Bill Text: CA AB1279 | 2021-2022 | Regular Session | Amended

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

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Bill Title: The California Climate Crisis Act.

Spectrum: Partisan Bill (Democrat 17-0)

Status: (Passed) 2022-09-16 - Chaptered by Secretary of State - Chapter 337, Statutes of 2022. [AB1279 Detail]

Download: California-2021-AB1279-Amended.html

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Amended  IN  Senate  August 28, 2022

Amended  IN  Senate  June 13, 2022

Amended  IN  Assembly  March 25, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 1279

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Introduced by Assembly Member Members Muratsuchi and Cristina Garcia
(Principal coauthor: Assembly Member Luz Rivas)
(Principal coauthors: Senators Allen, Becker, Gonzalez, Laird, Leyva, Limón, McGuire, Skinner, Stern, and Wiener)
(Coauthors: Assembly Members Holden, McCarty, Robert Rivas, and Stone)

February 19, 2021

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An act to add Section 469 to the Public Utilities Code, relating to public utilities. An act to add Section 38562.2 to the Health and Safety Code, relating to greenhouse gases.

LEGISLATIVE COUNSEL'S DIGEST

AB 1279, as amended, Muratsuchi. Public utilities: rates: cost recovery. The California Climate Crisis Act.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.

This bill, the California Climate Crisis Act, would declare the policy of the state both to achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and achieve and maintain net negative greenhouse gas emissions thereafter, and to ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85% below the 1990 levels. The bill would require the state board to work with relevant state agencies to ensure that updates to the scoping plan identify and recommend measures to achieve these policy goals and to identify and implement a variety of policies and strategies that enable carbon dioxide removal solutions and carbon capture, utilization, and storage technologies in California, as specified. The bill would require the state board to submit an annual report, as specified.

This bill would make its operation contingent on the enactment of SB 905 of the 2021–22 Regular Session, as provided.

Existing law vests the Public Utilities Commission with regulatory jurisdiction over electrical and gas corporations. Existing law authorizes the commission to fix the rates and charges for every public utility, including electrical and gas corporations, and requires that those rates and charges be just and reasonable.

This bill would, as a part of an electrical or gas corporation’s application for recovery of previously incurred costs or costs proposed to be incurred in the future, require the electrical or gas corporation to include certain information in the application. For a general rate case application, the bill would require electrical or gas corporations to take certain actions if the cumulative cost recovery request in the application added to certain amounts requested for cost recovery, as specified, results in an increase in the total costs for programs under the jurisdiction of the commission authorized to be recovered from ratepayers that exceeds the projected rate of inflation. The bill would require the commission to implement these requirements, as provided.

Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because the provisions of this bill would be a part of the act and because a violation of a commission action implementing the bill’s requirements would be a crime, 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 a specified reason.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YESNO  

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Bill Text

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

SECTION 1.

 The Legislature finds and declares the following:

(a) The State Air Resources Board commissioned an initial report that analyzed three scenarios to net zero greenhouse gas emissions in California. All three scenarios require direct greenhouse gas emission reductions, removal of carbon dioxide from the atmosphere, and almost complete transition away from fossil fuels.

(b) This report reflects findings from numerous studies recognizing the benefits, risks, and uncertainties around the use of carbon dioxide removal technologies and carbon capture, utilization, and storage technologies.

(c) According to these studies, carbon dioxide removal technologies and carbon capture, utilization, and storage technologies are currently available, but they do not negate the need to make drastic reductions in fossil fuel use.

(d) Millions of Californians breathe unhealthy air.

(e) Prioritizing direct emission reductions will help California to meet both its air quality standards and net zero greenhouse gas emissions.

SEC. 2.

 Section 38562.2 is added to the Health and Safety Code, to read:

38562.2.

 (a) This section shall be known, and may be cited, as the California Climate Crisis Act.

(b) For purposes of this section, “net zero greenhouse gas emissions” means emissions of greenhouse gases, as defined in subdivision (g) of Section 38505, to the atmosphere are balanced by removals of greenhouse gas emissions over a period of time, as determined by the state board.

(c) It is the policy of the state to do both of the following:

(1) Achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter. This goal is in addition to, and does not replace or supersede, the statewide greenhouse gas emissions reduction targets in Section 38566.

(2) Ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85 percent below the statewide greenhouse gas emissions limit established pursuant to Section 38550.

(d) The state board shall work with relevant state agencies to do both of the following:

(1) Ensure that updates to the scoping plan required pursuant to Section 38561 identify and recommend measures to achieve the policy goals stated in subdivision (c).

(2) Identify and implement a variety of policies and strategies that enable carbon dioxide removal solutions and carbon capture, utilization, and storage technologies in California to complement emissions reductions and achieve the policy goals stated in subdivision (c).

(e) (1) By December 31, 2035, the state board shall evaluate the feasibility and tradeoffs of achieving the policy goal stated in paragraph (2) of subdivision (c) relative to alternative scenarios that achieve the policy goals stated in paragraph (1) of subdivision (c), and report its findings and recommendations to the Legislature.

(2) The state board shall report to the Joint Legislative Committee on Climate Change Policies annually on progress toward the goals stated in subdivision (c).

(3) The Legislative Analyst’s Office shall conduct independent analyses of the state board’s progress toward the goals stated in subdivision (c) every two years and shall prepare a report detailing its review, including any recommendations for improvements, including, but not limited to, shortfalls in direct emission reductions, barriers to carbon dioxide removal deployment, and potential changes to the state board’s evaluation and reporting practices that will advance transparency and accountability. The report shall be made available to the public.

SEC. 3.

 This act shall become operative only if Senate Bill 905 of the 2021–22 Regular Session is enacted and becomes operative on or before January 1, 2023.

SECTION 1.Section 469 is added to the Public Utilities Code, to read:

469.

(a)As a part of an application for recovery of previously incurred costs or costs proposed to be incurred in the future filed by an electrical or gas corporation, the commission shall require the electrical or gas corporation to include in the application all of the following:

(1)A comprehensive list of all applications or advice letters for cost recovery filed by the electrical or gas corporation in the past 24 months that have been authorized by the commission but not yet implemented through a rate change or that are pending before the commission. The list shall include, at a minimum, both of the following:

(A)The date of the prior applications or advice letters.

(B)The amount requested for cost recovery.

(2)An analysis showing the impact on current rates of the prior applications specified in paragraph (1) if those applications were all approved by the commission. The analysis shall include, at a minimum, both of the following:

(A)A calculation of the average rate increase for each customer class.

(B)A calculation of the impact on residential customers, including impact for customers using an average amount of electricity or gas, customers using electricity or gas in the 25th and 75th percentile of consumption, and customers who qualify for reduced low-income rates.

(b)In a general rate case application, if the cumulative cost recovery request in the application added to the amounts described in paragraph (1) of subdivision (a) results in an increase in the total costs of programs under the jurisdiction of the commission authorized to be recovered from ratepayers that exceeds the projected rate of inflation, calculated in a manner determined by the commission, for the period covered by the application, the electrical or gas corporation shall provide a written justification for the increase of that size and provide an alternative proposal that would increase cost recovery no more than the projected rate of inflation.

(c)The commission shall implement this section, including any necessary additional requirements, on or before December 31, 2023, through an order issued either in the existing commission Rulemaking 18-07-006 (July 12, 2018) Order Instituting Rulemaking to Establish a Framework and Processes for Assessing the Affordability of Utility Service, or in another relevant proceeding.

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.