Bill Text: CA AB1110 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Greenhouse gases emissions intensity reporting: retail electricity suppliers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-09-26 - Chaptered by Secretary of State - Chapter 656, Statutes of 2016. [AB1110 Detail]

Download: California-2015-AB1110-Amended.html

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BILL NUMBER: AB 1110	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 19, 2016
	AMENDED IN SENATE  AUGUST 4, 2016
	AMENDED IN SENATE  SEPTEMBER 3, 2015
	AMENDED IN SENATE  AUGUST 18, 2015
	AMENDED IN SENATE  JUNE 19, 2015

INTRODUCED BY   Assembly Member Ting

                        FEBRUARY 27, 2015

   An act to amend Sections 398.1, 398.2, 398.4, and 398.5 of the
Public Utilities Code, relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1110, as amended, Ting. Greenhouse gases emissions intensity
reporting: retail electricity suppliers.
   Under existing law, entities offering electric services in
California are required to disclose information on the sources of
energy that are used to provide electric services. Existing law
requires every retail supplier, as defined, that makes an offer to
sell electricity that is consumed in California to disclose its
electricity sources for the previous calendar year. These disclosures
are required to be made to end-use consumers and potential end-use
consumers. Existing law requires a retail supplier to disclose its
electricity sources as a percentage of annual sales that is derived
from specified sources of energy, including eligible renewable energy
resources. Existing law requires that retail suppliers annually
report to the Energy Commission certain information for each
electricity  offering  from "specified sources," as defined,
 offering  for the previous calendar  year.
  year and authorizes the Energy Commission to verify
environmental claims made by retail suppliers. 
   This bill  would   would, among other things,
 require the Energy  Commission to calculate the
greenhouse gas emissions intensity for each purchase of electricity
from "specified sources," as defined, and,   Commission,
 in consultation with the State Air Resources Board, to
 establish   adopt a methodology for the
calculation of  greenhouse gas emissions intensity 
factors for electricity from "unspecified sources."  
for each purchase of electricity by a retail supplier to serve its
retail customers.  The bill would require a retail supplier,
including an electrical corporation, local publicly owned electric
utility, electric service provider, and community choice aggregator,
to also disclose  both  the greenhouse gases emissions
intensity of any electricity portfolio offered to its retail
customers, as specified, and the Energy Commission's calculation of
the greenhouse gas emissions intensity associated with all statewide
retail electricity sales.  The bill would prohibit an
adjustment in the calculation of greenhouse gas emissions intensity
through the application of unbundled renewable energy credits, carbon
offset credits, or credits associated with any greenhouse gas
reductions unrelated to the production of electricity.  The
bill would require a retail supplier to annually report to the Energy
Commission certain additional information for each electricity
offering for the previous calendar  year.   year
and would authorize the Energy Commission to verify procurement
claims, in addition to environmental claims, made by retail
suppliers.  The bill would require the Energy Commission, on or
before January 1, 2018, to adopt  guidelines  
guidelines, through an open process, subject to public  
comment, and adopted by a vote of the Energy Commission,  for
the reporting and disclosure of greenhouse gas emissions 
intensity, subject to public hearing.   intensity. 
The bill would require retail suppliers, beginning June 1, 2020, to
report  to the Energy Commission  data on greenhouse
gas emissions intensity associated with retail sales occurring after
December 31, 2018, except as provided.
   The Public Utilities Act makes any public utility and any
corporation other than a public utility, if the public utility or
corporation violates the act or fails to comply with any part of any
order, decision, rule, direction, demand, or requirement of the
commission, guilty of a crime.
   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 by an electrical corporation or
electric service provider would be a crime, the bill would impose a
state-mandated local program by expanding what is a crime. By placing
additional reporting duties upon local publicly owned electric
utilities, the bill would impose a state-mandated local 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 specified reasons.
   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.  Section 398.1 of the Public Utilities Code is amended
to read:
   398.1.  (a) The Legislature finds and declares that there is a
need for reliable, accurate, timely, and consistent information
regarding fuel sources for electric generation offered for retail
sale in California.
   (b) The purpose of this article is to establish a program under
which entities offering electric services in California disclose
accurate, reliable, and simple to understand information on the
sources of energy, and the associated emissions of greenhouse gases,
that are used to provide electric services.
  SEC. 2.  Section 398.2 of the Public Utilities Code is amended to
read:
   398.2.  The definitions set forth in this section shall govern the
construction of this article.
   (a) "Greenhouse gas emissions intensity" means the sum of all
annual emissions of greenhouse gases associated with a generation
source divided by the annual production of electricity from the
generation source.
   (b) "Retail supplier" means an entity that offers an electricity
product for sale to retail consumers in California, including an
electrical corporation, local publicly owned electric utility,
electric service provider, and community choice aggregator.
   (c) "System operator" means the Independent System Operator with
responsibility for the efficient use and reliable operation of the
transmission grid, as provided by Section 345, or a local publicly
owned electric utility that does not utilize the Independent System
Operator.
   (d) "Purchases of electricity from specified sources" or
"purchases from specified sources" means electricity transactions
that are traceable to specific generation sources by any auditable
contract trail or equivalent, such as a tradable commodity system,
that provides commercial verification that the electricity source
claimed has been sold once and only once to a retail consumer. Retail
suppliers may rely on annual data to determine whether a transaction
meets this definition, rather than hour-by-hour matching of loads
and resources.
   (e) "Electricity from unspecified sources" means electricity that
is not traceable to specific generation sources by any auditable
contract trail or equivalent, including a tradable commodity system,
that provides commercial verification that the electricity source
claimed has been sold once, and only once, to a retail consumer.
  SEC. 3.  Section 398.4 of the Public Utilities Code is amended to
read:
   398.4.  (a) Every retail supplier that makes an offering to sell
electricity that is consumed in California shall disclose its
electricity sources and the associated greenhouse gases emissions
intensity for the previous calendar year.
   (b) The disclosures required by this section 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, including the retail supplier's Internet
Web site, if one exists, except that advertisements and notices in
general circulation media shall not be subject to this requirement.
   (c) The disclosures required by this section shall be made
annually to end-use consumers of the offered electricity. The annual
disclosure shall be made by the end of the first complete billing
cycle for the third quarter of the year, and shall be consistent with
information provided to the Energy Commission pursuant to Section
398.5.  A retail supplier may distribute the disclosures required
by this section via email to any end-use consumer that has consented
to receive email in lieu of printed materials. 
   (d) The disclosures required by this section shall be made
separately for each portfolio offering made by the retail supplier.
   (e) On or before January 1, 1998, the Energy Commission shall
specify guidelines for the format and means for disclosure required
by Section 398.3 and this section, based on the requirements of this
article and subject to public hearing.
   (f) The costs of making the disclosures required by this section
shall be considered to be generation related.
   (g) The disclosures required by this section shall comply with the
following:
   (1) A retail supplier's disclosure of its electricity sources
shall be expressed as a percentage of annual sales derived from each
of the following categories:
   (A) Electricity from unspecified sources.
   (B) Purchases of electricity from specified sources.
   (2) A retail supplier's disclosure of its electricity sources
shall also separately identify total California system electricity,
which is the sum of all in-state generation and net electricity
imports by fuel type.
   (h) Each of the categories specified in subdivision (g) shall be
additionally identified as a percentage of annual sales that is
derived from the following fuels, sources of energy, or electricity
products:
   (1) Coal.
   (2) Large hydroelectric (greater than 30 megawatts).
   (3) Natural gas.
   (4) Nuclear.
   (5) Eligible renewable energy resources pursuant to the California
Renewables Portfolio Standard Program (Article 16 (commencing with
Section 399.11)), including any of the following:
   (A) Biomass and biowaste.
   (B) Geothermal.
   (C) Eligible hydroelectric.
   (D) Solar.
   (E) Wind. 
   (F) Unbundled renewable energy credits. 
   (6) Other categories as determined by the Energy Commission. 
   (7) The portion of annual sales derived from unbundled renewable
energy credits shall be included in the disclosures in a format
determined by the Energy Commission. A retail supplier may include
additional information related to the sources of the unbundled
renewable energy credits. 
   (i) All electricity sources disclosed as purchases of electricity
from specified sources shall meet the requirements of subdivision (d)
of Section 398.2.
   (j) Purchases of electricity from specified sources identified
pursuant to this section shall be from sources connected to the
Western Electricity Coordinating Council interconnected grid.
   (k) (1) Each retail supplier shall disclose  both  the
greenhouse gas emissions intensity of any electricity portfolio
offered to its retail customers and the Energy Commission's
calculation of greenhouse gas emissions intensity associated with all
statewide retail electricity sales, consistent with the requirements
of this subdivision.
   (2) The Energy Commission shall do all of the following: 
   (A) Calculate the greenhouse gas emissions intensity for each
purchase of electricity from a specified source using data reported
to the State Air Resources Board under the regulations for the
Mandatory Greenhouse Gas Reporting program or a successor program. If
emissions data is unavailable or restricted due to confidentiality,
the Energy Commission may establish default emissions intensity
factors for purchases from specified sources.  
   (B) Establish, in consultation with the State Air Resources Board,
default emissions intensity factors for electricity from unspecified
sources located in California, electricity from unspecified sources
imported into the state from other regions, and electricity from
sources without a reporting obligation.  
   (A) Adopt a methodology, in consultation with the State Air
Resources Board, for the calculation of greenhouse gas emissions
intensity for each purchase of electricity by a retail supplier to
serve its retail customers.  
   (C) 
    (B)  Calculate the greenhouse gas emissions intensity
associated with statewide retail electricity sales based on the
greenhouse gas emissions for total California system electricity.

   (D) 
    (C)  Rely on the most recent verified greenhouse gas
emissions data while ensuring that greenhouse gas emissions intensity
factors for electricity from specified and unspecified sources are
available to retail suppliers with sufficient advance notice to
permit timely reporting. 
   (E) Retain the right to verify any procurement claims made by a
retail supplier, including the right to review any underlying
procurement contracts, the associated electronic tags demonstrating
that the claimed electricity was delivered to the retail supplier,
and all related financial settlements.  
   (3) The Energy Commission shall not authorize a retail seller to
make any adjustments to the calculation of greenhouse gas emissions
intensity beyond those permitted under the market-based compliance
mechanism adopted by the State Air Resources Board. A retail seller
shall not make adjustments due to the use of offset credits, credits
associated with any greenhouse gas reductions unrelated to the
production of electricity, or unbundled renewable energy credits.
 
   (4) The Energy Commission may authorize an adjustment 
    (D)     Establish guidelines for
adjustments  to a greenhouse gas emissions intensity factor 
for a reporting year  for any local publicly owned electric
utility demonstrating  procurement   generation
 of quantities of electricity in  a single year
  previous years  in excess of its total retail
sales  from purchases   and wholesale sales
 from specified sources that do not emit any greenhouse gases.
 Any request for adjustments by an eligible local publicly
owned electric utility shall be considered in an open process,
subject to public comment, and adopted through a vote of the full
Energy Commission. An adjustment   Adjustments 
authorized by the  guidelines established by the  Energy
Commission shall not permit excess generation procured in a single
year to be counted more than once or to be resold to another retail
supplier as  a purchase from  a specified source.

   (5) The Energy Commission shall ensure 
    (E)     Ensure  that there is no
 double counting   double-counting  of the
greenhouse gas emissions or emissions attributes associated with any
unit of electricity production reported by a retail supplier for any
specific generating facility  or unspecified source  located
within the Western Electricity Coordinating Council when calculating
greenhouse gas emissions intensity. 
   (6) (A) 
    (F)    (i)  On or before January 1,
2018,  the Energy Commission shall adopt guidelines 
 adopt guidelines, through an open process, subject to public
comment, and adopted by a vote of the Energy Commission,  for
the reporting and disclosure of greenhouse gas emissions intensity
associated with retail sales based on the requirements of this
 subdivision and subject to public hearing.  
subdivision.  Beginning June 1, 2020, retail suppliers shall be
required to report data on greenhouse gas emissions intensity
associated with retail sales occurring after December 31, 2018.

   (B) 
    (ii)  Any new community choice aggregator formed after
January 1, 2016, shall not be required to report data on greenhouse
gas emissions intensity associated with retail sales until at least
24 months, but  shall be required to report that data  no
later than 36 months, after serving its first retail customer.

   (7) 
    (3)  Any marketing or retail product claims relating to
the greenhouse gas emissions intensity of the electric supply
portfolio of a retail supplier shall be consistent with the
methodology  required under   adopted by the
Energy Commission pursuant to  this section. Retail suppliers
may provide additional information to customers describing other
actions relating to greenhouse gases that are unrelated to the
electric supply portfolio.
   (l) The provisions of this section shall not apply to generators
providing electric service onsite, under an over-the-fence
transaction as described in Section 218, or to an affiliate or
affiliates, as defined in subdivision (a) of Section 372.
  SEC. 4.  Section 398.5 of the Public Utilities Code is amended to
read:
   398.5.  (a) Retail suppliers shall annually report to the Energy
Commission, for each electricity offering for the previous calendar
year, each of the following:
   (1) The kilowatthours purchased, by generator and fuel type during
the previous calendar year, consistent with the meter data,
including losses, reported to the system operator.
   (2) The kilowatthours purchased from unspecified sources in
California and from unspecified sources imported into California from
other subregions within the Western Electricity Coordinating
Council. 
   (3) Any kilowatthours supplied to the retail seller directly or
indirectly by a first deliverer of electricity into the state.
 
   (4) 
    (3)  For each electricity  offering 
 offering,  the kilowatthours sold at retail. 
   (5) 
    (4)  For each electricity  offering 
 offering,  the disclosures made to consumers pursuant to
Section 398.4.
   (b) Information submitted to the Energy Commission pursuant to
this section that is a trade secret as defined in subdivision (d) of
Section 3426.1 of the Civil Code shall not be released except in an
aggregated form such that trade secrets cannot be discerned.
   (c) The Energy Commission shall specify guidelines and standard
formats, based on the requirements of this article and subject to
public hearing, for the submittal of information pursuant to this
article.
   (d) In developing the rules and procedures specified in this
section, the Energy Commission shall seek to minimize the reporting
burden and cost of reporting that it imposes on retail suppliers.
   (e) The provisions of this section shall not apply to generators
providing electric service onsite, under an over-the-fence
transaction as described in Section 218, or to an affiliate or
affiliates, as defined in subdivision (a) of Section 372.
   (f) The Energy Commission may verify environmental  and
procurement  claims made by retail suppliers.
  SEC. 5.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act or because 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.