SB 180, as amended, 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 emission performance standards for baseload generation with greenhouse gases emission performance standards for nonpeaking generation and peakingbegin delete generation, as defined.end deletebegin insert generation.end insert 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 nonpeaking generation of load-serving entities, and a separate standard for peaking 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 nonpeaking generation of local publicly owned electric utilities, and a separate standard for peaking generation. The bill would require that the greenhouse gases emission performance standard for nonpeaking generation and peaking generation be established at the lowest level that the respective 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 commissions update their respective greenhouse gases emission performance
standards every 5 years based on new technology. The bill would require that the greenhouse gases emission performance standard for nonpeaking generation that will take effect on July 1, 2027, establish a rate of emissions of greenhouse gases thatbegin delete is 80% lower than the permissible rate of emissions of greenhouse gases for baseload generation in effect as of January 1, 2015.end deletebegin insert has an initial cap that is not higher than the rate of emissions of greenhouse gases for the lowest-emitting combined-cycle natural gas powerplant in operation at that time.end insert
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 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 (CEQA) 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. CEQA authorizes the plan or other written documentation containing environmental information of state agencies to be submitted in lieu of an otherwise required environmental impact report if the Secretary of the Natural Resources Agency has certified the regulatory program in a specified manner.
This bill would provide that any carbon capture and storage project associated with an application for certification is a related facility for purposes of the certification of a thermal powerplant by the State Energy Resources Conservation and Development Commission and for purposes of the secretary’s authority with respect to a certified regulatory 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 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:
Any carbon capture and storage project associated with
4an application for certification is a related facility pursuant to this
5chapter and for purposes of Section 21080.5. For purposes of this
6section, “carbon capture and storage,” also known as carbon capture
7and sequestration, means any method authorized by the commission
8for preventing the release of greenhouse gases into the atmosphere,
9including the injection of carbon dioxide or other greenhouse gases
10into geological formations so as to prevent releases into the
11atmosphere.
The heading of Chapter 3 (commencing with Section
138340) of Division 4.1 of the Public Utilities Code is amended to
14read:
15
Section 8340 of the Public Utilities Code is amended
20to read:
For purposes of this chapter, the following terms have
22the following meanings:
23(a) “Baseload generation” means electricity generation from a
24powerplant that is designed and intended to provide electricity at
25an annualized plant capacity factor of at least 60 percent.
26(b) “Combined-cycle natural gas” with respect to a powerplant
27means the powerplant employs a combination of one or more gas
28turbines and steam turbines in which electricity is produced in the
29steam turbine from otherwise lost waste heat exiting from one or
30more of the gas turbines.
31(c) “Electric service provider” means an “electric service
32provider” as defined in Section 218.3, but does not include
33corporations or persons employing cogeneration technology or
34producing electricity from other than a conventional power source
35consistent with subdivision (b) of Section 218.
36(d) “Greenhouse gases” means those gases listed in Section
3738505 of the Health and Safety Code.
P5 1(e) “Load-serving entity” means every electrical corporation,
2electric service provider, or community choice aggregator serving
3end-use customers in the state.
4(f) “Long-term financial commitment” means either a new
5ownership investment in baseload generation or a new or renewed
6contract with a term of five or more years, which
includes
7procurement of baseload generation.
8(g) “Output-based methodology” means a greenhouse gases
9emission performance standard that is expressed in pounds of
10greenhouse gases emitted per megawatthour and factoring in the
11useful thermal energy employed for purposes other than the
12generation of electricity.
13(h) “Plant capacity factor” means the ratio of the electricity
14produced during a given time period, measured in kilowatthours,
15to the electricity the unit could have produced if it had been
16operated at its rated capacity during that period, expressed in
17kilowatthours.
18(i) “Powerplant” means a facility for the generation of electricity,
19and includes one or more generating units at the same location.
20(j) “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(k) This section shall become inoperative on July 1, 2017, and,
26as of January 1, 2018, is repealed.
Section 8340 is added to the Public Utilities Code, to
28read:
For purposes of this chapter, the following terms have
30the following meanings:
31(a) “Electric service provider” has the same meaning as defined
32in Section 218.3, but does not include corporations or persons
33employing cogeneration technology or producing electricity from
34other than a conventional power source consistent with subdivision
35(b) of Section 218.
36(b) “Exempt generation” means electricity generation from a
37powerplant that is designed and intended to provide electricity at
38an annualized plant capacity factor of less than 2 percent.
39(c)
end delete
P6 1begin insert(end insertbegin insertb)end insert “Greenhouse gases” means those gases listed in Section
238505 of the Health and Safety Code.
3(d)
end delete
4begin insert(end insertbegin insertc)end insert “Greenhouse gases emission performance standard” means
5the permissible levels of emissions of greenhouse gases established
6pursuant to Section 8341 for
nonpeaking generation and peaking
7generation.
8(e)
end delete
9begin insert(d)end insert “Load-serving entity” means every electrical corporation,
10electric service provider, or community choice aggregator serving
11end-use customers in the state.
12(f)
end delete
13begin insert(e)end insert “Long-term financial commitment” means either a new
14ownership
investment in nonpeaking generation or peaking
15generation or a new or renewed contract with a term of five or
16more years, which includes procurement of
nonpeaking generation
17or peaking generation.
18(g)
end delete
19begin insert(f)end insert “Nonpeaking generation” means electricity generation from
20a powerplant that is designed and intended to provide electricity
21at an annualized plant capacity factorbegin delete of at least 15 percent.end deletebegin insert to be
22determined by the commission and the Energy Commission, in
23consultation with the Independent System Operator. In making
24this determination, consideration shall be given to both current
25energy generation needs, as well as
energy generation needs as
26the greenhouse gases emission performance standards for
27nonpeaking generation are implemented.end insert “Nonpeaking powerplant”
28means a powerplant that provides nonpeaking generation.
29(h)
end delete
30begin insert(g)end insert “Output-based methodology” means a greenhouse gases
31emission performance standard that is expressed in pounds of
32greenhouse gases emitted per megawatthour and factoring in the
33useful thermal energy employed for purposes other than the
34generation of electricity.
35(i)
end delete
36begin insert(h)end insert “Peaking generation” means electricity generation from a
37powerplant that is designed and intended to provide electricity at
38an annualized plant capacity factorbegin delete of less than 15 percent and at begin insert to be determined by the commission and the Energy
39least 2 percent.end delete
40Commission, in consultation with the Independent Systemend insert
P7 1begin insert Operator. In making this determination, consideration shall be
2given to both current energy generation needs, as well as energy
3generation needs as the greenhouse gases emission performance
4standards for peaking generation are
implemented.end insert “Peaking
5powerplant” means a powerplant that provides peaking generation.
6(j)
end delete
7begin insert(i)end insert “Plant capacity factor” means the ratio of the electricity
8produced during a given time period, measured in kilowatthours,
9to the electricity the unit could have produced if it had been
10operated at its rated capacity during that period, expressed in
11kilowatthours.
12(k)
end delete
13begin insert(end insertbegin insertj)end insert “Powerplant” means a facility for the generation of electricity,
14and includes one or more generating units at the same location.
15(l)
end delete
16begin insert(end insertbegin insertk)end insert “Zero- or low-carbon generating resource” means an
17electrical generating resource that will generate electricity while
18producing emissions of greenhouse gases at a rate substantially
19below the greenhouse gases emission performance standard, as
20determined by the commission.
21(m)
end delete22begin insert(end insertbegin insertlend insertbegin insert)end insert This section shall become operative on January 1, 2017.
Section 8341 of the Public Utilities Code is amended
24to read:
(a) No load-serving entity or local publicly owned
26electric utility may enter into a long-term financial commitment
27unless any baseload generation supplied under the long-term
28financial commitment complies with the greenhouse gases emission
29performance standard established by the commission, pursuant to
30subdivision (d), for a load-serving entity, or by the Energy
31Commission, pursuant to subdivision (e), for a local publicly owned
32electric utility.
33(b) (1) The commission shall not approve a long-term financial
34commitment by an electrical corporation unless any baseload
35generation supplied under the long-term financial commitment
36complies
with the greenhouse gases emission performance standard
37established by the commission pursuant to subdivision (d).
38(2) The commission may, in order to enforce this section, review
39any long-term financial commitment proposed to be entered into
40by an electric service provider or a community choice aggregator.
P8 1(3) The commission shall adopt rules to enforce the requirements
2of this section, for load-serving entities. The commission shall
3adopt procedures, for all load-serving entities, to verify the
4emissions of greenhouse gases from any baseload generation
5supplied under a contract subject to the greenhouse gases emission
6performance standard to ensure compliance with the standard.
7(4) In determining whether a long-term financial
commitment
8is for baseload generation, the commission shall consider the design
9of the powerplant and the intended use of the powerplant, as
10determined by the commission based upon the electricity purchase
11contract, any certification received from the Energy Commission,
12any other permit or certificate necessary for the operation of the
13powerplant, including a certificate of public convenience and
14necessity, any procurement approval decision for the load-serving
15entity, and any other matter the commission determines is relevant
16under the circumstances.
17(5) Costs incurred by an electrical corporation to comply with
18this section, including those costs incurred for electricity purchase
19agreements that are approved by the commission that comply with
20the greenhouse gases emission performance standard, are to be
21treated as procurement costs
incurred pursuant to an approved
22procurement plan and the commission shall ensure timely cost
23recovery of those costs pursuant to paragraph (3) of subdivision
24(d) of Section 454.5.
25(6) A long-term financial commitment entered into through a
26contract approved by the commission, for electricity generated by
27a zero- or low-carbon generating resource that is contracted for,
28on behalf of consumers of this state on a cost-of-service basis,
29shall be recoverable in rates, in a manner determined by the
30commission consistent with Section 380. The commission may,
31after a hearing, approve an increase from one-half to 1 percent in
32the return on investment by the third party entering into the contract
33with an electrical corporation with respect to investment in zero-
34or low-carbon generation resources authorized pursuant to this
35subdivision.
36(c) (1) The Energy Commission shall adopt regulations for the
37enforcement of this chapter with respect to a local publicly owned
38electric utility.
39(2) The Energy Commission may, in order to ensure compliance
40with the greenhouse gases emission performance standard by local
P9 1publicly owned electric utilities, apply the procedures adopted by
2the commission to verify the emissions of greenhouse gases from
3baseload generation pursuant to subdivision (b).
4(3) In determining whether a long-term financial commitment
5is for baseload generation, the Energy Commission shall consider
6the design of the powerplant and the intended use of the
7powerplant, as determined by the Energy Commission based upon
8the
electricity purchase contract, any certification received from
9the Energy Commission, any other permit for the operation of the
10powerplant, any procurement approval decision for the load-serving
11entity, and any other matter the Energy Commission determines
12is relevant under the circumstances.
13(d) (1) On or before February 1, 2007, the commission, through
14a rulemaking proceeding, and in consultation with the Energy
15Commission and the State Air Resources Board, shall establish a
16greenhouse gases emission performance standard for all baseload
17generation of load-serving entities, at a rate of emissions of
18greenhouse gases that is no higher than the rate of emissions of
19greenhouse gases for combined-cycle natural gas baseload
20generation. Enforcement of the greenhouse gases emission
21performance standard shall begin immediately
upon the
22establishment of the standard. All combined-cycle natural gas
23powerplants that are in operation, or that have an Energy
24Commission final permit decision to operate as of June 30, 2007,
25shall be deemed to be in compliance with the greenhouse gases
26emission performance standard.
27(2) In determining the rate of emissions of greenhouse gases
28for baseload generation, the commission shall include the net
29emissions resulting from the production of electricity by the
30baseload generation.
31(3) The commission shall establish an output-based methodology
32to ensure that the calculation of emissions of greenhouse gases for
33cogeneration recognizes the total usable energy output of the
34process, and includes all greenhouse gases emitted by the facility
35in the production of both
electrical and thermal energy.
36(4) In calculating the emissions of greenhouse gases by facilities
37generating electricity from biomass, biogas, or landfill gas energy,
38the commission shall consider net emissions from the process of
39growing, processing, and generating the electricity from the fuel
40source.
P10 1(5) Carbon dioxide that is injected in geological formations, so
2as to prevent releases into the atmosphere, in compliance with
3applicable laws and regulations shall not be counted as emissions
4of the powerplant in determining compliance with the greenhouse
5gases emissions performance standard.
6(6) In adopting and implementing the greenhouse gases emission
7performance standard, the commission, in consultation with the
8Independent
System Operator shall consider the effects of the
9standard on system reliability and overall costs to electricity
10customers.
11(7) In developing and implementing the greenhouse gases
12emission performance standard, the commission shall address
13long-term purchases of electricity from unspecified sources in a
14manner consistent with this chapter.
15(8) In developing and implementing the greenhouse gases
16emission performance standard, the commission shall consider
17and act in a manner consistent with any rules adopted pursuant to
18Section 824a-3 of Title 16 of the United States Code.
19(9) An electrical corporation that provides electric service to
2075,000 or fewer retail end-use customers in California may file
21with the
commission a proposal for alternative compliance with
22this section, which the commission may accept upon a showing
23by the electrical corporation of both of the following:
24(A) A majority of the electrical corporation’s retail end-use
25customers for electric service are located outside of California.
26(B) The emissions of greenhouse gases to generate electricity
27for the retail end-use customers of the electrical corporation are
28subject to a review by the utility regulatory commission of at least
29one other state in which the electrical corporation provides
30regulated retail electric service.
31(e) (1) On or before June 30, 2007, the Energy Commission,
32at a duly noticed public hearing and in consultation with the
33commission
and the State Air Resources Board, shall establish a
34greenhouse gases emission performance standard for all baseload
35generation of local publicly owned electric utilities at a rate of
36emissions of greenhouse gases that is no higher than the rate of
37emissions of greenhouse gases for combined-cycle natural gas
38baseload generation. The greenhouse gases emission performance
39standard established by the Energy Commission for local publicly
40owned electric utilities shall be consistent with the standard adopted
P11 1by the commission for load-serving entities. Enforcement of the
2greenhouse gases emission performance standard shall begin
3immediately upon the establishment of the standard. All
4combined-cycle natural gas powerplants that are in operation, or
5that have an Energy Commission final permit decision to operate
6as of June 30, 2007, shall be deemed to be in compliance with the
7greenhouse gases emission
performance standard.
8(2) The greenhouse gases emission performance standard shall
9be adopted by regulation pursuant to the Administrative Procedure
10Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of
11Division 3 of Title 2 of the Government Code).
12(3) In determining the rate of emissions of greenhouse gases
13for baseload generation, the Energy Commission shall include the
14net emissions resulting from the production of electricity by the
15baseload 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 electrical 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) Carbon dioxide that is captured from the emissions of a
28powerplant and that is permanently disposed of in geological
29formations in compliance with applicable laws and regulations,
30shall not be counted as emissions from the powerplant.
31(7) In adopting and implementing the greenhouse gases emission
32performance standard, the Energy Commission, in consultation
33with the
Independent System Operator, shall consider the effects
34of the standard on system reliability and overall costs to electricity
35customers.
36(8) In developing and implementing the greenhouse gases
37emission performance standard, the Energy Commission shall
38address long-term purchases of electricity from unspecified sources
39in a manner consistent with this chapter.
P12 1(9) In developing and implementing the greenhouse gases
2emission performance standard, the Energy Commission shall
3consider and act in a manner consistent with any rules adopted
4pursuant to Section 824a-3 of Title 16 of the United States Code.
5(f) The Energy Commission, in a duly noticed public hearing
6and in consultation with the commission and the State Air
7Resources
Board, shall reevaluate and continue, modify, or replace
8the greenhouse gases emission performance standard when an
9enforceable greenhouse gases emissions limit is established and
10in operation, that is applicable to local publicly owned electric
11utilities.
12(g) The commission, through a rulemaking proceeding and in
13consultation with the Energy Commission and the State Air
14Resources Board, shall reevaluate and continue, modify, or replace
15the greenhouse gases emission performance standard when an
16enforceable greenhouse gases emissions limit is established and
17in operation, that is applicable to load-serving entities.
18(h) This section shall become inoperative on July 1, 2017, and,
19as of January 1, 2018, is repealed.
Section 8341 is added to the Public Utilities Code, to
21read:
(a) (1) Beginning July 1, 2017, no load-serving entity
23or local publicly owned electric utility may enter into a new
24long-term financial commitment unless any nonpeaking generation
25supplied under the long-term financial commitment complies with
26the greenhouse gases emission performance standard established
27by the commission, pursuant to subdivision (d), for a load-serving
28entity, or by the Energy Commission, pursuant to subdivision (f),
29for a local publicly owned electric utility.
30(2) Beginning July 1, 2017, no load-serving entity or local
31publicly owned electric utility may enter into a new long-term
32financial commitment unless any peaking
generation supplied
33under the long-term financial commitment complies with the
34greenhouse gases emission performance standard established by
35the commission, pursuant to subdivision (e), for a load-serving
36entity, or by the Energy Commission, pursuant to subdivision (g),
37for a local publicly owned electric utility.
38(3) Neither the commission nor the Energy Commission shall
39establish a greenhouse gases emission performance standard for
40exempt generation.
P13 1(3) Once a powerplant has all necessary permits or certificates
2to operate and has been deemed to comply with the applicable
3
greenhouse gases emission performance standard, the permitted
4or certificated greenhouse gases emission performance standard
5is the only greenhouse gases emission performance standard that
6shall govern the powerplant’s energy generation.
7(b) (1) (A) The commission shall not approve a long-term
8financial commitment by an electrical corporation unless the
9
nonpeaking generation supplied under the long-term financial
10commitment complies with the greenhouse gases emission
11performance standard established by the commission pursuant to
12subdivision (d).
13(B) The commission shall not approve a long-term financial
14commitment by an electrical corporation unless the peaking
15generation supplied under the long-term financial commitment
16complies with the greenhouse gases emission performance standard
17established by the commission pursuant to subdivision (e).
18(2) The commission may, in order to enforce this section, review
19any long-term financial commitment proposed to be entered into
20by an electric service provider or a community choice aggregator.
21(3) The commission
shall adopt rules to enforce the requirements
22of this section, for load-serving entities. The commission shall
23adopt procedures, for all load-serving entities, to verify the
24emissions of greenhouse gases from any nonpeaking generation
25or peaking generation supplied under a contract subject to the
26greenhouse gases emission performance standard to ensure
27compliance with the standard.
28(4) In determining whether a long-term financial commitment
29is for nonpeaking generation or peaking generation, the commission
30shall consider the design of the powerplant and the intended use
31of the powerplant, as determined by the commission based upon
32the electricity purchase contract, any certification received from
33the Energy Commission, any other permit or certificate necessary
34for the operation of the powerplant, including a certificate of public
35
convenience and necessity, any procurement approval decision
36for the load-serving entity, and any other matter the commission
37determines is relevant under the circumstances.
38(5) Costs incurred by an electrical corporation to comply with
39this section, including those costs incurred for electricity purchase
40agreements that are approved by the commission that comply with
P14 1the respective greenhouse gases emission performance standards,
2are to be treated as procurement costs incurred pursuant to an
3approved procurement plan and the commission shall ensure timely
4cost recovery of those costs pursuant to paragraph (3) of
5subdivision (d) of Section 454.5.
6(6) A long-term financial commitment entered into through a
7contract approved by the commission, for electricity generated by
8a
zero- or low-carbon generating resource that is contracted for,
9on behalf of consumers of this state on a cost-of-service basis,
10shall be recoverable in rates, in a manner determined by the
11commission consistent with Section 380. The commission may,
12after a hearing, approve an increase from one-half to 1 percent in
13the return on investment by the third party entering into the contract
14with an electrical corporation with respect to investment in zero-
15or low-carbon generation resources authorized pursuant to this
16paragraph.
17(c) (1) The Energy Commission shall adopt regulations for the
18
enforcement of this chapter with respect to a local publicly owned
19electric utility.
20(2) The Energy Commission may, in order to ensure compliance
21with the greenhouse gases emission performance standard by local
22publicly owned electric utilities, apply the procedures adopted by
23the commission to verify the emissions of greenhouse gases from
24nonpeaking generation and peaking generation pursuant to
25subdivision (b).
26(3) In determining whether a long-term financial commitment
27is for nonpeaking generation or peaking generation, the Energy
28Commission shall consider the design of the powerplant and the
29intended use of the powerplant, as determined by the Energy
30Commission based upon the electricity purchase contract, any
31certification received from the Energy Commission,
any other
32permit for the operation of the powerplant, any procurement
33approval decision for the load-serving entity, and any other matter
34the Energy Commission determines is relevant under the
35circumstances.
36(d) (1) On or before June 30, 2017, the commission, through a
37rulemaking proceeding, and in consultation with the Energy
38Commission and the State Air Resources Board, shall establish a
39greenhouse gases emission performance standard for all nonpeaking
40generation of load-serving entities. The greenhouse gases emission
P15 1performance standard for nonpeaking
generation shall be
2established at the lowest level that the commission determines to
3be technologically feasible without putting reliability of the
4electrical grid and of electric service at risk. Enforcement of the
5greenhouse gases emission performance standard for nonpeaking
6generation shall begin on July 1, 2017. The commission, in
7consultation with the Energy Commission and the State Air
8Resources Board, shall update the greenhouse gases emission
9performance standard for nonpeaking generation every five years
10based on new technology. The greenhouse gases emission
11performance standard for nonpeaking generation that will take
12effect on July 1, 2027, shall establish a rate of emissions of
13greenhouse gases thatbegin delete is 80 percent lower than the permissible rate begin insert
has an initial cap that is not higher than
14of emissions of greenhouse gases for baseload generation in effect
15as of January 1, 2015.end delete
16the rate of emissions of greenhouse gases for the lowest-emitting
17combined-cycle natural gas powerplant in operationend insertbegin insert at that time.end insert
18(2) In determining the rate of emissions of greenhouse gases
19for nonpeaking generation, the commission shall include the net
20emissions resulting from the production of electricity by the
21nonpeaking generation.
22(3) The commission shall establish an output-based methodology
23to ensure that the calculation of emissions of greenhouse gases for
24cogeneration recognizes the total usable energy output of the
25process, and includes all greenhouse gases emitted by the facility
26in the production of both
electricity and thermal energy.
27(4) In calculating the emissions of greenhouse gases by facilities
28generating electricity from biomass, biogas, or landfill gas energy,
29the commission shallbegin delete consider net emissions from the process of begin insert
reconsider and modify its prior decisions implementing
30growing, processing, and generating the electricity from the fuel
31source.end delete
32this section, including,end insertbegin insert but not limited to, D.07-01-039, in light of
33the best and most recent scientific information available regarding
34methodologies for determining the greenhouse gas emissions
35associated with producing energy from different biomass
36feedstocks.end insert
37(5) Greenhouse gases that are
prevented from being released
38into the atmosphere as a result of carbon capture and storage or
39carbon capture and sequestration, in compliance with applicable
40laws and regulations, shall not be counted as emissions of the
P16 1powerplant in determining compliance with the greenhouse gases
2emission performance standard for nonpeaking generation.
3(6) In adopting and implementing the greenhouse gases emission
4performance standard for nonpeaking generation, the commission,
5in consultation with the Independent System Operator, shall
6consider the effects of the standard on system reliability and overall
7costs to electricity customers.
8(7) In developing and implementing the greenhouse gases
9emission performance standard for nonpeaking generation, the
10commission
shall address long-term purchases of electricity from
11unspecified sources in a manner consistent with this chapter.
12(8) In developing and implementing the greenhouse gases
13emission performance standard for nonpeaking generation, the
14commission shall consider and act in a manner consistent with any
15rules adopted pursuant to Section 824a-3 of Title 16 of the United
16States Code.
17(9) An electrical corporation that provides electric service to
1875,000 or fewer retail end-use customers in California may file
19with the commission a proposal for alternative compliance with
20this subdivision, which the commission may accept upon a showing
21by the electrical corporation of both of the following:
22(A) A majority of the electrical
corporation’s retail end-use
23customers for electric service are located outside of California.
24(B) The emissions of greenhouse gases to generate electricity
25for the retail end-use customers of the electrical corporation are
26subject to a review by the utility regulatory commission of at least
27one other state in which the electrical corporation provides
28regulated retail electric service.
29(e) (1) On or before June 30, 2017, the commission, through a
30rulemaking proceeding, and in consultation with the Energy
31Commission and the State Air Resources Board, shall establish a
32greenhouse gases emission performance standard for all peaking
33generation of load-serving entities. The greenhouse gases emission
34performance standard for peaking generation shall be
established
35at the lowest level that the commission determines to be
36technologically feasible without putting reliability of the electrical
37grid and of electric service at risk. Enforcement of the greenhouse
38gases emission performance standard for peaking generation shall
39begin on July 1, 2017. The commission, in consultation with the
40Energy Commission and the State Air Resources Board, shall
P17 1update the greenhouse gases emission performance standard for
2peaking generation every five years based on new technology.
3(2) In determining the rate of emissions of greenhouse gases
4for peaking generation, the commission shall include the net
5emissions resulting from the production of electricity by the
6peaking generation.
7(3) The commission shall establish an output-based methodology
8to
ensure that the calculation of emissions of greenhouse gases for
9cogeneration recognizes the total usable energy output of the
10process, and includes all greenhouse gases emitted by the facility
11in the production of both electrical and thermal energy.
12(4) In calculating the emissions of greenhouse gases by facilities
13generating electricity from biomass, biogas, or landfill gas energy,
14the commission shallbegin delete consider net emissions from the process of begin insert reconsider and modify its prior decisions implementing
15growing, processing, and generating the electricity from the fuel
16source.end delete
17this section, including, but not limited to, D.07-01-039, in light of
18the best and most recent scientific information available
regarding
19methodologies for determining the greenhouse gas emissions
20associated with producing energy from different biomass
21feedstocks.end insert
22(5) Greenhouse gases that are
prevented from being released
23into the atmosphere as a result of carbon capture and storage or
24carbon capture and sequestration, in compliance with applicable
25laws and regulations, shall not be counted as emissions of the
26powerplant in determining compliance with the greenhouse gases
27emission performance standard for peaking generation.
28(6) In adopting and implementing the greenhouse gases emission
29performance standard for peaking generation, the commission, in
30consultation with the Independent System Operator, shall consider
31the effects of the standard on system reliability and overall costs
32to electricity customers.
33(7) In developing and implementing the greenhouse gases
34emission performance standard for peaking generation, the
35commission shall
address long-term purchases of electricity from
36unspecified sources in a manner consistent with this chapter.
37(8) In developing and implementing the greenhouse gases
38emission performance standard for peaking generation, the
39commission shall consider and act in a manner consistent with any
P18 1rules adopted pursuant to Section 824a-3 of Title 16 of the United
2States Code.
3(9) An electrical corporation that provides electric service to
475,000 or fewer retail end-use customers in California may file
5with the commission a proposal for alternative compliance with
6this subdivision, which the commission may accept upon a showing
7by the electrical corporation of both of the following:
8(A) A majority of the electrical corporation’s
retail end-use
9customers for electric service are located outside of California.
10(B) The emissions of greenhouse gases to generate electricity
11for the retail end-use customers of the electrical corporation are
12subject to a review by the utility regulatory commission of at least
13one other state in which the electrical corporation provides
14regulated retail electric service.
15(f) (1) On or before June 30, 2017, the Energy Commission, at
16a duly noticed public hearing and in consultation with the
17commission and the State Air Resources Board, shall establish a
18greenhouse gases emission performance standard for all nonpeaking
19generation of local publicly owned electric utilities. The greenhouse
20gases emission performance standard for
nonpeaking generation
21shall be established at the lowest level that the Energy Commission
22determines to be technologically feasible without putting reliability
23of the electrical grid and of electric service at risk.
The greenhouse
24gases emission performance standard for nonpeaking generation
25established by the Energy Commission for local publicly owned
26electric utilities shall be consistent with the standard adopted by
27the commission for load-serving entities. Enforcement of the
28greenhouse gases emission performance standard for nonpeaking
29generation shall begin on July 1, 2017. The Energy Commission,
30in consultation with the commission and the State Air Resources
31Board, shall update the greenhouse gases emission performance
32standard for nonpeaking generation every five years based on new
33technology. The greenhouse gases emission performance standard
34for nonpeaking generation that will take effect on July 1, 2027,
35shall establish a rate of emissions of greenhouse gases thatbegin delete is 80 begin insert
has
36percent lower than the permissible rate of emissions of greenhouse
37gases for baseload generation in effect as of January 1, 2015.end delete
38an initial cap that is not higher than the rate of emissions of
39greenhouse gases for the lowest-emitting combined-cycle natural
40gas powerplant in operationend insertbegin insert at that time.end insert
P19 1(2) The greenhouse gases emission performance standard for
2 nonpeaking generation shall be adopted by regulation pursuant to
3the Administrative Procedure Act (Chapter 3.5 (commencing with
4Section 11340) of Part 1 of Division 3 of Title 2 of the Government
5Code).
6(3) In determining the rate of emissions of greenhouse gases
7for nonpeaking generation, the Energy Commission shall include
8the net emissions resulting from the production of electricity by
9the nonpeaking generation.
10(4) The Energy Commission shall establish an output-based
11methodology to ensure that the calculation of emissions of
12greenhouse gases for cogeneration recognizes the total usable
13energy output of the process, and includes all greenhouse gases
14emitted by the facility in the production of both electricity and
15thermal energy.
16(5) In calculating the emissions of greenhouse gases by facilities
17generating electricity from biomass, biogas, or landfill gas energy,
18thebegin delete commissionend deletebegin insert Energy Commissionend insert shallbegin delete consider net emissions begin insert
act consistent with the
19from the process of growing, processing, and generating the
20electricity from the fuel source.end delete
21commission’s reconsideration and modification of its prior
22decisions implementing this section, including, but not limited to,
23D.07-01-039, in light of the best and most recent scientific
24information available regarding methodologies for determining
25the greenhouse gas emissions associated with producing energy
26from different biomass feedstocks.end insert
27(6) Greenhouse gases that are
prevented from being released
28into the atmosphere as a result of carbon capture and storage or
29carbon capture and sequestration, in compliance with applicable
30laws and regulations, shall not be counted as emissions of the
31powerplant in determining compliance with the greenhouse gases
32emission performance standard for nonpeaking generation.
33(7) In adopting and implementing the greenhouse gases emission
34performance standard for nonpeaking generation, the Energy
35Commission, in consultation with the Independent System
36Operator, shall consider the effects of the standard on system
37reliability and overall costs to electricity customers.
38(8) In developing and implementing the greenhouse gases
39emission performance standard for nonpeaking generation, the
P20 1
commission shall address long-term purchases of electricity from
2unspecified sources in a manner consistent with this chapter.
3(9) In developing and implementing the greenhouse gases
4emission performance standard for nonpeaking generation, the
5Energy Commission shall consider and act in a manner consistent
6with any rules adopted pursuant to Section 824a-3 of Title 16 of
7the United States Code.
8(g) (1) On or before June 30, 2017, the Energy Commission,
9through a rulemaking proceeding, and in consultation with the
10commission and the State Air Resources Board, shall establish a
11greenhouse gases emission performance standard for all peaking
12generation of load-serving entities. The greenhouse gases emission
13performance standard for peaking generation shall be
established
14at the lowest level that the Energy Commission determines to be
15technologically feasible without putting reliability of the electrical
16grid and of electric service at risk. The greenhouse gases emission
17performance standard for peaking generation established by the
18Energy Commission for local publicly owned electric
utilities shall
19be consistent with the standard adopted by the commission for
20load-serving entities. Enforcement of the greenhouse gases
21emission performance standard for peaking generation shall begin
22on July 1, 2017. The Energy Commission, in consultation with the
23commission and the State Air Resources Board, shall update the
24greenhouse gases emission performance standard for peaking
25generation every five years based on new technology.
26(2) The greenhouse gases emission performance standard for
27
peaking generation shall be adopted by regulation pursuant to the
28Administrative Procedure Act (Chapter 3.5 (commencing with
29Section 11340) of Part 1 of Division 3 of Title 2 of the Government
30Code).
31(3) In determining the rate of emissions of greenhouse gases
32for peaking generation, the Energy Commission shall include the
33net emissions resulting from the production of electricity by the
34peaking generation.
35(4) The Energy Commission shall establish an output-based
36methodology to ensure that the calculation of emissions of
37greenhouse gases for cogeneration recognizes the total usable
38energy output of the process, and includes all greenhouse gases
39emitted by the facility in the production of both electricity and
40thermal energy.
P21 1(5) In calculating the emissions of greenhouse gases by facilities
2generating electricity from biomass, biogas, or landfill gas energy,
3the Energy Commission shallbegin delete consider net emissions from the begin insert act consistent with the commission’s
4process of growing, processing, and generating the electricity from
5the fuel source.end delete
6reconsideration and modification of its prior decisions
7implementing this section, including, but not limited to,
8D.07-01-039, in light of the best and most recent scientific
9information available regarding methodologies for determining
10the greenhouse gas emissions associated with producing energy
11from different biomass feedstocks.end insert
12(6) Greenhouse gases that are
prevented from being released
13into the atmosphere as a result of carbon capture and storage or
14carbon capture and sequestration, in compliance with applicable
15laws and regulations, shall not be counted as emissions of the
16powerplant in determining compliance with the greenhouse gases
17emission performance standard for peaking generation.
18(7) In adopting and implementing the greenhouse gases emission
19performance standard for peaking generation, the Energy
20Commission, in consultation with the Independent System
21Operator, shall consider the effects of the standard on system
22reliability and overall costs to electricity customers.
23(8) In developing and implementing the greenhouse gases
24emission performance standard for peaking generation, the Energy
25
Commission shall address long-term purchases of electricity from
26unspecified sources in a manner consistent with this chapter.
27(9) In developing and implementing the greenhouse gases
28emission performance standard for peaking generation, the Energy
29Commission shall consider and act in a manner consistent with
30any rules adopted pursuant to Section 824a-3 of Title 16 of the
31United States Code.
32(h) (1) It is the intent of the Legislature that the greenhouse
33gases emission performance standard operate in a prospective
34manner.
35(2) (A) A nonpeaking powerplant that has all necessary permits
36or certificates to operate at the time it commences operation may
37continue to operate
and provide nonpeaking generation for its
38anticipated useful life and need not comply with a greenhouse
39gases emission performance standard adopted after it commences
40operation.
P22 1(B) A nonpeaking powerplant that meets the applicable
2greenhouse gases emission performance standard at the time it
3commences operation may continue to operate and provide
4nonpeaking generation for its anticipated useful life and need not
5comply with a more stringent greenhouse gases emission
6performance standard adopted after it commences operation.
7(3) (A) A peaking powerplant that has all necessary permits or
8certificates to operate at the time it commences operation may
9continue to operate and provide peaking generation for its
10anticipated useful life and need not comply with a
greenhouse
11gases emission performance standard adopted after it commences
12operation.
13(B) A peaking powerplant that meets the applicable greenhouse
14gases emission performance standard at the time it commences
15operation may continue to operate and provide peaking generation
16for its anticipated useful life and need not comply with a more
17stringent greenhouse gases emission performance standard adopted
18after it commences operation.
19(4) (A) The commission shall determine the anticipated useful
20life of a nonpeaking or peaking powerplant and when that
21powerplant commences or commenced operation for a load-serving
22entity.
23(B) The Energy Commission shall determine the anticipated
24useful life of
a nonpeaking or peaking powerplant and when that
25powerplant commences or commenced operation for a local
26publicly owned electric utility.
27(i) This section shall become operative on January 1, 2017.
No reimbursement is required by this act pursuant to
29Section 6 of Article XIII B of the California Constitution because
30the only costs that may be incurred by a local agency or school
31district will be incurred because this act creates a new crime or
32infraction, eliminates a crime or infraction, or changes the penalty
33for a crime or infraction, within the meaning of Section 17556 of
34the Government Code, or changes the definition of a crime within
35the meaning of Section 6 of Article XIII B of the California
36Constitution.
O
97