Bill Text: CA SB37 | 2011-2012 | Regular Session | Introduced

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

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Bill Title: Energy: State Energy Resources Conservation and

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-01-31 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB37 Detail]

Download: California-2011-SB37-Introduced.html

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BILL NUMBER: SB 37	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Simitian

                        DECEMBER 6, 2010

   An act 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 37, as introduced, 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. The act requires the commission 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 enact the Liquefied Natural Gas Market Assessment
Act and would require the Energy Commission, as a component of the
integrated energy policy report, to conduct a study of the need for
liquefied natural gas imports to meet 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 need for liquefied
natural gas imports 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 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, 2012, 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 require the Energy Commission, on or before July 1,
2012, to create a matrix on its Internet Web site containing
information related to the construction and operation of a liquefied
natural gas terminal project, and quarterly updates would be
required.
   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 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 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 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, 2012, 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.  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) "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.
   25251.  (a) As a component of the integrated energy policy report,
the commission shall conduct a study of the need for liquefied
natural gas imports to meet 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 be the source of
natural gas imported into 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 need for
liquefied natural gas imports 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.
   25252.  On or before July 1, 2012, 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:
   (a) The matrix shall be in a format that allows the public to
contrast and compare each liquefied natural gas terminal, either
existing or proposed, that is located onshore or offshore anywhere in
California. The matrix shall also include information from
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.
   (b) It shall include a summary of environmental impacts,
mitigation measures, and alternatives discussed in the environmental
impact report (EIR) completed for the project, along with an online
link to the EIR. For projects outside the state and nation a link to
an equivalent environmental review document.
   (c) For each existing and proposed land-based or offshore
liquefied natural gas terminal project, the matrix shall include the
following information: project location, project owner, project Web
site, project contact, project description, average natural gas
production capacity in cubic feet per day, the peak natural gas
production capacity in cubic feet per day, liquefied natural gas and
natural gas storage capacity, if any, the approximate project cost,
projected online date, and the siting process applicable to the
project.
   (d) The matrix shall be updated as information becomes available
and no less than quarterly and shall include the major project
components and the potential environmental impacts associated with
each land-based and offshore natural gas import terminal project
proposal that has filed an application or has publicly announced
plans to build a land-based or offshore terminal.
   (e) The commission shall post a new application for approval to
build and operate a natural gas import terminal in the state to the
matrix within 30 days after the submittal of the application.
   25253.  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.
   25254.  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.   No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
this act provides for offsetting savings to local agencies or school
districts that result in no net costs to the local agencies or school
districts, within the meaning of Section 17556 of the Government
Code.