Bill Text: CA SB1078 | 2013-2014 | Regular Session | Amended
Bill Title: Electricity: emissions of greenhouse gases.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2014-05-01 - Read second time and amended. Re-referred to Com. on RLS. [SB1078 Detail]
Download: California-2013-SB1078-Amended.html
BILL NUMBER: SB 1078 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 1, 2014
AMENDED IN SENATE APRIL 10, 2014
INTRODUCED BY Senator Jackson
FEBRUARY 19, 2014
An act to amend Section 345.5 of, and to add
Section 636 to, 379.2 to the Public
Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
SB 1078, as amended, Jackson. Electricity: Emissions
emissions of greenhouse gases.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
as defined. The Public Utilities Act requires the Public Utilities
Commission to review and accept, modify, or reject a procurement plan
for each electrical corporation in accordance with specified
elements, incentive mechanisms, and objectives. Existing law requires
that in any long-term plan adopted by an electrical corporation, or
in a procurement plan implemented by a local publicly owned electric
utility, that the utility adopt a strategy applicable to both newly
constructed or repowered generation owned and procured by the utility
to achieve efficiency in the use of fossil fuels and to address
carbon emissions.
The Warren-Alquist State Energy Resources Conservation and
Development Act establishes the State Energy Resources Conservation
and Development Commission , commonly known as the Energy
Commission . The act requires the State Energy
Resources Conservation and Development Commission,
Energy Commission, beginning November 1, 2003, and by November
1 of every odd year thereafter, to adopt an integrated energy policy
report which that includes an overview
of major energy trends and issues facing the state, an assessment and
forecast of system reliability, and the need for resource additions,
efficiency, and conservation.
This bill would require the Public Utilities Commission and the
State Energy Resources Conservation and Development Commission, by
July 1, 2015, to calculate and identify an anticipated target for
reducing emissions of greenhouse gases for the electrical industry to
be achieved statewide by 2030, in order to reach anticipated
statewide targets to be established for reducing emissions of
greenhouse gases from the electrical industry by the year 2050. The
bill would require that the targets be established consistent with 2
specified executive orders. The bill would require the State Energy
Resources Conservation and Development Commission and the Public
Utilities Commission to develop joint long-term electrical demand and
generational resource portfolio forecasts to develop scenarios to
achieve the anticipated targets.
The California Global Warming Solutions Act of 2006 requires the
State Air Resources Board to determine what the statewide greenhouse
gas emissions level was in 1990 and to approve a statewide greenhouse
gas emissions limit that is equivalent to that level to be achieved
by 2020. That act requires the state board to make recommendations to
the Governor and the Legislature on how to continue reductions of
greenhouse gas emissions beyond 2020.
This bill would require, if the state board establishes a
post-2020 statewide greenhouse gas emissions limit beyond the 1990
greenhouse gas emissions level, as authorized or required by the
Legislature, the Public Utilities Commission and the Energy
Commission to convene a joint public proceeding to develop and make
recommendations to the state board for compliance actions for the
electricity and natural gas sectors to help achieve that limit.
The Public Utilities Act provides for the establishment of an
Independent System Operator as a nonprofit, public benefit
corporation. Existing law requires the Independent System Operator to
manage the transmission grid and related energy markets in a manner
that is consistent with (1) making the most efficient use of
available energy resources, (2) reducing, to the extent possible,
overall economic cost to the state's consumers, (3) applicable state
law intended to protect the public's health and the environment, and
(4) maximizing the availability of existing electric generation
resources necessary to meet the needs of the state's electricity
consumers.
This bill would require the Public Utilities Commission to
transmit to the Independent System Operator to
consider the joint long-term electrical demand and generational
resource portfolio forecasts developed by the State Energy Resources
Conservation and Development Commission and the Public Utilities
Commission when undertaking long-term transmission planning and to
advise the State Energy Resources Conservation and Development
Commission and the Public Utilities Commission of any long-term
resource actions that it recommends that would facilitate its
management of the electrical grid in order to achieve compliance with
the state's long-term policy goals of reducing emissions of
greenhouse gases. The bill would require the Independent System
Operator to undertake its transmission planning consistent with the
requirements of the bill. The bill would require the Public Utilities
Commission to consider any recommendations made by the Independent
System Operator when acting on a long-term procurement plan submitted
by an electrical corporation and would require the State Energy
Resources Conservation and Development Commission to consider any
recommendations made by the Independent System Operator when adopting
an integrated energy policy report. the recommended
compliance actions for the Independent System Operator's
consideration in its transmission planning.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 379.2 is added to the
Public Utilities Code , to read:
379.2. If the State Air Resources Board establishes a post-2020
statewide greenhouse gas emissions limit beyond the 1990 greenhouse
gas emission level, as authorized or required by the Legislature, the
commission and the Energy Commission shall convene a joint public
proceeding to develop and make recommendations to the state board for
compliance actions for the electricity and natural gas sectors to
help achieve that limit. The commission shall transmit the
recommended compliance actions to the Independent System Operator for
the Independent System Operator's consideration in its transmission
planning.
SECTION 1. Section 345.5 of the Public
Utilities Code is amended to read:
345.5. (a) The Independent System Operator, as a nonprofit,
public benefit corporation, shall conduct its operations consistent
with applicable state and federal laws and consistent with the
interests of the people of the state.
(b) To ensure the reliability of electric service and the health
and safety of the public, the Independent System Operator shall
manage the transmission grid and related energy markets in a manner
that is consistent with all of the following:
(1) Making the most efficient use of available energy resources.
For purposes of this section, "available energy resources" include
energy, capacity, ancillary services, and demand bid into markets
administered by the Independent System Operator. "Available energy
resources" do not include a schedule submitted to the Independent
System Operator by an electrical corporation or a local publicly
owned electric utility to meet its own customer load.
(2) Reducing, to the extent possible, overall economic cost to the
state's consumers.
(3) Applicable state law intended to protect the public's health
and the environment, including undertaking its transmission planning
consistent with the requirements of Section 636.
(4) Maximizing availability of existing electric generation
resources necessary to meet the needs of the state's electricity
consumers.
(5) Conducting internal operations in a manner that minimizes cost
impact on ratepayers to the extent practicable and consistent with
the provisions of this chapter.
(6) Communicating with all balancing area authorities in
California in a manner that supports electrical reliability.
(c) The Independent System Operator shall do all of the following:
(1) Consult and coordinate with appropriate state and local
agencies to ensure that the Independent System Operator operates in
furtherance of state law regarding consumer and environmental
protection.
(2) Ensure that the purposes and functions of the Independent
System Operator are consistent with the purposes and functions of
nonprofit, public benefit corporations in the state, including duties
of care and conflict-of-interest standards for officers and
directors of a corporation.
(3) Maintain open meeting standards and meeting notice
requirements consistent with the general policies of the Bagley-Keene
Open Meeting Act (Article 9 (commencing with Section 11120) of
Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code)
and affording the public the greatest possible access, consistent
with other duties of the corporation. The Independent System Operator'
s Open Meeting Policy, as adopted on April 23, 1998, and in effect as
of May 1, 2002, meets the requirements of this paragraph. The
Independent System Operator shall maintain a policy that is no less
consistent with the Bagley-Keene Open Meeting Act than its policy in
effect as of May 1, 2002.
(4) Provide public access to corporate records consistent with the
general policies of the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code) and affording the public the greatest possible
access, consistent with the other duties of the corporation. The
Independent System Operator's Information Availability Policy, as
adopted on October 22, 1998, and in effect as of May 1, 2002, meets
the requirements of this paragraph. The Independent System Operator
shall maintain a policy that is no less consistent with the
California Public Records Act than its policy in effect as of May 1,
2002.
SEC. 2. Section 636 is added to the Public
Utilities Code, to read:
636. (a) The commission and Energy Commission shall, by July 1,
2015, calculate and identify an anticipated target for reducing
emissions of greenhouse gases for the electrical industry to be
achieved statewide by 2030, in order to reach anticipated statewide
targets to be established for reducing emissions of greenhouse gases
from the electrical industry by the year 2050. The anticipated
targets shall be consistent with Governor's Executive Order S-03-05
(June 1, 2005), as modified by Governor's Executive Order B-18-12
(April 25, 2012). The statewide anticipated emissions reduction
targets for greenhouse gases for the electrical industry shall be
measured in tons of carbon dioxide or carbon dioxide equivalent and
percentage reductions from 2014 emissions.
(b) The commission and the Energy Commission shall develop joint
long-term electrical demand and generational resource portfolio
forecasts to develop scenarios to achieve the anticipated targets
identified pursuant to subdivision (b). The long-term electrical
demand forecasts shall consider the effects on electricity demand
resulting from cost-effective and reasonably achievable energy
efficiency and demand response measures, shall consider reasonably
foreseeable future demand for electric vehicles, and shall consider
other factors that may shift demand to the electrical industry from
other industry sectors in order to reduce overall statewide emissions
of greenhouse gases. The long-term generational portfolio forecasts
shall include generation by eligible renewable energy resources
procured by retail sellers and local publicly owned electric
utilities, anticipated distributed generation, hydroelectric
generation, anticipated resource flexibility from energy storage, and
generation from burning of fossil fuels, including reasonably
achievable technological improvements in generation.
(c) The Independent System Operator shall consider the joint
long-term electrical demand and generational resource portfolio
forecasts developed by the commission and the Energy Commission when
undertaking long-term transmission planning. The Independent System
Operator, when undertaking long-term transmission planning, shall
assess the operational characteristics, locations, and combinations
of cost-effective and reasonably achievable energy efficiency and
demand response measures and generational resources, as well as
expansion of, and improvements to, the transmission grid, that would
be needed to achieve the state's long-term policy goals of reducing
emissions of greenhouse gases while managing the electrical grid
consistent with the requirements of Section 345.5. The Independent
System Operator shall advise the commission and the Energy Commission
of any long-term resource actions that it recommends that would
facilitate its management of the electrical grid in order to achieve
compliance with the state's long-term policy goals of reducing
emissions of greenhouse gases.
(d) (1) The commission shall consider any recommendations made by
the Independent System Operator pursuant to subdivision (c) when
acting on a long-term procurement plan submitted by an electrical
corporation pursuant to Section 454.5.
(2) The Energy Commission shall consider any recommendations made
by the Independent System Operator pursuant to subdivision (c) when
adopting an integrated energy policy report pursuant to Section 25302
of the Public Resources Code.
