BILL ANALYSIS �
AB 1186
Page 1
Date of Hearing: April 11, 2011
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
AB 1186 (Skinner) - As Amended: March 25, 2011
SUBJECT : Generation: energy source disclosures.
SUMMARY : This bill would require that usage of natural gas be
separately disclosed when it is used for conventional powerplant
and peaker plant generation, and when it is used for combined
heat and power system generation.
EXISTING LAW :
1)Establishes a program under which retail suppliers of
electricity disclose accurate, reliable, and simple to
understand information on the sources of energy that are used
to provide electric services.
2)Requires every retail supplier that makes an offering to sell
electricity that is consumed in California shall disclose,
annually, its electricity sources for the previous calendar
year.
3)Specifies that the disclosures shall be made to potential
end-use consumers in all product-specific written promotional
materials that are distributed to consumers by either printed
or electronic means.
FISCAL EFFECT : Unknown.
COMMENTS : According to the author, "AB 1186 requires that
retail suppliers report their utilization of cogeneration/CHP by
adding a line under the "natural gas" section of the Power
Content label. This will further educate the consumer and
policymakers about CHP technology and help the state to
determine where it is with respect to the ambitious CHP targets
that have been set by the Air Resources Board and Governor
Brown."
Pursuant to Senate Bill 1305 (Sher), Chapter 796, Statutes of
1997, the Power Content Label requires that retail suppliers
list the amount of eligible renewable (biomass and waste,
geothermal, solar, small hydroelectric, and wind energy), coal,
AB 1186
Page 2
large hydroelectric, natural gas and "other" resources that is
being used in their product. However, nothing in current law
requires retail suppliers to list the amount of cogeneration or
combined heat and power (CHP) being used.
Background : SB 1305 (Sher) was enacted to ensure that retail
suppliers of electricity disclose to consumers "accurate,
reliable, and simple to understand information on the sources of
energy that are used to provide electric services." As such, the
current law requires retail suppliers of electricity to disclose
fuel source information to consumers about the electricity being
sold, using a format developed by the California Energy
Commission (CEC). The format adopted for retail electricity
source disclosure to consumers is called the "power content
label" and Using this label, consumers can compare the power
"content" or resource mix of a given electricity product
against that of the California Power Mix (i.e. net system
power). The power content label allows retail suppliers of
electricity to distinguish their products from other electricity
products in the market on the basis of power content.
Why Cogeneration : All powerplants and many industrial processes
emit a certain amount of heat during electricity generation.
This heat by-product can be released into the natural
environment through cooling towers, flue gas, or by other means.
Cogeneration is the process of harnessing that heat that would
otherwise be wasted in the fuel combustion process, producing
two useful outputs: heat and power. Cogeneration produces a
given amount of electric power and process heat with 10% to 30%
less fuel than it takes to produce the electricity and process
heat separately.
Because of these efficiencies and the lack of transmission
constraints, Governor Brown has set goals to develop more
cogeneration projects to increase CHP production by 6,500
megawatts. Furthermore, the scoping plan developed by the
California Air Resources Board called for an additional 4,000
megawatts of CHP by 2020.
REGISTERED SUPPORT / OPPOSITION :
Support
BP America, Inc.
Western States Petroleum Association (WSPA)
AB 1186
Page 3
Opposition
None on file.
Analysis Prepared by : Awet P. Kidane / U. & C. / (916)
319-2083