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AB-525 Energy: offshore wind generation.(2021-2022)

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Date Published: 04/26/2021 09:00 PM
AB525:v98#DOCUMENT

Revised  May 20, 2021
Amended  IN  Assembly  April 26, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 525


Introduced by Assembly Members Chiu, Cunningham, and Friedman
(Principal coauthor: Senator Eggman)
(Coauthors: Assembly Members Bauer-Kahan, Bennett, Berman, Calderon, Chen, Irwin, Muratsuchi, Quirk, and Ting) Ting, Carrillo, Lorena Gonzalez, and Holden)
(Coauthor: Senator Coauthors: Senators Cortese, Laird, and Wiener)

February 10, 2021


An act to add Chapter 14 (commencing with Section 25991) to Division 15 of the Public Resources Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


AB 525, as amended, Chiu. Energy: offshore wind generation.
The 100 Percent Clean Energy Act of 2018 established as a policy of the state that eligible renewable energy resources and zero-carbon resources supply 100% of retail sales of electricity to California end-use customers and 100% of electricity procured to serve all state agencies by December 31, 2045. The act requires the Public Utilities Commission (PUC), State Energy Resources Conservation and Development Commission (Energy Commission), and State Air Resources Board to, as part of a public process, issue a joint report to the Legislature by January 1, 2021, and every 4 years thereafter, that includes specified information relating to the implementation of the policy.
Existing law requires the PUC and the Energy Commission to undertake various actions in furtherance of meeting the state’s clean energy and pollution reduction objectives.
This bill would require the Energy Commission, on or before March 1, 2022, to evaluate and quantify the maximum feasible capacity of offshore wind to achieve reliability, ratepayer, employment, and decarbonization benefits and to establish offshore wind planning goals for 2030 and 2045, as specified.
The bill would require the Energy Commission, in coordination with specified agencies, to develop a strategic plan to achieve a goal of at least 10,000 megawatts of for offshore wind energy developments installed off the California coast by 2040, with an interim target of 3,000 megawatts installed by 2030. in federal waters, as specified. The bill would require the Energy Commission to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 1, December 31, 2022. The bill would impose various requirements on the Energy Commission in relation to the strategic plan and would require the strategic plan to include specified information relating to identification of sea space, economic and workforce development, transmission planning, and permitting.
The bill would require the Energy Commission, in consultation coordination with specified agencies, to work with stakeholders, state, local, and federal agencies, and the offshore wind energy industry to identify suitable sea space for wind energy areas in federal waters sufficient to accommodate the offshore wind planning goals for 2030 and 2045. The bill would require the Energy Commission, in coordination with relevant state and local agencies, to assess and develop a plan to improve existing waterfront facilities that could support a range of floating offshore wind energy development activities, and would require the PUC, in consultation with the Energy Commission, to include offshore wind energy as a resource for full consideration in the PUC’s integrated resource planning process. activities. The bill would require the Energy Commission, in consultation with the PUC and Independent System Operator, to assess the transmission investments and upgrades necessary to support at least 10,000 megawatts of offshore wind energy developments by 2040, and would require that assessment to include the consideration of eligible renewable energy resource technologies, including, but not limited to, offshore wind energy, as a resource for achieving the above-described policy established in the 100 Percent Clean Energy Act of 2018. the offshore wind planning goals for 2030 and 2045. The bill would require the Energy Commission to convene a working group that includes all relevant state local, state, and federal agencies and interested California Native American tribes to facilitate, as specified, the develop and produce guidelines, timeframes, and milestones for a permitting process for offshore wind energy facilities and associated electricity and transmission infrastructure off the coast of California. The bill would require the information described in this paragraphto be included in the strategic plan, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) If developed and deployed at scale, the development of offshore wind energy can provide economic and environmental benefits to the state and the nation.
(b) Offshore wind energy can advance California’s progress toward its statutory renewable energy and climate mandates.
(c) The joint agency report 2021 SB 100 Joint Agency Report issued pursuant to Section 454.53 of the Public Utilities Code demonstrated both of the following:
(1)That California will need conducted portfolio modeling that selected at least 10 gigawatts of offshore wind energy developments to achieve its the state’s climate goals at least cost. goals, finding a total reduction in total resource costs by an estimated one billion dollars ($1,000,000,000).

(2)That

(d) California will may need to build at least 34 48 gigawatts of new renewable energy and energy storage developments by 2030 and at least 140 145 gigawatts of new renewable energy and energy storage developments by 2045 to achieve the goals established in SB 100 (2017-18) (Chapter 312 of the Statutes of 2018).
(e) Diversity in energy resources and technologies lowers overall costs. Offshore wind can add resource and technology diversity to the state’s energy portfolio.

(d)

(f) Offshore wind energy development presents an opportunity to attract investment capital and to realize community economic development and workforce development benefits in California, including the development and preservation of a skilled and trained construction workforce to carry out projects, long-term job creation, and development of an offshore wind energy supply chain.

(e)

(g) Offshore wind energy can contribute to a diverse, secure, reliable, and affordable renewable energy resource portfolio to serve the electricity needs of California ratepayers and improve air quality, particularly in disadvantaged communities.

(f)

(h) Subsea electricity transmission could reduce transmission congestion and provide transmission capacity for diverse clean energy development. congestion.

(g)

(i) With existing technology, each 1,000 megawatts of offshore wind energy will require between 100 and 120 square miles of sea space for development.

(h)

(j) The Ocean Protection Council’s strategic plan for 2020 to 2025, inclusive, sets an objective for development of a commercial scale offshore wind energy project in California that minimizes impacts on marine biodiversity and habitat, currents and upwelling, fishing, cultural resources, navigation, aesthetics and visual appeal, and military operations by 2026.
(k) In 2016, California initiated a collaborative process with the federal government through the formation of the Bureau of Ocean Energy Management California Intergovernmental Renewable Energy Task Force, which includes a broad public outreach process to examine potential wind leasing areas in federal waters. The federal Bureau of Ocean Energy Management identified areas in Humboldt, Morro Bay, and Diablo Canyon as the first three potential offshore wind “call areas” and issued a call for nominations of interest in 2018.
(l) The Bureau of Ocean Energy Management California Intergovernmental Renewable Energy Task Force has developed and collected important data and information relevant to the assessment of potential offshore wind energy resources, including the creation of the California Offshore Wind Energy Gateway, which assembles geospatial information on ocean wind resources, ecological and natural resources, commercial and recreational ocean uses, and community values and makes this information publicly available.
(m) Offshore wind should be developed in a manner that protects coastal and marine ecosystems. The State of California should use its authority under state programs and policies to ensure (1) avoidance, minimization, and mitigation of significant adverse impacts, and (2) monitoring and adaptive management for offshore wind projects and their associated infrastructure.
(n) The President of the United States and federal Departments of Interior, Energy, and Commerce have announced a shared goal to deploy 30,000 megawatts of offshore wind energy by 2030, employing tens of thousands of workers, protecting biodiversity, and promoting ocean co-use.

SEC. 2.

 Chapter 14 (commencing with Section 25991) is added to Division 15 of the Public Resources Code, to read:
CHAPTER  14. Offshore Wind Generation

25991.
 (a) (1) The commission, in coordination with the California Coastal Commission, the Ocean Protection Council, the State Lands Commission, the Office of Planning and Research, the Governor’s Office of Business and Economic Development, the Independent System Operator, and the Public Utilities Commission, and other relevant federal, state, and local agencies as needed, shall develop a strategic plan to achieve a goal of at least 10,000 megawatts of for offshore wind energy developments installed off the California coast by 2040, with an interim target of 3,000 megawatts installed by 2030. in federal waters.
(2) Development of the strategic plan shall incorporate, but not delay, progress to advance responsible development of offshore wind in other relevant policy venues.
(b) (1) The commission shall submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 1, December 31, 2022.
(2) The plan submitted to the Legislature pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
(c) The strategic plan shall include, at a minimum, the following four chapters:
(1) Identification of sea space, including the findings and recommendations resulting from activities undertaken pursuant to Section 25991.1. 25991.2.
(2) Economic and workforce development, development and identification of port space and infrastructure, including the findings resulting from activities undertaken plan developed pursuant to Section 25991.2. 25991.3.
(3) Transmission planning, including the findings resulting from activities undertaken pursuant to Section 25991.3. 25991.4.
(4) Permitting, including the findings resulting from activities undertaken pursuant to Section 25991.4. 25991.5.
(d) (1) The strategic plan shall emphasize and prioritize near-term actions, particularly related to port retrofits and investments and the workforce, to accommodate the probable immediate need for jobs and economic development.
(2) In considering port retrofits, the strategic plan shall strive for compatibility with other harbor tenants and ocean users to ensure that the local benefits related to offshore wind energy construction complement other local industries.
(3) The strategic plan shall emphasize and prioritize actions that will improve port infrastructure to support land-based work for the local workforce.
(e) The development of the strategic plan regarding workforce development shall include consultation with representatives of key labor organizations and apprenticeship programs that would be involved in dispatching and training the construction workforce.

25991.1.
 (a) On or before March 1, 2022, the commission shall evaluate and quantify the maximum feasible capacity of offshore wind to achieve reliability, ratepayer, employment, and decarbonization benefits and shall establish megawatt offshore wind planning goals for 2030 and 2045.
(b) In establishing the goals pursuant to subdivision (a), the commission shall consider all of the following:
(1) The findings of the 2021 joint report issued pursuant to Section 454.53 of the Public Utilities Code.
(2) The need to develop a skilled and trained offshore wind workforce.
(3) The potential to attract supply-chain manufacturing for offshore wind components throughout the Pacific region.
(4) The need for reliable renewable energy that accommodates California’s shifting peak load.
(5) The generation profile of offshore wind off the coast of California.
(6) The need for economies of scale to reduce the costs of floating offshore wind.
(7) The need to initiate long-term transmission and infrastructure planning to facilitate delivery of offshore wind energy to Californians.
(8) The availability of federal tax incentives for offshore wind investments.
(9) The National Renewable Energy Laboratory report finding that California has 200 gigawatts of offshore wind technical power potential.
(10) The opportunity for California to participate in the federal government’s intention to deploy 30,000 megawatts of offshore wind by 2030 and to create a pathway to unlocking 110,000 megawatts by 2050.
(11) Any executive action from the Governor regarding offshore wind.

25991.1.25991.2.
 (a) The commission commission, in coordination with the California Coastal Commission, Department of Fish and Wildlife, Ocean Protection Council, and State Lands Commission, shall work with key stakeholders, state other state, local, and federal agencies, and the offshore wind energy industry to identify suitable sea space for wind energy areas in federal waters sufficient to accommodate at least 10,000 megawatts of offshore wind generation off California’s coast, with a plan to assess and address environmental impacts and land use conflicts in accordance with California’s long-term renewable energy and greenhouse gas emission reduction goals. the offshore wind planning goals established pursuant to Section 25991.1, as follows:
(1) The commission shall first identify the sea space identified by the federal Bureau of Ocean Energy Management in its 2018 call for nominations, as published in the Federal Register, Volume 83, Number 203, on October 19, 2018, and any other relevant information necessary to achieve the 2030 offshore wind planning goal established pursuant to Section 25991.1.
(2) The commission, in coordination with the California Coastal Commission, Department of Fish and Wildlife, Ocean Protection Council, and State Lands Commission, shall next identify suitable sea space for a future phase of offshore wind leasing to accommodate the 2045 offshore wind planning goal established pursuant to Section 25991.1.
(b) In identifying suitable sea space, the commission shall consider all of the following:
(1) Existing data and information on offshore wind resource potential and commercial viability.
(2) Existing and necessary transmission and port infrastructure.
(3) Protection of cultural and biological resources with the goal of prioritizing least-conflict ocean areas.
(c) In fulfilling the requirements of this section, the commission shall incorporate the information developed by the Bureau of Ocean Energy Management California Intergovernmental Renewable Energy Task Force.
(d) The commission shall use the California Offshore Wind Energy Gateway to provide relevant information developed pursuant to this section to the public.
(e) The commission, in coordination with the California Coastal Commission, the Department of Fish and Wildlife, the Ocean Protection Council, the State Lands Commission, stakeholders, other state, local, and federal agencies, and the offshore wind energy industry, shall make recommendations to address potential environmental impacts and use conflicts, such as monitoring, mitigation, and adaptive management, consistent with California’s long-term renewable energy and greenhouse gas emission reduction goals.
(f) Nothing in this section is intended to modify the authority of state agencies over project-specific siting and permitting.
(g) The findings and recommendations resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan relating to the identification of sea space as specified in paragraph (1) of subdivision (c) of Section 25991.

25991.2.25991.3.
 (a) The Based on the sea spaces identified pursuant to Section 25991.2, the commission, in consultation coordination with relevant state and local agencies, shall assess and develop a plan to improve existing waterfront facilities that could support a range of floating offshore wind energy development activities, including construction and staging of foundations, manufacturing of components, final assembly, and long-term operations and maintenance facilities.
(b) The plan developed pursuant to subdivision (a) shall include all of the following:

(b)The assessment undertaken pursuant to subdivision (a) shall include a

(1) A detailed assessment of the necessary investments in California seaports to support offshore wind energy activities, including construction, assembly, and operations and maintenance. The assessment shall detail consider the potential availability of land and water acreage at each seaport, including competing and existing current uses, infrastructure feasibility, access to deep water, and bridge height restrictions. restrictions, and potentially impacted natural and cultural resources.

(c)The assessment undertaken pursuant to subdivision (a) shall analyze

(2) An analysis of the workforce development needs for of the California offshore wind energy industry, including occupational safety requirements, and the need to require the use of a skilled and trained workforce to perform all work. The assessment shall also analyze work, and the need for the Division of Apprenticeship Standards to develop curriculum for in-person classroom and laboratory advanced safety training for workers.

(d)The assessment undertaken pursuant to subdivision (a) shall consider and make recommendations

(3) Recommendations for workforce standards for offshore wind energy facilities and associated infrastructure, including, but not limited to, prevailing wage, skilled and trained workforce, apprenticeship, local hiring, and targeted hiring, hiring standards, that ensure sustained and equitable economic development benefits.

(e)The assessment undertaken pursuant to subdivision (a) shall include consultation

(c) In developing the plan pursuant to subdivision (a), the commission shall consult with representatives of key labor organizations and apprenticeship programs that would be involved in dispatching and training the construction workforce.
(d) The plan developed pursuant to this section shall be included in the chapter of the strategic plan relating to economic and workforce development and identification of port space and infrastructure as specified in paragraph (2) of subdivision (c) of Section 25991.

25991.3.25991.4.
 (a) The commission, in consultation with the Public Utilities Commission and the Independent System Operator, shall assess the transmission investments and upgrades necessary to support at least 10,000 megawatts of the 2030 and 2045 offshore wind energy developments by 2040. planning goals established pursuant to Section 25991.1.
(b) The findings resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan relating to transmission planning as specified in paragraph (3) of subdivision (c) of Section 25991.

(b)The assessment undertaken pursuant to subdivision (a) shall include consideration of eligible renewable energy resource technologies, including, but not limited to, offshore wind energy, as a resource for achieving the policy described in subdivision (a) of Section 454.53 of the Public Utilities Code.

(c)The Public Utilities Commission, in consultation with the commission, shall include offshore wind energy as a resource for full consideration in the Public Utilities Commission’s integrated resource planning process.

25991.4.25991.5.
 (a) (1)The commission shall convene a working group that includes all relevant state local, state, and federal agencies and interested California Native American tribes to collectively develop and produce guidelines, timeframes, and milestones for a coordinated, comprehensive, and efficient permitting process for offshore wind energy facilities and associated electricity and transmission infrastructure off the coast of California.

(2)

(b) The working group shall meet no less than once per month to develop a comprehensive and efficient state local, state, and federal permitting program for floating offshore wind energy developments in federal waters, to be incorporated into the strategic plan. The program shall include a goal for the permitting timeframe, clearly define state local, state, and federal agency roles, responsibilities, and decisionmaking authority, and include interfaces with federal agencies, including timing, sequence, and coordination with federal permitting agencies, and coordination between reviews under the California Environmental Quality Act (Division 13 (commencing with Section 21000)) and the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.).

(b)The commission, in coordination with the State Air Resources Board, shall explore and identify how offshore wind energy development, to the scale identified in the strategic plan, could provide environmental and air quality benefits to the state and to disadvantaged communities.

(c) The working group shall provide an opportunity for stakeholder input in the development and communication of the permitting program.
(d) The findings resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan relating to permitting as specified in paragraph (4) of subdivision (c) of Section 25991.

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REVISIONS:
Heading—Line 5.
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