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AB-79 Electrical generation: hourly greenhouse gas emissions: electricity from unspecified sources.(2017-2018)

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Date Published: 06/15/2017 04:00 AM
AB79:v94#DOCUMENT

Amended  IN  Senate  June 14, 2017
Amended  IN  Assembly  April 24, 2017
Amended  IN  Assembly  April 17, 2017
Amended  IN  Assembly  March 21, 2017
Amended  IN  Assembly  March 06, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 79


Introduced by Assembly Member Levine

January 04, 2017


An act to add Section 38532 to the Health and Safety Code, and to amend Section 400 of the Public Utilities Code, relating to electricity.


LEGISLATIVE COUNSEL'S DIGEST


AB 79, as amended, Levine. Electrical generation: hourly greenhouse gas emissions: electricity from unspecified sources.
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, 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 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 Air Resources Board (state board), state board, in consultation with the Independent System Operator (ISO), to update its 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, purpose. The bill would require the methodology to distinguish between those emissions associated with electricity from unspecified sources that is purchased within California balancing authority areas, as defined, and, distinctly, 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 its methodology and authorize the state board to incorporate additional measures designed to improve the accuracy of the calculations, including seasonal and time-based differentiation. The bill would require the state board, in consultation with the ISO 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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 38532 is added to the Health and Safety Code, to read:

38532.
 (a) For purposes of this section, the following definitions apply:
(1) “Balancing authority” means the responsible entity that integrates resource plans ahead of time, maintains load-interchange generation balance within a balancing authority area, and supports interconnection frequency in real time.
(2) “Balancing authority area” means the collection of generation, transmission, and loads within the metered boundaries of the area within which the balancing authority maintains the electrical load-resource balance.
(3) “California balancing authority” means a balancing authority with control over a balancing authority area primarily located in this state and operating for retail suppliers, including, but not limited to, the Independent System Operator (ISO) or a local publicly owned electric utility operating a transmission grid that is not under the operational control of the ISO. A California balancing authority is responsible for the operation of the transmission grid within its metered boundaries, not limited by the political boundaries of the State of California.
(4) “Electricity from specified sources” means electricity transactions that are traceable to specific generation sources.
(5) “Electricity from unspecified sources” means electricity generated within or outside the state and purchased under commercial agreements that do not identify specific generation sources, including electricity procured from a wholesale market exchange operated by a California balancing authority.
(6) “Retail supplier” has the same meaning as defined in Section 398.2 of the Public Utilities Code.
(b) (1) On or before January 1, 2019, the state board, in consultation with the ISO, shall update its methodology for the calculation of emissions of greenhouse gases associated with electricity from unspecified sources purchased by retail suppliers on behalf of California end-use customers.
(2) The methodology shall distinguish between emissions associated with electricity from unspecified sources purchased within California balancing authority areas and associated with electricity from unspecified sources imported into California from different subregions of the Western Electricity Coordinating Council.
(3) The updated methodology may differentiate emissions by season and time of day. The state board may determine that this differentiation is not appropriate if the administrative burden is excessive and differentiation is unlikely to materially improve the accuracy of state programs designed to regulate emissions of greenhouse gases.
(4) The updated emissions methodology shall be applied to purchases of electricity from unspecified sources occurring after January 1, 2020. 2021.
(5) The state board shall regularly update its methodology and may incorporate additional measures designed to improve the accuracy of the calculations, including seasonal and time-based differentiation.
(c) (1) On or before January 1, 2019, the state board shall report to the Legislature on any barriers to developing an enhanced methodology for the calculation, based on recorded generation operations data, of hourly greenhouse gas emissions associated with electricity from unspecified sources. The report shall identify any information, systems or modifications to programs or procedures required to calculate, on an ex post basis, recorded hourly emissions associated with electricity from unspecified sources purchased within California balancing authority areas and from within other subregions of the Western Electricity Coordinating Council. The state board shall consult with the Independent System Operator and other California balancing authorities for purposes of developing this report.
(2) The report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
(3) The requirement for submitting a report pursuant to paragraph (1) is inoperative on January 1, 2023, pursuant to Section 10231.5 of the Government Code.

SEC. 2.

 Section 400 of the Public Utilities Code is amended to read:

400.
 The commission and the Energy Commission shall do all of the following in furtherance of meeting the state’s clean energy and pollution reduction objectives:
(a) Take into account the use of distributed generation to the extent that it provides economic and environmental benefits in disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.
(b) Take into account the opportunities to decrease costs and increase benefits, including pollution reduction and grid integration, using renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite in proceedings associated with meeting the objectives.
(c) Where feasible, authorize procurement of resources to provide grid reliability services that minimize reliance on system power and fossil fuel resources and, where feasible, cost effective, and consistent with other state policy objectives, increase the use of large- and small-scale energy storage with a variety of technologies, targeted energy efficiency, demand response, including, but not limited to, automated demand response, eligible renewable energy resources, or other renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite to protect system reliability.
(d) (1) Review technology incentive, research, development, deployment, and market facilitation programs overseen by the commission and the Energy Commission and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.
(2) The Energy Commission shall review technology incentive, research, development, deployment, and market facilitation programs operating in California and overseen by academia and the private and nonprofit sectors, and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code.
(e) To the extent feasible and consistent with the state and federal constitutions, give first priority to the manufacture and deployment of clean energy and pollution reduction technologies that create employment opportunities in California, including high wage, highly skilled employment opportunities, and increased investment in the state.
(f) Establish a publicly available tracking system to provide up-to-date information at least once annually on progress toward meeting the clean energy and pollution reduction goals of the Clean Energy and Pollution Reduction Act of 2015. 2015 (Chapter 547 of the Statutes of 2015).
(g) Establish an advisory group consisting of representatives from disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code. The advisory group shall review and provide advice on programs proposed to achieve clean energy and pollution reduction and determine whether those proposed programs will be effective and useful in disadvantaged communities.
(h) Incorporate the methodology developed pursuant to Section 38532 of the Health and Safety Code into programs addressing the disclosure of emissions of greenhouse gases and the procurement of electricity by entities subject to the respective jurisdiction of each.

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.