete begin insert 399.12 of the Public Utilities Code, relating to energy. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 715, as amended, Lara. begin delete Public utilities: acquisition and operation. end delete begin insert Renewable energy resources: municipal solid waste combustion. end insert

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Existing law establishes the California Renewables Portfolio Standard Program, which requires the Public Utilities Commission to implement annual procurement targets for the procurement of eligible renewable energy resources, as defined, for all retail sellers, as defined, to achieve the targets and goals of the program. Existing law provides that a facility engaged in the combustion of municipal solid waste shall not be considered an eligible renewable energy resource unless it is located in the County of Stanislaus and was operational prior to September 26, 1996.

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This bill would additionally provide that a facility engaged in the combustion of municipal solid waste shall not be considered an eligible renewable energy resource unless it is located in the County of Los Angeles and was operational prior to September 26, 1996. This bill would, with respect to a facility located in the County of Los Angeles as previously described, provide that it shall not be considered an eligible renewable energy resource on or after January 1, 2045, unless it has converted into a system that does not perform traditional direct combustion of municipal solid waste, and the facility diverts an amount of waste from landfills that equals or exceeds its capability as it existed prior to the conversion of the facility.

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This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.

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Under existing law, the Public Utilities Commission has regulatory authority over public utilities. Existing law also provides various provisions regulating the acquisition, operation, and sale of utilities. Existing law further defines the term “public utility” as the supply of a municipal corporation, alone or together with its inhabitants, or any portion thereof, with water, light, heat, power, sewage collection, treatment, or disposal for sanitary or drainage purposes, transportation of persons or property, means of communication, or means of promoting the public convenience.

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This bill would make a technical, nonsubstantive change to the latter provision.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

The Legislature finds and declares all of the
following:

(a) California leads the nation in waste reduction and recycling.

(b) California diverts over 50 percent of municipal solid waste
from landfills.

(c) However, California continues to send nearly 45 million
tons of waste to landfills each year.

(d) Currently, there are three waste-to-energy facilities in
California that support recycling efforts by diverting waste from
landfills.

(e) The United States Environmental Protection Agency
recognizes that waste-to-energy facilities are a renewable energy
source, collectively producing 2,800 megawatts of electricity with
less environmental impact than almost any other source of
electricity.

(f) California currently has waste-to-energy facilities that use
clean technology. Some of these facilities are classified as
renewable energy resources and some are not.

(g) By classifying waste-to-energy facilities in the County of
Los Angeles as renewable energy resources, the state continues
its support for reduced landfilling, reduced greenhouse gas
emissions, and reduced methane gas production. This outcome is
consistent with the goals of the California Global Warming
Solutions Act of 2006.

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begin insert

begin insert SEC. 2. end insert   

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begin insert Section 399.12 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

399.12.  

For purposes of this article, the following terms have
the following meanings:

(a) “Conduit hydroelectric facility” means a facility for the
generation of electricity that uses only the hydroelectric potential
of an existing pipe, ditch, flume, siphon, tunnel, canal, or other
manmade conduit that is operated to distribute water for a
beneficial use.

(b) “Balancing authority” means the responsible entity that
integrates resource plans ahead of time, maintains load-interchange
generation balance within a balancing authority area, and supports
interconnection frequency in real time.

(c) “Balancing authority area” means the collection of
generation, transmission, and loads within the metered boundaries
of the area within which the balancing authority maintains the
electrical load-resource balance.

(d) “California balancing authority” is a balancing authority
with control over a balancing authority area primarily located in
this state and operating for retail sellers and local publicly owned
electric utilities subject to the requirements of this article and
includes the Independent System Operator (ISO) and a local
publicly owned electric utility operating a transmission grid that
is not under the operational control of the ISO. A California
balancing authority is responsible for the operation of the
transmission grid within its metered boundaries which may not be
limited by the political boundaries of the State of California.

(e) “Eligible renewable energy resource” means an electrical
generating facility that meets the definition of a “renewable
electrical generation facility” in Section 25741 of the Public
Resources Code, subject to the following:

(1) (A) An existing small hydroelectric generation facility of
30 megawatts or less shall be eligible only if a retail seller or local
publicly owned electric utility procured the electricity from the
facility as of December 31, 2005. A small hydroelectric generation
unit with a nameplate capacity not exceeding 40 megawatts that
is operated as part of a water supply or conveyance system is an
eligible renewable energy resource if the retail seller or local
publicly owned electric utility procured the electricity from the
facility as of December 31, 2005. A new hydroelectric facility that
commences generation of electricity after December 31, 2005, is
not an eligible renewable energy resource if it will cause an adverse
impact on instream beneficial uses or cause a change in the volume
or timing of streamflow.

(B) Notwithstanding subparagraph (A), a conduit hydroelectric
facility of 30 megawatts or less that commenced operation before
January 1, 2006, is an eligible renewable energy resource. A
conduit hydroelectric facility of 30 megawatts or less that
commences operation after December 31, 2005, is an eligible
renewable energy resource so long as it does not cause an adverse
impact on instream beneficial uses or cause a change in the volume
or timing of streamflow.

(C) A facility approved by the governing board of a local
publicly owned electric utility prior to June 1, 2010, for
procurement to satisfy renewable energy procurement obligations
adopted pursuant to former Section 387, shall be certified as an
eligible renewable energy resource by the Energy Commission
pursuant to this article, if the facility is a “renewable electrical
generation facility” as defined in Section 25741 of the Public
Resources Code.

(2)  begin insert (A) end insert begin insert   end insert A facility engaged in the combustion of municipal solid
waste shall not be considered an eligible renewable energy resource
unless it is located in begin insert either the County of end insert Stanislaus begin delete County end delete begin insert or
the County of Los Angeles end insert and was operational prior to September
26, 1996.

begin insert

(B) A facility that is located in the County of Los Angeles shall
not be considered an eligible renewable resource on or after
January 1, 2045, unless that facility, in addition to the requirements
under subparagraph (A), has converted into a system that does
not perform traditional direct combustion of municipal solid waste,
and the facility diverts an amount of waste from landfills that
equals or exceeds its capability as it existed prior to the conversion
of the facility.

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(f) “Procure” means to acquire through ownership or contract.

(g) “Procurement entity” means any person or corporation
authorized by the commission to enter into contracts to procure
eligible renewable energy resources on behalf of customers of a
retail seller pursuant to subdivision (f) of Section 399.13.

(h) (1) “Renewable energy credit” means a certificate of proof
associated with the generation of electricity from an eligible
renewable energy resource, issued through the accounting system
established by the Energy Commission pursuant to Section 399.25,
that one unit of electricity was generated and delivered by an
eligible renewable energy resource.

(2) “Renewable energy credit” includes all renewable and
environmental attributes associated with the production of
electricity from the eligible renewable energy resource, except for
an emissions reduction credit issued pursuant to Section 40709 of
the Health and Safety Code and any credits or payments associated
with the reduction of solid waste and treatment benefits created
by the utilization of biomass or biogas fuels.

(3) (A) Electricity generated by an eligible renewable energy
resource attributable to the use of nonrenewable fuels, beyond a
de minimis quantity used to generate electricity in the same process
through which the facility converts renewable fuel to electricity,
shall not result in the creation of a renewable energy credit. The
Energy Commission shall set the de minimis quantity of
nonrenewable fuels for each renewable energy technology at a
level of no more than 2 percent of the total quantity of fuel used
by the technology to generate electricity. The Energy Commission
may adjust the de minimis quantity for an individual facility, up
to a maximum of 5 percent, if it finds that all of the following
conditions are met:

(i) The facility demonstrates that the higher quantity of
nonrenewable fuel will lead to an increase in generation from the
eligible renewable energy facility that is significantly greater than
generation from the nonrenewable fuel alone.

(ii) The facility demonstrates that the higher quantity of
nonrenewable fuels will reduce the variability of its electrical
output in a manner that results in net environmental benefits to the
state.

(iii) The higher quantity of nonrenewable fuel is limited to either
natural gas or hydrogen derived by reformation of a fossil fuel.

(B) Electricity generated by a small hydroelectric generation
facility shall not result in the creation of a renewable energy credit
unless the facility meets the requirements of subparagraph (A) of
paragraph (1) of subdivision (e).

(C) Electricity generated by a conduit hydroelectric generation
facility shall not result in the creation of a renewable energy credit
unless the facility meets the requirements of subparagraph (B) of
paragraph (1) of subdivision (e).

(D) Electricity generated by a facility engaged in the combustion
of municipal solid waste shall not result in the creation of a
renewable energy credit unless the facility meets the requirements
of paragraph (2) of subdivision (e).

(i) “Renewables portfolio standard” means the specified
percentage of electricity generated by eligible renewable energy
resources that a retail seller or a local publicly owned electric utility
is required to procure pursuant to this article.

(j) “Retail seller” means an entity engaged in the retail sale of
electricity to end-use customers located within the state, including
any of the following:

(1) An electrical corporation, as defined in Section 218.

(2) A community choice aggregator. The commission shall
institute a rulemaking to determine the manner in which a
community choice aggregator will participate in the renewables
portfolio standard program subject to the same terms and conditions
applicable to an electrical corporation.

(3) An electric service provider, as defined in Section 218.3,
for all sales of electricity to customers beginning January 1, 2006.
The commission shall institute a rulemaking to determine the
manner in which electric service providers will participate in the
renewables portfolio standard program. The electric service
provider shall be subject to the same terms and conditions
applicable to an electrical corporation pursuant to this article. This
paragraph does not impair a contract entered into between an
electric service provider and a retail customer prior to the
suspension of direct access by the commission pursuant to Section
80110 of the Water Code.

(4) “Retail seller” does not include any of the following:

(A) A corporation or person employing cogeneration technology
or producing electricity consistent with subdivision (b) of Section
218.

(B) The Department of Water Resources acting in its capacity
pursuant to Division 27 (commencing with Section 80000) of the
Water Code.

(C) A local publicly owned electric utility.

(k) “WECC” means the Western Electricity Coordinating
Council of the North American Electric Reliability Corporation,
or a successor to the corporation.

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begin insert SEC. 3. end insert   

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The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique circumstances of facilities
engaged in the combustion of municipal solid waste in Los Angeles
County.

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SECTION 1.  

Section 10001 of the Public Utilities Code is
amended to read:

10001.  

“Public utility” as used in this article, means the supply
of a municipal corporation alone or together with its inhabitants,
or a portion thereof, with water, light, heat, power, sewage
collection, treatment, or disposal for sanitary or drainage purposes,
transportation of persons or property, means of communication,
or means of promoting the public convenience.

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