BILL ANALYSIS �
SB 760
Page 1
Date of Hearing: August 14, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 760 (Wright) - As Amended: August 7, 2013
Policy Committee: Natural
ResourcesVote:9-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill prohibits air districts from requiring the physical
destruction of electrical generating facility equipment that is
or will be retired. This prohibition does not apply:
1)If the owner or operator retires the equipment to provide
emission reduction credits, emission offsets, or an offset
exemption from the air district.
2)If the prohibition would conflict with a requirement of a new
source review program pursuant to the federal Clean Air Act.
FISCAL EFFECT
No direct state costs.
COMMENTS
1)Purpose. According to the author, forcing power generators
to deliberately damage and destroy equipment at the time of
retirement or shutdown will prevent these plants from being
used during an unplanned electricity shortage.
2)Background . In January, 2012 the San Onofre Nuclear
Generation Station (SONGS) unexpectedly shut down following
the discovery of a radioactive steam leak. According to the
California Independent System Operator, the loss of power
generation from SONGS requires an additional 4,300 and 4,600
megawatts to meet the needs of the region.
Prior to the unplanned shut down of SONGS, two electric
SB 760
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generating units on the AES Huntington Beach plant were sold
to Edison Mission Energy, which permanently retired the units
in order to gain access to South Coast Air Quality Management
District's (SCAQMD) internal offsets for Edison Mission
Energy's new Walnut Creek powerplant in the City of Industry.
SCAQMD required the owner to render the equipment inoperable
by destroying and damaging major pieces of equipment several
months before the new plant was scheduled to be operational.
The previously retired Huntington Beach units were repaired
last year and were brought back as generators to fill the void
left by SONGS for the 2012 summer peak in energy consumption.
Although this situation prompted the introduction of this
bill, the prohibition would not apply to SCAQMD or any
retiring power plants within its jurisdiction because it would
conflict with the district's requirements under federal Clean
Air Act.
It is unclear how many local air districts currently require
the physical destruction of electrical generating equipment
and facilities for reasons other than those in the exemptions
provided by the bill.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081