Amended in Senate June 23, 2015

Amended in Assembly June 1, 2015

Amended in Assembly April 6, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 33

Introduced by Assembly Member Quirk

December 1, 2014

An act to add Section 38561.5 to the Health and Safety Code, relating to greenhouse gases.

LEGISLATIVE COUNSEL’S DIGEST

AB 33, as amended, Quirk. California Global Warming Solutions Act of 2006: Energy begin delete Integration end delete begin insert Sector end insert begin insert Emissions Reduction end insert Advisory Council.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas begin delete emissions. The California Renewables Portfolio Standard Program requires the Public Utilities Commission to implement annual procurement targets for the procurement of eligible renewable energy resources for all retail sellers to achieve the targets and goals of the program. end delete begin insert emissions and to update the scoping plan at least once every 5 years. end insert

This bill would establish the Energy begin delete Integration end delete begin insert Sector end insert begin insert Emissions Reduction end insert Advisory Council in state government and would require the council to begin delete develop recommendations end delete begin insert recommend strategies for the electricity sector end insert for begin delete inclusion in end delete begin insert incorporation into end insert the scoping plan prepared by the state board, begin insert based on conclusions of specified analyses, end insert including, among others, an analysis of the various strategies begin delete necessary for the energy grid to integrate specified annual procurement targets as part of the California Renewables Portfolio Standard Program. end delete begin insert that could be implemented to reduce emissions of greenhouse gases from the electricity sector and integrate increasing amounts of renewable energy into the electricity grid. The bill would require the council to first convene by February 1, 2016, and to develop a schedule that ensures the recommendations and analyses are delivered to the state board early enough to be considered during development of the next scoping plan update. The bill would provide that the council shall cease to exist as of the end of the following December 31 after the council delivers its recommendations and analyses to the state board. end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert begin insert

(a) The Legislature finds and declares all of the
following:

end insert begin insert

(1) Several state agencies, boards, commissions, and other
entities possess expertise on how to reduce emissions of greenhouse
gases from the electricity sector, in furtherance of the state’s mid-
and long-term greenhouse gas reduction goals.

end insert begin insert

(2) These agencies and entities have completed and are
performing analyses of the changes that will be needed in how
electricity is generated, delivered, and consumed throughout the
state, and the technologies and other strategies that can be used
to help achieve those goals.

end insert begin insert

(3) The State Air Resources Board is charged by the California
Global Warming Solutions Act of 2006 (Division 25.5 (commencing
with Section 38500) of the Health and Safety Code) with developing
and updating a scoping plan to achieve the state’s greenhouse gas
emission reduction goals.

end insert begin insert

(4) In developing the next scoping plan update, the State Air
Resources Board should consider the best information, modeling,
and analysis produced by the relevant state agencies on available
strategies that could be implemented to reduce greenhouse gas
emissions from the state’s power supply, while ensuring the
reliability of the electricity grid, and the technical feasibility and
cost-effectiveness of those strategies.

end insert begin insert

(b) The purpose and intent of this act is to complement the
relevant state agencies’ ongoing efforts and ensure that these
agencies coordinate, through a public process and in furtherance
of the state’s greenhouse gas emission reduction goals, to develop
and deliver a complete and coherent set of recommendations to
the State Air Resources Board before the next scoping plan update
on technically feasible strategies that will achieve the required
reductions in emissions of greenhouse gases from the electricity
sector in a manner that is cost-effective and maintains reliability,
including those strategies that will be needed to integrate
increasing amounts of renewable energy into the electricity grid
while minimizing over-generation.

end insert

begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

Section 38561.5 is added to the Health and Safety
Code, to read:

38561.5.  

(a) The Energy begin delete Integration end delete begin insert Sector end insert begin insert Emissions
Reduction end insert Advisory Council is hereby established in state
government, and it shall consist of all of the following members:

(1) The chair of the State Energy Resources Conservation and
Development Commission, or his or her designee.

(2) The president of the Public Utilities Commission, or his or
her designee.

(3) The president of the California Independent System
Operator, or his or her designee.

(4) The chair of the State Water Resources Control Board, or
his or her designee.

(5) The chair of the state board, or his or her designee.

(b) The begin delete council, as recommendations for inclusion in end delete begin insert council
shall recommend strategies for the electricity sector, other than
and in addition to any market-based mechanisms established
pursuant to subdivision (c) of Section 38562 or Section 38570, for
incorporation into end insert the scoping plan developed pursuant to Section
begin delete 38561, shall complete all of the following: end delete begin insert 38561, based on the
conclusions of all of the following analyses that the council shall
complete: end insert

(1)  begin delete Develop an end delete begin insert An end insert analysis of the various

strategies begin delete necessary for the energy grid to integrate a 40-percent,
a 50-percent, and a greater than 50-percent standard as part of the
California Renewables Portfolio Standard Program (Article 16
(commencing with Section 399.11) of Chapter 2.3 of Part 1 of
Division 1 of the Public Utilities Code) in order to end delete begin insert that could be
implemented to reduce emissions of greenhouse gases from the
electricity sector and integrate increasing amounts of renewable
energy into the electricity grid, which evaluates and compares
these strategies based upon their technical feasibility,
cost-effectiveness, and the extent to which their implementation
would end insert minimize begin delete and eliminate over-generation and the need for
curtailment, including, but not limited to, all of the following: end delete
begin insert over-generation, maintain the reliability of the electricity grid,
and reduce emissions of greenhouse gases. The analysis shall
consider, at a minimum, all of the following strategies in light of
the criteria indicated in this paragraph: end insert

begin insert

(A) Increasing the volume of renewable energy generation by
the amounts required by state law or otherwise needed to achieve
the goals established pursuant to Section 38550.

end insert begin delete

(A)

end delete

begin insert ( end insert begin insert B) end insert  Deepening regional coordination in the begin delete western
interconnection. end delete begin insert Western Interconnection. end insert

begin delete

(B)

end delete

begin insert ( end insert begin insert C) end insert  Increasing energy begin delete storage. end delete begin insert storage, including
pumped-hydroelectric storage. end insert

begin delete

(C)

end delete

begin insert ( end insert begin insert D) end insert  Retrofitting existing begin delete baseload end delete begin insert natural gas-fired end insert electrical
generation facilities begin delete in order that they may perform as peaking
electrical generation facilities. end delete begin insert to increase their operational
flexibility. end insert

begin delete

(D)

end delete

begin insert (E) end insert  Using renewable energy generation facilities begin delete as peaking
electrical generation facilities. end delete begin insert to provide operational flexibility. end insert

begin delete

(E) Allowing for very low-carbon

end delete

begin insert (F) end insert begin insert   end insert begin insert Deploying carbon capture and storage and other greenhouse
gas emissions reduction technology at existing end insert fossil begin delete fuel peaking end delete
begin insert fuel-fired end insert electrical generation begin delete facilities by deploying carbon
capture and storage. end delete begin insert facilities. end insert

begin delete

(F) Encouraging

end delete

begin insert (G) end insert begin insert   end insert begin insert Increasing the role of end insert demand response through begin delete both end delete begin insert all end insert of
the following:

(i) Transitioning to time-of-use begin delete pricing end delete begin insert or real-time pricing, or
both, end insert for begin delete residential buildings. end delete begin insert all customer classes. end insert

begin insert

(ii) Increasing market integration of, and opportunities for,
supply-side demand response.

end insert begin delete

(ii)

end delete

begin insert (iii) end insert  Increasing customer access to real-time or near-real-time
energy usage begin delete data. end delete begin insert and wholesale price data, enhancing the sharing
of these data with third parties, and enabling the market for
programmable devices that use these data. end insert

begin insert

(H) Increasing energy efficiency.

end insert begin insert

(I) Ensuring that adequate generating capacity remains
available to meet demand through measures such as multi-year
capacity or reliability payments.

end insert

(2)  begin delete Develop an end delete begin insert An end insert economic begin delete assessment end delete begin insert analysis end insert using the best
available economic models and data of the various strategies
required to be analyzed pursuant to paragraph (1).

(3)  begin delete Develop an end delete begin insert An end insert analysis of the benefits to the health, safety,
and welfare of state residents, worker safety, the state’s
environment and quality of life, and any other benefits associated
with the various strategies required to be analyzed pursuant to
paragraph (1).

begin insert

(c) The council shall first convene no later than February 1,
2016, and, at that time, develop a schedule in consultation with
the chair of the state board for delivery of the recommendations
and analyses required by subdivision (b) that shall ensure the
recommendations and analyses are delivered to the staff of the
state board early enough to be considered during development of
the next scoping plan update required by Section 38561. The
council’s preliminary recommendations and analyses shall be
made available for public comment for no less than thirty days.
After considering comments received, the council shall finalize
and deliver the recommendations and analyses required by
subdivision (b) to the state board, at which time the council’s duties
shall be completed, and the council shall cease to exist as of the
end of the following December 31.

end insert begin delete

(c)

end delete

begin insert (d) end insert  The begin delete information developed end delete begin insert recommendations made and
analyses completed end insert pursuant to subdivision (b) begin delete is end delete begin insert are end insert intended to
assist in begin delete establishing state policy end delete begin insert updating the scoping plan
pursuant to Section 38561 end insert and begin delete does end delete begin insert to inform the regulations and
approaches of the represented agencies and do end insert not change any
statute, regulation, or regulatory decision.