SB 180, as introduced, Jackson. Electricity: emissions of greenhouse gases.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations while local publicly owned electric utilities are under the direction of their governing board. Existing law prohibits any load-serving entity and any local publicly owned electric utility from entering into a long-term financial commitment for baseload generation unless that baseload generation complies with a greenhouse gases emission performance standard. Existing law requires the Public Utilities Commission, by February 1, 2007, through a rulemaking proceeding and in consultation with the State Energy Resources Conservation and Development Commission and the State Air Resources Board, to establish a greenhouse gases emission performance standard for all baseload generation of load-serving entities. Existing law requires the State Energy Resources Conservation and Development Commission, by June 30, 2007, at a duly noticed public hearing and in consultation with the Public Utilities Commission and the State Air Resources Board, to establish a greenhouse gases emission performance standard for all baseload generation of local publicly owned electric utilities.
This bill would, on July 1, 2017, replace the greenhouse gases performance emission standards for baseload generation with greenhouse gases performance emission standards for primary generation and secondary generation, as defined. The bill would require the Public Utilities Commission, by June 30, 2017, through a rulemaking proceeding and in consultation with the State Energy Resources Conservation and Development Commission and the State Air Resources Board, to establish a greenhouse gases emission performance standard for all primary generation of load-serving entities, and a separate standard for secondary generation. The bill would require the State Energy Resources Conservation and Development Commission, by June 30, 2017, at a duly noticed public hearing and in consultation with the Public Utilities Commission and the State Air Resources Board, to establish a greenhouse gases emission performance standard for all primary generation of local publicly owned electric utilities, and a separate standard for secondary generation. The bill would require that the greenhouse gases emission performance standard for primary generation and secondary generation be established at the lowest level that the 2 commissions determine to be technologically feasible without putting reliability of the electrical grid and of electric service at risk. The bill would require that the initial greenhouse gases emission performance standard for primary generation establish a rate of emissions of greenhouse gases that is 80% lower than the permissible rate of emissions of greenhouse gases for baseload generation in effect as of January 1, 2015. The bill would require that the commissions update their respective greenhouse gases emission performance standards every 5 years based on new technology.
Existing law makes any public utility that fails to comply with any part of any order, decision, rule, direction, demand, or requirement of the commission guilty of a crime. Existing law additionally makes every corporation or person other than a public utility who fails to comply with any part of any order, decision, rule, direction, demand, or requirement of the commission guilty of a crime.
Because this bill would require action by the Public Utilities Commission to implement its requirements with respect to a load-serving entity, and a violation of an order or decision of the Public Utilities Commission would be a crime, the bill would impose a state-mandated local program by expanding what is a crime.
The Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission and requires it to certify sufficient sites and related facilities that are required to provide a supply of electricity sufficient to accommodate projected demand for power statewide. The act grants the State Energy Resources Conservation and Development Commission the exclusive authority to certify any stationary or floating electrical generating facility using any source of thermal energy, with a generating capacity of 50 megawatts or more, and any facilities appurtenant thereto.
The California Environmental Quality Act generally requires all state and local governmental lead agencies to prepare, or cause to be prepared by contract, and certify the completion of, an environmental impact report on any discretionary project that they propose to carry out or approve that may result in a significant effect on the environment, that is, a substantial, or potentially substantial, adverse change in the physical conditions that exist within the area that will be affected by the project. The “lead agency” for a project is the public agency that has the principal responsibility for carrying out or approving the project that may have a significant effect on the environment.
This bill would designate the State Energy Resources Conservation and Development Commission to be the lead agency with respect to any carbon capture and storage project associated with an application for certification.
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 a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 25544 is added to the Public Resources
2Code, to read:
The commission shall be the lead agency, as defined
4in Section 21067, for any carbon capture and storage project
5associated with an application for certification pursuant to this
6chapter. For purposes of this section, “carbon capture and storage,”
7also known as carbon capture and sequestration, means the
P4 1injection of carbon dioxide or other greenhouse gases into
2geological formations so as to prevent releases into the atmosphere.
The heading of Chapter 3 (commencing with Section
48340) of Division 4.1 of the Public Utilities Code is amended to
5read:
6
Section 8340 of the Public Utilities Code is amended
11to read:
For purposes of this chapter, the following terms have
13the following meanings:
14(a) “Baseload generation” means electricity generation from a
15powerplant that is designed and intended to provide electricity at
16an annualized plant capacity factor of at least 60 percent.
17(b) “Combined-cycle natural gas” with respect to a powerplant
18means the powerplant employs a combination of one or more gas
19turbines and steam turbines in which electricity is produced in the
20steam turbine from otherwise lost waste heat exiting from one or
21more of the gas turbines.
22(c) “Electric service provider” means an “electric service
23provider” as
defined in Section 218.3, but does not include
24corporations or persons employing cogeneration technology or
25producing electricity from other than a conventional power source
26consistent with subdivision (b) of Section 218.
27(d) “Greenhouse gases” means those gases listed in Section
2838505 of the Health and Safety Code.
29(e) “Load-serving entity” means every electrical corporation,
30electric service provider, or community choice aggregator serving
31end-use customers in the state.
32(f) “Long-term financial commitment” means either a new
33ownership investment in baseload generation or a new or renewed
34contract with a term of five or more years, which includes
35procurement of baseload generation.
36(g) “Output-based methodology” means a greenhouse gases
37emission
performance standard that is expressed in pounds of
38greenhouse gases emitted per megawatthour and factoring in the
39useful thermal energy employed for purposes other than the
40generation of electricity.
P5 1(h) “Plant capacity factor” means the ratio of the electricity
2produced during a given time period, measured in kilowatthours,
3to the electricity the unit could have produced if it had been
4operated at its rated capacity during that period, expressed in
5kilowatthours.
6(i) “Powerplant” means a facility for the generation of electricity,
7and includes one or more generating units at the same location.
8(j) “Zero- or low-carbon generating resource” means an
9electrical generating resource that will generate electricity while
10producing emissions of greenhouse gases at a rate substantially
11below the greenhouse gases emission
performance standard, as
12determined by the commission.
13(k) This section shall become inoperative on July 1, 2017, and,
14as of January 1, 2018, is repealed.
Section 8340 is added to the Public Utilities Code, to
16read:
For purposes of this chapter, the following terms have
18the following meanings:
19(a) “Electric service provider” has the same meaning as defined
20in Section 218.3, but does not include corporations or persons
21employing cogeneration technology or producing electricity from
22other than a conventional power source consistent with subdivision
23(b) of Section 218.
24(b) “Exempt generation” means electricity generation from a
25powerplant that is designed and intended to provide electricity at
26an annualized plant capacity factor of less than 2 percent.
27(c) “Greenhouse gases” means those gases listed in Section
2838505 of the Health and Safety Code.
29(d) “Greenhouse gases performance emissions standard” means
30the permissible levels of emissions of greenhouse gases established
31pursuant to Section 8341 for primary generation and secondary
32generation.
33(e) “Load-serving entity” means every electrical corporation,
34electric service provider, or community choice aggregator serving
35end-use customers in the state.
36(f) “Long-term financial commitment” means either a new
37ownership investment in primary generation or secondary
38generation or a new or renewed contract with a term of five or
39more years, which includes procurement of primary generation or
40secondary generation.
P6 1(g) “Output-based methodology” means a greenhouse gases
2emission performance standard that is expressed in pounds of
3greenhouse gases emitted
per megawatthour and factoring in the
4useful thermal energy employed for purposes other than the
5generation of electricity.
6(h) “Plant capacity factor” means the ratio of the electricity
7produced during a given time period, measured in kilowatthours,
8to the electricity the unit could have produced if it had been
9operated at its rated capacity during that period, expressed in
10kilowatthours.
11(i) “Powerplant” means a facility for the generation of electricity,
12and includes one or more generating units at the same location.
13(j) “Primary generation” means electricity generation from a
14powerplant that is designed and intended to provide electricity at
15an annualized plant capacity factor of at least 15 percent.
16(k) “Secondary generation” means electricity
generation from
17a powerplant that is designed and intended to provide electricity
18at an annualized plant capacity factor of less than 15 percent and
19at least 2 percent.
20(l) “Zero- or low-carbon generating resource” means an
21electrical generating resource that will generate electricity while
22producing emissions of greenhouse gases at a rate substantially
23below the greenhouse gases emission performance standard, as
24determined by the commission.
25(m) This section shall become operative on January 1, 2017.
Section 8341 of the Public Utilities Code is amended
27to read:
(a) No load-serving entity or local publicly owned
29electric utility may enter into a long-term financial commitment
30unless any baseload generation supplied under the long-term
31financial commitment complies with the greenhouse gases emission
32performance standard established by the commission, pursuant to
33subdivision (d), for a load-serving entity, or by the Energy
34Commission, pursuant to subdivision (e), for a local publicly owned
35electric utility.
36(b) (1) The commission shall not approve a long-term financial
37commitment by an electrical corporation unless any baseload
38generation supplied under the long-term financial commitment
39complies with the greenhouse gases emission performance standard
40established
by the commission pursuant to subdivision (d).
P7 1(2) The commission may, in order to enforce this section, review
2any long-term financial commitment proposed to be entered into
3by an electric service provider or a community choice aggregator.
4(3) The commission shall adopt rules to enforce the requirements
5of this section, for load-serving entities. The commission shall
6adopt procedures, for all load-serving entities, to verify the
7emissions of greenhouse gases from any baseload generation
8supplied under a contract subject to the greenhouse gases emission
9performance standard to ensure compliance with the standard.
10(4) In determining whether a long-term financial commitment
11is for baseload generation, the commission shall consider the design
12of the powerplant and the intended use of the powerplant, as
13determined by the
commission based upon the electricity purchase
14contract, any certification received from the Energy Commission,
15any other permit or certificate necessary for the operation of the
16powerplant, including a certificate of public convenience and
17necessity, any procurement approval decision for the load-serving
18entity, and any other matter the commission determines is relevant
19under the circumstances.
20(5) Costs incurred by an electrical corporation to comply with
21this section, including those costs incurred for electricity purchase
22agreements that are approved by the commission that comply with
23the greenhouse gases emission performance standard, are to be
24treated as procurement costs incurred pursuant to an approved
25procurement plan and the commission shall ensure timely cost
26recovery of those costs pursuant to paragraph (3) of subdivision
27(d) of Section 454.5.
28(6) A long-term financial
commitment entered into through a
29contract approved by the commission, for electricity generated by
30a zero- or low-carbon generating resource that is contracted for,
31on behalf of consumers of this state on a cost-of-service basis,
32shall be recoverable in rates, in a manner determined by the
33commission consistent with Section 380. The commission may,
34after a hearing, approve an increase from one-half to 1 percent in
35the return on investment by the third party entering into the contract
36with an electrical corporation with respect to investment in zero-
37or low-carbon generation resources authorized pursuant to this
38subdivision.
P8 1(c) (1) The Energy Commission shall adopt regulations for the
2enforcement of this chapter with respect to a local publicly owned
3electric utility.
4(2) The Energy Commission may, in order to ensure compliance
5with the greenhouse gases
emission performance standard by local
6publicly owned electric utilities, apply the procedures adopted by
7the commission to verify the emissions of greenhouse gases from
8baseload generation pursuant to subdivision (b).
9(3) In determining whether a long-term financial commitment
10is for baseload generation, the Energy Commission shall consider
11the design of the powerplant and the intended use of the
12powerplant, as determined by the Energy Commission based upon
13the electricity purchase contract, any certification received from
14the Energy Commission, any other permit for the operation of the
15powerplant, any procurement approval decision for the load-serving
16entity, and any other matter the Energy Commission determines
17is relevant under the circumstances.
18(d) (1) On or before February 1, 2007, the commission, through
19a rulemaking proceeding, and in consultation
with the Energy
20Commission and the State Air Resources Board, shall establish a
21greenhouse gases emission performance standard for all baseload
22generation of load-serving entities, at a rate of emissions of
23greenhouse gases that is no higher than the rate of emissions of
24greenhouse gases for combined-cycle natural gas baseload
25generation. Enforcement of the greenhouse gases emission
26performance standard shall begin immediately upon the
27establishment of the standard. All combined-cycle natural gas
28powerplants that are in operation, or that have an Energy
29Commission final permit decision to operate as of June 30, 2007,
30shall be deemed to be in compliance with the greenhouse gases
31emission performance standard.
32(2) In determining the rate of emissions of greenhouse gases
33for baseload generation, the commission shall include the net
34emissions resulting from the production of electricity by the
35baseload generation.
36(3) The commission shall establish an output-based methodology
37to ensure that the calculation of emissions of greenhouse gases for
38cogeneration recognizes the total usable energy output of the
39process, and includes all greenhouse gases emitted by the facility
40in the production of both electrical and thermal energy.
P9 1(4) In calculating the emissions of greenhouse gases by facilities
2generating electricity from biomass, biogas, or landfill gas energy,
3the commission shall consider net emissions from the process of
4growing, processing, and generating the electricity from the fuel
5source.
6(5) Carbon dioxide that is injected in geological formations, so
7as to prevent releases into the atmosphere, in compliance with
8applicable laws and regulations shall not be counted as emissions
9of the powerplant in determining compliance
with the greenhouse
10gases emissions performance standard.
11(6) In adopting and implementing the greenhouse gases emission
12performance standard, the commission, in consultation with the
13Independent System Operator shall consider the effects of the
14standard on system reliability and overall costs to electricity
15customers.
16(7) In developing and implementing the greenhouse gases
17emission performance standard, the commission shall address
18long-term purchases of electricity from unspecified sources in a
19manner consistent with this chapter.
20(8) In developing and implementing the greenhouse gases
21emission performance standard, the commission shall consider
22and act in a manner consistent with any rules adopted pursuant to
23Section 824a-3 of Title 16 of the United States Code.
24(9) An electrical corporation that provides electric service to
2575,000 or fewer retail end-use customers in California may file
26with the commission a proposal for alternative compliance with
27this section, which the commission may accept upon a showing
28by the electrical corporation of both of the following:
29(A) A majority of the electrical corporation’s retail end-use
30customers for electric service are located outside of California.
31(B) The emissions of greenhouse gases to generate electricity
32for the retail end-use customers of the electrical corporation are
33subject to a review by the utility regulatory commission of at least
34one other state in which the electrical corporation provides
35regulated retail electric service.
36(e) (1) On or before June 30, 2007, the Energy Commission,
37at a
duly noticed public hearing and in consultation with the
38commission and the State Air Resources Board, shall establish a
39greenhouse gases emission performance standard for all baseload
40generation of local publicly owned electric utilities at a rate of
P10 1emissions of greenhouse gases that is no higher than the rate of
2emissions of greenhouse gases for combined-cycle natural gas
3baseload generation. The greenhouse gases emission performance
4standard established by the Energy Commission for local publicly
5owned electric utilities shall be consistent with the standard adopted
6by the commission for load-serving entities. Enforcement of the
7greenhouse gases emission performance standard shall begin
8immediately upon the establishment of the standard. All
9combined-cycle natural gas powerplants that are in operation, or
10that have an Energy Commission final permit decision to operate
11as of June 30, 2007, shall be deemed to be in compliance with the
12greenhouse gases emission performance standard.
13(2) The greenhouse gases emission performance standard shall
14be adopted by regulation pursuant to the Administrative Procedure
15Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of
16Division 3 of Title 2 of the Government Code).
17(3) In determining the rate of emissions of greenhouse gases
18for baseload generation, the Energy Commission shall include the
19net emissions resulting from the production of electricity by the
20baseload generation.
21(4) The Energy Commission shall establish an output-based
22methodology to ensure that the calculation of emissions of
23greenhouse gases for cogeneration recognizes the total usable
24energy output of the process, and includes all greenhouse gases
25emitted by the facility in the production of both electrical and
26thermal energy.
27(5) In calculating the emissions of greenhouse gases by facilities
28generating electricity from biomass, biogas, or landfill gas energy,
29the Energy Commission shall consider net emissions from the
30process of growing, processing, and generating the electricity from
31the fuel source.
32(6) Carbon dioxide that is captured from the emissions of a
33powerplant and that is permanently disposed of in geological
34formations in compliance with applicable laws and regulations,
35shall not be counted as emissions from the powerplant.
36(7) In adopting and implementing the greenhouse gases emission
37performance standard, the Energy Commission, in consultation
38with the Independent System Operator, shall consider the effects
39of the standard on system reliability and overall costs to electricity
40customers.
P11 1(8) In developing and
implementing the greenhouse gases
2emission performance standard, the Energy Commission shall
3address long-term purchases of electricity from unspecified sources
4in a manner consistent with this chapter.
5(9) In developing and implementing the greenhouse gases
6emission performance standard, the Energy Commission shall
7consider and act in a manner consistent with any rules adopted
8pursuant to Section 824a-3 of Title 16 of the United States Code.
9(f) The Energy Commission, in a duly noticed public hearing
10and in consultation with the commission and the State Air
11Resources Board, shall reevaluate and continue, modify, or replace
12the greenhouse gases emission performance standard when an
13enforceable greenhouse gases emissions limit is established and
14in operation, that is applicable to local publicly owned electric
15utilities.
16(g) The commission, through a rulemaking proceeding and in
17consultation with the Energy Commission and the State Air
18Resources Board, shall reevaluate and continue, modify, or replace
19the greenhouse gases emission performance standard when an
20enforceable greenhouse gases emissions limit is established and
21in operation, that is applicable to load-serving entities.
22(h) This section shall become inoperative on July 1, 2017, and,
23as of January 1, 2018, is repealed.
Section 8341 is added to the Public Utilities Code, to
25read:
(a) (1) Beginning July 1, 2017, no load-serving entity
27or local publicly owned electric utility may enter into a new
28long-term financial commitment unless any primary generation
29supplied under the long-term financial commitment complies with
30the greenhouse gases emission performance standard established
31by the commission, pursuant to subdivision (d), for a load-serving
32entity, or by the Energy Commission, pursuant to subdivision (f),
33for a local publicly owned electric utility.
34(2) Beginning July 1, 2017, no load-serving entity or local
35publicly owned electric utility may enter into a new long-term
36financial commitment unless any secondary generation supplied
37under the long-term financial commitment complies with the
38
greenhouse gases emission performance standard established by
39the commission, pursuant to subdivision (e), for a load-serving
P12 1entity, or by the Energy Commission, pursuant to subdivision (g),
2for a local publicly owned electric utility.
3(3) Neither the commission or the Energy Commission shall
4establish a greenhouse gases emission performance standard for
5exempt generation.
6(b) (1) (A) The commission shall not approve a long-term
7financial commitment by an electrical corporation unless the
8primary generation supplied under the long-term financial
9commitment complies with the greenhouse gases emission
10performance standard established by the commission pursuant to
11subdivision (d).
12(B) The commission shall not approve a long-term financial
13commitment by an electrical
corporation unless the secondary
14generation supplied under the long-term financial commitment
15complies with the greenhouse gases emission performance standard
16established by the commission pursuant to subdivision (e).
17(2) The commission may, in order to enforce this section, review
18any long-term financial commitment proposed to be entered into
19by an electric service provider or a community choice aggregator.
20(3) The commission shall adopt rules to enforce the requirements
21of this section, for load-serving entities. The commission shall
22adopt procedures, for all load-serving entities, to verify the
23emissions of greenhouse gases from any primary generation or
24secondary generation supplied under a contract subject to the
25greenhouse gases emission performance standard to ensure
26compliance with the standard.
27(4) In
determining whether a long-term financial commitment
28is for primary generation or secondary generation, the commission
29shall consider the design of the powerplant and the intended use
30of the powerplant, as determined by the commission based upon
31the electricity purchase contract, any certification received from
32the Energy Commission, any other permit or certificate necessary
33for the operation of the powerplant, including a certificate of public
34convenience and necessity, any procurement approval decision
35for the load-serving entity, and any other matter the commission
36determines is relevant under the circumstances.
37(5) Costs incurred by an electrical corporation to comply with
38this section, including those costs incurred for electricity purchase
39agreements that are approved by the commission that comply with
40the respective greenhouse gases emission performance standards,
P13 1are to be treated as procurement costs incurred pursuant to an
2approved
procurement plan and the commission shall ensure timely
3cost recovery of those costs pursuant to paragraph (3) of
4subdivision (d) of Section 454.5.
5(6) A long-term financial commitment entered into through a
6contract approved by the commission, for electricity generated by
7a zero- or low-carbon generating resource that is contracted for,
8on behalf of consumers of this state on a cost-of-service basis,
9shall be recoverable in rates, in a manner determined by the
10commission consistent with Section 380. The commission may,
11after a hearing, approve an increase from one-half to 1 percent in
12the return on investment by the third party entering into the contract
13with an electrical corporation with respect to investment in zero-
14or low-carbon generation resources authorized pursuant to this
15paragraph.
16(c) (1) The Energy Commission shall adopt regulations for the
17
enforcement of this chapter with respect to a local publicly owned
18electric utility.
19(2) The Energy Commission may, in order to ensure compliance
20with the greenhouse gases emission performance standard by local
21publicly owned electric utilities, apply the procedures adopted by
22the commission to verify the emissions of greenhouse gases from
23primary generation and secondary generation pursuant to
24subdivision (b).
25(3) In determining whether a long-term financial commitment
26is for primary generation or secondary generation, the Energy
27Commission shall consider the design of the powerplant and the
28intended use of the powerplant, as determined by the Energy
29Commission based upon the electricity purchase contract, any
30certification received from the Energy Commission, any other
31permit for the operation of the powerplant, any procurement
32approval decision for the load-serving entity, and
any other matter
33the Energy Commission determines is relevant under the
34circumstances.
35(d) (1) On or before June 30, 2017, the commission, through a
36rulemaking proceeding, and in consultation with the Energy
37Commission and the State Air Resources Board, shall establish a
38greenhouse gases emission performance standard for all primary
39generation of load-serving entities. The greenhouse gases emission
40performance standard for primary generation shall be established
P14 1at the lowest level that the commission determines to be
2technologically feasible without putting reliability of the electrical
3grid and of electric service at risk. The initial greenhouse gases
4emission performance standard for primary generation shall
5establish a rate of emissions of greenhouse gases that is 80 percent
6lower than the permissible rate of emissions of greenhouse gases
7for baseload generation in effect as of January 1, 2015. The
8commission, in
consultation with the Energy Commission and the
9State Air Resources Board, shall update the greenhouse gases
10emission performance standard for primary generation every five
11years based on new technology. Enforcement of the greenhouse
12gases emission performance standard for primary generation shall
13begin on July 1, 2017.
14(2) In determining the rate of emissions of greenhouse gases
15for primary generation, the commission shall include the net
16emissions resulting from the production of electricity by the
17primary generation.
18(3) The commission shall establish an output-based methodology
19to ensure that the calculation of emissions of greenhouse gases for
20cogeneration recognizes the total usable energy output of the
21process, and includes all greenhouse gases emitted by the facility
22in the production of both electricity and thermal energy.
23(4) In calculating the emissions of greenhouse gases by facilities
24generating electricity from biomass, biogas, or landfill gas energy,
25the commission shall consider net emissions from the process of
26growing, processing, and generating the electricity from the fuel
27source.
28(5) Greenhouse gases that are injected in geological formations,
29so as to prevent releases into the atmosphere, commonly termed
30carbon capture and storage or carbon capture and sequestration,
31in compliance with applicable laws and regulations, shall not be
32counted as emissions of the powerplant in determining compliance
33with the greenhouse gases emissions performance standard for
34primary generation.
35(6) In adopting and implementing the greenhouse gases emission
36performance standard for primary generation, the commission, in
37consultation with the
Independent System Operator, shall consider
38the effects of the standard on system reliability and overall costs
39to electricity customers.
P15 1(7) In developing and implementing the greenhouse gases
2emission performance standard for primary generation, the
3commission shall address long-term purchases of electricity from
4unspecified sources in a manner consistent with this chapter.
5(8) In developing and implementing the greenhouse gases
6emission performance standard for primary generation, the
7commission shall consider and act in a manner consistent with any
8rules adopted pursuant to Section 824a-3 of Title 16 of the United
9States Code.
10(9) An electrical corporation that provides electric service to
1175,000 or fewer retail end-use customers in California may file
12with the commission a proposal for alternative compliance
with
13this subdivision, which the commission may accept upon a showing
14by the electrical corporation of both of the following:
15(A) A majority of the electrical corporation’s retail end-use
16customers for electric service are located outside of California.
17(B) The emissions of greenhouse gases to generate electricity
18for the retail end-use customers of the electrical corporation are
19subject to a review by the utility regulatory commission of at least
20one other state in which the electrical corporation provides
21regulated retail electric service.
22(e) (1) On or before June 30, 2017, the commission, through a
23rulemaking proceeding, and in consultation with the Energy
24Commission and the State Air Resources Board, shall establish a
25greenhouse gases emission performance standard for all secondary
26
generation of load-serving entities. The greenhouse gases emission
27performance standard for secondary generation shall be established
28at the lowest level that the commission determines to be
29technologically feasible without putting reliability of the electrical
30grid and of electric service at risk. The commission, in consultation
31with the Energy Commission and the State Air Resources Board,
32shall update the greenhouse gases emission performance standard
33for secondary generation every five years based on new technology.
34Enforcement of the greenhouse gases emission performance
35standard for secondary generation shall begin on July 1, 2017.
36(2) In determining the rate of emissions of greenhouse gases
37for secondary generation, the commission shall include the net
38emissions resulting from the production of electricity by the
39secondary generation.
P16 1(3) The commission shall establish an
output-based methodology
2to ensure that the calculation of emissions of greenhouse gases for
3cogeneration recognizes the total usable energy output of the
4process, and includes all greenhouse gases emitted by the facility
5in the production of both electrical and thermal energy.
6(4) In calculating the emissions of greenhouse gases by facilities
7generating electricity from biomass, biogas, or landfill gas energy,
8the commission shall consider net emissions from the process of
9growing, processing, and generating the electricity from the fuel
10source.
11(5) Greenhouse gases that are injected in geological formations,
12so as to prevent releases into the atmosphere, commonly termed
13carbon capture and storage or carbon capture and sequestration,
14in compliance with applicable laws and regulations, shall not be
15counted as emissions of the powerplant in determining compliance
16with the
greenhouse gases emissions performance standard for
17secondary generation.
18(6) In adopting and implementing the greenhouse gases emission
19performance standard for secondary generation, the commission,
20in consultation with the Independent System Operator, shall
21consider the effects of the standard on system reliability and overall
22costs to electricity customers.
23(7) In developing and implementing the greenhouse gases
24emission performance standard for secondary generation, the
25commission shall address long-term purchases of electricity from
26unspecified sources in a manner consistent with this chapter.
27(8) In developing and implementing the greenhouse gases
28emission performance standard for secondary generation, the
29commission shall consider and act in a manner consistent with any
30rules adopted pursuant to Section 824a-3
of Title 16 of the United
31States Code.
32(9) An electrical corporation that provides electric service to
3375,000 or fewer retail end-use customers in California may file
34with the commission a proposal for alternative compliance with
35this subdivision, which the commission may accept upon a showing
36by the electrical corporation of both of the following:
37(A) A majority of the electrical corporation’s retail end-use
38customers for electric service are located outside of California.
39(B) The emissions of greenhouse gases to generate electricity
40for the retail end-use customers of the electrical corporation are
P17 1subject to a review by the utility regulatory commission of at least
2one other state in which the electrical corporation provides
3regulated retail electric service.
4(f) (1) On or before June 30, 2017, the Energy Commission, at
5a duly noticed public hearing and in consultation with the
6commission and the State Air Resources Board, shall establish a
7greenhouse gases emission performance standard for all primary
8generation of local publicly owned electric utilities. The greenhouse
9gases emission performance standard for primary generation shall
10be established at the lowest level that the Energy Commission
11determines to be technologically feasible without putting reliability
12of the electrical grid and of electric service at risk. The initial
13greenhouse gases emission performance standard for primary
14generation shall establish a rate of emissions of greenhouse gases
15that is 80 percent lower than the permissible rate of emissions of
16greenhouse gases for baseload generation in effect as of January
171, 2015. The Energy Commission, in consultation with the
18commission and the State Air Resources Board, shall update the
19greenhouse gases emission
performance standard for primary
20generation every five years based on new technology. The
21greenhouse gases emission performance standard for primary
22generation established by the Energy Commission for local publicly
23owned electric utilities shall be consistent with the standard adopted
24by the commission for load-serving entities. Enforcement of the
25greenhouse gases emission performance standard for primary
26generation shall begin on July 1, 2017.
27(2) The greenhouse gases emission performance standard for
28primary generation shall be adopted by regulation pursuant to the
29Administrative Procedure Act (Chapter 3.5 (commencing with
30Section 11340) of Part 1 of Division 3 of Title 2 of the Government
31Code).
32(3) In determining the rate of emissions of greenhouse gases
33for primary generation, the Energy Commission shall include the
34net emissions resulting from the production of electricity
by the
35primary generation.
36(4) The Energy Commission shall establish an output-based
37methodology to ensure that the calculation of emissions of
38greenhouse gases for cogeneration recognizes the total usable
39energy output of the process, and includes all greenhouse gases
P18 1emitted by the facility in the production of both electricity and
2thermal energy.
3(5) In calculating the emissions of greenhouse gases by facilities
4generating electricity from biomass, biogas, or landfill gas energy,
5the commission shall consider net emissions from the process of
6growing, processing, and generating the electricity from the fuel
7source.
8(6) Greenhouse gases that are injected in geological formations,
9so as to prevent releases into the atmosphere, commonly termed
10carbon capture and storage or carbon capture and sequestration,
11in
compliance with applicable laws and regulations, shall not be
12counted as emissions of the powerplant in determining compliance
13with the greenhouse gases emissions performance standard for
14primary generation.
15(7) In adopting and implementing the greenhouse gases emission
16performance standard for primary generation, the Energy
17Commission, in consultation with the Independent System
18Operator, shall consider the effects of the standard on system
19reliability and overall costs to electricity customers.
20(8) In developing and implementing the greenhouse gases
21emission performance standard for primary generation, the
22commission shall address long-term purchases of electricity from
23unspecified sources in a manner consistent with this chapter.
24(9) In developing and implementing the greenhouse gases
25emission performance standard
for primary generation, the Energy
26Commission shall consider and act in a manner consistent with
27any rules adopted pursuant to Section 824a-3 of Title 16 of the
28United States Code.
29(g) (1) On or before June 30, 2017, the Energy Commission,
30through a rulemaking proceeding, and in consultation with the
31commission and the State Air Resources Board, shall establish a
32greenhouse gases emission performance standard for all secondary
33generation of load-serving entities. The greenhouse gases emission
34performance standard for secondary generation shall be established
35at the lowest level that the Energy Commission determines to be
36technologically feasible without putting reliability of the electrical
37grid and of electric service at risk. The Energy Commission, in
38consultation with the commission and the State Air Resources
39Board, shall update the greenhouse gases emission performance
40standard for secondary generation every five
years based on new
P19 1technology. The greenhouse gases emission performance standard
2for secondary generation established by the Energy Commission
3for local publicly owned electric utilities shall be consistent with
4the standard adopted by the commission for load-serving entities.
5Enforcement of the greenhouse gases emission performance
6standard for secondary generation shall begin on July 1, 2017.
7(2) The greenhouse gases emission performance standard for
8secondary generation shall be adopted by regulation pursuant to
9the Administrative Procedure Act (Chapter 3.5 (commencing with
10Section 11340) of Part 1 of Division 3 of Title 2 of the Government
11Code).
12(3) In determining the rate of emissions of greenhouse gases
13for secondary generation, the Energy Commission shall include
14the net emissions resulting from the production of electricity by
15the secondary generation.
16(4) The Energy Commission shall establish an output-based
17methodology to ensure that the calculation of emissions of
18greenhouse gases for cogeneration recognizes the total usable
19energy output of the process, and includes all greenhouse gases
20emitted by the facility in the production of both electricity and
21thermal energy.
22(5) In calculating the emissions of greenhouse gases by facilities
23generating electricity from biomass, biogas, or landfill gas energy,
24the Energy Commission shall consider net emissions from the
25process of growing, processing, and generating the electricity from
26the fuel source.
27(6) Greenhouse gases that are injected in geological formations,
28so as to prevent releases into the atmosphere, commonly termed
29carbon capture and storage or carbon capture and sequestration,
30in compliance with applicable
laws and regulations, shall not be
31counted as emissions of the powerplant in determining compliance
32with the greenhouse gases emissions performance standard for
33secondary generation.
34(7) In adopting and implementing the greenhouse gases emission
35performance standard for secondary generation, the Energy
36Commission, in consultation with the Independent System
37Operator, shall consider the effects of the standard on system
38reliability and overall costs to electricity customers.
39(8) In developing and implementing the greenhouse gases
40emission performance standard for secondary generation, the
P20 1Energy Commission shall address long-term purchases of
2electricity from unspecified sources in a manner consistent with
3this chapter.
4(9) In developing and implementing the greenhouse gases
5emission performance standard for secondary
generation, the
6Energy Commission shall consider and act in a manner consistent
7with any rules adopted pursuant to Section 824a-3 of Title 16 of
8the United States Code.
9(h) This section shall become operative on January 1, 2017.
No reimbursement is required by this act pursuant to
11Section 6 of Article XIII B of the California Constitution because
12the only costs that may be incurred by a local agency or school
13district will be incurred because this act creates a new crime or
14infraction, eliminates a crime or infraction, or changes the penalty
15for a crime or infraction, within the meaning of Section 17556 of
16the Government Code, or changes the definition of a crime within
17the meaning of Section 6 of Article XIII B of the California
18Constitution.
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