BILL NUMBER: SB 376 AMENDED
BILL TEXT
AMENDED IN SENATE JANUARY 25, 2010
AMENDED IN SENATE APRIL 29, 2009
AMENDED IN SENATE APRIL 1, 2009
INTRODUCED BY Senator Simitian
FEBRUARY 26, 2009
An act to add Section 21090.2 to, and to add Chapter 3.5
(commencing with Section 25250) to Division 15 of, the Public
Resources Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 376, as amended, Simitian. Energy: State Energy Resources
Conservation and Development Commission: natural gas.
(1) The Warren-Alquist State Energy Resources Conservation and
Development Act (act) establishes the State Energy Resources
Conservation and Development Commission (Energy Commission) and
requires the commission to prepare a biennial integrated energy
policy report containing specified information related to major
energy trends and issues facing the state, as well as a biennial
energy policy review. The act requires the commission to certify
sufficient sites and related facilities that are required to provide
a supply of electricity sufficient to accommodate projected demand
for power statewide.
This bill would enact the Liquefied Natural Gas Market Assessment
Act and would require the Energy Commission, as a component of the
integrated energy policy report, to conduct a study of the need for
liquefied natural gas imports to meet the state's energy demand,
containing specified information.
The
This bill would create the Liquified Natural Gas
Market Assessment Act and would require a liquefied natural gas
terminal project applicant to include in the application evidence
that it has consulted with the United States Department of Defense
and its impacted service components. For a project involving the
construction or operation of a liquefied natural gas terminal for
which an application submitted to the Federal Energy Regulatory
Commission (FERC) or the United States Maritime Administration has
not been deemed data adequate on or before January 1, 2010
2011 , and the application is being processed
for further action by the FERC or the United States Maritime
Administration, an environmental impact report prepared for that
project by a lead agency would be required to contain specified
information. By requiring a local agency to prepare an environmental
impact report that contains specified information, the bill would
increase the level of service provided by a local agency, thereby
imposing a state-mandated local program.
The bill would require the Energy Commission
would be required , on or before July 1,
2010 2011 , to create a matrix on its
Internet Web site containing information related to the construction
and operation of a liquefied natural gas terminal project, and
quarterly updates would be required.
(2) 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 1. The Legislature finds and declares all of the
following:
(a) The state has a critical role in decisions regarding the
siting and design of new onshore and offshore infrastructure for the
importation of liquefied natural gas with regard to public health,
safety, and the environment.
(b) California has a rich history of innovative and strong
environmental laws and should continue to strive for the best
protections possible.
(c) Utilities in California are required to meet new demand
through energy efficiency programs before acquiring other sources of
electricity.
(d) Accelerating the use of renewable energy resources wherever
feasible and ensuring a diverse and affordable portfolio of fuel
sources may minimize supply interruptions and increase reliability.
(e) Decisions regarding the importation of liquefied natural gas
should be based on a comprehensive review of current and projected
natural gas supply and demand in California.
(f) The possible importation of liquefied natural gas should be
reviewed as part of the state's integrated energy policy report,
which contains an overview of major energy trends and issues facing
the state, including supply, demand, and price.
SEC. 2. Section 21090.2 is added to the Public Resources Code, to
read:
21090.2. (a) In addition to any other requirements under this
division, for a project involving the construction or operation of an
onshore or offshore liquefied natural gas terminal in California for
which an application submitted to the Federal Energy Regulatory
Commission or the United States Maritime Administration has not been
deemed data adequate on or before January 1, 2010
2011 , and the application is being processed for further
action by the Federal Energy Regulatory Commission or the United
States Maritime Administration, an environmental impact report shall
include all of the following:
(1) A comparative analysis of feasible alternative project
technologies pursuant to Section 15126.6 of Title 14 of the
California Code of Regulations.
(2) An analysis of potential disproportionately high and adverse
human health or environmental effects on minority and low-income
populations.
(3) A full life-cycle analysis of the impacts of greenhouse gases.
(b) This section shall not be construed as a limitation on the
power of a public agency to otherwise disapprove the project pursuant
to any other provision of law.
(c) This section shall not be construed as a limitation to comply
with any other requirements of this division or any other provision
of law.
SEC. 3. Chapter 3.5 (commencing with Section 25250) is added to
Division 15 of the Public Resources Code, to read:
CHAPTER 3.5. LIQUEFIED NATURAL GAS MARKET ASSESSMENT ACT
25250. This chapter shall be known and may be cited as the
Liquefied Natural Gas Market Assessment Act.
25250.5. For purposes of this chapter, the following definitions
apply:
(a) "Liquefied natural gas" or "LNG" means natural gas cooled to
minus 259 degrees Fahrenheit so that it forms a liquid at
approximately atmospheric pressure.
(b) "Onshore or offshore liquefied natural gas terminal in
California" means facilities located onshore or offshore in
California, designed to receive liquefied natural gas from oceangoing
vessels, including those facilities required for storage and
regasification of the liquefied natural gas, the marine vessels
associated with these facilities, and any new pipelines, including,
but not limited to, all new pipelines from these offshore or onshore
terminals to shore and facilities necessary for the transmission of
the regasified natural gas from those facilities, to the point of
interconnection with any existing natural gas transportation or
distribution system.
25251. (a) As a component of the integrated energy policy report,
the commission shall conduct a study of the need for liquefied
natural gas imports to meet the state's energy demand.
(b) The study shall assess all of the following:
(1) The future demand for natural gas in California, including,
but not limited to, natural gas as an alternative transportation
fuel.
(2) The future supply of natural gas in California available from
domestic production and imported into California through interstate
pipelines, the supply available from domestic production within
California, and the supply available from foreign production and
imported into California through international pipelines from Mexico
and Canada, including any liquefied natural gas terminal proposed to
be built outside the state and the nation that would be the source of
natural gas imported into the state.
(3) All supplemental sources of natural gas and natural gas
alternatives that can be reasonably expected to be available to meet
projected energy demand, including, but not limited to, conservation,
energy efficiency programs, and renewable energy resources.
(4) Projections of the price for natural gas under reasonable
supply and demand circumstances.
(c) The report shall consider the impact of reducing electricity
derived from coal pursuant to Chapter 3 (commencing with Section
8340) of Division 4.1 of the Public Utilities Code, and the potential
of demand reduction opportunities, including, but not limited to,
the upgrading and retrofitting of energy infrastructure, the role of
renewable energy, and greater efficiency in building codes.
(d) The report shall include an analysis of what impact new fossil
fuel infrastructure will have on mandates on investor owned
utilities under any provision of law, including, but not limited to,
the California Renewables Portfolio Standard Program, Article 16
(commencing with Section 399.11) of Chapter 2.3 of Part 1 of Division
1 of the Public Utilities Code.
(e) The commission shall update its study of the need for
liquefied natural gas imports at least 60 days prior to the hearing
conducted by the State Lands Commission or the California Coastal
Commission prior to issuing a permit to license a liquefied natural
gas facility on the California coast, if the commission has not
issued an integrated energy policy report within 180 days of the
hearing.
(f) (1) A person who complies with paragraph (2) may challenge the
findings of the liquified natural gas market assessment report by
filing a writ of mandate for review pursuant to Section 25901.
(2) To file a writ of mandate pursuant to paragraph (1), an
aggrieved person shall have appeared, in person or through a
representative, at one of the commission's public hearings, in person
or in writing, and informed the commission of his or her concerns,
or for good cause have been unable to do either.
25252. 25251. On or before
July 1, 2010 On or before July 1, 2011 , the
commission shall create a matrix on its Internet Web site that meets,
to the extent that data are publicly available, all of the following
requirements:
(a) The matrix shall be in a format that allows the public to
contrast and compare each liquefied natural gas terminal, either
existing or proposed, that is located onshore or offshore anywhere in
California. The matrix shall also include information from
facilities located in Alaska, Canada, the west coast of the
continental United States, and the west coast of Mexico including
Baja California that may provide natural gas to California.
(b) It shall include a summary of environmental impacts,
mitigation measures, and alternatives discussed in the environmental
impact report (EIR) completed for the project, along with an online
link to the EIR. For projects outside the state and nation a link to
an equivalent environmental review document.
(c) For each existing and proposed land-based or offshore
liquefied natural gas terminal project, the matrix shall include the
following information: project location, project owner, project Web
site, project contact, project description, average natural gas
production capacity in cubic feet per day, the peak natural gas
production capacity in cubic feet per day, liquefied natural gas and
natural gas storage capacity, if any, the approximate project cost,
projected online date, and the siting process applicable to the
project.
(d) The matrix shall be updated as information becomes available
and no less than quarterly and shall include the major project
components and the potential environmental impacts associated with
each land-based and offshore natural gas import terminal project
proposal that has filed an application or has publicly announced
plans to build a land-based or offshore terminal.
(e) The commission shall post a new application for approval to
build and operate a natural gas import terminal in the state to the
matrix within 30 days after the filing of the application.
25253. 25252. An applicant for the
construction or operation of a liquefied natural gas terminal project
shall provide evidence in its application that it has consulted with
the United States Department of Defense and its impacted service
components, and include within the application a description of the
consultation with regard to potential impacts upon national security,
including potential impacts on the land, sea, and airspace
identified by the Department of Defense and its impacted service
components, for conducting operations or training, or for the
research, development, testing, and evaluation of weapons, sensors,
and tactics.
SEC. 4. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
this act provides for offsetting savings to local agencies or school
districts that result in no net costs to the local agencies or school
districts, within the meaning of Section 17556 of the Government
Code.