SB 1078

Bill Subjects

Abstract

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. The Public Utilities Act requires the Public Utilities Commission to review and accept, modify, or reject a procurement plan for each electrical corporation in accordance with specified elements, incentive mechanisms, and objectives. Existing law requires that in any long-term plan adopted by an electrical corporation, or in a procurement plan implemented by a local publicly owned electric utility, that the utility adopt a strategy applicable to both newly constructed or repowered generation owned and procured by the utility to achieve efficiency in the use of fossil fuels and to address carbon emissions. The Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission, commonly known as the Energy Commission. The act requires the Energy Commission, beginning November 1, 2003, and by November 1 of every odd year thereafter, to adopt an integrated energy policy report that includes an overview of major energy trends and issues facing the state, an assessment and forecast of system reliability, and the need for resource additions, efficiency, and conservation. The California Global Warming Solutions Act of 2006 requires the State Air Resources Board to determine what the statewide greenhouse gas emissions level was in 1990 and to approve a statewide greenhouse gas emissions limit that is equivalent to that level to be achieved by 2020. That act requires the state board to make recommendations to the Governor and the Legislature on how to continue reductions of greenhouse gas emissions beyond 2020. This bill would require, if the state board establishes a post-2020 statewide greenhouse gas emissions limit beyond the 1990 greenhouse gas emissions level, as authorized or required by the Legislature, the Public Utilities Commission and the Energy Commission to convene a joint public proceeding to develop and make recommendations to the state board for compliance actions for the electricity and natural gas sectors to help achieve that limit. The Public Utilities Act provides for the establishment of an Independent System Operator as a nonprofit, public benefit corporation. Existing law requires the Independent System Operator to manage the transmission grid and related energy markets in a manner that is consistent with (1) making the most efficient use of available energy resources, (2) reducing, to the extent possible, overall economic cost to the state's consumers, (3) applicable state law intended to protect the public's health and the environment, and (4) maximizing the availability of existing electric generation resources necessary to meet the needs of the state's electricity consumers. This bill would require the Public Utilities Commission to transmit to the Independent System Operator the recommended compliance actions for the Independent System Operator's consideration in its transmission planning.