Amended in Senate April 12, 2016

Senate Bill No. 1393

Introduced by Senator De León

February 19, 2016

An act to amend Section begin delete 957 end delete begin insert 44258.5 of the Health and Safety Code, to amend Sections 25302.2 and 25327 of the Public Resources Code, and to amend Sections 399.11, 400, and 9621 end insert of the Public Utilities Code, relating to begin delete oil and gas. end delete begin insert energy. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 1393, as amended, De León. begin delete Intrastate transmission line: safety valves. end delete begin insert Energy efficiency and pollution reduction. end insert

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(1) Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to compile and adopt an integrated energy policy report every 2 years and requires the report to include an overview of major energy trends and issues facing the state. As part of the 2019 edition of the report, existing law requires the Energy Commission to evaluate the actual energy efficiency savings from negative therm interactive effects generated as a result of electricity efficiency improvements.

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This bill would additionally require the Energy Commission to include that evaluation in each report adopted after 2019.

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(2) Existing law requires the Public Utilities Commission and the State Energy Resources Conservation and Development Commission (Energy Commission) to review specified programs overseen by the Public Utilities Commission and the Energy Commission and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities.

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This bill would additionally require the Public Utilities Commission and the Energy Commission to review programs of the same type overseen by academia and the private and nonprofit sectors.

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(3) This bill would make various other changes to provisions relating to energy efficiency and pollution reduction.

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Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including gas corporations, as defined. The Public Utilities Act authorizes the commission to ascertain and fix just and reasonable standards, classifications, regulations, practices, measurements, or services to be furnished, imposed, observed, and followed by specified public utilities, including gas corporations.

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Existing law requires the commission, unless it determines that doing so is preempted under federal law, to require the installation of automatic shutoff or remote controlled sectionalized block valves on certain intrastate transmission lines that are located in a high consequence area, as defined, or that traverse an active seismic earthquake fault. Existing law requires the owner or operator of a commission-regulated gas pipeline facility that is an intrastate transmission line to provide the commission with a valve location plan, along with any recommendations for valve locations, and authorizes the commission to make modifications to the valve location plan. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

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This bill would additionally require the commission, unless it determines that doing so is preempted under federal law, to require the installation of automatic shutoff or remote controlled sectionalized block valves on intrastate transmission lines that transport gas to or from a storage facility. Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.

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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.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete yes end delete begin insert no end insert .

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 44258.5 of the end insert begin insert Health and Safety Code end insert

begin insert is amended to read: end insert

44258.5.  

(a) For the purposes of this section, the following
terms mean the following:

(1) “Local publicly owned electric utility” has the same meaning
as defined in Section 224.3 of the Public Utilities Code.

(2) “Retail seller” has the same meaning as set forth in
begin insert subdivision (j) of end insert Section 399.12 of the Public Utilities Code.

(3) “Transportation electrification” has the same meaning as
set forth in Section 237.5 of the Public Utilities Code.

(b) The state board shall identify and adopt appropriate policies,
rules, or regulations to remove regulatory disincentives preventing
retail sellers and local publicly owned electric utilities from
facilitating the achievement of greenhouse gas emission reductions
in other sectors through increased investments in transportation
electrification. Policies to be considered shall include, but are not
limited to, an allocation of greenhouse gas emissions allowances
to retail sellers and local publicly owned electric utilities, or other
regulatory mechanisms, to account for increased greenhouse gas
emissions in the electric sector from transportation electrification.

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begin insert SEC. 2. end insert   

end insert

begin insert Section 25302.2 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

25302.2.  

As part of the 2019 edition of the integrated energy
policy report, begin insert and as part of each integrated energy policy report
adopted biennially thereafter, end insert the commission shall evaluate the
actual energy efficiency savings, as defined in Section 25310, from
negative therm interactive effects generated as a result of electricity
efficiency improvements.

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begin insert SEC. 3. end insert   

end insert

begin insert Section 25327 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

25327.  

(a) The Legislature finds and declares all of the
following:

(1) There is insufficient information available to fully realize
the potential of solar photovoltaic energy generation to serve
low-income customers, including those in disadvantaged
communities.

(2) There is insufficient understanding of the barriers to access
for low-income customers to all forms of renewable energy being
generated in the state.

(3) There is insufficient understanding of the barriers to access
for low-income customers to energy efficiency investments.

(4) There is insufficient understanding of the barriers to access
for low-income customers to zero-emission and near-zero-emission
transportation options.

(b) On or before January 1, 2017, the commission, with input
from begin insert the environmental justice advisory committee established
pursuant to Section 38591 of the Health and Safety Code, other end insert
relevant state begin delete agencies end delete begin insert agencies, end insert and the public, shall conduct and
complete a study on both of the following:

(1) Barriers to, and opportunities for, solar photovoltaic energy
generation as well as barriers to, and opportunities for, access to
other renewable energy by low-income customers.

(2) Barriers to contracting opportunities for local small
businesses in disadvantaged communities.

(c) On or before January 1, 2017, the commission, with input
from begin insert the environmental justice advisory committee established
pursuant to Section 38591 of the Health and Safety Code, other end insert
relevant state begin delete agencies end delete begin insert agencies, end insert and the public, shall develop and
publish a study on barriers for low-income customers to energy
efficiency and weatherization investments, including those in
disadvantaged communities, as well as recommendations on how
to increase access to energy efficiency and weatherization
investments to low-income customers.

(d) On or before January 1, 2017, the State Air Resources Board,
in consultation with the commission and with input from begin insert the
environmental justice advisory committee established pursuant to
Section 38591 of the Health and Safety Code, other end insert relevant state
begin delete agencies end delete begin insert agencies, end insert and the public, shall develop and publish a
study on barriers for low-income customers to zero-emission and
near-zero-emission transportation options, including those in
disadvantaged communities, as well as recommendations on how
to increase access to zero-emission and near-zero-emission
transportation options to low-income customers, including those
in disadvantaged communities.

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begin insert SEC. 4. end insert   

end insert

begin insert Section 399.11 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

399.11.  

The Legislature finds and declares all of the following:

(a) In order to attain a target of generating 20 percent of total
retail sales of electricity in California from eligible renewable
energy resources by December 31, 2013, 33 percent by December
31, 2020, and 50 percent by December 31, 2030, it is the intent of
the Legislature that the commission and the Energy Commission
implement the California Renewables Portfolio Standard Program
described in this article.

(b) Achieving the renewables portfolio standard through the
procurement of various electricity products from eligible renewable
energy resources is intended to provide unique benefits to
California, including all of the following, each of which
independently justifies the program:

(1) Displacing fossil fuel consumption within the state.

(2) Adding new electrical generating facilities in the
transmission network within the Western Electricity Coordinating
Council service area.

(3) Reducing air begin delete pollution end delete begin insert pollution, particularly criteria
pollutant emissions and toxic air contaminants, end insert in the state.

(4) Meeting the state’s climate change goals by reducing
emissions of greenhouse gases associated with electrical generation.

(5) Promoting stable retail rates for electric service.

(6) Meeting the state’s need for a diversified and balanced
energy generation portfolio.

(7) Assistance with meeting the state’s resource adequacy
requirements.

(8) Contributing to the safe and reliable operation of the
electrical grid, including providing predictable electrical supply,
voltage support, lower line losses, and congestion relief.

(9) Implementing the state’s transmission and land use planning
activities related to development of eligible renewable energy
resources.

(c) The California Renewables Portfolio Standard Program is
intended to complement the Renewable Energy Resources Program
administered by the Energy Commission and established pursuant
to Chapter 8.6 (commencing with Section 25740) of Division 15
of the Public Resources Code.

(d) New and modified electric transmission facilities may be
necessary to facilitate the state achieving its renewables portfolio
standard targets.

(e) (1) Supplying electricity to California end-use customers
that is generated by eligible renewable energy resources is
necessary to improve California’s air quality and public health,
begin insert particularly in disadvantaged communities identified pursuant to
Section 39711 of the Health and Safety Code, end insert and the commission
shall ensure rates are just and reasonable, and are not significantly
affected by the procurement requirements of this article. This
electricity may be generated anywhere in the interconnected grid
that includes many states, and areas of both Canada and Mexico.

(2) This article requires generating resources located outside of
California that are able to supply that electricity to California
end-use customers to be treated identically to generating resources
located within the state, without discrimination.

(3) California electrical corporations have already executed,
and the commission has approved, power purchase agreements
with eligible renewable energy resources located outside of
California that will supply electricity to California end-use
customers. These resources will fully count toward meeting the
renewables portfolio standard procurement requirements.

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begin insert SEC. 5. end insert   

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begin insert Section 400 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

400.  

The commission and the Energy Commission shall do all
of the following in furtherance of meeting the state’s clean energy
and pollution reduction objectives:

(a) Take into account the use of distributed generation to the
extent that it provides economic and environmental benefits in
disadvantaged communities begin delete as end delete identified pursuant to Section 39711
of the Health and Safety Code.

(b) Take into account the opportunities to decrease costs and
increase benefits, including pollution reduction and grid integration,
using renewable and nonrenewable technologies with zero or
lowest feasible emissions of greenhouse gases, criteria pollutants,
and toxic air contaminants onsite in proceedings associated with
meeting the objectives.

(c) Where feasible, authorize procurement of resources to
provide grid reliability services that minimize reliance on system
power and fossil fuel resources and, where feasible, cost effective,
and consistent with other state policy objectives, increase the use
of large- and small-scale energy storage with a variety of
technologies, targeted energy efficiency, demand response,
including, but not limited to, automated demand response, eligible
renewable energy resources, or other renewable and nonrenewable
technologies with zero or lowest feasible emissions of greenhouse
gases, criteria pollutants, and toxic air contaminants onsite to
protect system reliability.

(d) Review technology incentive, research, development,
deployment, and market facilitation programs overseen by the
begin delete commission and end delete begin insert commission, end insert the Energy begin delete Commission end delete begin insert Commission,
academia, and the private and nonprofit sectors end insert and make
recommendations to advance state clean energy and pollution
reduction objectives and provide benefits to disadvantaged
communities begin delete as end delete identified pursuant to Section 39711 of the Health
and Safety Code.

(e) To the extent begin delete feasible, end delete begin insert feasible and consistent with the state
and federal constitutions, end insert give first priority to the manufacture and
deployment of clean energy and pollution reduction technologies
that create employment begin delete opportunities, end delete begin insert opportunities in California, end insert
including high wage, highly skilled employment opportunities,
and increased investment in the state.

(f) Establish a publicly available tracking system to provide
up-to-date information begin insert at least once annually end insert on progress toward
meeting the clean energy and pollution reduction goals of the Clean
Energy and Pollution Reduction Act of 2015.

(g) Establish an advisory group consisting of representatives
from disadvantaged communities identified begin delete in end delete begin insert pursuant to end insert Section
39711 of the Health and Safety Code. The advisory group shall
review and provide advice on programs proposed to achieve clean
energy and pollution reduction and determine whether those
proposed programs will be effective and useful in disadvantaged
communities.

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begin insert SEC. 6. end insert   

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begin insert Section 9621 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

9621.  

(a) This section shall apply to a local publicly owned
electric utility with an annual electrical demand exceeding 700
gigawatthours, as determined on a three-year average commencing
January 1, 2013.

(b) On or before January 1, 2019, the governing board of a local
publicly owned electric utility shall adopt an integrated resource
plan and a process for updating the plan at least once every five
years to ensure the utility achieves all of the following:

(1) Meets the greenhouse gas emissions reduction targets
established by the State Air Resources Board, in coordination with
the commission and the Energy Commission, for the electricity
sector and each local publicly-owned electric utility that reflect
the electricity sector’s percentage in achieving the economywide
greenhouse gas emissions reductions of 40 percent from 1990
levels by 2030.

(2) Ensures procurement of at least 50 percent eligible renewable
energy resources by 2030 consistent with Article 16 (commencing
with Section 399.11) of Chapter begin delete 2.3. end delete begin insert 2.3 of Part 1 of Division 1. end insert

(3) Meets the goals specified in subparagraphs begin delete (C) end delete begin insert (D) end insert to (H),
inclusive, of paragraph (1) of subdivision (a) of Section begin delete 454.52. end delete

begin insert 454.52, and the goal specified in subparagraph (C) of paragraph
(1) of subdivision (a) of Section 454.52, as that goal is applicable
to each local publicly owned electric utility. A local publicly owned
electric utility shall not, solely by reason of this paragraph, be
subject to requirements otherwise imposed on electrical
corporations. end insert

(c) (1) The integrated resource plan shall address procurement
for the following:

(A) Energy efficiency and demand response resources pursuant
to Section 9615.

(B) Energy storage requirements pursuant to Chapter 7.7
(commencing with Section 2835) of Part 2 of Division 1.

(C) Transportation electrification.

(D) A diversified procurement portfolio consisting of both
short-term and long-term electricity, electricity-related, and demand
response products.

(E) The resource adequacy requirements established pursuant
to Section 9620.

(2) (A) The governing board of the local publicly owned electric
utility may authorize all source procurement that includes various
resource types, including demand-side resources, supply side
resources, and resources that may be either demand-side resources
or supply side resources, to ensure that the local publicly owned
electric utility procures the optimum resource mix that meets the
objectives of subdivision (b).

(B) The governing board may authorize procurement of resource
types that will reduce overall greenhouse gas emissions from the
electricity sector and meet the other goals specified in subdivision
(b), but due to the nature of the technology or fuel source may not
compete favorably in price against other resources over the time
period of the integrated resource plan.

(d) A local publicly owned electric utility shall satisfy the notice
and public disclosure requirements of subdivision (f) of Section
399.30 with respect to any integrated resource plan or plan update
it considers.

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SECTION 1.  

Section 957 of the Public Utilities Code is
amended to read:

957.  

(a) (1) Unless the commission determines that it is
prohibited from doing so by subdivision (c) of Section 60104 of
Title 49 of the United States Code, the commission shall require
the installation of automatic shutoff or remote controlled
sectionalized block valves on all of the following facilities, if it
determines those valves are necessary for the protection of the
public:

(A) Intrastate transmission lines that are located in a high
consequence area.

(B) Intrastate transmission lines that traverse an active seismic
earthquake fault.

(C) Intrastate transmission lines that transport gas to or from a
storage facility.

(2) Each owner or operator of a commission-regulated gas
pipeline facility that is an intrastate transmission line shall provide
the commission with a valve location plan, along with any
recommendations for valve locations. The commission may make
modifications to the valve location plan or provide for variations
from any location requirements adopted by the commission
pursuant to this section that it deems necessary or appropriate and
consistent with protection of the public.

(3) The commission shall additionally establish action timelines,
adopt standards for how to prioritize installation of automatic
shutoff or remote controlled sectionalized block valves pursuant
to paragraph (1), ensure that remote and automatic shutoff valves
are installed as quickly as is reasonably possible, and establish
ongoing procedures for monitoring progress in achieving the
requirements of this section.

(b) The commission shall authorize recovery in rates for all
reasonably incurred costs incurred for implementation of the
requirements of this section.

(c) The commission, in consultation with the Pipeline and
Hazardous Materials Safety Administration of the United States
Department of Transportation, shall adopt and enforce compatible
safety standards for commission-regulated gas pipeline facilities
that the commission determines should be adopted to implement
the requirements of this section.

SEC. 2.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

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