Amended in Senate August 19, 2016

Amended in Senate August 4, 2016

Amended in Senate September 3, 2015

Amended in Senate August 18, 2015

Amended in Senate June 19, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1110

Introduced by Assembly Member Ting

February 27, 2015

An act to amend Sections 398.1, 398.2, 398.4, and 398.5 of the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

AB 1110, as amended, Ting. Greenhouse gases emissions intensity reporting: retail electricity suppliers.

Under existing law, entities offering electric services in California are required to disclose information on the sources of energy that are used to provide electric services. Existing law requires every retail supplier, as defined, that makes an offer to sell electricity that is consumed in California to disclose its electricity sources for the previous calendar year. These disclosures are required to be made to end-use consumers and potential end-use consumers. Existing law requires a retail supplier to disclose its electricity sources as a percentage of annual sales that is derived from specified sources of energy, including eligible renewable energy resources. Existing law requires that retail suppliers annually report to the Energy Commission certain information for each electricity begin insert offering end insert from “specified sources,” as defined, begin delete offering end delete for the previous calendar begin delete year. end delete begin insert year and authorizes the Energy Commission to verify environmental claims made by retail suppliers. end insert

This bill begin delete would end delete begin insert would, among other things, end insert require the Energy begin delete Commission to calculate the greenhouse gas emissions intensity for each purchase of electricity from “specified sources,” as defined, and, end delete begin insert Commission, end insert in consultation with the State Air Resources Board, to begin delete establish end delete begin insert adopt a methodology for the calculation of end insert greenhouse gas emissions intensity begin delete factors for electricity from “unspecified sources.” end delete begin insert for each purchase of electricity by a retail supplier to serve its retail customers. end insert The bill would require a retail supplier, including an electrical corporation, local publicly owned electric utility, electric service provider, and community choice aggregator, to also disclose begin insert both end insert the greenhouse gases emissions intensity of any electricity portfolio offered to its retail customers, as specified, and the Energy Commission’s calculation of the greenhouse gas emissions intensity associated with all statewide retail electricity sales. begin delete The bill would prohibit an adjustment in the calculation of greenhouse gas emissions intensity through the application of unbundled renewable energy credits, carbon offset credits, or credits associated with any greenhouse gas reductions unrelated to the production of electricity. end delete The bill would require a retail supplier to annually report to the Energy Commission certain additional information for each electricity offering for the previous calendar begin delete year. end delete begin insert year and would authorize the Energy Commission to verify procurement claims, in addition to environmental claims, made by retail suppliers. end insert The bill would require the Energy Commission, on or before January 1, 2018, to adopt begin delete guidelines end delete begin insert guidelines, through an open process, subject to public comment, and adopted by a vote of the Energy Commission, end insert for the reporting and disclosure of greenhouse gas emissions begin delete intensity, subject to public hearing. end delete begin insert intensity. end insert The bill would require retail suppliers, beginning June 1, 2020, to report begin delete to the Energy Commission end delete data on greenhouse gas emissions intensity associated with retail sales occurring after December 31, 2018, except as provided.

The Public Utilities Act makes any public utility and any corporation other than a public utility, if the public utility or corporation violates the act or fails to comply with any part of any order, decision, rule, direction, demand, or requirement of the commission, guilty of a crime.

Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements by an electrical corporation or electric service provider would be a crime, the bill would impose a state-mandated local program by expanding what is a crime. By placing additional reporting duties upon local publicly owned electric utilities, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for specified reasons.

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

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

SECTION 1.  

Section 398.1 of the Public Utilities Code is
amended to read:

398.1.  

(a) The Legislature finds and declares that there is a
need for reliable, accurate, timely, and consistent information
regarding fuel sources for electric generation offered for retail sale
in California.

(b) The purpose of this article is to establish a program under
which entities offering electric services in California disclose
accurate, reliable, and simple to understand information on the
sources of energy, and the associated emissions of greenhouse
gases, that are used to provide electric services.

SEC. 2.  

Section 398.2 of the Public Utilities Code is amended
to read:

398.2.  

The definitions set forth in this section shall govern the
construction of this article.

(a) “Greenhouse gas emissions intensity” means the sum of all
annual emissions of greenhouse gases associated with a generation
source divided by the annual production of electricity from the
generation source.

(b) “Retail supplier” means an entity that offers an electricity
product for sale to retail consumers in California, including an
electrical corporation, local publicly owned electric utility, electric
service provider, and community choice aggregator.

(c) “System operator” means the Independent System Operator
with responsibility for the efficient use and reliable operation of
the transmission grid, as provided by Section 345, or a local
publicly owned electric utility that does not utilize the Independent
System Operator.

(d) “Purchases of electricity from specified sources” or
“purchases from specified sources” means electricity transactions
that are traceable to specific generation sources by any auditable
contract trail or equivalent, such as a tradable commodity system,
that provides commercial verification that the electricity source
claimed has been sold once and only once to a retail consumer.
Retail suppliers may rely on annual data to determine whether a
transaction meets this definition, rather than hour-by-hour matching
of loads and resources.

(e) “Electricity from unspecified sources” means electricity that
is not traceable to specific generation sources by any auditable
contract trail or equivalent, including a tradable commodity system,
that provides commercial verification that the electricity source
claimed has been sold once, and only once, to a retail consumer.

SEC. 3.  

Section 398.4 of the Public Utilities Code is amended
to read:

398.4.  

(a) Every retail supplier that makes an offering to sell
electricity that is consumed in California shall disclose its
electricity sources and the associated greenhouse gases emissions
intensity for the previous calendar year.

(b) The disclosures required by this section shall be made to
potential end-use consumers in all product-specific written
promotional materials that are distributed to consumers by either
printed or electronic means, including the retail supplier’s Internet
Web site, if one exists, except that advertisements and notices in
general circulation media shall not be subject to this requirement.

(c) The disclosures required by this section shall be made
annually to end-use consumers of the offered electricity. The annual
disclosure shall be made by the end of the first complete billing
cycle for the third quarter of the year, and shall be consistent with
information provided to the Energy Commission pursuant to
Section 398.5. begin insert A retail supplier may distribute the disclosures
required by this section via email to any end-use consumer that
has consented to receive email in lieu of printed materials. end insert

(d) The disclosures required by this section shall be made
separately for each portfolio offering made by the retail supplier.

(e) On or before January 1, 1998, the Energy Commission shall
specify guidelines for the format and means for disclosure required
by Section 398.3 and this section, based on the requirements of
this article and subject to public hearing.

(f) The costs of making the disclosures required by this section
shall be considered to be generation related.

(g) The disclosures required by this section shall comply with
the following:

(1) A retail supplier’s disclosure of its electricity sources shall
be expressed as a percentage of annual sales derived from each of
the following categories:

(A) Electricity from unspecified sources.

(B) Purchases of electricity from specified sources.

(2) A retail supplier’s disclosure of its electricity sources shall
also separately identify total California system electricity, which
is the sum of all in-state generation and net electricity imports by
fuel type.

(h) Each of the categories specified in subdivision (g) shall be
additionally identified as a percentage of annual sales that is
derived from the following fuels, sources of energy, or electricity
products:

(1) Coal.

(2) Large hydroelectric (greater than 30 megawatts).

(3) Natural gas.

(4) Nuclear.

(5) Eligible renewable energy resources pursuant to the
California Renewables Portfolio Standard Program (Article 16
(commencing with Section 399.11)), including any of the
following:

(A) Biomass and biowaste.

(B) Geothermal.

(C) Eligible hydroelectric.

(D) Solar.

(E) Wind.

begin delete

(F) Unbundled renewable energy credits.

end delete

(6) Other categories as determined by the Energy Commission.

begin insert

(7) The portion of annual sales derived from unbundled
renewable energy credits shall be included in the disclosures in a
format determined by the Energy Commission. A retail supplier
may include additional information related to the sources of the
unbundled renewable energy credits.

end insert

(i) All electricity sources disclosed as purchases of electricity
from specified sources shall meet the requirements of subdivision
(d) of Section 398.2.

(j) Purchases of electricity from specified sources identified
pursuant to this section shall be from sources connected to the
Western Electricity Coordinating Council interconnected grid.

(k) (1) Each retail supplier shall disclose begin insert both end insert the greenhouse
gas emissions intensity of any electricity portfolio offered to its
retail customers and the Energy Commission’s calculation of
greenhouse gas emissions intensity associated with all statewide
retail electricity sales, consistent with the requirements of this
subdivision.

(2) The Energy Commission shall do all of the following:

begin delete

(A) Calculate the greenhouse gas emissions intensity for each
purchase of electricity from a specified source using data reported
to the State Air Resources Board under the regulations for the
Mandatory Greenhouse Gas Reporting program or a successor
program. If emissions data is unavailable or restricted due to
confidentiality, the Energy Commission may establish default
emissions intensity factors for purchases from specified sources.

(B) Establish, in consultation with the State Air Resources
Board, default emissions intensity factors for electricity from
unspecified sources located in California, electricity from
unspecified sources imported into the state from other regions, and
electricity from sources without a reporting obligation.

end delete begin insert

(A) Adopt a methodology, in consultation with the State Air
Resources Board, for the calculation of greenhouse gas emissions
intensity for each purchase of electricity by a retail supplier to
serve its retail customers.

end insert begin delete

(C)

end delete

begin insert (B) end insert  Calculate the greenhouse gas emissions intensity associated
with statewide retail electricity sales based on the greenhouse gas
emissions for total California system electricity.

begin delete

(D)

end delete

begin insert (C) end insert  Rely on the most recent verified greenhouse gas emissions
data while ensuring that greenhouse gas emissions intensity factors
for electricity from specified and unspecified sources are available
to retail suppliers with sufficient advance notice to permit timely
reporting.

begin delete

(E) Retain the right to verify any procurement claims made by
a retail supplier, including the right to review any underlying
procurement contracts, the associated electronic tags demonstrating
that the claimed electricity was delivered to the retail supplier, and
all related financial settlements.

end delete begin delete

(3) The Energy Commission shall not authorize a retail seller
to make any adjustments to the calculation of greenhouse gas
emissions intensity beyond those permitted under the market-based
compliance mechanism adopted by the State Air Resources Board.
A retail seller shall not make adjustments due to the use of offset
credits, credits associated with any greenhouse gas reductions
unrelated to the production of electricity, or unbundled renewable
energy credits.

end delete begin delete

(4) The Energy Commission may authorize an adjustment

end delete

begin insert (D) end insert begin insert   end insert begin insert Establish guidelines for adjustments end insert to a greenhouse gas
emissions intensity factor begin insert for a reporting year end insert for any local publicly
owned electric utility demonstrating begin delete procurement end delete begin insert generation end insert of
quantities of electricity in begin delete a single year end delete begin insert previous years end insert in excess
of its total retail sales begin delete from purchases end delete begin insert and wholesale sales end insert from
specified sources that do not emit any greenhouse gases. begin delete Any
request for adjustments by an eligible local publicly owned electric
utility shall be considered in an open process, subject to public
comment, and adopted through a vote of the full Energy
Commission. An adjustment end delete begin insert Adjustments end insert authorized by the
begin insert guidelines established by the end insert Energy Commission shall not permit
excess generation procured in a single year to be counted more
than once or to be resold to another retail supplier as begin delete a purchase
from end delete a specified source.

begin delete

(5) The Energy Commission shall ensure

end delete

begin insert (E) end insert begin insert   end insert begin insert Ensure end insert that there is no begin delete double counting end delete begin insert double-counting end insert of
the greenhouse gas emissions or emissions attributes associated
with any unit of electricity production reported by a retail supplier
for any specific generating facility begin insert or unspecified source end insert located
within the Western Electricity Coordinating Council when
calculating greenhouse gas emissions intensity.

begin delete

(6) (A)

end delete

begin insert (F) end insert begin insert   end insert begin insert (i) end insert  On or before January 1, 2018, begin delete the Energy Commission
shall adopt guidelines end delete begin insert adopt guidelines, through an open process,
subject to public comment, and adopted by a vote of the Energy
Commission, end insert for the reporting and disclosure of greenhouse gas
emissions intensity associated with retail sales based on the
requirements of this begin delete subdivision and subject to public hearing. end delete
begin insert subdivision. end insert Beginning June 1, 2020, retail suppliers shall be
required to report data on greenhouse gas emissions intensity
associated with retail sales occurring after December 31, 2018.

begin delete

(B)

end delete

begin insert (ii) end insert  Any new community choice aggregator formed after January
1, 2016, shall not be required to report data on greenhouse gas
emissions intensity associated with retail sales until at least 24
months, but begin insert shall be required to report that data end insert no later than 36
months, after serving its first retail customer.

begin delete

(7)

end delete

begin insert (3) end insert  Any marketing or retail product claims relating to the
greenhouse gas emissions intensity of the electric supply portfolio
of a retail supplier shall be consistent with the methodology
begin delete required under end delete begin insert adopted by the Energy Commission pursuant to end insert
this section. Retail suppliers may provide additional information
to customers describing other actions relating to greenhouse gases
that are unrelated to the electric supply portfolio.

(l) The provisions of this section shall not apply to generators
providing electric service onsite, under an over-the-fence
transaction as described in Section 218, or to an affiliate or
affiliates, as defined in subdivision (a) of Section 372.

SEC. 4.  

Section 398.5 of the Public Utilities Code is amended
to read:

398.5.  

(a) Retail suppliers shall annually report to the Energy
Commission, for each electricity offering for the previous calendar
year, each of the following:

(1) The kilowatthours purchased, by generator and fuel type
during the previous calendar year, consistent with the meter data,
including losses, reported to the system operator.

(2) The kilowatthours purchased from unspecified sources in
California and from unspecified sources imported into California
from other subregions within the Western Electricity Coordinating
Council.

begin delete

(3) Any kilowatthours supplied to the retail seller directly or
indirectly by a first deliverer of electricity into the state.

(4)

end delete

begin insert (3) end insert  For each electricity begin delete offering end delete begin insert offering, end insert the kilowatthours sold
at retail.

begin delete

(5)

end delete

begin insert (4) end insert  For each electricity begin delete offering end delete begin insert offering, end insert the disclosures made
to consumers pursuant to Section 398.4.

(b) Information submitted to the Energy Commission pursuant
to this section that is a trade secret as defined in subdivision (d)
of Section 3426.1 of the Civil Code shall not be released except
in an aggregated form such that trade secrets cannot be discerned.

(c) The Energy Commission shall specify guidelines and
standard formats, based on the requirements of this article and
subject to public hearing, for the submittal of information pursuant
to this article.

(d) In developing the rules and procedures specified in this
section, the Energy Commission shall seek to minimize the
reporting burden and cost of reporting that it imposes on retail
suppliers.

(e) The provisions of this section shall not apply to generators
providing electric service onsite, under an over-the-fence
transaction as described in Section 218, or to an affiliate or
affiliates, as defined in subdivision (a) of Section 372.

(f) The Energy Commission may verify environmental begin insert and
procurement end insert claims made by retail suppliers.

SEC. 5.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
a local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act or because costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or infraction,
within the meaning of Section 17556 of the Government Code, or
changes the definition of a crime within the meaning of Section 6
of Article XIII B of the California Constitution.