Bill Text: CA SB1158 | 2021-2022 | Regular Session | Introduced

California Senate Bill 1158 (Prior Session Legislation)

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

Bill Title: Retail electricity suppliers: emissions of greenhouse gases.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2022-09-16 - Chaptered by Secretary of State. Chapter 367, Statutes of 2022. [SB1158 Detail]

Download: California-2021-SB1158-Introduced.html

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill

No. 1158

Introduced by Senator Becker

February 17, 2022

An act to amend Sections 398.2, 398.4, 398.5, 454.52, and 9621 of the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL'S DIGEST

SB 1158, as introduced, Becker. Retail electricity suppliers: greenhouse gas emissions: integrated resource plans.

Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, while local publicly owned electric utilities, as defined, are under the direction of their governing boards. Existing law requires every entity that offers an electricity product for sale to retail consumers in California to disclose its electricity sources and the associated intensity of greenhouse gas emissions for the previous calendar year. 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.

This bill would specify that “purchases of electricity from specified sources” means delivered electricity transactions, as defined, and would require disclosure based on retail load, as defined, instead of annual sales. The bill would require the State Energy Resources Conservation and Development Commission (Energy Commission), on or before January 1, 2024, to adopt guidelines, through an open process, subject to public comment, and adopted by a vote of the Energy Commission, for, among other things, the reporting and disclosure of electricity sources by hour.

Existing law requires the PUC, in consultation with the Independent System Operator, to establish resource adequacy requirements for all load-serving entities, including electrical corporations, electric service providers, and community choice aggregators, in accordance with specified objectives. Existing law requires each local publicly owned electric utility serving end-use customers to prudently plan for and procure resources that are adequate to meet its planning reserve margin and peak demand and operating reserves, sufficient to provide reliable electric service to its customers.

This 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 the portion of its resource adequacy requirements that was met with capacity from eligible renewable energy resources, as defined, or other zero-carbon resources.

Existing law requires retail suppliers to annually report to the Energy Commission certain information for each electricity offering for the previous calendar year and authorizes the Energy Commission to verify environmental claims made by retail suppliers.

This bill would additionally require retail suppliers to report, beginning January 1, 2025, the total annual greenhouse gas emissions associated with all electricity, as specified.

Existing law requires the PUC to adopt a process for each load-serving entity to file an integrated resource plan and a schedule for periodic updates to the plan to ensure that the load-serving entity meets, among other things, the state’s greenhouse gas emissions reduction targets and the requirement to procure at least 60% of its electricity from eligible renewable energy resources by December 31, 2030. Existing law requires the governing board of a local publicly owned electric utility with an annual electrical demand exceeding 700 gigawatthours to adopt an integrated resource plan and a process for updating the plan at least once every 5 years to ensure that the local publicly owned electric utility meets, among other things, the state’s greenhouse gas emissions reduction targets and the requirement to procure at least 60% of its electricity from eligible renewable resources by December 31, 2030.

This bill would require the PUC to consider, and a governing board of a local publicly owned electric utility to review, the annual greenhouse gas emissions associated with each load-serving entity’s and local publicly owned electric utility’s power source disclosure to the Energy Commission, and other available data on greenhouse gas emissions, and determine whether each load-serving entity’s and local publicly owned electric utility’s greenhouse gas emissions demonstrate adequate progress towards achieving the electricity sector greenhouse gas emissions reductions targets, or whether changes to procurement plans are required to achieve those targets.

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 would be a part of the act and because a violation of an order or decision of the commission implementing the bill’s requirements would be a crime, the bill would impose a state-mandated local program by creating a new 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 a specified reason.

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

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

SECTION 1.

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) “Delivered electricity” means electricity from a facility or from the specified system power of an asset-controlling supplier that has one of the following three characteristics:
(1) It has a first point of interconnection within the metered boundaries of a California balancing authority, or a first point of interconnection with an electrical distribution system used to serve end users within the metered boundaries of a California balancing authority area.
(2) It is scheduled into a California balancing authority without substituting electricity from another source.
(3) It is subject to an agreement between a California balancing authority and the balancing authority in which an eligible renewable energy resource is located, executed before the product is generated, to dynamically transfer electricity from that eligible renewable energy resource into the California balancing authority area.
(b) “Electricity from unspecified sources” means all electricity that does not meet the criteria for purchases from specified sources pursuant to subdivision (e).
~~(a)~~

(c) “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.

(d) “Loss-adjusted load” means the total amount of electricity, measured at the utility-scale generation source, that a retail supplier requires in order to provide for retail sales after electrical losses in transmission and distribution, and has the same meaning as “total energy to serve load” as that phrase is used in the Clean System Power calculator.
(e) “Purchases of electricity from specified sources” or “purchases from specified sources” means delivered 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 only once to a retail consumer.
(f) “Retail load” means a retail supplier’s total annual retail sales of electricity for each calendar year before and including calendar year 2023, or a retail supplier’s total annual loss-adjusted load for each calendar year beginning with calendar year 2024.
~~(b)~~

(g) “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)~~

(h) “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~~ use 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. 2.

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 website, 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 on the retail supplier’s internet website by October 1 of each year, and in written promotional materials by the end of the first complete billing cycle for the fourth 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~~ retail load 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~~ retail load 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.

(D) Solar.

(E) Wind.

(6) Other categories as determined by the Energy Commission.

(7) The portion of ~~annual sales~~ retail load 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)~~ (e) 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)~~

(j) (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,~~ load, consistent with the requirements of this subdivision.

(2) The Energy Commission shall do all of the following:

(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.

(B) Calculate the greenhouse gas emissions intensity associated with statewide retail electricity ~~sales~~ load based on the greenhouse gas emissions for total California system electricity.

(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.

(D) Establish guidelines for adjustments to a greenhouse gas emissions intensity factor for a reporting year for any local publicly owned electric utility demonstrating generation of quantities of electricity in previous years in excess of its total retail ~~sales~~ load and wholesale sales from specified sources that do not emit any greenhouse gases. 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 specified source.

(E) Ensure that there is no 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.

(F) (i) On or before January 1, 2018, 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~~ load based on the requirements of this subdivision. Beginning June 1, 2020, retail suppliers shall be required to report data on greenhouse gas emissions intensity associated with retail ~~sales~~ load occurring after December 31, 2018.

(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~~ load until at least 24 months, but shall be required to report that data no later than 36 months, after serving its first retail customer.

(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 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.

(k) Each retail supplier shall disclose the portion of its local and system resource adequacy requirements pursuant to Sections 380 and 9620, that was met with capacity from eligible renewable energy resources pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11)), or other zero-carbon resources, including large hydroelectric and nuclear resources. In determining the portion of their resource adequacy requirements, retail suppliers shall include all directly owned or contracted resources and their allocation of any centrally procured resources, and exclude any share of directly owned or contracted resources that were allocated to another retail supplier.
(l) On or before January 1, 2024, the Energy Commission shall adopt guidelines, through an open process, subject to public comment, and adopted by a vote of the Energy Commission, that do all of the following:
(1) To the extent feasible, the methodology used to determine the electricity sources relied on by retail suppliers shall be consistent with the methodology used in Section 454.52, including all of the following:
(A) Purchases of electricity from specified sources shall be reported by hour and compared against the retail supplier’s loss-adjusted load for each hour. If the retail supplier’s loss-adjusted load for an hour exceeds purchases of electricity from specified sources during that hour, the difference shall be considered to have been met by unspecified sources.
(B) Electricity used to charge energy storage resources for a retail supplier, and energy released from energy storage resources for a retail supplier, shall be included when determining the hourly comparison in subparagraph (A).
(C) If purchases of electricity from specified sources in an hour exceed the retail supplier’s loss-adjusted load for that hour, the excess shall not be considered electricity used to serve that retail supplier’s load.
(2) The Energy Commission may establish rules for estimating and reporting the hourly amounts of purchases of electricity from specified sources for cases in which it is not feasible for retail suppliers to obtain hourly metered data.
(3) The Energy Commission shall establish a process, in coordination with the Independent System Operator, for determining hourly greenhouse gas emissions factors for unspecified power each hour of the prior year and provide those emissions factors to all retail suppliers pursuant to subdivision (j).
(4) The Energy Commission shall establish rules for estimating the greenhouse gas emissions associated with any electricity used to support the transmission to a California balancing authority of purchases of electricity from specified sources which do not have a first point of interconnection with a California balancing authority or with distribution facilities used to serve end users within a California balancing authority area. Any such estimated greenhouse gas emissions shall be included within the emissions intensity reported for that electricity.
(5) For purchases of electricity from specified sources procured under a centralized procurement entity or other mechanism that involves an assignment or allocation of resources purchased by a single buyer, the electricity delivered in each hour shall be allocated among retail suppliers according to their share of the procurement cost and counted as part of each retail supplier’s specified purchases during that hour.
~~(l)~~

(m) 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. 3.

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 by hour and by fuel type during the previous calendar year, consistent with the meter data, including losses, reported to the system operator.

(2) The kilowatthours ~~purchased~~ purchased, by hour, from unspecified sources in California and from unspecified sources imported into California from other subregions within the Western Electricity Coordinating Council.

(3) For each electricity offering, the kilowatthours sold at ~~retail.~~ retail, and the loss-adjusted load associated with those retail sales.

(4) For each electricity offering, the disclosures made to consumers pursuant to Section 398.4.

(5) Beginning January 1, 2025, the total annual greenhouse gas emissions associated with all electricity used to serve that retail load, 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. 4.

Section 454.52 of the Public Utilities Code is amended to read:

454.52.

(a) (1) Beginning in 2017, and to be updated regularly thereafter, the commission shall adopt a process for each load-serving entity, as defined in Section 380, to file an integrated resource plan, and a schedule for periodic updates to the plan, and shall ensure that load-serving entities do all of the following:

(A) Meet the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each load-serving entity that reflect the electricity sector’s percentage in achieving the economywide greenhouse gas emissions reductions of 40 percent from 1990 levels by 2030.

(B) Procure at least 60 percent eligible renewable energy resources by December 31, 2030, consistent with Article 16 (commencing with Section 399.11) of Chapter 2.3.

(D) Minimize impacts on ratepayers’ bills.

(E) Ensure system and local reliability on both a near-term and long-term basis, including meeting the near-term and forecast long-term resource adequacy requirements of Section 380.

(F) Comply with paragraph (1) of subdivision (b) of Section 399.13.

(G) Strengthen the diversity, sustainability, and resilience of the bulk transmission and distribution systems, and local communities.

(H) Enhance distribution systems and demand-side energy management.

(I) Minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.

(2) (A) The commission may authorize all source procurement for electrical corporations that includes various resource types including demand-side resources, supply side resources, and resources that may be either demand-side resources or supply side resources, taking into account the differing electrical corporations’ geographic service areas, to ensure that each load-serving entity meets the goals set forth in paragraph (1).

(B) The commission may approve procurement of resource types that will reduce overall greenhouse gas emissions from the electricity sector and meet the other goals specified in paragraph (1), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.

(3) In furtherance of the requirements of paragraph (1), the commission shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each load-serving entity meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the state’s energy goals at the least cost to ratepayers.

(b) (1) Each load-serving entity shall prepare and file an integrated resource plan consistent with paragraph (2) of subdivision (a) on a time schedule directed by the commission and subject to commission review.

(2) Each electrical corporation’s plan shall follow ~~the provisions of~~ Section 454.5.

(3) The plan of a community choice aggregator shall be submitted to its governing board for approval and provided to the commission for certification, consistent with paragraph (5) of subdivision (a) of Section 366.2, and shall achieve all of the following:

(A) Economic, reliability, environmental, security, and other benefits and performance characteristics that are consistent with the goals set forth in paragraph (1) of subdivision (a).

(B) A diversified procurement portfolio consisting of both short-term and long-term electricity and electricity-related and demand reduction products.

(4) The plan of an electric service provider shall achieve the goals set forth in paragraph (1) of subdivision (a) through a diversified portfolio consisting of both short-term and long-term electricity, electricity-related, and demand reduction products.

(5) The commission shall consider the annual greenhouse gas emissions associated with each load-serving entity’s power source disclosure to the Energy Commission pursuant to Section 398.5, and other available data on greenhouse gas emissions, and determine whether each load-serving entity’s annual greenhouse gas emissions demonstrate adequate progress toward achieving the electricity sector greenhouse gas emissions reductions described in subparagraph (A) of paragraph (1) of subdivision (a), or whether changes to procurement plans are required to achieve those targets.

(c) To the extent that additional procurement is authorized for the electrical corporation in the integrated resource plan or the procurement process authorized pursuant to Section 454.5, the commission shall ensure that the costs are allocated in a fair and equitable manner to all customers consistent with Section 454.51, that there is no cost shifting among customers of load-serving entities, and that community choice aggregators may self-provide renewable integration resources consistent with Section 454.51.

(d) To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning processes of the commission.

(e) This section applies to an electrical cooperative, as defined in Section 2776, only if the electrical cooperative has an annual electrical demand exceeding 700 gigawatthours, as determined based on a three-year average commencing with January 1, 2013.

SEC. 5.

Section 9621 of the Public Utilities Code is amended to read:

9621.

(a) This section shall apply to a local publicly owned electric utility with an annual electrical demand exceeding 700 gigawatthours, as determined on a three-year average commencing January 1, 2013.

(b) On or before January 1, 2019, the governing board of a local publicly owned electric utility shall adopt an integrated resource plan and a process for updating the plan at least once every five years to ensure the utility achieves all of the following:

(1) Meets the greenhouse gas emissions reduction targets established by the State Air Resources ~~Board,~~ Board scoping plan, in coordination with the commission and the Energy Commission, for the electricity sector and each local publicly owned electric utility that reflect the electricity sector’s percentage in achieving the economywide greenhouse gas emissions reductions ~~of 40 percent from 1990 levels by 2030.~~ required pursuant to Division 25.5 (commencing with Section 38500) of the Health and Safety Code.

(2) Ensures procurement of at least 50 60 percent eligible renewable energy resources by 2030 consistent with Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1 of Division 1.

(3) Meets the goals specified in subparagraphs (D) to (H), inclusive, of paragraph (1) of subdivision (a) of Section 454.52, and the goal specified in subparagraph (C) of paragraph (1) of subdivision (a) of Section 454.52, as that goal is applicable to each local publicly owned electric utility. A local publicly owned electric utility shall not, solely by reason of this paragraph, be subject to requirements otherwise imposed on electrical corporations.

(4) In furtherance of the carbon neutrality goals set forth in Executive Order B-55-18 To Achieve Carbon Neutrality (September 10, 2018), each updated integrated resource plan shall include, as applicable, details of the utility’s electrical service rate design that support transportation electrification, and existing or planned incentives to support transportation electrification, including rebates. The rate design shall include details for all applicable transportation sectors, including, but not limited to, on-road and off-road vehicles in the light-, medium-, and heavy-duty sectors. Each integrated resource plan shall also include information about the utility’s customer education and outreach efforts being implemented to inform utility customers of available incentives and decisionmaking tools, such as cost calculators or cost estimates that can assist customers in predicting the cost of paying for electricity for these vehicles.

(c) In furtherance of the requirements of subdivision (b), the governing board of a local publicly owned electric utility shall consider the role of existing renewable generation, grid operational efficiencies, energy storage, and distributed energy resources, including energy efficiency, in helping to ensure each utility meets energy needs and reliability needs in hours to encompass the hour of peak demand of electricity, excluding demand met by variable renewable generation directly connected to a California balancing authority, as defined in Section 399.12, while reducing the need for new electricity generation resources and new transmission resources in achieving the state’s energy goals at the least cost to ratepayers.

(d) (1) The integrated resource plan shall address procurement for the following:

(A) Energy efficiency and demand response resources pursuant to Section 9615.

(B) Energy storage requirements pursuant to Chapter 7.7 (commencing with Section 2835) of Part 2 of Division 1.

(D) A diversified procurement portfolio consisting of both short-term and long-term electricity, electricity-related, and demand response products.

(E) The resource adequacy requirements established pursuant to Section 9620.

(2) (A) The governing board of the local publicly owned electric utility may authorize all source procurement that includes various resource types, including demand-side resources, supply side resources, and resources that may be either demand-side resources or supply side resources, to ensure that the local publicly owned electric utility procures the optimum resource mix that meets the objectives of subdivision (b).

(B) The governing board may authorize procurement of resource types that will reduce overall greenhouse gas emissions from the electricity sector and meet the other goals specified in subdivision (b), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan.

(3) The governing board shall annually review the greenhouse gas emissions associated with the publicly owned electric utility’s power source disclosure to the Energy Commission pursuant to Section 398.5 and determine whether the utility’s annual greenhouse gas emissions demonstrate adequate progress toward achieving the electricity sector greenhouse gas emissions reductions described in paragraph (1) of subdivision (b) or whether changes to procurement plans are required to achieve those targets.

(e) A local publicly owned electric utility shall satisfy the notice and public disclosure requirements of subdivision (f) of Section 399.30 with respect to any integrated resource plan or plan update it considers.

SEC. 6.

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.