Bill Text: CA SB1496 | 2011-2012 | Regular Session | Amended
Bill Title: Energy: State Energy Resources Conservation and
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2012-08-16 - Set, second hearing. Held in committee and under submission. [SB1496 Detail]
Download: California-2011-SB1496-Amended.html
BILL NUMBER: SB 1496 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 25, 2012
AMENDED IN SENATE APRIL 10, 2012
INTRODUCED BY Senator Simitian
FEBRUARY 24, 2012
An act to amend Section 25303 of, to add Section
21090.2 to, and to add Chapter 3.5 (commencing with Section 25250) to
Division 15 of, the Public Resources Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1496, as amended, Simitian. Energy: State Energy Resources
Conservation and Development Commission: natural gas.
(1) The Warren-Alquist State Energy Resources Conservation and
Development Act (act) establishes the State Energy Resources
Conservation and Development Commission (Energy Commission) and
requires the commission to prepare a biennial integrated energy
policy report containing specified information related to major
energy trends and issues facing the state, as well as a biennial
energy policy review.
This bill would enact the Liquefied Natural Gas Market
Assessment Act and would require the Energy Commission
, beginning on January 1, 2013 , as a component of the
integrated energy policy report, to conduct a study of the effect of
liquefied natural gas imports and exports on the state's energy
demand. The bill would also require the Energy Commission,
prior to a lease or permit being issued by the State Lands Commission
or the California Coastal Commission to license a liquefied natural
gas facility on the California coast, to update its study of the
effect of liquefied natural gas imports and exports at least 60 days
prior to a hearing by the State Lands Commission or the California
Coastal Commission if the Energy Commission has not issued an
integrated energy policy report within 180 days of the hearing.
The bill would require the Energy Commission to create and
maintain a matrix of information regarding liquefied natural gas
terminal projects.
The bill would also require a liquefied natural gas terminal
project applicant to include in the application evidence that it has
consulted with the United States Department of Defense and its
impacted service components. For a project involving the construction
or operation of a liquefied natural gas terminal for which an
application submitted to the Federal Energy Regulatory Commission
(FERC) or the United States Maritime Administration has not been
deemed data adequate on or before January 1, 2013, and the
application is being processed for further action by the FERC or the
United States Maritime Administration, an environmental impact report
prepared for that project by a lead agency would be required to
contain specified information. By requiring a local agency to prepare
an environmental impact report that contains specified information,
the bill would increase the level of service provided by a local
agency, thereby imposing a state-mandated local program.
The bill would also require the commission to impose a fee upon a
liquefied natural gas terminal project applicant proposing a
liquefied natural gas terminal that would be subject to the bill's
provisions and would authorize the commission to expend the fees,
upon appropriation by the Legislature, to implement those provisions.
(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 no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The state has a critical role in decisions regarding the
siting and design of new onshore and offshore infrastructure for the
importation and exportation of liquefied natural gas with regard to
public health, safety, and the environment.
(b) California has a rich history of innovative and strong
environmental laws and should continue to strive for the best
protections possible.
(c) Utilities in California are required to meet new demand
through energy efficiency programs before acquiring other sources of
electricity.
(d) Accelerating the use of renewable energy resources wherever
feasible and ensuring a diverse and affordable portfolio of fuel
sources may minimize supply interruptions and increase reliability.
(e) Decisions regarding the importation and exportation of
liquefied natural gas should be based on a comprehensive review of
current and projected natural gas supply and demand in California.
(f) The possible importation and exportation of liquefied natural
gas should be reviewed as part of the state's integrated energy
policy report, which contains an overview of major energy trends and
issues facing the state, including supply, demand, and price.
SEC. 2. Section 21090.2 is added to the Public Resources Code, to
read:
21090.2. (a) In addition to any other requirements under this
division, for a project involving the construction or operation of an
onshore or offshore liquefied natural gas terminal in California for
which an application submitted to the Federal Energy Regulatory
Commission or the United States Maritime Administration has not been
deemed data adequate on or before January 1, 2013, and the
application is being processed for further action by the Federal
Energy Regulatory Commission or the United States Maritime
Administration, an environmental impact report shall include all of
the following:
(1) A comparative analysis of feasible alternative project
technologies pursuant to Section 15126.6 of Title 14 of the
California Code of Regulations.
(2) An analysis of potential disproportionately high and adverse
human health or environmental effects on minority and low-income
populations.
(3) A full life-cycle analysis of the impacts of greenhouse gases.
(b) This section shall not be construed as a limitation on the
power of a public agency to otherwise disapprove the project pursuant
to any other provision of law.
(c) This section shall not be construed as a limitation to comply
with any other requirements of this division or any other provision
of law.
SEC. 3. Section 25303 of the Public
Resources Code is amended to read:
25303. (a) The commission shall conduct electricity and natural
gas forecasting and assessment activities to meet the requirements of
paragraph (1) of subdivision (a) of Section 25302, including, but
not limited to, all of the following:
(1) Assessment of trends in electricity and natural gas supply and
demand, and the outlook for wholesale and retail prices for
commodity electricity and natural gas under current market structures
and expected market conditions.
(2) Forecasts of statewide and regional electricity and natural
gas demand including annual, seasonal, and peak demand, and the
factors leading to projected demand growth, including, but not
limited to, projected population growth, urban development,
industrial expansion and energy intensity of industries, energy
demand for different building types, energy efficiency, and other
factors influencing demand for electricity. With respect to
long-range forecasts of the demand for natural gas, the report shall
include an evaluation of average conditions, as well as best and
worst case scenarios, and an evaluation of the impact of the
increasing use of renewable resources on natural gas demand.
(3) Evaluation of the adequacy of electricity and natural gas
supplies to meet forecasted demand growth. Assessment of the
availability, reliability, and efficiency of the electricity and
natural gas infrastructure and systems, including, but not limited
to, natural gas production capability both in and out of state,
natural gas interstate and intrastate pipeline capacity, storage and
use, and western regional and California electricity and transmission
system capacity and use.
(4) Evaluation of potential impacts of electricity and natural gas
supply, demand, and infrastructure and resource additions on the
electricity and natural gas systems, public health and safety, the
economy, resources, and the environment.
(A) On and after January 1, 2013, the commission shall, as a part
of the report adopted pursuant to Section 25302, include a
compilation and discussion of data on worldwide liquefied natural gas
market prices and flows as well as imports and exports to onshore or
offshore liquefied natural gas terminals located on the west coast
of the United States, Mexico, and Canada.
(B) For the purposes of subparagraph (A), the following terms have
the following meanings:
(i) "Liquefied natural gas" or "LNG" means natural gas cooled to
minus 259 degrees Fahrenheit so that it forms a liquid at
approximately atmospheric pressure.
(ii) "Onshore or offshore liquefied natural gas terminals located
on the west coast of the United States, Mexico, and Canada" means
facilities designed to receive or export liquefied natural gas from
or by oceangoing vessels, including those facilities required for
storage and regasification of the liquefied natural gas, the marine
vessels associated with these facilities, and any new pipelines,
including, but not limited to, all new pipelines from these offshore
or onshore terminals to shore and facilities necessary for the
transmission of the regasified natural gas from those facilities, to
the point of interconnection with any existing natural gas
transportation or distribution system, and located along the
contiguous western coast of North America from the southern border of
Mexico to the western tip of Alaska, but not including the Aleutian
Islands.
(iii) "Onshore or offshore liquefied natural gas terminals located
on the west coast of the United States, Mexico, and Canada" does not
include an LNG storage tank located or filled at a California port,
or a portable pressurized container approved by the United States
Department of Transportation for the storage, transportation, or
delivery of LNG, that is used for vessel or vehicle fuel.
(5) Evaluation of the potential impacts of electricity and natural
gas load management efforts, including end-user response to market
price signals, as a means to ensure reliable operation of electricity
and natural gas systems.
(6) Evaluation of whether electricity and natural gas markets are
adequately meeting public interest objectives including the provision
of all of the following: economic benefits; competitive, low-cost
reliable services; customer information and protection; and
environmentally sensitive electricity and natural gas supplies. This
evaluation may consider the extent to which California is an element
within western energy markets, the existence of appropriate
incentives for market participants to provide supplies and for
consumers to respond to energy prices, appropriate identification of
responsibilities of various market participants, and an assessment of
long-term versus short-term market performance. To the extent this
evaluation identifies market shortcomings, the commission shall
propose market structure changes to improve performance.
(7) Identification of impending or potential problems or
uncertainties in the electricity and natural gas markets, potential
options and solutions, and recommendations.
(8) (A) Compilation and assessment of existing scientific studies
that have been performed by persons or entities with expertise and
qualifications in the subject of the studies to determine the
potential vulnerability to a major disruption due to aging or a major
seismic event of large baseload generation facilities, of 1,700
megawatts or greater.
(B) The assessment specified in subparagraph (A) shall include an
analysis of the impact of a major disruption on system reliability,
public safety, and the economy.
(C) The commission may work with other public entities and public
agencies, including, but not limited to, the California Independent
System Operator, the Public Utilities Commission, the Department of
Conservation, and the Seismic Safety Commission as necessary, to
gather and analyze the information required by this paragraph.
(D) Upon completion and publication of the initial review of the
information required pursuant to this paragraph, the commission shall
perform subsequent updates as new data or new understanding of
potential seismic hazards emerge.
(b) Commencing November 1, 2003, and every two years thereafter,
to be included in the integrated energy policy report prepared
pursuant to Section 25302, the commission shall assess the current
status of the following:
(1) The environmental performance of the electric generation
facilities of the state, to include all of the following:
(A) Generation facility efficiency.
(B) Air emission control technologies in use in operating plants.
(C) The extent to which recent resource additions have, and
expected resource additions are likely to, displace or reduce the
operation of existing facilities, including the environmental
consequences of these changes.
(2) The geographic distribution of statewide environmental,
efficiency, and socioeconomic benefits and drawbacks of existing
generation facilities, including, but not limited to, the impacts on
natural resources including wildlife habitat, air quality, and water
resources, and the relationship to demographic factors. The
assessment shall describe the socioeconomic and demographic factors
that existed when the facilities were constructed and the current
status of these factors. In addition, the report shall include how
expected or recent resource additions could change the assessment
through displaced or reduced operation of existing facilities.
(c) In the absence of a long-term nuclear waste storage facility,
the commission shall assess the potential state and local costs and
impacts associated with accumulating waste at California's nuclear
powerplants. The commission shall further assess other key policy and
planning issues that will affect the future role of nuclear
powerplants in the state. The commission's assessment shall be
adopted on or before November 1, 2008, and included in the 2008
energy policy review adopted pursuant to subdivision (d) of Section
25302.
SEC. 3. SEC. 4. Chapter 3.5
(commencing with Section 25250) is added to Division 15 of the Public
Resources Code, to read:
CHAPTER 3.5. LIQUEFIED NATURAL GAS MARKET ASSESSMENT ACT
25250. This chapter shall be known and may be cited as the
Liquefied Natural Gas Market Assessment Act.
25250.5. For purposes of this chapter, the following definitions
apply:
(a) "Liquefied natural gas" or "LNG" means natural gas cooled to
minus 259 degrees Fahrenheit so that it forms a liquid at
approximately atmospheric pressure.
(b) (1) Onshore or offshore liquefied natural gas terminal in
California" means facilities located onshore or offshore in
California, designed to receive liquefied natural gas from oceangoing
vessels, including those facilities required for storage and
regasification of the liquefied natural gas, the marine vessels
associated with these facilities, and any new pipelines, including,
but not limited to, all new pipelines from these offshore or onshore
terminals to shore and facilities necessary for the transmission of
the regasified natural gas from those facilities, to the point of
interconnection with any existing natural gas transportation or
distribution system.
(2) "Onshore or offshore liquefied natural gas terminal in
California" does not include an LNG storage tank located or filled at
a California port, or a portable pressurized container approved by
the United States Department of Transportation for the storage,
transportation, or delivery of LNG, that is used for vessel or
vehicle fuel.
25251. (a) As a component of the integrated energy policy report,
the commission shall conduct a study of the effect of liquefied
natural gas imports and exports on the state's energy demand.
(b) The study shall assess all of the following:
(1) The future demand for natural gas in California, including,
but not limited to, natural gas as an alternative transportation
fuel.
(2) The future supply of natural gas in California available from
domestic production and imported into California through interstate
pipelines, the supply available from domestic production within
California, and the supply available from foreign production and
imported into California through international pipelines from Mexico
and Canada, including any liquefied natural gas terminal proposed to
be built outside the state and the nation that would import or
export, or both import and export, natural gas into or from the
state.
(3) All supplemental sources of natural gas and natural gas
alternatives that can be reasonably expected to be available to meet
projected energy demand, including, but not limited to, conservation,
energy efficiency programs, and renewable energy resources.
(4) Projections of the price for natural gas under reasonable
supply and demand circumstances.
(c) The report shall consider the impact of reducing electricity
derived from coal pursuant to Chapter 3 (commencing with Section
8340) of Division 4.1 of the Public Utilities Code, and the potential
of demand reduction opportunities, including, but not limited to,
the upgrading and retrofitting of energy infrastructure, the role of
renewable energy, and greater efficiency in building codes.
(d) The report shall include an analysis of what impact new fossil
fuel infrastructure will have on mandates on investor owned
utilities under any provision of law, including, but not limited to,
the California Renewables Portfolio Standard Program (Article 16
(commencing with Section 399.11) of Chapter 2.3 of Part 1 of Division
1 of the Public Utilities Code).
(e) The commission shall update its study of the effects of
liquefied natural gas imports and exports at least 60 days prior to
the hearing conducted by the State Lands Commission or the California
Coastal Commission prior to issuing a lease or permit to license a
liquefied natural gas facility on the California coast, if the
commission has not issued an integrated energy policy report within
180 days of the hearing.
25251.5. (a) On or before July 1, 2013, the commission shall
create a matrix on its Internet Web site that meets, to the extent
that data are publicly available, all of the following requirements:
(1) The matrix shall be in a format that allows the public to
contrast and compare each onshore or offshore liquefied natural gas
terminal in California, either existing or proposed. The matrix shall
also include information from liquefied natural gas facilities
located in Alaska, Canada, the west coast of the continental United
States, and the west coast of Mexico, including Baja California, that
may provide natural gas to California.
(2) The matrix shall include a summary of environmental impacts,
mitigation measures, and alternatives discussed in the environmental
impact report (EIR) completed for the onshore or offshore liquefied
natural gas terminal project, along with an online link to the EIR.
For projects outside of the state and nation, the matrix shall
contain a link to an equivalent environmental review document, if
available.
(3) For each existing and proposed onshore or offshore liquefied
natural gas terminal project, the matrix shall include all of the
following information:
(A) The project's location.
(B) The project's owner.
(C) The project's Internet Web site, if any.
(D) The project's contact information.
(E) The project's description.
(F) The projected average natural gas production capacity in cubic
feet per day.
(G) The projected peak natural gas production capacity in cubic
feet per day.
(H) The liquefied natural gas and natural gas storage capacity, if
any.
(I) The potential export capacity of a terminal.
(J) The approximate cost of the project.
(K) The projected online date.
(L) The siting process applicable to the project.
(b) The commission shall update the matrix as information becomes
available but no less than quarterly, and shall include the major
project components and the potential environmental impacts associated
with the onshore or offshore liquefied natural gas terminal project
proposal that has filed an application or has publicly announced
plans to build an onshore or offshore terminal.
(c) The commission shall post a new application for approval to
build and operate an onshore or offshore liquefied natural gas
terminal in California to the matrix within 30 days after the
submittal of the application.
25252. An applicant for the construction or operation of a
liquefied natural gas terminal project shall provide evidence in its
application that it has consulted with the United States Department
of Defense and its impacted service components, and include within
the application a description of the consultation with regard to
potential impacts upon national security, including potential impacts
on the land, sea, and airspace identified by the Department of
Defense and its impacted service components, for conducting
operations or training, or for the research, development, testing,
and evaluation of weapons, sensors, and tactics.
25253. The commission shall impose a fee upon a liquefied natural
gas terminal project applicant proposing a liquefied natural gas
terminal that is subject to being evaluated pursuant to this article.
The fee shall cover the costs that may be incurred by the commission
to implement this article, including the costs of any temporary
personnel or consultants. The commission may expend the fees
collected pursuant to this section, upon appropriation by the
Legislature, to implement this article.
SEC. 4. SEC. 5. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because a local agency or school district has
the authority to levy service charges, fees, or assessments
sufficient to pay for the program or level of service mandated by
this act, within the meaning of Section 17556 of the Government Code.
