Bill Text: CA AB2037 | 2009-2010 | Regular Session | Amended

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

---

Bill Title: Electricity: air pollution.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2010-09-28 - Chaptered by Secretary of State - Chapter 422, Statutes of 2010. [AB2037 Detail]

Download: California-2009-AB2037-Amended.html

---

BILL NUMBER: AB 2037	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 15, 2010
	AMENDED IN ASSEMBLY  APRIL 13, 2010

INTRODUCED BY   Assembly Members V. Manuel Perez and Salas

                        FEBRUARY 17, 2010

   An act to add Chapter 3.5 (commencing with Section 8350) to
Division 4.1 of the Public Utilities Code, relating to electricity.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2037, as amended, V. Manuel Perez. Electricity: air pollution.

   (1) Under 
    Under  existing law, the Public Utilities Commission
(PUC) has regulatory authority over public utilities, including
electrical corporations, as defined. The existing Public Utilities
Act requires the PUC to review and approve, modify, or reject a
procurement plan for each electrical corporation in accordance with
specified elements, incentive mechanisms, and objectives. Existing
law prohibits any load-serving entity, and any local publicly owned
electric utility, from entering into a long-term financial commitment
for baseload generation, unless that baseload generation complies
with a greenhouse gases emission performance standard. Existing law
requires the PUC, by February 1, 2007, through a rulemaking
proceeding and in consultation with the State Energy Resources
Conservation and Development Commission (Energy Commission) and the
State Air Resources Board (state board), to establish a greenhouse
gases emission performance standard for all baseload generation of
load-serving entities. Existing law requires the Energy Commission,
by June 30, 2007, at a duly noticed public hearing and in
consultation with the PUC and the state board, to establish a
greenhouse gases emission performance standard for all baseload
generation of local publicly owned electric utilities, as defined.
   This bill would prohibit a load-serving entity or local publicly
owned electric utility from entering into, and would prohibit the PUC
from approving for an electrical corporation, a long-term financial
commitment with or for a new electrical generation facility
constructed in California, or in a shared pollution area, as defined
 ,  that does not meet specified air pollution criteria.

   The bill would require the PUC, the Energy Commission, local air
pollution control districts and air quality management districts, and
the State Air Resources Board to explore with federal agencies, and
with other governments, methods to encourage the recognition by all
relevant agencies of offsets achieved anywhere in a shared pollution
area and the use of cross-border trading of offsets, emission
reduction credits, and available mitigation funds. By imposing
additional requirements on local air pollution control districts and
air quality management districts, the bill would impose a
state-mandated local program.  
   (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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  yes   no  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 3.5 (commencing with Section 8350) is added to
Division 4.1 of the Public Utilities Code, to read:
      CHAPTER 3.5.  AIR POLLUTION PERFORMANCE STANDARD FOR NEW
GENERATION


   8350.  (a) For purposes of this section, the following terms have
the following meanings:
   (1) "Load-serving entity" has the same meaning as that term is
defined in Section 8340.
   (2) "Long-term financial commitment" has the same meaning as that
term is defined in Section 8340.
   (3) "New electrical generating facility" means an electrical
generating unit  constructed   for which all
legally required permits have been   received  after
January 1, 2011. If an electrical generating unit is added to an
existing powerplant after January 1, 2011, only the incremental
capacity from that unit added after January 1, 2011, is a new
electrical generating facility. 
   (4) "Shared pollution area" means an area encompassing California
and another state or country, determined by the United States
Environmental Protection Agency to share air pollution such that air
pollution emitted in that area, but not within California, affects
public health in California.  
   (4) "Shared pollution area" means an airshed encompassing a
portion of California and a portion of an adjacent state or country,
as determined by the United States Environmental Protection Agency.

   (b) A load-serving entity or local publicly owned electric utility
shall not enter into, and the commission shall not approve for an
electrical corporation, a long-term financial commitment with or for
a new electrical generating facility constructed in California or in
a shared pollution area if that facility does not meet the following
requirements: 
   (1) (A) If the facility was constructed in California, the
facility was constructed to meet best available control technology
(BACT) standards, to control air pollution emissions from the
operation of the facility, that applied at the time construction
began in the air basin in California in which the facility was
constructed.  
   (B) If the facility was constructed outside of California in a
shared pollution area, the facility was constructed to meet best
available control technology (BACT) standards, to control air
pollution emissions from the operation of the facility, that applied
at the time construction began in the air basin in California
adjacent to the facility.  
   (2) (A) If the facility was constructed in California, offsets to
mitigate air pollution from operation of the facility were obtained
for any pollutant determined to be nonattainment of federal ambient
air quality standards by the United States Environmental Protection
Agency in the air basin in which the facility was constructed, at the
time that construction of the facility began.  
   (B) If the facility was constructed outside of California in a
shared pollution area, offsets to mitigate air pollution from
operation of the facility were obtained for any pollutant determined
to be nonattainment of federal ambient air quality standards by the
United States Environmental Protection Agency in the air basin in
California adjacent to the facility, at the time that construction of
the facility began.  
   (C) Offsets shall not be required pursuant to this paragraph if
the air pollution emissions caused by operation of the facility are
otherwise fully mitigated by other measures.  
   (c) The Public Utilities Commission, the Energy Commission, local
air pollution control districts and air quality management districts,
and the State Air Resources Board shall explore with federal
agencies, and with other governments, methods to encourage the
recognition by all relevant agencies of offsets achieved anywhere in
a shared pollution area, and the use of cross-border trading of
offsets, emission reduction credits, and available mitigation funds.
 
   SEC. 2. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.  
   (1) If the new electrical generating facility is in California,
the facility meets best available control technology (BACT)
standards, to control air pollution emissions from the operation of
the facility, and complies with air pollution control district or air
quality management district rules and regulations, and state and
federal law. 
   (2) If the new electrical generating facility is outside of
California in a shared pollution area, the facility meets best
available control technology (BACT) standards, to control air
pollution emissions from the operation of the facility, that apply in
the air basin in California adjacent to the facility.