BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1110 (Ting) - Greenhouse gases emissions intensity reporting:  
          retail electricity suppliers.
          
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          |Version: August 18, 2015        |Policy Vote: E., U., & C. 9 - 0 |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 24, 2015   |Consultant: Marie Liu           |
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          This bill meets the criteria for referral to the Suspense File. 


          Bill  
          Summary:  AB 1110 would expand the disclosure requirements for  
          entities offering electric services in California to include the  
          GHG emissions intensity of the electricity it provides.


          Fiscal  
          Impact:  Annual on-going costs of approximately $130,000 from  
          the Energy Resources Program Account (General Fund) for  
          additional workload associated with expanding the information on  
          the Power Content Label.


          Background:  Existing law requires every retail electricity supplier in the  
          state to disclose its electricity sources for the previous  
          calendar year in a manner consistent with CEC guidelines and is  
          accurate, reliable, and simple to understand. This requirement  
          applies to all retail suppliers, that is investor-owned  
          utilities, publicly owned utilities, community choice  







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          aggregators, and energy service providers. The format of this  
          disclosure is known as the Power Content Label. 
                                 
          The Power Content Label presents information in two broad  
          categories:  (1) specific purchases and (2) unspecified sources  
          of power.  The label breaks out the first category - specific  
          purchases - into several subcategories:  eligible renewables  
          (meaning eligible for RPS credit), coal, large hydroelectric,  
          natural gas, nuclear, and other.  The label provides no  
          additional detail to the second category - unspecified sources  
          of power - because such electricity, by definition, is not  
          traceable to a specific generation source.  In addition, the  
          label presents comparison data on the power mix for all retail  
          electricity deliveries in California.


          Proposed Law:  
            This bill would expand the disclosure requirements for  
          entities offering electrical services in California to include  
          the GHG emissions intensity of the electricity provided.  
          Specifically, the GHG emissions intensity shall be reported as a  
          sum of all annual GHG emissions divided by annual retail  
          electric sales. Retailers would not be allowed to make  
          adjustments for renewable energy credits, offset credits, or any  
          other attribute acquired by a facility that is not actually  
          delivering electricity to the retail customer.

          This bill would also require the CEC, in consultation with the  
          ARB, to calculate the GHG emissions intensity associated with  
          the statewide retail electricity sales.


          Staff  
          Comments:  To develop the new GHG requirements for the Power  
          Content Label, including rulemaking and hosting workshops, and  
          then to conduct reporting compliance and verification, the CEC  
          anticipates on-going annual costs of approximately $130,000 for  
          one position.
          The ARB anticipates that it will have minor and absorbable costs  
          to consult with the CEC on the GHG methodology calculations.












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