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SB-64 Fossil-fuel generation units.(2017-2018)

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Date Published: 05/10/2018 09:00 PM
SB64:v96#DOCUMENT

Amended  IN  Assembly  May 10, 2018
Amended  IN  Senate  April 06, 2017
Amended  IN  Senate  March 22, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 64


Introduced by Senator Wieckowski

December 22, 2016


An act to add Article 3.6 (commencing with Section 354) to Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code, relating to energy. An act to add Section 42301.19 to the Health and Safety Code, and to add Section 636 to the Public Utilities Code, relating to nonvehicular air pollution.


LEGISLATIVE COUNSEL'S DIGEST


SB 64, as amended, Wieckowski. Independent System Operator: integration of generation from renewable energy resources. Fossil-fuel generation units.
Existing law requires stationary sources, including fossil-fueled electrical generating facilities, to obtain a permit from a local air quality management district or air pollution control district (air districts) for their operation.
This bill would require the California balancing authority, on a quarterly basis to provide to the State Air Resources Board data associated with startups, shutdowns, and cycling of fossil-fueled electrical generating facilities. The bill would require the state board to make those data available to the air districts and the public. The bill would require the air districts, during a permit review of a generating facility, to review the relevant data associated with that facility provided by the California balancing authority and evaluate certain emission impacts of those facilities. The bill would require the air districts to impose limitations on the operation of the generating facility on days in which emissions are forecasted to exceed federal or state ambient air quality standards, as specified. The bill would require the air districts, on or before June 1, 2019, to examine the actual emissions from fossil-fueled electrical generating facilities within their jurisdictions. Because this bill would impose additional duties on the air districts, this bill would impose a state-mandated local program.
Existing law requires the Public Utilities Commission (PUC) to adopt a process for each load-serving entity to file an integrated resource plan to ensure that load-serving entities, among other things, minimize localized air pollutants and other greenhouse gas emissions, with early priority on disadvantaged communities.
This bill would require the PUC and the State Energy Resources Conservation and Development Commission, on or before June 1, 2019, with input from specified entities, to complete a study with recommendations on how to reduce the electrical generation from, and prioritize the retirement of, natural gas-fired electrical generating units to minimize localized air pollution, with early priority for disadvantaged communities. The bill would require the PUC to incorporate the recommendations as a part of the integrated resource plan process. Because a violation of an order of the PUC implementing this provision would be a crime, this 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 specified reasons.

The existing restructuring of the electrical industry within the Public Utilities Act provides for the establishment of an Independent System Operator (ISO) as a nonprofit public benefit corporation. Existing law requires the ISO to manage the transmission grid and related energy markets in a manner consistent with (1) making the most efficient use of available energy resources, (2) reducing overall economic cost to the state’s consumers to the extent possible, (3) applicable state law intended to protect the public’s health and the environment, (4) maximizing availability of existing electrical generation resources necessary to meet the needs of the state’s electricity consumers, (5) conducting internal operations in a manner that minimizes cost impact on ratepayers to the extent practicable, and (6) communicating with all balancing area authorities in California in a manner that supports electrical reliability. The Clean Energy and Pollution Reduction Act of 2015 provides for the transformation of the ISO into a regional organization, with the approval of the Legislature, pursuant to a specified process. That process provides that modifications to the ISO’s governance structure, through changes to its bylaws or other corporate governance documents, will not become effective until the ISO, Public Utilities Commission (PUC), State Energy Resources Conservation and Development Commission (Energy Commission), State Air Resources Board (state board), Governor, and Legislature take specified actions.

This bill would require the ISO by January 1, 2019, in consultation with the PUC, Energy Commission, state board, and the public, to review and revise its operations to minimize any logistical impediments, including export limits, to day-ahead scheduling of intermittent generation from renewable energy resources between the ISO and other balancing area authorities, in order to address any over-supply of generation from renewable energy resources at times when it is inexpensive and abundant. The bill would provide that it does not authorize the ISO to change its governance, transform into a regional organization, or avoid compliance with any requirement of federal law.

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

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


SECTION 1.

 Section 42301.19 is added to the Health and Safety Code, to read:

42301.19.
 (a) For purposes of this section, the following definitions apply:
(1) “California balancing authority” has the same meaning as set forth in Section 399.12 of the Public Utilities Code.
(2) “Disadvantaged community” means a community identified as a disadvantaged community pursuant to Section 39711.
(3) “Facility” means a fossil-fueled electrical generating unit or facility.
(4) “Sensitive receptors” have the same meaning as set forth in Section 42705.5.
(b) (1) Each California balancing authority shall, on a quarterly basis, provide to the state board data associated with startups, shutdowns, and cycling of facilities located in the state.
(2) The state board shall make data provided pursuant to subdivision (a) available to districts and to the public on its Internet Web site and in a format that illustrates the changes of emissions, startups, shutdowns, and cycling over time.
(c) On or before June 1, 2019, each district shall undertake a study of all facilities within its jurisdiction to examine the actual hourly, startup, and shutdown average emissions of oxides of nitrogen, total organic gases, and particulate matters. The district shall also identify facilities that are located in disadvantaged communities.
(d) (1) During a review for a permit issuance, permit renewal, permit reopening, or permit amendment pursuant to this division for a facility, the district shall evaluate the data made available pursuant to subdivision (a) as to all of the following with respect to the facility:
(A) The impacts of the dispatch of the facility on the state’s effort to minimize emissions from these facilities with priority on minimizing emissions affecting disadvantaged communities.
(B) The impacts of the dispatch of the facility in areas classified as nonattainment areas pursuant to the federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.).
(C) The impact of the dispatch of the facility on sensitive receptors.
(2) In making the evaluation pursuant to this subdivision, the district shall not take into account any emission reduction credits used to offset the emissions from the facility.
(3) The review shall be conducted in a public process that allows for meaningful public participation.
(4) The review for each facility shall occur no later than January 1, 2023.
(e) (1) As a part of the review of a permit pursuant to this section, the district shall impose, as conditions of the permit for the facility and subject to subdivision (f), limitation on the operation of the facility, including limits on startups, shutdowns, and cycling of the facility on days forecasted to exceed federal or state ambient air quality standards to ensure compliance with local, state, and federal requirements, maintenance of air quality goals and requirements, and applicable requirements related to impacts on disadvantaged communities.
(2) If a California balancing authority determines that the operation of a facility is necessary to maintain reliability as identified by the applicable federal reliability requirement during days forecasted to exceed federal or state ambient air quality standards, notwithstanding limitation on operation imposed pursuant to paragraph (1), the facility shall be authorized to operate up to the generation capacity needed to ensure that reliability is maintained as determined by the California balancing authority.
(3) The conditions imposed pursuant to this subdivision are subject to review by the state board and the state board may modify the conditions, as necessary, to ensure that the requirements of this section are met.
(f) In the event that a day is forecasted to exceed federal or state ambient air quality standards within a district’s jurisdiction, the district shall provide a notice to the owner or operator of all facilities within its jurisdiction, the relevant California balancing authority, and the public at least 24 hours in advance of the forecasted exceedance period. The notice shall contain both of the following:
(1) (A) A list of facilities whose operation are to be limited during the forecasted exceedance period to minimize the levels of exceedance.
(B) The district shall prioritize limiting the operation of facilities located in disadvantaged communities with the largest hourly emissions for startup or shutdown as identified by the study pursuant to subdivision (c).
(2) The provision of instructions on limitations on dispatch to the California balancing authority and the owners or operators of listed facilities for the forecasted time period to ensure compliance with conditions imposed pursuant to subdivision (e).

SEC. 2.

 Section 636 is added to the Public Utilities Code, to read:

636.
 (a) On or before June 1, 2019, the commission and the Energy Commission shall, with input from the relevant state agencies, the California balancing authority, as defined in Section 399.12, and the public, conduct and complete a study with recommendations on how to reduce electrical generation from, and prioritize the retirement of, natural gas-fired electrical generating units to minimize the emissions of localized air pollutants with a priority on minimizing those emissions effecting disadvantaged communities, as defined pursuant to Section 39711 of the Health and Safety Code.
(b) (1) The commission shall incorporate the recommendations as a part of the process adopted pursuant to Section 454.52.
(2) The Energy Commission shall incorporate the recommendations as a part of the integrated energy policy report adopted pursuant to Section 25302 of the Public Resources Code.

SEC. 3.

 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 or because 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.
SECTION 1.Article 3.6 (commencing with Section 354) is added to Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code, to read:
3.6.Renewable Energy Resource Integration
354.

(a)On or before January 1, 2019, the Independent System Operator, in consultation with the commission, the Energy Commission, the State Air Resources Board, and the public, shall review and revise its operations to minimize any logistical impediments, including export limits, to day-ahead scheduling of intermittent generation from renewable energy resources between the Independent System Operator and other balancing area authorities, in order to address any over-supply of generation from renewable energy resources at times when it is inexpensive and abundant.

(b)Nothing in this section authorizes the Independent System Operator to change its governance, transform into a regional organization as described in Section 359.5, or avoid compliance with any requirement of federal law.