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AB-64 Electricity: long-term backup electricity supply strategy.(2021-2022)

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Date Published: 03/23/2021 09:00 PM
AB64:v98#DOCUMENT

Amended  IN  Assembly  March 23, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 64

Introduced by Assembly Member Quirk

December 07, 2020

An act to amend Section 454.53 of of, and to add Section 913.13 to, the Public Utilities Code, relating to electricity.


LEGISLATIVE COUNSEL'S DIGEST


AB 64, as amended, Quirk. Electricity: renewable energy and zero-carbon resources: state policy: long-term backup electricity supply strategy.
Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities, as defined, are under the direction of their governing boards. Existing law establishes as 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.
Existing law requires the PUC, the State Energy Resources Conservation and Development Commission (Energy Commission), and the State Air Resources Board (state board) to, in consultation with all California balancing authorities, issue a joint report to the Legislature by January 1, 2021, and at least every 4 years thereafter, that includes specified matters.

The

This bill would require the PUC, Energy Commission, and state board, in consultation with all balancing authorities, to additionally develop a strategy, by an unspecified date, on how to achieve the above-described state policy in a cost-effective and environmentally beneficial manner. The bill would require the strategy to include, among other things, a plan to promote the development of technologies that can help achieve that state policy. January 1, 2024, that achieves (1) a target of 5 gigawatthours of operational long-term backup electricity, as specified, by December 31, 2030, and (2) a target of at least an additional 5 gigawatthours of operational long-term backup electricity in each subsequent year through 2045. The bill would require the commission, by January 1, 2024, to submit the strategy developed in a report to the Legislature, and by January 1 of each 4th year thereafter, through January 1, 2044, would require the commission to submit a report to the Legislature detailing the progress made toward achieving the targets of the long-term backup electricity supply strategy.
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) One purpose for the state making ambitious goals for greenhouse gas neutral energy generation is to show the United States and the world how to achieve these goals.

(b)There is no technology yet developed that would allow the state to have sufficient energy throughout the year at costs comparable to today’s prices.

(b) Electricity generated by eligible renewable energy resources may not be available at all times of the year. In particular, during the winter months, there may not be adequate generation from eligible renewable energy resources for weeks at a time. Additionally, during extreme weather events, the need for a source of backup electrical supply is essential. Thus, a source of clean backup electricity that does not emit greenhouse gases, air pollution, or toxic air contaminants, and that can deliver electricity for weeks at a time, is a necessity. This clean, long-term backup electricity must be feasible enough to keep electricity prices comparable to today’s prices.
(c) Unless investment is made starting now, the necessary technologies and infrastructure will not be available in 2045.
(d) Therefore, it is important that a variety of possible technological paths be developed and investments made to develop the necessary technologies and infrastructure to meet the state’s ambitious greenhouse gas reduction goals. are developed, with significant investments made, to demonstrate that these technologies can meet the state’s ambitious decarbonization goals, and deployment of these technologies is achieved in time to meet these goals in 2045.

SEC. 2.

 Section 454.53 of the Public Utilities Code is amended to read:

454.53.
 (a) It is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 100 percent of all retail sales of electricity to California end-use customers and 100 percent of electricity procured to serve all state agencies by December 31, 2045. The achievement of this policy for California shall not increase carbon emissions elsewhere in the western grid and shall not allow resource shuffling. The commission and Energy Commission, in consultation with the State Air Resources Board, shall take steps to ensure that a transition to a zero-carbon electric system for the State of California does not cause or contribute to greenhouse gas emissions increases elsewhere in the western grid, and is undertaken in a manner consistent with clause 3 of Section 8 of Article I of the United States Constitution. The commission, the Energy Commission, the State Air Resources Board, and all other state agencies shall incorporate this policy into all relevant planning.
(b) The commission, Energy Commission, State Air Resources Board, and all other state agencies shall ensure that actions taken in furtherance of subdivision (a) do all of the following:
(1) Maintain and protect the safety, reliable operation, and balancing of the electric system.
(2) Prevent unreasonable impacts to electricity, gas, and water customer rates and bills resulting from implementation of this section, taking into full consideration the economic and environmental costs and benefits of renewable energy and zero-carbon resources.
(3) To the extent feasible and authorized under law, lead to the adoption of policies and taking of actions in other sectors to obtain greenhouse gas emission reductions that ensure equity between other sectors and the electricity sector.
(4) Not affect in any manner the rules and requirements for the oversight of, and enforcement against, retail sellers and local publicly owned utilities pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3) and Sections 454.51, 454.52, 9621, and 9622.
(c) This section does not affect a retail seller’s obligation to comply with the federal Public Utility Regulatory Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.).
(d) The commission, Energy Commission, and State Air Resources Board shall do all of the following:
(1) Use programs authorized under existing statutes to achieve the policy described in subdivision (a).
(2) In consultation with all California balancing authorities, as defined in subdivision (d) of Section 399.12, as part of a public process, issue a joint report to the Legislature by January 1, 2021, and at least every four years thereafter. The joint report shall include all of the following:
(A) A review of the policy described in subdivision (a) focused on technologies, forecasts, then-existing transmission, and maintaining safety, environmental and public safety protection, affordability, and system and local reliability.
(B) An evaluation identifying the potential benefits and impacts on system and local reliability associated with achieving the policy described in subdivision (a).
(C) An evaluation identifying the nature of any anticipated financial costs and benefits to electric, gas, and water utilities, including customer rate impacts and benefits.
(D) The barriers to, and benefits of, achieving the policy described in subdivision (a).
(E) Alternative scenarios in which the policy described in subdivision (a) can be achieved and the estimated costs and benefits of each scenario.
(3) In consultation with all California balancing authorities, as defined in Section 399.12, develop a strategy by ____ January 1, 2024, on how to achieve the policy described in subdivision (a) in a cost-effective and environmentally beneficial manner. The strategy shall do all both of the following:

(A)Consider the factors, including, but not limited to, interregional renewable power generation, short-term energy storage, seasonal energy storage, and carbon capture and storage, that affect the ability to achieve the policy described in subdivision (a). The energy storage methods considered by the strategy shall include, but are not limited to, batteries, pumped storage, hydrogen generation and storage, and other developing technologies.

(B)Include a plan to promote the development of technologies that can help achieve the policy described in subdivision (a) to determine the feasibility of those technologies.

(C)Include a plan for how feasible technologies can be deployed in a manner that would achieve the policy described in subdivision (a).

(A) Achieve a target of at least five gigawatthours of operational long-term backup electricity by December 31, 2030, from resources that include long-duration energy storage facilities, and a more robust combination of eligible renewable energy resources, such as geothermal generation and more reliable wind generation. The long-duration energy storage methods considered by the strategy shall include, but are not limited to, flow batteries, pumped hydroelectric storage, hydrogen generation and storage, and other developing technologies. Included in the strategy shall be a plan to promote the development of technologies that can help achieve the policy described in subdivision (a), the means to determine the feasibility of those technologies, and how the feasible technologies can be deployed in a manner that will achieve the policy described in subdivision (a). The strategy shall address carbon sequestration and storage of emissions from conventional powerplants.
(B) Achieve a target of at least an additional five gigawatthours of operational long-term backup electricity in each subsequent year beginning 2031 through 2045, inclusive.
(e) This section does not authorize the commission to establish any requirements on a nonmobile self-cogeneration or cogeneration facility that served onsite load, or that served load pursuant to an over-the-fence arrangement if that arrangement existed on or before December 20, 1995.

SEC. 3.

 Section 913.13 is added to the Public Utilities Code, to read:

913.13.
 (a) By January 1, 2024, the commission shall submit the strategy developed pursuant to paragraph (3) of subdivision (d) of Section 454.53 in a report to the Legislature, and by January 1 of each fourth year thereafter, through January 1, 2044, the commission shall submit a report to the Legislature detailing the progress made toward achieving the targets of that strategy.
(b) (2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2048.