Existing law requires every retail supplier that makes an offer to sell electricity that is consumed in the state to disclose its electricity sources and the associated greenhouse gas emissions intensity for the previous calendar year. Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with the State Air Resources Board (state board), to adopt a methodology for the calculation of greenhouse gas emissions intensity for each purchase of electricity by a retail supplier to serve its retail customers, and requires the Energy Commission to calculate greenhouse gas emissions intensity associated with statewide retail electricity sales based on greenhouse gas emissions for total California system electricity.

This bill would require, by January 1, 2019, the state board, in consultation with California balancing authorities, as defined, to update its inputs or methodology for the calculation of emissions of greenhouse gases associated with electricity from unspecified sources, a term defined in existing law but revised for this purpose. The bill would require the inputs or methodology to distinguish between those emissions associated with electricity from unspecified sources that is purchased within California balancing authority areas, as defined, and those emissions associated with electricity from unspecified sources imported into California from different subregions of the Western Electricity Coordinating Council. The bill would require the state board to regularly update the inputs to its methodology and authorize the state board to incorporate additional measures and forms of differentiation that are designed to improve the accuracy of the calculations and that support the state’s initiatives for reducing emissions of greenhouse gases. The bill would authorize the state board to not update its inputs or methodology for the calculation of emissions of greenhouse gases associated with electricity from unspecified sources if it determines that updating the inputs or methodology is infeasible or is not appropriate because the administrative burden is excessive and differentiating is unlikely to materially improve the accuracy of the calculations needed for the state programs designed to regulate emissions of greenhouse gases. The bill would require the state board, in consultation with the Independent System Operator and California balancing authorities, to report to the Legislature by January 1, 2019, on any barriers to developing an enhanced methodology, based on recorded generation operations data, for the calculation of hourly greenhouse gas emissions associated with electricity from unspecified sources, as specified. The bill would require the Public Utilities Commission and the Energy Commission to incorporate the methodology into programs addressing the disclosure of the emissions of greenhouse gases and the procurement of electricity by entities under the respective jurisdiction of each. Because a local publicly owned electric utility would be required to incorporate the methodology into programs addressing the disclosure of the emissions of greenhouse gases and the procurement of electricity by the utility, this bill would impose a state-mandated local program.

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 are within the act and require action by the commission to implement their requirements, a violation of which would be a crime, this bill would impose a state-mandated local program by creating a new crime.

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 specified reasons.