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, taking into consideration siting factors such as altitude, regional climate, and operating capacity, 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 and without hampering further deployment of renewable generation resources or reductions of greenhouse gases emissions. The bill would require that the commissions update their respective greenhouse gases emission performance standards every 5 years based on new technology.
Existing law makes any public utility that fails to comply with any part of any order, decision, rule, direction, demand, or requirement of the commission guilty of a crime. Existing law additionally makes every corporation or person other than a public utility who fails to comply with any part of any order, decision, rule, direction, demand, or requirement of the commission guilty of a crime.
Because this bill would require action by the Public Utilities Commission to implement its requirements with respect to a load-serving entity, and a violation of an order or decision of the Public Utilities Commission would be a crime, the bill would impose a state-mandated local program by expanding what is a crime.
The Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission and requires it to certify sufficient sites and related facilities that are required to provide a supply of electricity sufficient to accommodate projected demand for power statewide. The act grants the 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
31producing electricity from other than a conventional power source
32consistent with subdivision (b) of Section 218.
33(d) “Greenhouse gases” means those gases listed in Section
3438505 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) “Greenhouse gases” means those gases listed in Section
3738505 of the Health and Safety Code.
38(c) “Greenhouse gases emission performance standard” means
39the permissible levels of emissions of greenhouse gases
established
P6 1pursuant to Section 8341 for nonpeaking generation and peaking
2generation.
3(d) “Load-serving entity” means every electrical corporation,
4electric service provider, or community choice aggregator serving
5end-use customers in the state.
6(e) “Long-term financial commitment” means either a new
7ownership investment in nonpeaking generation or peaking
8generation or a new or renewed contract with a term of five or
9more years, which includes procurement of nonpeaking generation
10or peaking generation.
11(f) “Nonpeaking generation” means electricity generation from
12a powerplant that is designed and intended to provide electricity
13at an annualized plant capacity factor to be determined by the
14commission and the
Energy Commission, in consultation with the
15Independent System Operator. In making this determination,
16consideration shall be given to both current energy generation
17needs, as well as energy generation needs as the greenhouse gases
18emission performance standards for nonpeaking generation are
19implemented. “Nonpeaking powerplant” means a powerplant that
20provides nonpeaking generation.
21(g) “Output-based methodology” means a greenhouse gases
22emission performance standard that is expressed in pounds of
23greenhouse gases emitted per megawatthour and factoring in the
24useful thermal energy employed for purposes other than the
25generation of electricity.
26(h) “Peaking generation” means electricity generation from a
27powerplant that is designed and intended to provide electricity at
28an
annualized plant capacity factor to be determined by the
29commission and the Energy Commission, in consultation with the
30Independent System Operator. In making this determination,
31consideration shall be given to both current energy generation
32needs, as well as energy generation needs as the greenhouse gases
33emission performance standards for peaking generation are
34implemented. “Peaking powerplant” means a powerplant that
35provides peaking generation.
36(i) “Plant capacity factor” means the ratio of the electricity
37produced during a given time period, measured in kilowatthours,
38to the electricity the unit could have produced if it had been
39operated at its rated capacity during that period, expressed in
40kilowatthours.
P7 1(j) “Powerplant” means a facility for the generation of
electricity,
2
and includes one or more generating units at the same location.
3(k) “Zero- or low-carbon generating resource” means an
4electrical generating resource that will generate electricity while
5producing emissions of greenhouse gases at a rate substantially
6below the greenhouse gases emission performance standard, as
7determined by the commission.
8(l) This section shall become operative on January 1, 2017.
Section 8341 of the Public Utilities Code is amended
10to read:
(a) No load-serving entity or local publicly owned
12electric utility may enter into a long-term financial commitment
13unless any baseload generation supplied under the long-term
14financial commitment complies with the greenhouse gases emission
15performance standard established by the commission, pursuant to
16subdivision (d), for a load-serving entity, or by the Energy
17Commission, pursuant to subdivision (e), for a local publicly owned
18electric utility.
19(b) (1) The commission shall not approve a long-term financial
20commitment by an electrical corporation unless any baseload
21generation supplied under the long-term financial commitment
22complies
with the greenhouse gases emission performance standard
23established by the commission pursuant to subdivision (d).
24(2) The commission may, in order to enforce this section, review
25any long-term financial commitment proposed to be entered into
26by an electric service provider or a community choice aggregator.
27(3) The commission shall adopt rules to enforce the requirements
28of this section, for load-serving entities. The commission shall
29adopt procedures, for all load-serving entities, to verify the
30emissions of greenhouse gases from any baseload generation
31supplied under a contract subject to the greenhouse gases emission
32performance standard to ensure compliance with the standard.
33(4) In determining whether a long-term financial
commitment
34is for baseload generation, the commission shall consider the design
35of the powerplant and the intended use of the powerplant, as
36determined by the commission based upon the electricity purchase
37contract, any certification received from the Energy Commission,
38any other permit or certificate necessary for the operation of the
39powerplant, including a certificate of public convenience and
40necessity, any procurement approval decision for the load-serving
P8 1entity, and any other matter the commission determines is relevant
2under the circumstances.
3(5) Costs incurred by an electrical corporation to comply with
4this section, including those costs incurred for electricity purchase
5agreements that are approved by the commission that comply with
6the greenhouse gases emission performance standard, are to be
7treated as procurement costs
incurred pursuant to an approved
8procurement plan and the commission shall ensure timely cost
9recovery of those costs pursuant to paragraph (3) of subdivision
10(d) of Section 454.5.
11(6) A long-term financial commitment entered into through a
12contract approved by the commission, for electricity generated by
13a zero- or low-carbon generating resource that is contracted for,
14on behalf of consumers of this state on a cost-of-service basis,
15shall be recoverable in rates, in a manner determined by the
16commission consistent with Section 380. The commission may,
17after a hearing, approve an increase from one-half to 1 percent in
18the return on investment by the third party entering into the contract
19with an electrical corporation with respect to investment in zero-
20or low-carbon generation resources authorized pursuant to this
21subdivision.
22(c) (1) The Energy Commission shall adopt regulations for the
23enforcement of this chapter with respect to a local publicly owned
24electric utility.
25(2) The Energy Commission may, in order to ensure compliance
26with the greenhouse gases emission performance standard by local
27publicly owned electric utilities, apply the procedures adopted by
28the commission to verify the emissions of greenhouse gases from
29baseload generation pursuant to subdivision (b).
30(3) In determining whether a long-term financial commitment
31is for baseload generation, the Energy Commission shall consider
32the design of the powerplant and the intended use of the
33powerplant, as determined by the Energy Commission based upon
34the
electricity purchase contract, any certification received from
35the Energy Commission, any other permit for the operation of the
36powerplant, any procurement approval decision for the load-serving
37entity, and any other matter the Energy Commission determines
38is relevant under the circumstances.
39(d) (1) On or before February 1, 2007, the commission, through
40a rulemaking proceeding, and in consultation with the Energy
P9 1Commission and the State Air Resources Board, shall establish a
2greenhouse gases emission performance standard for all baseload
3generation of load-serving entities, at a rate of emissions of
4greenhouse gases that is no higher than the rate of emissions of
5greenhouse gases for combined-cycle natural gas baseload
6generation. Enforcement of the greenhouse gases emission
7performance standard shall begin immediately
upon the
8establishment of the standard. All combined-cycle natural gas
9powerplants that are in operation, or that have an Energy
10Commission final permit decision to operate as of June 30, 2007,
11shall be deemed to be in compliance with the greenhouse gases
12emission performance standard.
13(2) In determining the rate of emissions of greenhouse gases
14for baseload generation, the commission shall include the net
15emissions resulting from the production of electricity by the
16baseload generation.
17(3) The commission shall establish an output-based methodology
18to ensure that the calculation of emissions of greenhouse gases for
19cogeneration recognizes the total usable energy output of the
20process, and includes all greenhouse gases emitted by the facility
21in the production of both
electrical and thermal energy.
22(4) In calculating the emissions of greenhouse gases by facilities
23generating electricity from biomass, biogas, or landfill gas energy,
24the commission shall consider net emissions from the process of
25growing, processing, and generating the electricity from the fuel
26source.
27(5) Carbon dioxide that is injected in geological formations, so
28as to prevent releases into the atmosphere, in compliance with
29applicable laws and regulations shall not be counted as emissions
30of the powerplant in determining compliance with the greenhouse
31gases emissions performance standard.
32(6) In adopting and implementing the greenhouse gases emission
33performance standard, the commission, in consultation with the
34Independent
System Operator shall consider the effects of the
35standard on system reliability and overall costs to electricity
36customers.
37(7) In developing and implementing the greenhouse gases
38emission performance standard, the commission shall address
39long-term purchases of electricity from unspecified sources in a
40manner consistent with this chapter.
P10 1(8) In developing and implementing the greenhouse gases
2emission performance standard, the commission shall consider
3and act in a manner consistent with any rules adopted pursuant to
4Section 824a-3 of Title 16 of the United States Code.
5(9) An electrical corporation that provides electric service to
675,000 or fewer retail end-use customers in California may file
7with the
commission a proposal for alternative compliance with
8this section, which the commission may accept upon a showing
9by the electrical corporation of both of the following:
10(A) A majority of the electrical corporation’s retail end-use
11customers for electric service are located outside of California.
12(B) The emissions of greenhouse gases to generate electricity
13for the retail end-use customers of the electrical corporation are
14subject to a review by the utility regulatory commission of at least
15one other state in which the electrical corporation provides
16regulated retail electric service.
17(e) (1) On or before June 30, 2007, the Energy Commission,
18at a duly noticed public hearing and in consultation with the
19commission
and the State Air Resources Board, shall establish a
20greenhouse gases emission performance standard for all baseload
21generation of local publicly owned electric utilities at a rate of
22emissions of greenhouse gases that is no higher than the rate of
23emissions of greenhouse gases for combined-cycle natural gas
24baseload generation. The greenhouse gases emission performance
25standard established by the Energy Commission for local publicly
26owned electric utilities shall be consistent with the standard adopted
27by the commission for load-serving entities. Enforcement of the
28greenhouse gases emission performance standard shall begin
29immediately upon the establishment of the standard. All
30combined-cycle natural gas powerplants that are in operation, or
31that have an Energy Commission final permit decision to operate
32as of June 30, 2007, shall be deemed to be in compliance with the
33greenhouse gases emission
performance standard.
34(2) The greenhouse gases emission performance standard shall
35be adopted by regulation pursuant to the Administrative Procedure
36Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of
37Division 3 of Title 2 of the Government Code).
38(3) In determining the rate of emissions of greenhouse gases
39for baseload generation, the Energy Commission shall include the
P11 1net emissions resulting from the production of electricity by the
2baseload generation.
3(4) The Energy Commission shall establish an output-based
4methodology to ensure that the calculation of emissions of
5greenhouse gases for cogeneration recognizes the total usable
6energy output of the process, and includes all greenhouse gases
7emitted by
the facility in the production of both electrical and
8thermal energy.
9(5) In calculating the emissions of greenhouse gases by facilities
10generating electricity from biomass, biogas, or landfill gas energy,
11the Energy Commission shall consider net emissions from the
12process of growing, processing, and generating the electricity from
13the fuel source.
14(6) Carbon dioxide that is captured from the emissions of a
15powerplant and that is permanently disposed of in geological
16formations in compliance with applicable laws and regulations,
17shall not be counted as emissions from the powerplant.
18(7) In adopting and implementing the greenhouse gases emission
19performance standard, the Energy Commission, in consultation
20with the
Independent System Operator, shall consider the effects
21of the standard on system reliability and overall costs to electricity
22customers.
23(8) In developing and implementing the greenhouse gases
24emission performance standard, the Energy Commission shall
25address long-term purchases of electricity from unspecified sources
26in a manner consistent with this chapter.
27(9) In developing and implementing the greenhouse gases
28emission performance standard, the Energy Commission shall
29consider and act in a manner consistent with any rules adopted
30pursuant to Section 824a-3 of Title 16 of the United States Code.
31(f) The Energy Commission, in a duly noticed public hearing
32and in consultation with the commission and the State Air
33Resources
Board, shall reevaluate and continue, modify, or replace
34the greenhouse gases emission performance standard when an
35enforceable greenhouse gases emissions limit is established and
36in operation, that is applicable to local publicly owned electric
37utilities.
38(g) The commission, through a rulemaking proceeding and in
39consultation with the Energy Commission and the State Air
40Resources Board, shall reevaluate and continue, modify, or replace
P12 1the greenhouse gases emission performance standard when an
2enforceable greenhouse gases emissions limit is established and
3in operation, that is applicable to load-serving entities.
4(h) This section shall become inoperative on July 1, 2017, and,
5as of January 1, 2018, is repealed.
Section 8341 is added to the Public Utilities Code, to
7read:
(a) (1) Beginning July 1, 2017, no load-serving entity
9or local publicly owned electric utility may enter into a new
10long-term financial commitment unless any nonpeaking generation
11supplied under the long-term financial commitment complies with
12the greenhouse gases emission performance standard established
13by the commission, pursuant to subdivision (d), for a load-serving
14entity, or by the Energy Commission, pursuant to subdivision (f),
15for a local publicly owned electric utility.
16(2) Beginning July 1, 2017, no load-serving entity or local
17publicly owned electric utility may enter into a new long-term
18financial commitment unless any peaking
generation supplied
19under the long-term financial commitment complies with the
20greenhouse gases emission performance standard established by
21the commission, pursuant to subdivision (e), for a load-serving
22entity, or by the Energy Commission, pursuant to subdivision (g),
23for a local publicly owned electric utility.
24(3) The nonpeaking emissions performance standard shall apply
25only to nonpeaking powerplants and the peaking emissions
26performance standard shall apply only to peaking powerplants.
27(b) (1) (A) The commission shall not approve a long-term
28financial commitment by an electrical corporation unless the
29
nonpeaking generation supplied under the long-term financial
30commitment complies with the greenhouse gases emission
31performance standard established by the commission pursuant to
32subdivision (d).
33(B) The commission shall not approve a long-term financial
34commitment by an electrical corporation unless the peaking
35generation supplied under the long-term financial commitment
36complies with the greenhouse gases emission performance standard
37established by the commission pursuant to subdivision (e).
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.
P13 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 nonpeaking generation
5or peaking generation supplied under a contract subject to the
6greenhouse gases emission performance standard to ensure
7compliance with the standard.
8(4) In determining whether a long-term financial commitment
9is for nonpeaking generation or peaking generation, the commission
10shall consider the design of the powerplant and the intended use
11of the powerplant, as determined by the commission based upon
12the electricity purchase contract, any certification received from
13the Energy Commission, any other permit or certificate necessary
14for the operation of the powerplant, including a certificate of public
15
convenience and necessity, any procurement approval decision
16for the load-serving entity, and any other matter the commission
17determines is relevant under the circumstances.
18(5) Costs incurred by an electrical corporation to comply with
19this section, including those costs incurred for electricity purchase
20agreements that are approved by the commission that comply with
21the respective greenhouse gases emission performance standards,
22are to be treated as procurement costs incurred pursuant to an
23approved procurement plan and the commission shall ensure timely
24cost recovery of those costs pursuant to paragraph (3) of
25subdivision (d) of Section 454.5.
26(6) A long-term financial commitment entered into through a
27contract approved by the commission, for electricity generated
by
28a zero- or low-carbon generating resource that is contracted for,
29on behalf of consumers of this state on a cost-of-service basis,
30shall be recoverable in rates, in a manner determined by the
31commission consistent with Section 380. The commission may,
32after a hearing, approve an increase from one-half to 1 percent in
33the return on investment by the third party entering into the contract
34with an electrical corporation with respect to investment in zero-
35or low-carbon generation resources authorized pursuant to this
36paragraph.
37(c) (1) The Energy Commission shall adopt regulations for the
38
enforcement of this chapter with respect to a local publicly owned
39electric utility.
P14 1(2) The Energy Commission may, in order to ensure compliance
2with the greenhouse gases emission performance standard by local
3publicly owned electric utilities, apply the procedures adopted by
4the commission to verify the emissions of greenhouse gases from
5nonpeaking generation and peaking generation pursuant to
6subdivision (b).
7(3) In determining whether a long-term financial commitment
8is for nonpeaking generation or peaking generation, the Energy
9Commission shall consider the design of the powerplant and the
10intended use of the powerplant, as determined by the Energy
11Commission based upon the electricity purchase contract, any
12certification received from the Energy
Commission, any other
13permit for the operation of the powerplant, any procurement
14approval decision for the load-serving entity, and any other matter
15the Energy Commission determines is relevant under the
16circumstances.
17(d) (1) On or before June 30, 2017, the commission, through a
18rulemaking proceeding, and in consultation with the Energy
19Commission and the State Air Resources Board, shall establish a
20greenhouse gases emission performance standard for all nonpeaking
21generation of load-serving entities. Taking into consideration siting
22factors such as altitude, regional climate, and operating capacity,
23the greenhouse gases emission performance standard for
24nonpeaking generation shall be established at the lowest level that
25the commission determines to be technologically feasible without
26putting reliability of the
electrical grid and of electric service at
27risk and without hampering further deployment of renewable
28generation resources or reductions of greenhouse gases emissions.
29Enforcement of the greenhouse gases emission performance
30standard for nonpeaking generation shall begin on July 1, 2017.
31The commission, in consultation with the Energy Commission and
32the State Air Resources Board, shall update the greenhouse gases
33emission performance standard for nonpeaking generation every
34five years based on new technology.
All combined-cycle natural
35gas powerplants that are in operation, or that have an Energy
36Commission final permit decision to operate as of June 30, 2017,
37shall be deemed to be in compliance with the nonpeaking emission
38performance standard.
39(2) In determining the rate of emissions of greenhouse gases
40for nonpeaking generation, the commission shall include the net
P15 1emissions resulting from the production of electricity by the
2
nonpeaking generation.
3(3) The commission shall establish an output-based methodology
4to ensure that the calculation of emissions of greenhouse gases for
5cogeneration recognizes the total usable energy output of the
6process, and includes all greenhouse gases emitted by the facility
7in the production of both electricity and thermal energy.
8(4) In calculating the emissions of greenhouse gases by facilities
9generating electricity from biomass, biogas, or landfill gas energy,
10the commission shall reconsiderbegin delete and modifyend delete its prior decisions
11implementing this section, including, but not limited to,
12D.07-01-039, in light of the best and most recent scientific
13information available regarding
methodologies for determining
14the greenhouse gas emissions associated with producing energy
15from different biomass feedstocks.
16(5) Greenhouse gases that arebegin delete prevented from being releasedend delete
17begin insert permanently sequestered so as to prevent their releaseend insert into the
18atmosphere as a result of carbon capture and storage or carbon
19capture and sequestration, in compliance with applicable laws and
20regulations, shall not be counted as emissions of the powerplant
21in determining compliance with the greenhouse gases emission
22performance standard for nonpeaking generation.
23(6) In adopting and implementing the greenhouse gases emission
24performance
standard for nonpeaking generation, the commission,
25in consultation with the Independent System Operator, shall
26consider the effects of the standard on system reliability and overall
27costs to electricity customers.
28(7) In developing and implementing the greenhouse gases
29emission performance standard for nonpeaking generation, the
30commission shall address long-term purchases of electricity from
31unspecified sources in a manner consistent with this chapter.
32(8) In developing and implementing the greenhouse gases
33emission performance standard for nonpeaking generation, the
34commission shall consider and act in a manner consistent with any
35rules adopted pursuant to Section 824a-3 of Title 16 of the United
36States Code.
37(9) An
electrical corporation that provides electric service to
3875,000 or fewer retail end-use customers in California may file
39with the commission a proposal for alternative compliance with
P16 1this subdivision, which the commission may accept upon a showing
2by the electrical corporation of both of the following:
3(A) A majority of the electrical corporation’s retail end-use
4customers for electric service are located outside of California.
5(B) The emissions of greenhouse gases to generate electricity
6for the retail end-use customers of the electrical corporation are
7subject to a review by the utility regulatory commission of at least
8one other state in which the electrical corporation provides
9regulated retail electric service.
10(e) (1) On or before June 30, 2017, the commission, through a
11rulemaking proceeding, and in consultation with the Energy
12Commission and the State Air Resources Board, shall establish a
13greenhouse gases emission performance standard for all peaking
14generation of load-serving entities. Taking into consideration siting
15factors such as altitude, regional climate, and operating capacity,
16the greenhouse gases emission performance standard for peaking
17generation shall be established at the lowest level that the
18commission determines to be technologically feasible without
19putting reliability of the electrical grid and of electric service at
20risk and without hampering further deployment of renewable
21generation resources or reductions of greenhouse gases emissions.
22Enforcement of the greenhouse gases emission performance
23standard for peaking generation shall begin on July 1, 2017.
The
24commission, in consultation with the Energy Commission and the
25State Air Resources Board, shall update the greenhouse gases
26emission performance standard for peaking generation every five
27years based on new technology.
28(2) In determining the rate of emissions of greenhouse gases
29for peaking generation, the commission shall include the net
30emissions resulting from the production of electricity by the
31peaking generation.
32(3) The commission shall establish an output-based methodology
33to ensure that the calculation of emissions of greenhouse gases for
34cogeneration recognizes the total usable energy output of the
35process, and includes all greenhouse gases emitted by the facility
36in the production of both electrical and thermal energy.
37(4) In calculating the emissions of greenhouse gases by facilities
38generating electricity from biomass, biogas, or landfill gas energy,
39the commission shall reconsiderbegin delete and modifyend delete its prior decisions
40
implementing this section, including, but not limited to,
P17 1D.07-01-039, in light of the best and most recent scientific
2information available regarding methodologies for determining
3the greenhouse gas emissions associated with producing energy
4from different biomass feedstocks.
5(5) Greenhouse gases that arebegin delete prevented from being releasedend delete
6begin insert permanently sequestered so as to prevent their releaseend insert into the
7atmosphere as a result of carbon capture and storage or carbon
8capture and sequestration, in compliance with applicable laws and
9regulations, shall not be counted as emissions of the powerplant
10in determining compliance with the greenhouse gases emission
11performance
standard for peaking generation.
12(6) In adopting and implementing the greenhouse gases emission
13performance standard for peaking generation, the commission, in
14consultation with the Independent System Operator, shall consider
15the effects of the standard on system reliability and overall costs
16to electricity customers.
17(7) In developing and implementing the greenhouse gases
18emission performance standard for peaking generation, the
19commission shall address long-term purchases of electricity from
20unspecified sources in a manner consistent with this chapter.
21(8) In developing and implementing the greenhouse gases
22emission performance standard for peaking generation, the
23commission shall consider and act in a manner consistent
with any
24rules adopted pursuant to Section 824a-3 of Title 16 of the United
25States Code.
26(9) An electrical corporation that provides electric service to
2775,000 or fewer retail end-use customers in California may file
28with the commission a proposal for alternative compliance with
29this subdivision, which the commission may accept upon a showing
30by the electrical corporation of both of the following:
31(A) A majority of the electrical corporation’s retail end-use
32customers for electric service are located outside of California.
33(B) The emissions of greenhouse gases to generate electricity
34for the retail end-use customers of the electrical corporation are
35subject to a review by the utility regulatory commission of at least
36one
other state in which the electrical corporation provides
37regulated retail electric service.
38(f) (1) On or before June 30, 2017, the Energy Commission, at
39a duly noticed public hearing and in consultation with the
40commission and the State Air Resources Board, shall establish a
P18 1greenhouse gases emission performance standard for all nonpeaking
2generation of local publicly owned electric utilities. Taking into
3consideration siting factors such as altitude, regional climate, and
4operating capacity, the greenhouse gases emission performance
5standard for nonpeaking generation shall be established at the
6lowest level that the Energy Commission determines to be
7technologically feasible without putting reliability of the electrical
8grid and of electric service at risk and without hampering further
9deployment of renewable
generation resources or reductions of
10greenhouse gases emissions. The greenhouse gases emission
11performance standard for nonpeaking generation established by
12the Energy Commission for local publicly owned electric utilities
13shall be consistent with the standard adopted by the commission
14for load-serving entities. Enforcement of the greenhouse gases
15emission performance standard for nonpeaking generation shall
16begin on July 1, 2017. The Energy Commission, in consultation
17with the commission and the State Air Resources Board, shall
18update the greenhouse gases emission performance standard for
19nonpeaking generation every five years based on new technology.
20All combined-cycle natural gas powerplants that are in operation,
21or that have an Energy Commission final permit decision to operate
22as of June 30, 2017, shall be deemed to be in compliance with the
23nonpeaking emission performance
standard.
24(2) The greenhouse gases emission performance standard for
25nonpeaking generation shall be adopted by regulation pursuant to
26the Administrative Procedure Act (Chapter 3.5 (commencing with
27Section 11340) of Part 1 of Division 3 of Title 2 of the Government
28Code).
29(3) In determining the rate of emissions of greenhouse gases
30for nonpeaking generation, the Energy Commission shall include
31the net emissions resulting from the production of electricity by
32the nonpeaking generation.
33(4) The Energy Commission shall establish an output-based
34methodology to ensure that the calculation of emissions of
35greenhouse gases for cogeneration recognizes the total usable
36energy output of the process, and includes all greenhouse
gases
37emitted by the facility in the production of both electricity and
38thermal energy.
39(5) In calculating the emissions of greenhouse gases by facilities
40generating electricity from biomass, biogas, or landfill gas energy,
P19 1the Energy Commission shall act consistent with the commission’s
2reconsiderationbegin delete and modificationend delete of its prior decisions
3implementing this section, including, but not limited to,
4D.07-01-039, in light of the best and most recent scientific
5information available regarding methodologies for determining
6the greenhouse gas emissions associated with producing energy
7from different biomass feedstocks.
8(6) Greenhouse gases that arebegin delete prevented from being releasedend delete
9begin insert
permanently sequestered so as to prevent their releaseend insert into the
10atmosphere as a result of carbon capture and storage or carbon
11capture and sequestration, in compliance with applicable laws and
12regulations, shall not be counted as emissions of the powerplant
13in determining compliance with the greenhouse gases emission
14performance standard for nonpeaking generation.
15(7) In adopting and implementing the greenhouse gases emission
16performance standard for nonpeaking generation, the Energy
17Commission, in consultation with the Independent System
18Operator, shall consider the effects of the standard on system
19reliability and overall costs to electricity customers.
20(8) In developing and implementing the greenhouse gases
21emission performance standard
for nonpeaking generation, the
22
commission shall address long-term purchases of electricity from
23unspecified sources in a manner consistent with this chapter.
24(9) In developing and implementing the greenhouse gases
25emission performance standard for nonpeaking generation, the
26Energy Commission shall consider and act in a manner consistent
27with any rules adopted pursuant to Section 824a-3 of Title 16 of
28the United States Code.
29(g) (1) On or before June 30, 2017, the Energy Commission,
30through a rulemaking proceeding, and in consultation with the
31commission and the State Air Resources Board, shall establish a
32greenhouse gases emission performance standard for all peaking
33generation of load-serving entities. Taking into consideration siting
34factors such as altitude, regional climate,
and operating capacity,
35the greenhouse gases emission performance standard for peaking
36generation shall be established at the lowest level that the Energy
37Commission determines to be technologically feasible without
38putting reliability of the electrical grid and of electric service at
39risk and without hampering further deployment of renewable
40generation resources or reductions of greenhouse gases emissions.
P20 1The greenhouse gases emission performance standard for peaking
2generation established by the Energy Commission for local publicly
3owned electric utilities shall be consistent with the standard adopted
4by the commission for load-serving entities. Enforcement of the
5greenhouse gases emission performance standard for peaking
6generation shall begin on July 1, 2017. The Energy Commission,
7in consultation with the commission and the State Air Resources
8Board, shall update the greenhouse gases emission
performance
9standard for peaking generation every five years based on new
10technology.
11(2) The greenhouse gases emission performance standard for
12
peaking generation shall be adopted by regulation pursuant to the
13Administrative Procedure Act (Chapter 3.5 (commencing with
14Section 11340) of Part 1 of Division 3 of Title 2 of the Government
15Code).
16(3) In determining the rate of emissions of greenhouse gases
17for peaking generation, the Energy Commission shall include the
18net emissions resulting from the production of electricity by the
19peaking generation.
20(4) The Energy Commission shall establish an output-based
21methodology to ensure that the calculation of emissions of
22greenhouse gases for cogeneration recognizes the total usable
23energy output of the process, and includes all greenhouse gases
24emitted by the facility in the production of both electricity and
25thermal energy.
26(5) In calculating the emissions of greenhouse gases by facilities
27generating electricity from biomass, biogas, or landfill gas energy,
28the Energy Commission shall act consistent with the commission’s
29reconsiderationbegin delete and modificationend delete of its prior decisions
30implementing this section, including, but not limited to,
31D.07-01-039, in light of the best and most recent scientific
32information available regarding methodologies for determining
33the greenhouse gas emissions associated with producing energy
34from different biomass feedstocks.
35(6) Greenhouse gases that arebegin delete prevented from being releasedend delete
36begin insert
permanently sequestered so as to prevent their releaseend insert into the
37atmosphere as a result of carbon capture and storage or carbon
38capture and sequestration, in compliance with applicable laws and
39regulations, shall not be counted as emissions of the powerplant
P21 1in determining compliance with the greenhouse gases emission
2performance standard for peaking generation.
3(7) In adopting and implementing the greenhouse gases emission
4performance standard for peaking generation, the Energy
5Commission, in consultation with the Independent System
6Operator, shall consider the effects of the standard on system
7reliability and overall costs to electricity customers.
8(8) In developing and implementing the greenhouse gases
9emission performance standard for
peaking generation, the Energy
10
Commission shall address long-term purchases of electricity from
11unspecified sources in a manner consistent with this chapter.
12(9) In developing and implementing the greenhouse gases
13emission performance standard for peaking generation, the Energy
14Commission shall consider and act in a manner consistent with
15any rules adopted pursuant to Section 824a-3 of Title 16 of the
16United States Code.
17(h) This section shall become operative on January 1, 2017.
No reimbursement is required by this act pursuant to
19Section 6 of Article XIII B of the California Constitution because
20the only costs that may be incurred by a local agency or school
21district will be incurred because this act creates a new crime or
22infraction, eliminates a crime or infraction, or changes the penalty
23for a crime or infraction, within the meaning of Section 17556 of
24the Government Code, or changes the definition of a crime within
25the meaning of Section 6 of Article XIII B of the California
26Constitution.
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93