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 peaking generation. 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.begin delete The bill would require the
commissions to assess the effects of potential greenhouse gases emission performance standards for nonpeaking generation and peaking generation and would prohibit the commissions from establishing their respective greenhouse gases emission performance standards unless the commissions make certain determinations.end delete 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, 2017, establish a rate of emissions of greenhouse gases that 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, as specified.
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 that prevents the release of
8greenhouse gases into the
atmosphere.
The heading of Chapter 3 (commencing with Section
108340) of Division 4.1 of the Public Utilities Code is amended to
11read:
12
Section 8340 of the Public Utilities Code is amended
17to read:
For purposes of this chapter, the following terms have
19the following meanings:
20(a) “Baseload generation” means electricity generation from a
21powerplant that is designed and intended to provide electricity at
22an annualized plant capacity factor of at least 60 percent.
23(b) “Combined-cycle natural gas” with respect to a powerplant
24means the powerplant employs a combination of one or more gas
25turbines and steam turbines in which electricity is produced in the
26steam turbine from otherwise lost waste heat exiting from one or
27more of the gas turbines.
28(c) “Electric service provider” means an “electric service
29provider” as defined in Section 218.3, but does not include
30corporations or persons employing cogeneration technology or
P5 1producing electricity from other than a conventional power source
2consistent with subdivision (b) of Section 218.
3(d) “Greenhouse gases” means those gases listed in Section
438505 of the Health and Safety Code.
5(e) “Load-serving entity” means every electrical corporation,
6electric service provider, or community choice aggregator serving
7end-use customers in the state.
8(f) “Long-term financial commitment” means either a new
9ownership investment in baseload generation or a new or renewed
10contract with a term of five or more years, which
includes
11procurement of baseload generation.
12(g) “Output-based methodology” means a greenhouse gases
13emission performance standard that is expressed in pounds of
14greenhouse gases emitted per megawatthour and factoring in the
15useful thermal energy employed for purposes other than the
16generation of electricity.
17(h) “Plant capacity factor” means the ratio of the electricity
18produced during a given time period, measured in kilowatthours,
19to the electricity the unit could have produced if it had been
20operated at its rated capacity during that period, expressed in
21kilowatthours.
22(i) “Powerplant” means a facility for the generation of electricity,
23and includes one or more generating units at the same location.
24(j) “Zero- or low-carbon generating resource” means an
25electrical generating resource that will generate electricity while
26producing emissions of greenhouse gases at a rate substantially
27below the greenhouse gases emission performance standard, as
28determined by the commission.
29(k) This section shall become inoperative on July 1, 2017, and,
30as of January 1, 2018, is repealed.
Section 8340 is added to the Public Utilities Code, to
32read:
For purposes of this chapter, the following terms have
34the following meanings:
35(a) “Electric service provider” has the same meaning as defined
36in Section 218.3, but does not include corporations or persons
37employing cogeneration technology or producing electricity from
38other than a conventional power source consistent with subdivision
39(b) of Section 218.
P6 1(b) “Greenhouse gases” means those gases listed in Section
238505 of the Health and Safety Code.
3(c) “Greenhouse gases emission performance standard” means
4the permissible levels of emissions of greenhouse gases
established
5pursuant to Section 8341 for nonpeaking generation and peaking
6generation.
7(d) “Load-serving entity” means every electrical corporation,
8electric service provider, or community choice aggregator serving
9end-use customers in the state.
10(e) “Long-term financial commitment” means either a new
11ownership investment in nonpeaking generation or peaking
12generation or a new or renewed contract with a term of five or
13more years, which includes procurement of nonpeaking generation
14or peaking generation.
15(f) “Nonpeaking generation” means electricity generation from
16a powerplant that is designed and intended to provide electricity
17at an annualized plant capacity factor to be determined by the
18commission and the
Energy Commission, in consultation with the
19Independent System Operator. In making this determination,
20consideration shall be given to both current energy generation
21needs, as well as energy generation needs as the greenhouse gases
22emission performance standards for nonpeaking generation are
23implemented. “Nonpeaking powerplant” means a powerplant that
24provides nonpeaking generation.
25(g) “Output-based methodology” means a greenhouse gases
26emission performance standard that is expressed in pounds of
27greenhouse gases emitted per megawatthour and factoring in the
28useful thermal energy employed for purposes other than the
29generation of electricity.
30(h) “Peaking generation” means electricity generation from a
31powerplant that is designed and intended to provide electricity at
32an
annualized plant capacity factor to be determined by the
33commission and the Energy Commission, in consultation with the
34Independent System Operator. In making this determination,
35consideration shall be given to both current energy generation
36needs, as well as energy generation needs as the greenhouse gases
37emission performance standards for peaking generation are
38implemented. “Peaking powerplant” means a powerplant that
39provides peaking generation.
P7 1(i) “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(j) “Powerplant” means a facility for the generation of
electricity,
7
and includes one or more generating units at the same location.
8(k) “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(l) This section shall become operative on January 1, 2017.
Section 8341 of the Public Utilities Code is amended
15to read:
(a) No load-serving entity or local publicly owned
17electric utility may enter into a long-term financial commitment
18unless any baseload generation supplied under the long-term
19financial commitment complies with the greenhouse gases emission
20performance standard established by the commission, pursuant to
21subdivision (d), for a load-serving entity, or by the Energy
22Commission, pursuant to subdivision (e), for a local publicly owned
23electric utility.
24(b) (1) The commission shall not approve a long-term financial
25commitment by an electrical corporation unless any baseload
26generation supplied under the long-term financial commitment
27complies
with the greenhouse gases emission performance standard
28established by the commission pursuant to subdivision (d).
29(2) The commission may, in order to enforce this section, review
30any long-term financial commitment proposed to be entered into
31by an electric service provider or a community choice aggregator.
32(3) The commission shall adopt rules to enforce the requirements
33of this section, for load-serving entities. The commission shall
34adopt procedures, for all load-serving entities, to verify the
35emissions of greenhouse gases from any baseload generation
36supplied under a contract subject to the greenhouse gases emission
37performance standard to ensure compliance with the standard.
38(4) In determining whether a long-term financial
commitment
39is for baseload generation, the commission shall consider the design
40of the powerplant and the intended use of the powerplant, as
P8 1determined by the commission based upon the electricity purchase
2contract, any certification received from the Energy Commission,
3any other permit or certificate necessary for the operation of the
4powerplant, including a certificate of public convenience and
5necessity, any procurement approval decision for the load-serving
6entity, and any other matter the commission determines is relevant
7under the circumstances.
8(5) Costs incurred by an electrical corporation to comply with
9this section, including those costs incurred for electricity purchase
10agreements that are approved by the commission that comply with
11the greenhouse gases emission performance standard, are to be
12treated as procurement costs
incurred pursuant to an approved
13procurement plan and the commission shall ensure timely cost
14recovery of those costs pursuant to paragraph (3) of subdivision
15(d) of Section 454.5.
16(6) A long-term financial commitment entered into through a
17contract approved by the commission, for electricity generated by
18a zero- or low-carbon generating resource that is contracted for,
19on behalf of consumers of this state on a cost-of-service basis,
20shall be recoverable in rates, in a manner determined by the
21commission consistent with Section 380. The commission may,
22after a hearing, approve an increase from one-half to 1 percent in
23the return on investment by the third party entering into the contract
24with an electrical corporation with respect to investment in zero-
25or low-carbon generation resources authorized pursuant to this
26subdivision.
27(c) (1) The Energy Commission shall adopt regulations for the
28enforcement of this chapter with respect to a local publicly owned
29electric utility.
30(2) The Energy Commission may, in order to ensure compliance
31with the greenhouse gases emission performance standard by local
32publicly owned electric utilities, apply the procedures adopted by
33the commission to verify the emissions of greenhouse gases from
34baseload generation pursuant to subdivision (b).
35(3) In determining whether a long-term financial commitment
36is for baseload generation, the Energy Commission shall consider
37the design of the powerplant and the intended use of the
38powerplant, as determined by the Energy Commission based upon
39the
electricity purchase contract, any certification received from
40the Energy Commission, any other permit for the operation of the
P9 1powerplant, any procurement approval decision for the load-serving
2entity, and any other matter the Energy Commission determines
3is relevant under the circumstances.
4(d) (1) On or before February 1, 2007, the commission, through
5a rulemaking proceeding, and in consultation with the Energy
6Commission and the State Air Resources Board, shall establish a
7greenhouse gases emission performance standard for all baseload
8generation of load-serving entities, at a rate of emissions of
9greenhouse gases that is no higher than the rate of emissions of
10greenhouse gases for combined-cycle natural gas baseload
11generation. Enforcement of the greenhouse gases emission
12performance standard shall begin immediately
upon the
13establishment of the standard. All combined-cycle natural gas
14powerplants that are in operation, or that have an Energy
15Commission final permit decision to operate as of June 30, 2007,
16shall be deemed to be in compliance with the greenhouse gases
17emission performance standard.
18(2) In determining the rate of emissions of greenhouse gases
19for baseload generation, the commission shall include the net
20emissions resulting from the production of electricity by the
21baseload 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
electrical 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 shall consider net emissions from the process of
30growing, processing, and generating the electricity from the fuel
31source.
32(5) Carbon dioxide that is injected in geological formations, so
33as to prevent releases into the atmosphere, in compliance with
34applicable laws and regulations shall not be counted as emissions
35of the powerplant in determining compliance with the greenhouse
36gases emissions performance standard.
37(6) In adopting and implementing the greenhouse gases emission
38performance standard, the commission, in consultation with the
39Independent
System Operator shall consider the effects of the
P10 1standard on system reliability and overall costs to electricity
2customers.
3(7) In developing and implementing the greenhouse gases
4emission performance standard, the commission shall address
5long-term purchases of electricity from unspecified sources in a
6manner consistent with this chapter.
7(8) In developing and implementing the greenhouse gases
8emission performance standard, the commission shall consider
9and act in a manner consistent with any rules adopted pursuant to
10Section 824a-3 of Title 16 of the United States Code.
11(9) An electrical corporation that provides electric service to
1275,000 or fewer retail end-use customers in California may file
13with the
commission a proposal for alternative compliance with
14this section, which the commission may accept upon a showing
15by the electrical corporation of both of the following:
16(A) A majority of the electrical corporation’s retail end-use
17customers for electric service are located outside of California.
18(B) The emissions of greenhouse gases to generate electricity
19for the retail end-use customers of the electrical corporation are
20subject to a review by the utility regulatory commission of at least
21one other state in which the electrical corporation provides
22regulated retail electric service.
23(e) (1) On or before June 30, 2007, the Energy Commission,
24at a duly noticed public hearing and in consultation with the
25commission
and the State Air Resources Board, shall establish a
26greenhouse gases emission performance standard for all baseload
27generation of local publicly owned electric utilities at a rate of
28emissions of greenhouse gases that is no higher than the rate of
29emissions of greenhouse gases for combined-cycle natural gas
30baseload generation. The greenhouse gases emission performance
31standard established by the Energy Commission for local publicly
32owned electric utilities shall be consistent with the standard adopted
33by the commission for load-serving entities. Enforcement of the
34greenhouse gases emission performance standard shall begin
35immediately upon the establishment of the standard. All
36combined-cycle natural gas powerplants that are in operation, or
37that have an Energy Commission final permit decision to operate
38as of June 30, 2007, shall be deemed to be in compliance with the
39greenhouse gases emission
performance standard.
P11 1(2) The greenhouse gases emission performance standard shall
2be adopted by regulation pursuant to the Administrative Procedure
3Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of
4Division 3 of Title 2 of the Government Code).
5(3) In determining the rate of emissions of greenhouse gases
6for baseload generation, the Energy Commission shall include the
7net emissions resulting from the production of electricity by the
8baseload generation.
9(4) The Energy Commission shall establish an output-based
10methodology to ensure that the calculation of emissions of
11greenhouse gases for cogeneration recognizes the total usable
12energy output of the process, and includes all greenhouse gases
13emitted by
the facility in the production of both electrical and
14thermal energy.
15(5) In calculating the emissions of greenhouse gases by facilities
16generating electricity from biomass, biogas, or landfill gas energy,
17the Energy Commission shall consider net emissions from the
18process of growing, processing, and generating the electricity from
19the fuel source.
20(6) Carbon dioxide that is captured from the emissions of a
21powerplant and that is permanently disposed of in geological
22formations in compliance with applicable laws and regulations,
23shall not be counted as emissions from the powerplant.
24(7) In adopting and implementing the greenhouse gases emission
25performance standard, the Energy Commission, in consultation
26with the
Independent System Operator, shall consider the effects
27of the standard on system reliability and overall costs to electricity
28customers.
29(8) In developing and implementing the greenhouse gases
30emission performance standard, the Energy Commission shall
31address long-term purchases of electricity from unspecified sources
32in a manner consistent with this chapter.
33(9) In developing and implementing the greenhouse gases
34emission performance standard, the Energy Commission shall
35consider and act in a manner consistent with any rules adopted
36pursuant to Section 824a-3 of Title 16 of the United States Code.
37(f) The Energy Commission, in a duly noticed public hearing
38and in consultation with the commission and the State Air
39Resources
Board, shall reevaluate and continue, modify, or replace
40the greenhouse gases emission performance standard when an
P12 1enforceable greenhouse gases emissions limit is established and
2in operation, that is applicable to local publicly owned electric
3utilities.
4(g) The commission, through a rulemaking proceeding and in
5consultation with the Energy Commission and the State Air
6Resources Board, shall reevaluate and continue, modify, or replace
7the greenhouse gases emission performance standard when an
8enforceable greenhouse gases emissions limit is established and
9in operation, that is applicable to load-serving entities.
10(h) This section shall become inoperative on July 1, 2017, and,
11as of January 1, 2018, is repealed.
Section 8341 is added to the Public Utilities Code, to
13read:
(a) (1) Beginning July 1, 2017, no load-serving entity
15or local publicly owned electric utility may enter into a new
16long-term financial commitment unless any nonpeaking generation
17supplied under the long-term financial commitment complies with
18the greenhouse gases emission performance standard established
19by the commission, pursuant to subdivision (d), for a load-serving
20entity, or by the Energy Commission, pursuant to subdivision (f),
21for a local publicly owned electric utility.
22(2) Beginning July 1, 2017, no load-serving entity or local
23publicly owned electric utility may enter into a new long-term
24financial commitment unless any peaking
generation supplied
25under the long-term financial commitment complies with the
26greenhouse gases emission performance standard established by
27the commission, pursuant to subdivision (e), for a load-serving
28entity, or by the Energy Commission, pursuant to subdivision (g),
29for a local publicly owned electric utility.
30(3) Once a powerplant has all necessary permits or certificates
31to operate and has been deemed to comply with the applicable
32
greenhouse gases emission performance standard, the permitted
33or certificated greenhouse gases emission performance standard
34is the only greenhouse gases emission performance standard that
35shall govern the powerplant’s energy generation.
36(b) (1) (A) The commission shall not approve a long-term
37financial commitment by an electrical corporation unless the
38
nonpeaking generation supplied under the long-term financial
39commitment complies with the greenhouse gases emission
P13 1performance standard established by the commission pursuant to
2subdivision (d).
3(B) The commission shall not approve a long-term financial
4commitment by an electrical corporation unless the peaking
5generation supplied under the long-term financial commitment
6complies with the greenhouse gases emission performance standard
7established by the commission pursuant to subdivision (e).
8(2) The commission may, in order to enforce this section, review
9any long-term financial commitment proposed to be entered into
10by an electric service provider or a community choice aggregator.
11(3) The commission
shall adopt rules to enforce the requirements
12of this section, for load-serving entities. The commission shall
13adopt procedures, for all load-serving entities, to verify the
14emissions of greenhouse gases from any nonpeaking generation
15or peaking generation supplied under a contract subject to the
16greenhouse gases emission performance standard to ensure
17compliance with the standard.
18(4) In determining whether a long-term financial commitment
19is for nonpeaking generation or peaking generation, the commission
20shall consider the design of the powerplant and the intended use
21of the powerplant, as determined by the commission based upon
22the electricity purchase contract, any certification received from
23the Energy Commission, any other permit or certificate necessary
24for the operation of the powerplant, including a certificate of public
25
convenience and necessity, any procurement approval decision
26for the load-serving entity, and any other matter the commission
27determines is relevant under the circumstances.
28(5) Costs incurred by an electrical corporation to comply with
29this section, including those costs incurred for electricity purchase
30agreements that are approved by the commission that comply with
31the respective greenhouse gases emission performance standards,
32are to be treated as procurement costs incurred pursuant to an
33approved procurement plan and the commission shall ensure timely
34cost recovery of those costs pursuant to paragraph (3) of
35subdivision (d) of Section 454.5.
36(6) A long-term financial commitment entered into through a
37contract approved by the commission, for electricity generated
by
38a zero- or low-carbon generating resource that is contracted for,
39on behalf of consumers of this state on a cost-of-service basis,
40shall be recoverable in rates, in a manner determined by the
P14 1commission consistent with Section 380. The commission may,
2after a hearing, approve an increase from one-half to 1 percent in
3the return on investment by the third party entering into the contract
4with an electrical corporation with respect to investment in zero-
5or low-carbon generation resources authorized pursuant to this
6paragraph.
7(c) (1) The Energy Commission shall adopt regulations for the
8
enforcement of this chapter with respect to a local publicly owned
9electric utility.
10(2) The Energy Commission may, in order to ensure compliance
11with the greenhouse gases emission performance standard by local
12publicly owned electric utilities, apply the procedures adopted by
13the commission to verify the emissions of greenhouse gases from
14nonpeaking generation and peaking generation pursuant to
15subdivision (b).
16(3) In determining whether a long-term financial commitment
17is for nonpeaking generation or peaking generation, the Energy
18Commission shall consider the design of the powerplant and the
19intended use of the powerplant, as determined by the Energy
20Commission based upon the electricity purchase contract, any
21certification received from the Energy
Commission, any other
22permit for the operation of the powerplant, any procurement
23approval decision for the load-serving entity, and any other matter
24the Energy Commission determines is relevant under the
25circumstances.
26(d) (1) On or before June 30, 2017, the commission, through a
27rulemaking proceeding, and in consultation with the Energy
28Commission and the State Air Resources Board, shall establish a
29greenhouse gases emission performance standard for all nonpeaking
30generation of load-serving entities. The greenhouse gases emission
31performance standard for nonpeaking generation shall be
32established at the lowest level that the commission determines to
33be technologically feasible without putting reliability of the
34electrical grid and of electric service at risk. Enforcement of the
35greenhouse gases emission
performance standard for nonpeaking
36generation shall begin on July 1, 2017. The commission, in
37consultation with the Energy Commission and the State Air
38Resources Board, shall update the greenhouse gases emission
39performance standard for nonpeaking generation every five years
40based on new technology. The greenhouse gases emission
P15 1performance standard for nonpeaking generation that will take
2effect on July 1, 2017, shall establish a rate of emissions of
3greenhouse gases that has an initial cap that is not higher than the
4rate of emissions of greenhouse gases for the lowest-emitting
5combined-cycle natural gas powerplant in operation at that time,
6taking into consideration siting factors such as altitude, regional
7climate, and operating capacity. All combined-cycle natural gas
8powerplants that are in operation, or that have an Energy
9Commission final permit decision to operate as of June 30,
2017,
10shall be deemed to be in compliance with the nonpeaking emission
11performance standard.
12(2) In determining the rate of emissions of greenhouse gases
13for nonpeaking generation, the commission shall include the net
14emissions resulting from the production of electricity by the
15
nonpeaking generation.
16(3) The commission shall establish an output-based methodology
17to ensure that the calculation of emissions of greenhouse gases for
18cogeneration recognizes the total usable energy output of the
19process, and includes all greenhouse gases emitted by the facility
20in the production of both electricity and thermal energy.
21(4) In calculating the emissions of greenhouse gases by facilities
22generating electricity from biomass, biogas, or landfill gas energy,
23the commission shall reconsider and modify its prior decisions
24implementing this section, including, but not limited to,
25D.07-01-039, in light of the best and most recent scientific
26information available regarding methodologies for determining
27the greenhouse gas emissions associated with producing
energy
28from different biomass feedstocks.
29(5) Greenhouse gases that are prevented from being released
30into the atmosphere as a result of carbon capture and storage or
31carbon capture and sequestration, in compliance with applicable
32laws and regulations, shall not be counted as emissions of the
33powerplant in determining compliance with the greenhouse gases
34emission performance standard for nonpeaking generation.
35(6) In adopting and implementing the greenhouse gases emission
36performance standard for nonpeaking generation, the commission,
37in consultation with the Independent System Operator, shall
38consider the effects of the standard on system reliability and overall
39costs to electricity customers.
P16 1(7) In
developing and implementing the greenhouse gases
2emission performance standard for nonpeaking 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 nonpeaking 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 peaking
26generation of
load-serving entities. The greenhouse gases emission
27performance standard for peaking 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. Enforcement of the greenhouse
31gases emission performance standard for peaking generation shall
32begin on July 1, 2017. The commission, in consultation with the
33Energy Commission and the State Air Resources Board, shall
34update the greenhouse gases emission performance standard for
35peaking generation every five years based on new technology.
36(2) In determining the rate of emissions of greenhouse gases
37for peaking generation, the commission shall include the net
38emissions resulting from the production of electricity by the
39peaking generation.
P17 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 reconsider and modify its prior decisions
9
implementing this section, including, but not limited to,
10D.07-01-039, in light of the best and most recent scientific
11information available regarding methodologies for determining
12the greenhouse gas emissions associated with producing energy
13from different biomass feedstocks.
14(5) Greenhouse gases that are prevented from being released
15into the atmosphere as a result of carbon capture and storage or
16carbon capture and sequestration, in compliance with applicable
17laws and regulations, shall not be counted as emissions of the
18powerplant in determining compliance with the greenhouse gases
19emission performance standard for peaking generation.
20(6) In adopting and implementing the greenhouse gases emission
21performance standard for peaking generation, the commission, in
22consultation
with the Independent System Operator, shall consider
23the effects of the standard on system reliability and overall costs
24to electricity customers.
25(7) In developing and implementing the greenhouse gases
26emission performance standard for peaking generation, the
27commission shall address long-term purchases of electricity from
28unspecified sources in a manner consistent with this chapter.
29(8) In developing and implementing the greenhouse gases
30emission performance standard for peaking generation, the
31commission shall consider and act in a manner consistent with any
32rules adopted pursuant to Section 824a-3 of Title 16 of the United
33States Code.
34(9) An electrical corporation that provides electric service to
3575,000 or
fewer retail end-use customers in California may file
36with the commission a proposal for alternative compliance with
37this subdivision, which the commission may accept upon a showing
38by the electrical corporation of both of the following:
39(A) A majority of the electrical corporation’s retail end-use
40customers for electric service are located outside of California.
P18 1(B) The emissions of greenhouse gases to generate electricity
2for the retail end-use customers of the electrical corporation are
3subject to a review by the utility regulatory commission of at least
4one other state in which the electrical corporation provides
5regulated retail electric service.
6(f) (1) On or before June 30, 2017, the Energy
Commission, at
7a duly noticed public hearing and in consultation with the
8commission and the State Air Resources Board, shall establish a
9greenhouse gases emission performance standard for all nonpeaking
10generation of local publicly owned electric utilities. The greenhouse
11gases emission performance standard for nonpeaking generation
12shall be established at the lowest level that the Energy Commission
13determines to be technologically feasible without putting reliability
14of the electrical grid and of electric service at risk. The greenhouse
15gases emission performance standard for nonpeaking generation
16established by the Energy Commission for local publicly owned
17electric utilities shall be consistent with the standard adopted by
18the commission for load-serving entities. Enforcement of the
19greenhouse gases emission performance standard for nonpeaking
20generation shall begin on July 1, 2017. The Energy
Commission,
21in consultation with the commission and the State Air Resources
22Board, shall update the greenhouse gases emission performance
23standard for nonpeaking generation every five years based on new
24technology. The greenhouse gases emission performance standard
25for nonpeaking generation that will take effect on July 1, 2017,
26shall establish a rate of emissions of greenhouse gases that
has an
27initial cap that is not higher than the rate of emissions of
28greenhouse gases for the lowest-emitting combined-cycle natural
29gas powerplant in operation at that time, taking into consideration
30siting factors such as altitude, regional climate, and operating
31capacity. All combined-cycle natural gas powerplants that are in
32operation, or that have an Energy Commission final permit decision
33to operate as of June 30, 2017, shall be deemed to be in compliance
34with the nonpeaking emission performance standard.
35(2) The greenhouse gases emission performance standard for
36nonpeaking generation shall be adopted by regulation pursuant to
37the Administrative Procedure Act (Chapter 3.5 (commencing with
38Section 11340) of Part 1 of Division 3 of Title 2 of the Government
39Code).
P19 1(3) In determining the rate of emissions of greenhouse gases
2for nonpeaking generation, the Energy Commission shall include
3the net emissions resulting from the production of electricity by
4the nonpeaking generation.
5(4) The Energy Commission shall establish an output-based
6methodology to ensure that the calculation of emissions of
7greenhouse gases for cogeneration recognizes the total usable
8energy output of the process, and includes all greenhouse gases
9emitted by the facility in the production of both electricity and
10thermal energy.
11(5) In calculating the emissions of greenhouse gases by facilities
12generating electricity from biomass, biogas, or landfill gas energy,
13the Energy Commission shall act consistent with the commission’s
14reconsideration and modification of its
prior decisions
15implementing this section, including, but not limited to,
16D.07-01-039, in light of the best and most recent scientific
17information available regarding methodologies for determining
18the greenhouse gas emissions associated with producing energy
19from different biomass feedstocks.
20(6) Greenhouse gases that are prevented from being released
21into the atmosphere as a result of carbon capture and storage or
22carbon capture and sequestration, in compliance with applicable
23laws and regulations, shall not be counted as emissions of the
24powerplant in determining compliance with the greenhouse gases
25emission performance standard for nonpeaking generation.
26(7) In adopting and implementing the greenhouse gases emission
27performance standard for nonpeaking generation, the Energy
28Commission,
in consultation with the Independent System
29Operator, shall consider the effects of the standard on system
30reliability and overall costs to electricity customers.
31(8) In developing and implementing the greenhouse gases
32emission performance standard for nonpeaking generation, the
33
commission shall address long-term purchases of electricity from
34unspecified sources in a manner consistent with this chapter.
35(9) In developing and implementing the greenhouse gases
36emission performance standard for nonpeaking generation, the
37Energy Commission shall consider and act in a manner consistent
38with any rules adopted pursuant to Section 824a-3 of Title 16 of
39the United States Code.
P20 1(g) (1) On or before June 30, 2017, the Energy Commission,
2through a rulemaking proceeding, and in consultation with the
3commission and the State Air Resources Board, shall establish a
4greenhouse gases emission performance standard for all peaking
5generation of load-serving entities. The greenhouse gases emission
6performance standard for peaking generation
shall be established
7at the lowest level that the Energy Commission determines to be
8technologically feasible without putting reliability of the electrical
9grid and of electric service at risk. The greenhouse gases emission
10performance standard for peaking generation established by the
11Energy Commission for local publicly owned electric utilities shall
12be consistent with the standard adopted by the commission for
13load-serving entities. Enforcement of the greenhouse gases
14emission performance standard for peaking generation shall begin
15on July 1, 2017. The Energy Commission, in consultation with the
16commission and the State Air Resources Board, shall update the
17greenhouse gases emission performance standard for peaking
18generation every five years based on new technology.
19(2) The greenhouse gases emission performance standard for
20
peaking generation shall be adopted by regulation pursuant to the
21Administrative Procedure Act (Chapter 3.5 (commencing with
22Section 11340) of Part 1 of Division 3 of Title 2 of the Government
23Code).
24(3) In determining the rate of emissions of greenhouse gases
25for peaking generation, the Energy Commission shall include the
26net emissions resulting from the production of electricity by the
27peaking generation.
28(4) The Energy Commission shall establish an output-based
29methodology to ensure that the calculation of emissions of
30greenhouse gases for cogeneration recognizes the total usable
31energy output of the process, and includes all greenhouse gases
32emitted by the facility in the production of both electricity and
33thermal energy.
34(5) In calculating the emissions of greenhouse gases by facilities
35generating electricity from biomass, biogas, or landfill gas energy,
36the Energy Commission shall act consistent with the commission’s
37reconsideration and modification of its prior decisions
38implementing this section, including, but not limited to,
39D.07-01-039, in light of the best and most recent scientific
40information available regarding methodologies for determining
P21 1the greenhouse gas emissions associated with producing energy
2from different biomass feedstocks.
3(6) Greenhouse gases that are prevented from being released
4into the atmosphere as a result of carbon capture and storage or
5carbon capture and sequestration, in compliance with applicable
6laws and regulations, shall not be counted as emissions of the
7powerplant
in determining compliance with the greenhouse gases
8emission performance standard for peaking generation.
9(7) In adopting and implementing the greenhouse gases emission
10performance standard for peaking generation, the Energy
11Commission, in consultation with the Independent System
12Operator, shall consider the effects of the standard on system
13reliability and overall costs to electricity customers.
14(8) In developing and implementing the greenhouse gases
15emission performance standard for peaking generation, the Energy
16
Commission shall address long-term purchases of electricity from
17unspecified sources in a manner consistent with this chapter.
18(9) In developing and implementing the greenhouse gases
19emission performance standard for peaking generation, the Energy
20Commission shall consider and act in a manner consistent with
21any rules adopted pursuant to Section 824a-3 of Title 16 of the
22United States Code.
23(h) (1) (A) The commission, in consultation with the Energy
24Commission and the State Air Resources Board, shall, through a
25public process, assess the effects of potential greenhouse gases
26emission performance standards, as described in subdivisions (d)
27and (e), including the greenhouse gases emission performance
28standards’ effects on the reliability of the electrical grid, further
29deployment of renewable generation resources, and emission of
30greenhouse gases and other air pollutants.
31(B) The commission shall not establish a greenhouse gases
32emission performance standard for nonpeaking generation of
33load-serving entities, pursuant to subdivision (d), or a greenhouse
34gases emission performance standard for peaking generation of
35load-serving entities, pursuant to subdivision (e), unless the
36commission determines that the greenhouse gases emission
37performance standard shall not harm the reliability of the electrical
38grid, hamper further deployment of renewable generation resources,
39or hamper the reduction of emissions of greenhouse gases or other
40air pollutants.
P22 1(C) The commission shall submit to the Legislature on or before
2June 30, 2016, a report that includes its findings made pursuant to
3this paragraph.
4(2) (A) The Energy Commission, in consultation with the
5commission and the State Air Resources Board, shall, through a
6public process, assess the effects of potential greenhouse gases
7emission performance standards, as described in subdivisions (f)
8and (g), including the greenhouse gases emission performance
9standards’ effects on the reliability of the electrical grid, further
10deployment of renewable generation resources, and emission of
11greenhouse gases and other air pollutants.
12(B) The Energy Commission shall not establish a greenhouse
13gases emission performance standard for nonpeaking generation
14of local publicly owned electric utilities, pursuant to subdivision
15(f), or a greenhouse gases emission performance standard for
16peaking generation of local
publicly owned electric utilities,
17pursuant to subdivision (g), unless the Energy Commission
18determines that the greenhouse gases emission performance
19standard shall not harm the reliability of the electrical grid, hamper
20further deployment of renewable generation resources, or hamper
21the reduction of emissions of greenhouse gases or other air
22pollutants.
23(C) The Energy Commission shall submit to the Legislature on
24or before June 30, 2016, a report that includes its findings made
25pursuant to this paragraph.
26(3) (A) The requirements for submitting reports imposed under
27subparagraph (C) of paragraph (1) and subparagraph (C) of
28paragraph (2) are inoperative on June 30, 2020, pursuant to Section
2910231.5 of the Government Code.
30(B) A report to be submitted pursuant to subparagraph (C) of
31paragraph (1) or subparagraph (C) of paragraph (2) shall be
32submitted in compliance with Section 9795 of the Government
33Code.
34(i)
end delete
35begin insert(end insertbegin inserth)end insert Thisbegin delete section, except subdivision (h),end deletebegin insert sectionend insert shall become
36operative on January 1, 2017.
No reimbursement is required by this act pursuant to
38Section 6 of Article XIII B of the California Constitution because
39the only costs that may be incurred by a local agency or school
40district will be incurred because this act creates a new crime or
P23 1infraction, eliminates a crime or infraction, or changes the penalty
2for a crime or infraction, within the meaning of Section 17556 of
3the Government Code, or changes the definition of a crime within
4the meaning of Section 6 of Article XIII B of the California
5Constitution.
O
95