Amended in Senate September 4, 2015

Amended in Senate August 18, 2015

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

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(Coauthors: Assembly Members Chávez, Jones, and Weber)

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(Coauthors: Senators Anderson and Hueso)

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December 1, 2014


begin deleteAn act to add Section 38561.5 to the Health and Safety Code, relating to greenhouse gases. end deletebegin insertAn act to add Section 454.53 to the Public Utilities Code, relating to electricity.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 33, as amended, Quirk. begin deleteCalifornia Global Warming Solutions Act of 2006: Energy Sector Emissions Reduction Advisory Council. end deletebegin insertElectrical corporations: procurement plans.end insert

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Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. The Public Utilities Act requires the commission to review and adopt an overall procurement plan for each electrical corporation to meet electricity demand for its customers in accordance with specified elements, incentive mechanisms, and objectives. The act requires the commission to review and accept, modify, or reject each electrical corporation’s procurement plan and requires that each approved procurement plan accomplish specified objectives.

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This bill would require the commission, as part of a new or existing proceeding, to determine what role large scale energy storage could play as part of the state’s overall strategy for procuring a diverse portfolio of resources and to consider specified factors in making that determination.

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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 emissions and to update the scoping plan at least once every 5 years.

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This bill would establish the Energy Sector Emissions Reduction Advisory Council in state government and would require the council to recommend strategies for the electricity sector for incorporation into the scoping plan prepared by the state board, based on conclusions of specified analyses, including, among others, an analysis of the various strategies 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.

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

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

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begin insertSECTION 1.end insert  

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begin insertSection 454.53 is added to the end insertbegin insertPublic Utilities
2Code
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begin insert, to read:end insert

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3

begin insert454.53.end insert  

The commission shall, as part of a new or existing
4proceeding, determine what role, if any, large scale energy storage
5could play as part of the state’s overall strategy for procuring a
6diverse portfolio of resources and, in making that determination,
7shall consider factors including, but not limited to,
P3    1cost-effectiveness, the projected value of renewable integration
2services, and indirect greenhouse gas emissions reductions over
3the anticipated life of the large scale energy storage resource.

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4

SECTION 1.  

(a) The Legislature finds and declares all of the
5following:

6(1) Several state agencies, boards, commissions, and other
7entities possess expertise on how to reduce emissions of greenhouse
8gases from the electricity sector, in furtherance of the state’s mid-
9and long-term greenhouse gas reduction goals.

10(2) These agencies and entities have completed and are
11performing analyses of the changes that will be needed in how
12electricity is generated, delivered, and consumed throughout the
13state, and the technologies and other strategies that can be used to
14help achieve those goals.

15(3) The State Air Resources Board is charged by the California
16Global Warming Solutions Act of 2006 (Division 25.5
17(commencing with Section 38500) of the Health and Safety Code)
18with developing and updating a scoping plan to achieve the state’s
19greenhouse gas emission reduction goals.

20(4) In developing the next scoping plan update, the State Air
21Resources Board should consider the best information, modeling,
22and analysis produced by the relevant state agencies on available
23strategies that could be implemented to reduce greenhouse gas
24emissions from the state’s power supply, while ensuring the
25reliability of the electricity grid, and the technical feasibility and
26cost-effectiveness of those strategies.

27(b) The purpose and intent of this act is to complement the
28relevant state agencies’ ongoing efforts and ensure that these
29agencies coordinate, through a public process and in furtherance
30of the state’s greenhouse gas emission reduction goals, to develop
31and deliver a complete and coherent set of recommendations to
32the State Air Resources Board before the next scoping plan update
33on technically feasible strategies that will achieve the required
34reductions in emissions of greenhouse gases from the electricity
35sector in a manner that is cost-effective and maintains reliability,
36including those strategies that will be needed to integrate increasing
37amounts of renewable energy into the electricity grid while
38minimizing over-generation.

39

SEC. 2.  

Section 38561.5 is added to the Health and Safety
40Code
, to read:

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38561.5.  

(a) The Energy Sector Emissions Reduction Advisory
2Council is hereby established in state government, and it shall
3consist of all of the following members:

4(1) The chair of the State Energy Resources Conservation and
5Development Commission, or his or her designee.

6(2) The president of the Public Utilities Commission, or his or
7her designee.

8(3) The president of the California Independent System
9Operator, or his or her designee.

10(4) The chair of the State Water Resources Control Board, or
11his or her designee.

12(5) The chair of the state board, or his or her designee.

13(b) The council shall recommend strategies for the electricity
14sector, other than and in addition to any market-based mechanisms
15established pursuant to subdivision (c) of Section 38562 or Section
1638570, for incorporation into the scoping plan developed pursuant
17to Section 38561, based on the conclusions of all of the following
18analyses that the council shall complete:

19(1) An analysis of the various

20 strategies that could be implemented to reduce emissions of
21greenhouse gases from the electricity sector and integrate
22increasing amounts of renewable energy into the electricity grid,
23which evaluates and compares these strategies based upon their
24technical feasibility, cost-effectiveness, and the extent to which
25their implementation would minimize over-generation, maintain
26the reliability of the electricity grid, and reduce emissions of
27greenhouse gases. The analysis shall consider, at a minimum, all
28of the following strategies in light of the criteria indicated in this
29paragraph:

30(A) Increasing the volume of renewable energy generation by
31the amounts required by state law or otherwise needed to achieve
32statewide greenhouse gas emissions limits.

33(B) Deepening regional coordination in the Western
34Interconnection.

35(C) Increasing energy storage, including pumped-hydroelectric
36storage.

37(D) Retrofitting existing natural gas-fired electrical generation
38facilities to increase their operational flexibility.

39(E) Using renewable energy generation facilities to provide
40operational flexibility.

P5    1(F) Deploying carbon capture and storage and other greenhouse
2gas emissions reduction technology at existing fossil fuel-fired
3electrical generation facilities.

4(G) Increasing the role of demand response through all of the
5following:

6(i) Transitioning to time-of-use or real-time pricing, or both,
7for all customer classes.

8(ii) Increasing market integration of, and opportunities for,
9supply-side demand response.

10(iii) Increasing customer access to real-time or near-real-time
11energy usage and wholesale price data, enhancing the sharing of
12these data with third parties, and enabling the market for
13programmable devices that use these data.

14(H) Increasing energy efficiency.

15(I) Ensuring that adequate generating capacity remains available
16to meet demand through measures such as multi-year capacity or
17reliability payments.

18(2) An economic analysis using the best available economic
19models and data of the various strategies required to be analyzed
20pursuant to paragraph (1).

21(3) An analysis of the benefits to the health, safety, and welfare
22of state residents, worker safety, the state’s environment and quality
23of life, and any other benefits associated with the various strategies
24required to be analyzed pursuant to paragraph (1).

25(c) The council shall first convene no later than February 1,
262016, and, at that time, develop a schedule in consultation with
27the chair of the state board for delivery of the recommendations
28and analyses required by subdivision (b) that shall ensure the
29recommendations and analyses are delivered to the staff of the
30state board early enough to be considered during development of
31the next scoping plan update required by Section 38561. The
32council’s preliminary recommendations and analyses shall be made
33available for public comment for no less than thirty days. After
34considering comments received, the council shall finalize and
35deliver the recommendations and analyses required by subdivision
36(b) to the state board, at which time the council’s duties shall be
37completed, and the council shall cease to exist as of the end of the
38following December 31.

39(d) The recommendations made and analyses completed
40pursuant to subdivision (b) are intended to assist in updating the
P6    1scoping plan pursuant to Section 38561 and to inform the
2regulations and approaches of the represented agencies and do not
3change any statute, regulation, or regulatory decision.

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