BILL NUMBER: AB 1632 CHAPTERED
BILL TEXT
CHAPTER 722
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2006
APPROVED BY GOVERNOR SEPTEMBER 29, 2006
PASSED THE ASSEMBLY AUGUST 29, 2006
PASSED THE SENATE AUGUST 24, 2006
AMENDED IN SENATE JUNE 27, 2006
AMENDED IN SENATE JUNE 14, 2006
AMENDED IN ASSEMBLY MAY 27, 2005
AMENDED IN ASSEMBLY MAY 9, 2005
AMENDED IN ASSEMBLY APRIL 21, 2005
INTRODUCED BY Assembly Member Blakeslee
(Coauthors: Assembly Members De La Torre, Evans, and Levine)
(Coauthors: Senators Chesbro, Escutia, Harman, and Kehoe)
FEBRUARY 22, 2005
An act to amend Section 25303 of the Public Resources Code,
relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1632, Blakeslee Energy: planning and forecasting.
The Warren-Alquist State Energy Resources Conservation and
Development Act requires the State Energy Resources Conservation and
Development Commission to prepare an integrated energy policy report
every 2 years. The act requires the commission, in its report, to
consider electricity and natural gas forecasting and assessment
activities, as specified, in reporting on electricity and natural gas
markets.
This bill would require the commission, as part of its electricity
and natural gas forecasting and assessment activities, to compile
and assess existing scientific studies, as specified, to determine
the potential vulnerability, to a major disruption due to aging or a
major seismic event, of large baseload generation facilities of 1,700
megawatts or greater, including a specified analysis of the impact
of a major disruption on system reliability, public safety, and the
economy. The bill would also require the commission, in absence of a
long-term nuclear waste storage facility, to assess the potential
state and local costs and impacts associated with accumulating waste
at California's nuclear powerplants, and to further assess other key
policy and planning issues affecting the future role of nuclear
powerplants in the state. The bill would require the commission to
adopt the assessment by November 1, 2008, and include the assessment
in the 2008 energy policy review.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25303 of the Public Resources Code is amended
to read:
25303. (a) The commission shall conduct electricity and natural
gas forecasting and assessment activities to meet the requirements of
paragraph (1) of subdivision (a) of Section 25302, including, but
not limited to, all of the following:
(1) Assessment of trends in electricity and natural gas supply and
demand, and the outlook for wholesale and retail prices for
commodity electricity and natural gas under current market structures
and expected market conditions.
(2) Forecasts of statewide and regional electricity and natural
gas demand including annual, seasonal, and peak demand, and the
factors leading to projected demand growth including, but not limited
to, projected population growth, urban development, industrial
expansion and energy intensity of industries, energy demand for
different building types, energy efficiency, and other factors
influencing demand for electricity. With respect to long-range
forecasts of the demand for natural gas, the report shall include an
evaluation of average conditions, as well as best and worst case
scenarios, and an evaluation of the impact of the increasing use of
renewable resources on natural gas demand.
(3) Evaluation of the adequacy of electricity and natural gas
supplies to meet forecasted demand growth. Assessment of the
availability, reliability, and efficiency of the electricity and
natural gas infrastructure and systems including, but not limited to,
natural gas production capability both in and out of state, natural
gas interstate and intrastate pipeline capacity, storage and use, and
western regional and California electricity and transmission system
capacity and use.
(4) Evaluation of potential impacts of electricity and natural gas
supply, demand, and infrastructure and resource additions on the
electricity and natural gas systems, public health and safety, the
economy, resources, and the environment.
(5) Evaluation of the potential impacts of electricity and natural
gas load management efforts, including end-user response to market
price signals, as a means to ensure reliable operation of electricity
and natural gas systems.
(6) Evaluation of whether electricity and natural gas markets are
adequately meeting public interest objectives including the provision
of all of the following: economic benefits; competitive, low-cost
reliable services; customer information and protection; and
environmentally sensitive electricity and natural gas supplies. This
evaluation may consider the extent to which California is an element
within western energy markets, the existence of appropriate
incentives for market participants to provide supplies and for
consumers to respond to energy prices, appropriate identification of
responsibilities of various market participants, and an assessment of
long-term versus short-term market performance. To the extent this
evaluation identifies market shortcomings, the commission shall
propose market structure changes to improve performance.
(7) Identification of impending or potential problems or
uncertainties in the electricity and natural gas markets, potential
options and solutions, and recommendations.
(8) (A) Compilation and assessment of existing scientific studies
that have been performed by persons or entities with expertise and
qualifications in the subject of the studies, to determine the
potential vulnerability, to a major disruption due to aging or a
major seismic event, of large baseload generation facilities, of
1,700 megawatts or greater.
(B) The assessment specified in subparagraph (A) shall include an
analysis of the impact of a major disruption on system reliability,
public safety, and the economy.
(C) The commission may work with other public entities and public
agencies, including, but not limited to, the California Independent
System Operator, the Public Utilities Commission, the Department of
Conservation, and the Seismic Safety Commission as necessary, to
gather and analyze the information required by this paragraph.
(D) Upon completion and publication of the initial review of the
information required pursuant to this paragraph, the commission shall
perform subsequent updates as new data or new understanding of
potential seismic hazards emerge.
(b) Commencing November 1, 2003, and every two years thereafter,
to be included in the integrated energy policy report prepared
pursuant to Section 25302, the commission shall assess the current
status of the following:
(1) The environmental performance of the electric generation
facilities of the state, to include all of the following:
(A) Generation facility efficiency.
(B) Air emission control technologies in use in operating plants.
(C) The extent to which recent resource additions have, and
expected resource additions are likely to, displace or reduce the
operation of existing facilities, including the environmental
consequences of these changes.
(2) The geographic distribution of statewide environmental,
efficiency, and socioeconomic benefits and drawbacks of existing
generation facilities, including, but not limited to, the impacts on
natural resources including wildlife habitat, air quality, and water
resources, and the relationship to demographic factors. The
assessment shall describe the socioeconomic and demographic factors
that existed when the facilities were constructed and the current
status of these factors. In addition, the report shall include how
expected or recent resource additions could change the assessment
through displaced or reduced operation of existing facilities.
(c) In the absence of a long-term nuclear waste storage facility,
the commission shall assess the potential state and local costs and
impacts associated with accumulating waste at California's nuclear
powerplants. The commission shall further assess other key policy and
planning issues that will affect the future role of nuclear
powerplants in the state. The commission's assessment shall be
adopted on or before November 1, 2008, and included in the 2008
energy policy review adopted pursuant to subdivision (d) of Section
25302.