BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2798|
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THIRD READING
Bill No: AB 2798
Author: Gatto (D)
Amended: 6/20/16 in Senate
Vote: 21
SENATE ENERGY, U. & C. COMMITTEE: 10-1, 6/13/16
AYES: Hueso, Cannella, Gaines, Hertzberg, Hill, Lara, Leyva,
McGuire, Pavley, Wolk
NOES: Morrell
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 78-0, 5/12/16 (Consent) - See last page for
vote
SUBJECT: Energy conservation: power facility and site
certification: notice of intention
SOURCE: Author
DIGEST: This bill specifies that the California Energy
Commission (CEC), when reviewing factors related to safety and
reliability of a proposed electricity generating facility, is to
consider the extent to which the facility will increase or
decrease reliance on underground natural gas storage.
ANALYSIS:
Existing law:
1)Defines a "thermal powerplant" as any stationary or floating
electrical generating facility using any source of thermal
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Page 2
energy, with a generating capacity of 50 megawatts (MW) or
more. (Public Resources Code §25120)
2)Requires each person proposing to construct a thermal
powerplant or electric transmission line on a site shall to
CEC a notice of intention (NOI) to file an application for the
certification of the site and related facility or facilities.
(Public Resources Code §25502)
3)Requires CEC, in reviewing an NOI, to review specified factors
related to safety and reliability, including handling and
storage of wastes and fuels. (Public Resources Code §25511)
4)Exempts from the requirement to file and NOI with CEC several
types of powerplants, including a natural-gas-fired thermal
powerplant. (Public Resources Code §25540.6)
5)Provides CEC with exclusive power to certify all thermal
powerplant sites and related facilities in the state. (Public
Resources Code §25500 et seq.)
6)Requires an application to CEC for certification of a thermal
powerplant to include, among other things, safety and
reliability information, a description of the fuel to be used
by the facility and the source of fuel, as well as the
information required in Public Resources Code Section 25511.
(Public Resources Code §25520)
This bill specifies that the CEC, when reviewing factors related
to safety and reliability of proposed electricity generating
facility as part of the thermal powerplant certification
process, is to consider the extent to which the facility will
increase or decrease reliance on underground natural gas
storage.
Background
CEC has exclusive authority to certify large, thermal
powerplants and related facilities. Statute provides CEC with
the exclusive authority to certify large, thermal powerplants,
which statute defines as those using any source of thermal
energy, with a generating capacity of 50 MW or more. This means
the CEC is the state's lead agency for certifying the
construction and operation of large, thermal powerplants.
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Statute prohibits the construction of a thermal powerplant or
electric transmission line without site certification from CEC.
Existing law (Public Resources Code §25520) requires an
application for certification to include, among other things,
safety and reliability information, including a description of
the fuel to be used by the facility and the source of fuel, as
well as the information required in Public Resources Code
Section 25511. The CEC asserts that it interprets Section 25511
to require it to assess the extent to which a proposed facility
will increase or decrease reliance on underground natural gas
storage. However, statute does not explicitly require CEC to do
so.
The author is motivated by concern over continued and increasing
reliance on large, natural gas storage facilities, such as the
Aliso Canyon Storage Facility, owned and operated by Southern
California Gas and that leaked so spectacularly this past
winter. The author contends there is value in more explicitly
requiring CEC to consider the extent to which a proposed
facility will increase or decrease reliance on underground
natural gas storage. This bill makes such a requirement.
Prior/Related Legislation
AB 1903 (Wilk, 2016) requires the CPUC to authorize a study of
the long-term health impacts associated with the natural gas
leak from the Aliso Canyon facility, to be conducted by the
Office of Environmental Health Hazard Assessment. The bill
passed the Assembly 40-0 and is being considered by the Senate
Committee on Appropriations.
SB 888 (Allen, 2016) establishes the California Office of
Emergency Services as the lead agency for emergency response to
a large ongoing leak or release of natural gas and associated
gases from a natural gas storage facility that poses a
significant present or potential hazard to the public health and
safety, property, or to the environment. The bill passed the
Senate 28-10 and is being considered by the Assembly Committee
on Appropriations.
SB 380 (Pavley, Chapter 14, Statutes of 2016) placed a
moratorium on injecting natural gas into the Aliso Canyon gas
storage facility and establishes requirements for resuming
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natural gas injections at the facility.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified8/1/16)
None received
OPPOSITION: (Verified8/1/16)
None received
ARGUMENTS IN SUPPORT: According to the author:
This bill will help the CEC determine whether or not there are
sufficient quantities of natural gas storage capacity
available to warrant the construction of the proposed power
facility, and whether additional storage capacity is needed.
This information would assist in determining whether
additional pipeline capacity is necessary as well.
Further, if utilities are required to show the CEC how
proposed power facilities may increase reliance on natural
gas, there may be a reluctance to permit power facilitates not
necessary to meet demand. This would prevent the shifting of
construction and operational costs onto consumers.
ASSEMBLY FLOOR: 78-0, 5/12/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Calderon,
Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper,
Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines,
Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,
Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger
Hernández, Holden, Irwin, Jones, Kim, Lackey, Levine, Linder,
Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,
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Page 5
Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,
Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Burke, Jones-Sawyer
Prepared by:Jay Dickenson / E., U., & C. / (916) 651-4107
8/3/16 19:40:18
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