Bill Text: CA AB79 | 2017-2018 | Regular Session | Amended

California Assembly Bill 79 (Prior Session Legislation)

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

Bill Title: Electrical generation: hourly greenhouse gas emissions: electricity from unspecified sources.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Vetoed) 2018-01-12 - Stricken from file. [AB79 Detail]

Download: California-2017-AB79-Amended.html

Amended IN Assembly March 06, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill

No. 79

Introduced by Assembly Member Levine

January 04, 2017

~~An act to add Section 25229 to the Public Resources Code, and to add Chapter 6 (commencing with Section 8400) to Division 4.1 of~~ An act to add Section 398.6 to the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL'S DIGEST

AB 79, as amended, Levine. Electrical generation: ~~coal-fired generation resources.~~ hourly greenhouse gas emissions: electricity from unspecified sources.

Existing law requires every retail supplier that makes an offer to sell electricity that is consumed in the state to disclose its electricity sources and the associated greenhouse gas emissions intensity for the previous calendar year. Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with the State Air Resources Board, to adopt a methodology for the calculation of greenhouse gas emissions intensity for each purchase of electricity by a retail supplier to serve its retail customers and to calculate greenhouse gas emissions intensity associated with statewide retail electricity sales based on greenhouse gas emissions for total California system electricity.
This bill would require, by January 1, 2020, the State Air Resources Board, in consultation with the Independent System Operator, to adopt a methodology for the calculation of hourly emissions of greenhouse gases associated with electricity from unspecified sources, a term defined in existing law but revised for this purpose, purchased within California balancing authority areas, as defined, and for electricity imported into California from other subregions of the Western Electricity Coordinating Council. The bill would require California balancing authorities to assist the State Air Resources Board by providing all relevant data needed for purposes of developing the methodology and calculating the hourly emissions of greenhouse gases. The bill would require the Public Utilities Commission and the Energy Commission to incorporate the methodology into programs addressing the disclosure of the emissions of greenhouse gases and the procurement of electricity by entities under the respective jurisdiction of each.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the provisions of this bill are within the act and require action by the commission to implement its requirements, a violation of which would be a crime, this bill would impose a state-mandated local program by creating a new crime.
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.
The Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission (Energy Commission), and requires it 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 require the Energy Commission to ensure that by January 1, 2019, no more than 6%, and by January 1, 2024, no more than 3%, of the electricity consumed in the state is generated from coal-fired generation resources, and to ensure that by January 1, 2026, no electricity consumed in the state is generated from a coal-fired generation resource.
Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards. The 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.
This bill would additionally prohibit any load-serving entity and any local publicly owned electric utility from entering into a financial commitment to procure electricity generated on and after January 1, 2026, from coal-fired generation resources.

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

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

SECTION 1.

Section 398.6 is added to the Public Utilities Code, to read:

398.6.
(a) For purposes of this section, the following definitions apply:
(1) “Balancing authority” means the responsible entity that integrates resource plans ahead of time, maintains load-interchange generation balance within a balancing authority area, and supports interconnection frequency in real time.
(2) “Balancing authority area” means the collection of generation, transmission, and loads within the metered boundaries of the area within which the balancing authority maintains the electrical load-resource balance.
(3) “California balancing authority” means a balancing authority with control over a balancing authority area primarily located in this state and operating for retail sellers and local publicly owned electric utilities and includes, but is not limited to, the Independent System Operator (ISO) and a local publicly owned electric utility operating a transmission grid that is not under the operational control of the ISO. A California balancing authority is responsible for the operation of the transmission grid within its metered boundaries that is not limited by the political boundaries of the State of California.
(4) “Electricity from specified sources” means electricity transactions that are traceable to specific generation sources.
(5) “Electricity from unspecified sources” means electricity generated within or outside the state and purchased under commercial agreements that do not identify specific generation sources, including electricity procured from a wholesale market exchange operated by a California balancing authority.
(b) (1) On or before January 1, 2020, the State Air Resources Board, in consultation with the ISO, shall adopt a methodology for the calculation of hourly emissions of greenhouse gases associated with electricity from unspecified sources purchased by retailer suppliers on behalf of California end-use customers.
(2) The methodology shall be capable of calculating, on an ex-post basis, recorded hourly emissions associated with electricity from unspecified sources purchased within the California balancing authority areas and for electricity from unspecified sources imported into California from other subregions of the Western Electricity Coordinating Council.
(3) The methodology shall rely on recorded generation operations data provided by the California balancing authorities and other balancing authorities serving California end-use customers. Electricity from specified sources sold to a retail supplier shall not be included in the methodology.
(c) California balancing authorities shall assist the State Air Resources Board by providing relevant data needed for purposes of developing the methodology and calculating hourly emissions of greenhouse gases.
(d) The commission and the Energy Commission shall incorporate the methodology into programs addressing the disclosure of emissions of greenhouse gases or the procurement of electricity by entities subject to the respective jurisdiction of each.

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.

SECTION 1.Section 25229 is added to the Public Resources Code, to read:
25229.
~~The commission shall ensure that all of the following occur:~~
~~(a)By January 1, 2019, no more than 6 percent of the electricity consumed in the state shall be generated from coal-fired generation resources.~~
~~(b)By January 1, 2024, no more than 3 percent of the electricity consumed in the state shall be generated from coal-fired generation resources.~~
~~(c)By January 1, 2026, no electricity consumed in the state shall be generated from a coal-fired generation resource.~~
SEC. 2.Chapter 6 (commencing with Section 8400) is added to Division 4.1 of the Public Utilities Code, to read:
6.Coal-fired Generation Resources
8400.
~~For purposes of this chapter, the following terms have the following meanings:~~
~~(a)“Baseload generation” means electricity generation from a powerplant that is designed and intended to provide electricity at an annualized plant capacity factor of at least 60 percent.~~
~~(b)“Electric service provider” means an “electric service provider” as defined in Section 218.3.~~
~~(c)“Load-serving entity” means every electrical corporation, electric service provider, or community choice aggregator serving end-use customers in the state.~~
~~(d)“Financial commitment” means either a new ownership investment in baseload generation or a new or renewed contract that includes procurement of baseload generation.~~
~~(e)“Powerplant” means a facility for the generation of electricity, and includes one or more generating units at the same location.~~
8401.
No load-serving entity or local publicly owned electric utility shall enter into a financial commitment to procure electricity generated on and after January 1, 2026, from a coal-fired generation resource.