Amended  IN  Assembly  June 03, 2024
Amended  IN  Senate  May 16, 2024
Amended  IN  Senate  April 22, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1298

Introduced by Senator Cortese

February 15, 2024

An act to amend Section 25541 of the Public Resources Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


SB 1298, as amended, Cortese. Certification of thermal powerplants: data centers.
Existing law vests the State Energy Resources Conservation and Development Commission with the exclusive power to certify all locations on which an electrical transmission line or thermal powerplant is constructed, or is proposed to be constructed, and related electrical transmission lines or thermal powerplants. Existing law authorizes the commission to exempt from certification a thermal powerplant with a generating capacity of up to 100 megawatts, and modifications to existing generating facilities that do not add capacity in excess of 100 megawatts, if the commission finds that no substantial adverse impact on the environment or energy resources will result from the construction or operation of the proposed facility or from the modifications.
This bill would additionally authorize the commission to exempt from certification a thermal powerplant with a generating capacity of up to 150 megawatts if it is used solely as a backup generation facility for a data center, it is located on the customer side of the meter and is not interconnected to the distribution system, a skilled and trained workforce is used to perform all construction work on the facility, as specified, the commission finds that no substantial adverse impact on the environment or energy resources will result from the construction and operation of the facility, and the commission finds, based on substantial evidence, that the lowest technologically feasible emissions of criteria air pollutants, toxic air contaminants, and greenhouse gases will result from the construction and operation of the facility. finds that the facility’s backup generation technology meets the best available control technology requirements set by the applicable air pollution control district or air quality management district.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 25541 of the Public Resources Code is amended to read:

25541.
 The commission may exempt from this chapter both of the following:
(a) Thermal powerplants with a generating capacity of up to 100 megawatts and modifications to existing generating facilities that do not add capacity in excess of 100 megawatts, if the commission finds that no substantial adverse impact on the environment or energy resources will result from the construction or operation of the proposed facility or from the modifications.
(b) (1) Thermal powerplants with a generating capacity of up to 150 megawatts, subject to all of the following conditions:

(1)

(A) The facility is used solely as a backup generation facility for a data center.

(2)

(B) The facility is located on the customer side of the meter and is not interconnected to the distribution system.
(C) A skilled and trained workforce will be used to perform all construction work on the facility pursuant to paragraph (2).

(3)

(D) The commission finds that no substantial adverse impact on the environment or energy resources will result from the construction and operation of the facility.

(4)The commission finds, based on substantial evidence, that the lowest technologically feasible emissions of criteria air pollutants, toxic air contaminants, and greenhouse gases will result from the construction and operation of the facility.

(E) The commission finds that the facility’s backup generation technology meets the best available control technology requirements set by the applicable air pollution control district or air quality management district.
(2) An application for an exemption pursuant to this subdivision shall include the applicant’s certification that a skilled and trained workforce will be used to perform all construction work on the facility and all of the following apply:
(A) The applicant shall require in all contracts for the performance of work that every contractor and subcontractor at every tier will individually use a skilled and trained workforce to construct the facility.
(B) Every contractor and subcontractor shall use a skilled and trained workforce to construct the facility.
(C) Except as provided in subparagraph (E), contractors and subcontractors that fail to use a skilled and trained workforce shall be subject to the penalties provided in Section 2603 of the Public Contract Code. Penalties for a contractor’s or subcontractor’s failure to comply with the requirement to use a skilled and trained workforce may be assessed by the Labor Commissioner within 18 months of completion of the facility using the same procedures for issuance of civil wage and penalty assessments pursuant to Section 2603 of the Public Contract Code. Penalties shall be paid to the State Public Works Enforcement Fund.
(D) For purposes of this subparagraph, an applicant shall be considered to be an “awarding body” under Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code. Except as provided in subparagraph (E), the applicant shall retain records, including copies of monthly reports, that demonstrate compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code while the facility or contract is being performed and for three years after completion of the facility or contract. The applicant shall submit these records immediately upon request of the commission. When submitted to the commission, these records shall be a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall be open to public inspection.
(E) Subparagraphs (C) and (D) do not apply if all contractors and subcontractors performing work on the facility are subject to a project labor agreement. The project labor agreement shall also include, but not be limited to, all of the following:
(i) Provisions requiring compliance with the skilled and trained workforce requirement and for enforcement of that obligation through an arbitration procedure.
(ii) Targeted hiring provisions, including a targeted hiring plan, on a craft-by-craft basis to address job access for local, disadvantaged, or underrepresented workers, as defined by a local agency.
(iii) Apprenticeship utilization provisions that commit all parties to increasing the share of work performed by state-registered apprentices above the state-mandated minimum ratio required in Section 1777.5 of the Labor Code.
(iv) Apprenticeship utilization provisions that commit all parties to hiring and retaining a certain percentage of state-registered apprentices that have completed the Multi-Craft Core preapprenticeship training curriculum referenced in subdivision (t) of Section 14005 of the Unemployment Insurance Code.