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 BillNo. 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: Energybegin delete Integrationend deletebegin insert Sectorend insertbegin insert Emissions Reductionend 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 gasbegin 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 deletebegin insert emissions and to update the scoping plan at least once every 5 years.end insert

This bill would establish the Energybegin delete Integrationend deletebegin insert Sectorend insertbegin insert Emissions Reductionend insert Advisory Council in state government and would require the council tobegin delete develop recommendationsend deletebegin insert recommend strategies for the electricity sectorend insert forbegin delete inclusion inend deletebegin insert incorporation intoend 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 strategiesbegin delete necessary for the energy grid to integrate specified annual procurement targets as part of the California Renewables Portfolio Standard Program.end deletebegin 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:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert
begin insert

(a) The Legislature finds and declares all of the
2following:

end insert
begin insert

3(1) Several state agencies, boards, commissions, and other
4entities possess expertise on how to reduce emissions of greenhouse
5gases from the electricity sector, in furtherance of the state’s mid-
6and long-term greenhouse gas reduction goals.

end insert
begin insert

7(2) These agencies and entities have completed and are
8performing analyses of the changes that will be needed in how
9electricity is generated, delivered, and consumed throughout the
10state, and the technologies and other strategies that can be used
11to help achieve those goals.

end insert
begin insert

12(3) The State Air Resources Board is charged by the California
13Global Warming Solutions Act of 2006 (Division 25.5 (commencing
14with Section 38500) of the Health and Safety Code) with developing
15and updating a scoping plan to achieve the state’s greenhouse gas
16emission reduction goals.

end insert
begin insert

17(4) In developing the next scoping plan update, the State Air
18Resources Board should consider the best information, modeling,
19and analysis produced by the relevant state agencies on available
20strategies that could be implemented to reduce greenhouse gas
21emissions from the state’s power supply, while ensuring the
P3    1reliability of the electricity grid, and the technical feasibility and
2cost-effectiveness of those strategies.

end insert
begin insert

3(b) The purpose and intent of this act is to complement the
4relevant state agencies’ ongoing efforts and ensure that these
5agencies coordinate, through a public process and in furtherance
6of the state’s greenhouse gas emission reduction goals, to develop
7and deliver a complete and coherent set of recommendations to
8the State Air Resources Board before the next scoping plan update
9on technically feasible strategies that will achieve the required
10reductions in emissions of greenhouse gases from the electricity
11sector in a manner that is cost-effective and maintains reliability,
12including those strategies that will be needed to integrate
13increasing amounts of renewable energy into the electricity grid
14while minimizing over-generation.

end insert
15

begin deleteSECTION 1.end delete
16begin insertSEC. 2.end insert  

Section 38561.5 is added to the Health and Safety
17Code
, to read:

18

38561.5.  

(a) The Energybegin delete Integrationend deletebegin insert Sectorend insertbegin insert Emissions
19Reductionend insert
Advisory Council is hereby established in state
20government, and it shall consist of all of the following members:

21(1) The chair of the State Energy Resources Conservation and
22Development Commission, or his or her designee.

23(2) The president of the Public Utilities Commission, or his or
24her designee.

25(3) The president of the California Independent System
26Operator, or his or her designee.

27(4) The chair of the State Water Resources Control Board, or
28his or her designee.

29(5) The chair of the state board, or his or her designee.

30(b) Thebegin delete council, as recommendations for inclusion inend deletebegin insert council
31shall recommend strategies for the electricity sector, other than
32and in addition to any market-based mechanisms established
33pursuant to subdivision (c) of Section 38562 or Section 38570, for
34incorporation intoend insert
the scoping plan developed pursuant to Section
35begin delete 38561, shall complete all of the following:end deletebegin insert 38561, based on the
36conclusions of all of the following analyses that the council shall
37complete:end insert

38(1) begin deleteDevelop an end deletebegin insertAn end insertanalysis of the various

39 strategiesbegin delete necessary for the energy grid to integrate a 40-percent,
40a 50-percent, and a greater than 50-percent standard as part of the
P4    1California Renewables Portfolio Standard Program (Article 16
2(commencing with Section 399.11) of Chapter 2.3 of Part 1 of
3Division 1 of the Public Utilities Code) in order toend delete
begin insert that could be
4implemented to reduce emissions of greenhouse gases from the
5electricity sector and integrate increasing amounts of renewable
6energy into the electricity grid, which evaluates and compares
7these strategies based upon their technical feasibility,
8cost-effectiveness, and the extent to which their implementation
9wouldend insert
minimizebegin delete and eliminate over-generation and the need for
10curtailment, including, but not limited to, all of the following:end delete

11begin insert over-generation, maintain the reliability of the electricity grid,
12and reduce emissions of greenhouse gases. The analysis shall
13consider, at a minimum, all of the following strategies in light of
14the criteria indicated in this paragraph:end insert

begin insert

15(A) Increasing the volume of renewable energy generation by
16the amounts required by state law or otherwise needed to achieve
17the goals established pursuant to Section 38550.

end insert
begin delete

18(A)

end delete

19begin insert(end insertbegin insertB)end insert Deepening regional coordination in thebegin delete western
20interconnection.end delete
begin insert Western Interconnection.end insert

begin delete

21(B)

end delete

22begin insert(end insertbegin insertC)end insert Increasing energybegin delete storage.end deletebegin insert storage, including
23pumped-hydroelectric storage.end insert

begin delete

24(C)

end delete

25begin insert(end insertbegin insertD)end insert Retrofitting existingbegin delete baseloadend deletebegin insert natural gas-firedend insert electrical
26generation facilitiesbegin delete in order that they may perform as peaking
27electrical generation facilities.end delete
begin insert to increase their operational
28flexibility.end insert

begin delete

29(D)

end delete

30begin insert(E)end insert Using renewable energy generation facilitiesbegin delete as peaking
31electrical generation facilities.end delete
begin insert to provide operational flexibility.end insert

begin delete

32(E) Allowing for very low-carbon

end delete

33begin insert(F)end insertbegin insertend insertbegin insertDeploying carbon capture and storage and other greenhouse
34gas emissions reduction technology at existingend insert
fossilbegin delete fuel peakingend delete
35begin insert fuel-firedend insert electrical generationbegin delete facilities by deploying carbon
36capture and storage.end delete
begin insert facilities.end insert

begin delete

37(F) Encouraging

end delete

38begin insert(G)end insertbegin insertend insertbegin insertIncreasing the role ofend insert demand response throughbegin delete bothend deletebegin insert allend insert of
39the following:

P5    1(i) Transitioning to time-of-usebegin delete pricingend deletebegin insert or real-time pricing, or
2both,end insert
forbegin delete residential buildings.end deletebegin insert all customer classes.end insert

begin insert

3(ii) Increasing market integration of, and opportunities for,
4supply-side demand response.

end insert
begin delete

5(ii)

end delete

6begin insert(iii)end insert Increasing customer access to real-time or near-real-time
7energy usagebegin delete data.end deletebegin insert and wholesale price data, enhancing the sharing
8of these data with third parties, and enabling the market for
9programmable devices that use these data.end insert

begin insert

10(H) Increasing energy efficiency.

end insert
begin insert

11(I) Ensuring that adequate generating capacity remains
12available to meet demand through measures such as multi-year
13capacity or reliability payments.

end insert

14(2) begin deleteDevelop an end deletebegin insertAn end inserteconomicbegin delete assessmentend deletebegin insert analysisend insert using the best
15available economic models and data of the various strategies
16required to be analyzed pursuant to paragraph (1).

17(3) begin deleteDevelop an end deletebegin insertAn end insertanalysis of the benefits to the health, safety,
18and welfare of state residents, worker safety, the state’s
19environment and quality of life, and any other benefits associated
20with the various strategies required to be analyzed pursuant to
21paragraph (1).

begin insert

22(c) The council shall first convene no later than February 1,
232016, and, at that time, develop a schedule in consultation with
24the chair of the state board for delivery of the recommendations
25and analyses required by subdivision (b) that shall ensure the
26recommendations and analyses are delivered to the staff of the
27state board early enough to be considered during development of
28the next scoping plan update required by Section 38561. The
29council’s preliminary recommendations and analyses shall be
30made available for public comment for no less than thirty days.
31After considering comments received, the council shall finalize
32and deliver the recommendations and analyses required by
33subdivision (b) to the state board, at which time the council’s duties
34shall be completed, and the council shall cease to exist as of the
35end of the following December 31.

end insert
begin delete

36(c)

end delete

37begin insert(d)end insert Thebegin delete information developedend deletebegin insert recommendations made and
38analyses completed end insert
pursuant to subdivision (b)begin delete isend deletebegin insert areend insert intended to
39assist inbegin delete establishing state policyend deletebegin insert updating the scoping plan
40pursuant to Section 38561end insert
andbegin delete doesend deletebegin insert to inform the regulations and
P6    1approaches of the represented agencies and doend insert
not change any
2statute, regulation, or regulatory decision.



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