BILL NUMBER: SB 110 CHAPTERED
BILL TEXT
CHAPTER 581
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 1999
APPROVED BY GOVERNOR SEPTEMBER 28, 1999
PASSED THE SENATE SEPTEMBER 9, 1999
PASSED THE ASSEMBLY SEPTEMBER 7, 1999
AMENDED IN ASSEMBLY AUGUST 26, 1999
AMENDED IN ASSEMBLY AUGUST 19, 1999
AMENDED IN ASSEMBLY AUGUST 16, 1999
AMENDED IN ASSEMBLY JULY 7, 1999
AMENDED IN SENATE APRIL 5, 1999
INTRODUCED BY Senator Peace
DECEMBER 15, 1998
An act to amend Sections 25305, 25308.5, 25309, 25520, 25523,
25524, 25525, 25540.6, and 25541 of, and to add Sections 25009,
25309.3, and 25543 to, and to repeal Section 25523.5 of, and to
repeal and add Section 25541.5 of, the Public Resources Code,
relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 110, Peace. Energy conservation: power facility and site
certification.
(1) Existing law, the Warren-Alquist State Energy Resources
Conservation and Development Act, requires the State Energy Resources
Conservation and Development Commission to certify sufficient sites
and related facilities that are required to provide a supply of
electric power sufficient to accommodate projected demand for power
statewide. The act requires the commission to prepare and distribute
a specified draft electricity report setting forth its findings and
conclusions regarding the electric utilities' forecasts, and requires
that the 5- and 12-year forecasts or assessments established by the
commission serve as the basis for planning and certification of
electric transmission or thermal powerplant facilities.
This bill would eliminate the requirement that those 5- and
12-year forecasts established by the commission serve as the basis
for the planning and certification of electric transmission and
thermal powerplant facilities.
(2) The existing act requires the commission, every 2 years, to
transmit to the Governor and the Legislature a comprehensive report
designed to identify emerging trends related to energy supply,
demand, and conservation and public health and safety factors, and to
provide the basis for state policy and actions in relation thereto,
including specified information.
This bill would make various changes with regard to the
information and analyses to be contained in that report, as
specified.
This bill would also require a report with recommendations and a
work plan to be submitted, as prescribed, on or before March 31,
2000, concerning data collection in the restructured electricity
market. The bill also would require the commission to file a report
every 2 years commencing July 1, 2001, concerning the environmental
performance of the electric generation facilities, as prescribed.
The act requires that an application for certification of a power
facility submitted to the commission pursuant to the act contain
specified information that the commission may require by regulation.
The act also requires that the commission prepare a written decision
after a public hearing on an application for certification, which
contains specified information.
This bill would make various changes with respect to the
information required to be provided in an application for
certification, and to be contained in the commission's written
decision concerning the application, as prescribed.
(3) The existing act prohibits the commission from certifying any
facility contained in the application for certification, unless it
makes specified findings relating to conformity of the proposed
facility with an integrated assessment of need for the new facility.
This bill would eliminate that prohibition.
(4) The existing act authorizes the commission to exempt from
those certification requirements thermal powerplants with a
generating capacity of up to 100 megawatts and modifications to
existing generating facilities that do not add capacity in excess of
100 megawatts, if the commission finds that no substantial adverse
impact on the environment or energy resources will result from the
construction or operation of the proposed facility or from the
modification, and that generating capacity will not be added that is
substantially in excess of the integrated assessment of need for new
resource additions, as determined.
This bill would eliminate, for purposes of that exemption, the
requirement that the commission find that generating capacity will
not be added that is substantially in excess of the integrated
assessment of need for new resource additions, as determined.
The act would require the Secretary of the Resources Agency, by
January 1, 2001, to review the facility certification program to
determine whether that program meets specified criteria for state
regulatory programs under the California Environmental Quality Act,
and if the secretary determines the regulatory program meets those
criteria, the bill would require the secretary to continue the
certification of the program. The bill would also, under those
circumstances, require the commission to amend the regulatory program
from time to time, as necessary to permit the secretary to continue
to certify the program.
The bill would also make various related conforming changes and
legislative findings and declarations.
(5) Existing law requires the commission not to certify a facility
that does not meet applicable standards unless the commission
determines the facility is required for public necessity.
This bill would require the commission to consider specific
factors in making this determination.
(6) Existing law establishes an application and certification
process for siting and licensing thermal electric powerplants.
This bill would require that the commission prepare a report to
the Governor and the Legislature on or before March 31, 2000,
identifying improvements in this process and making recommendations,
as prescribed. The commission immediately may implement any
administrative recommendations.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25009 is added to the Public Resources Code, to
read:
25009. The Legislature finds and declares that Chapter 854 of the
Statutes of 1996 restructured the California electricity industry
and created a competitive electricity generation market. In a
competitive generation market, the recovery by powerplant owners of
their private investment and operating costs is at risk and no longer
guaranteed through regulated rates. Before the California
electricity industry was restructured, the regulated cost recovery
framework for powerplants justified requiring the commission to
determine the need for new generation, and site only powerplants for
which need was established. Now that powerplant owners are at risk
to recover their investments, it is no longer appropriate to make
this determination. It is necessary that California both protect
environmental quality and site new powerplants to ensure electricity
reliability, improve the environmental performance of the current
electricity industry and reduce consumer costs. The success of
California's restructured electricity industry depends upon the
willingness of private capital to invest in new powerplants.
Therefore, it is necessary to modify the need for determination
requirements of the state's powerplant siting and licensing process
to reflect the economics of the restructured electricity industry and
ensure the timely construction of new electricity generation
capacity.
SEC. 2. Section 25305 of the Public Resources Code is amended to
read:
25305. Within nine months after receipt of the reports specified
in Section 25300, the commission shall prepare and distribute a draft
electricity report, setting forth its findings and conclusions
regarding the electric utilities' forecasts. The report shall be
based upon information and views presented in the comments received
under Section 25303 and the commission's independent analysis, and
shall contain all of the following:
(a) The commission's evaluation of the probable service area and
statewide, environmental, and economic impact and the health and
safety aspect of constructing and operating the facilities proposed
by the electric utilities and a description of the measures
considered necessary by the commission to avoid or ameliorate any
adverse impacts.
(b) Discussion of reasonable alternative technologies to those
proposed by the electrical utilities for consideration pursuant to
Section 25604.
(c) After consideration of the utility reports, public and agency
comments, and forecasts prepared by the commission staff, the
commission's 5-and 12-year forecasts of demand for electrical energy
and capacity. Conservation, load management, or other
demand-reducing measures reasonably expected to occur shall be
explicitly taken into account only in the determinations made
pursuant to this subdivision, and shall not be considered as
alternatives to a proposed facility during the siting process
specified in Chapter 6 (commencing with Section 25500).
(d) An analysis and evaluation of the means by which the projected
annual rate of demand growth of electrical energy may be reduced,
together with an estimate of the amount of the reduction to be
obtained by each of the means analyzed and evaluated, including a
statement of the impact of the reduction on the factors reviewed by
the commission set forth in Section 25304 and subdivision (a).
(e) A statement of the level of statewide and service area
electrical energy demand for the forthcoming 5- and 12-year forecast
or assessment period which, in the judgment of the commission, will
reasonably balance requirements of state and service area growth and
development, protection of public health and safety, preservation of
environmental quality, maintenance of a sound economy, and
conservation of energy and resources reasonably expected to occur.
(f) A statement, on a statewide and service area basis, of the
probable capacity additions consistent with the level of demand
determined by the commission pursuant to subdivision (e).
(g) The anticipated level of statewide and service area electrical
energy demand for 20 years, which shall serve as the basis for
recommendations by the commission to the Governor, the Legislature,
and other appropriate public and private agencies in all of the
following categories:
(1) Demand-reducing policies.
(2) Conservation of energy.
(3) Development of potential sources of energy.
(4) Other policies and actions designed to affect the rate of
growth in demand for electrical energy.
(h) A list, including maps, of existing electrical power
generating sites, indicating those where the commission has
determined that expansion is feasible within the forthcoming 12-year
period.
(i) A list, including maps, of possible areas appropriate for
additional electrical generating sites, including the generating
capacity to be installed at the sites and the type of fuel and other
general characteristics of the facilities which, as determined by the
commission, will be required to meet the 12-year level of electrical
energy demand established by the commission pursuant to subdivision
(a).
(j) A list, including maps of sites and potential
multiple-facility sites which have been found to be acceptable by the
commission pursuant to Sections 25516 and 25516.5, including the
generating capacity to be installed at each site and the type of fuel
and other general characteristics of the facilities at each site.
SEC. 3. Section 25308.5 of the Public Resources Code is amended to
read:
25308.5. In issuing the final electricity report, the commission
shall describe how the hearing record supports its policy decisions.
SEC. 4. Section 25309 of the Public Resources Code is amended to
read:
25309. Beginning May 1, 1985, and every two years thereafter,
notwithstanding Section 7550.5 of the Government Code, the commission
shall transmit to the Governor and the Legislature a comprehensive
report designed to identify emerging trends related to energy supply,
demand, and conservation and public health and safety factors, and
to provide the basis for state policy and actions in relation
thereto, including, but not limited to, approval of new sites for
additional facilities. The report shall include, but not be limited
to, all of the following:
(a) An overview, looking 20 years ahead, of statewide growth and
development as they relate to future requirements for energy,
including patterns of urban metropolitan expansion, statewide and
service area economic growth, shifts in transportation modes,
modifications in building types and design, and other trends and
factors which, as determined by the commission, will significantly
affect energy consumption and need to be considered in formulating
state energy policy and programs.
(b) The anticipated level of statewide and service area electrical
energy demand for 20 years, which shall serve as the basis for
recommendations by the commission to the Governor, the Legislature,
and other appropriate public and private agencies.
(c) Based upon the commission's 20-year forecasts or assessment of
growth trends in energy consumption and production, identification
of potential adverse social, economic, or environmental impacts which
might be imposed by continuation of the present trends, including,
but not limited to, the costs of electricity and other forms of
energy to consumers, significant increases in air, water, and other
forms of pollution, threats to public health and safety, and loss of
scenic and natural areas.
(d) Assessment of the energy resources available to the state,
including, among others, fossil fuels and nuclear, solar, geothermal,
cogeneration, and purchased power resources and power pooling;
assessment of the potential of, and examination of the availability
of, commercially developable fuels, including imported fuels, during
the forthcoming 12- and 20-year periods; and recommendations
regarding measures to be applied to conserve energy and fuels.
(e) An analysis and evaluation of the means by which the projected
annual rate of demand growth of energy may be reduced, together with
an estimate of the amount of the reduction to be obtained by
policies and programs evaluated pursuant to Section 25401.1.
(f) An indication of those technologies which merit continued
consideration or support in the commission's long range assessment
efforts and its research and development program. The report shall
also indicate those electrical generation and nongeneration
technologies which have been found to be commercially available or
reasonably expected to become available pursuant to Section 25604.
(g) A description of the commission's responsibilities and
recommendations for emergency measures to be applied in the event of
impending serious shortage of electrical and other forms of energy as
provided in Chapter 8 (commencing with Section 25700) and evaluated
under subdivision (b) of Section 25358.
(h) Recommendations to the Governor and the Legislature for
administrative and legislative actions based on the results of
commission studies and evaluations.
SEC. 5. Section 25309.3 is added to the Public Resources Code, to
read:
25309.3. (a) It is the intent of the Legislature to change the
energy reporting and forecasting responsibilities of the commission
to meet the information needs of the public and the policy
development needs of the Governor and the Legislature in the
restructured electricity market.
(b) Notwithstanding Section 7550.5 of the Government Code, the
commission shall prepare a report to the Governor and Legislature on
or before March 31, 2000, that contains all of the following:
(1) Recommendations for consolidating and clarifying the reporting
obligations contained in Sections 25300 to 25310.4, inclusive, and
revising the authority of the commission to collect data from private
parties. The recommendations shall include a discussion of public
information and policy development objectives; the relationship
between these objectives, proposed reporting requirements, and
specific data needs; and the costs and benefits of obtaining data
through alternate means, including imposing requirements on private
parties, collecting data from public sources, including, but not
limited to, filings with other government agencies, and purchasing
data from private data collection services.
(2) A work plan for completing the reporting obligations contained
in subdivision (c) by July 1, 2001, including a description of the
data and the sources of the data the commission proposes to rely
upon, the scope of the commission's proposed report, a schedule of
public workshops or hearings to solicit public input on the draft
report or intermediate work products, and recommended budget changes.
(c) Notwithstanding Section 7550.5 of the Government Code,
commencing July 1, 2001, and every two years thereafter, the
commission shall submit a report to the Governor and Legislature,
developed in consultation with the State Air Resources Board and
other appropriate agencies. The report shall contain all of the
following:
(1) An assessment of the current status and historic trends in 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 expected or recent resource additions are
likely to displace or reduce the operation of existing facilities,
including the environmental consequences of these changes.
(2) An assessment of 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 displacement or reduced operation of existing
facilities.
(3) Commencing with the report due on or before July 1, 2003, the
commission shall include an assessment of the extent to which the
displacement or reduced operation of existing facilities has
occurred.
(d) The commission shall comply with the requirements of Section
25543 in addition to the requirements of this section and shall
utilize existing commission resources.
SEC. 6. Section 25520 of the Public Resources Code is amended to
read:
25520. The application shall contain all of the following
information and any other information that the commission by
regulation may require:
(a) A detailed description of the design, construction, and
operation of the proposed facility.
(b) Safety and reliability information, including, in addition to
documentation previously provided pursuant to Section 25511, planned
provisions for emergency operations and shutdowns.
(c) Available site information, including maps and descriptions of
present and proposed development and, as appropriate, geological,
aesthetic, ecological, seismic, water supply, population, and load
center data, and justification for the particular site proposed.
(d) Any other information relating to the design, operation, and
siting of the facility that the commission may specify.
(e) A description of the facility, the cost of the facility, the
fuel to be used, the source of fuel, fuel cost, plant service life
and capacity factor, and generating cost per kilowatthour.
(f) A description of any electric transmission lines, including
the estimated cost of the proposed electric transmission line; a map
in suitable scale of the proposed routing showing details of the
rights-of-way in the vicinity of settled areas, parks, recreational
areas, and scenic areas, and existing transmission lines within one
mile of the proposed route; justification for the route, and a
preliminary description of the effect of the proposed electric
transmission line on the environment, ecology, and scenic, historic,
and recreational values.
SEC. 7. Section 25523 of the Public Resources Code is amended to
read:
25523. The commission shall prepare a written decision after the
public hearing on an application, which includes all of the
following:
(a) Specific provisions relating to the manner in which the
proposed facility is to be designed, sited, and operated in order to
protect environmental quality and assure public health and safety.
(b) In the case of a site to be located in the coastal zone,
specific provisions to meet the objectives of Division 20 (commencing
with Section 30000) as may be specified in the report submitted by
the California Coastal Commission pursuant to subdivision (d) of
Section 30413, unless the commission specifically finds that the
adoption of the provisions specified in the report would result in
greater adverse effect on the environment or that the provisions
proposed in the report would not be feasible.
(c) In the case of a site to be located in the Suisun Marsh or in
the jurisdiction of the San Francisco Bay Conservation and
Development Commission, specific provisions to meet the requirements
of Division 19 (commencing with Section 29000) of this code or Title
7.2 (commencing with Section 66600) of the Government Code as may be
specified in the report submitted by the San Francisco Bay
Conservation and Development Commission pursuant to subdivision (d)
of Section 66645 of the Government Code, unless the commission
specifically finds that the adoption of the provisions specified in
the report would result in greater adverse effect on the environment
or the provisions proposed in the report would not be feasible.
(d) (1) Findings regarding the conformity of the proposed site and
related facilities with standards adopted by the commission pursuant
to Section 25216.3 and subdivision (d) of Section 25402, with public
safety standards and the applicable air and water quality standards,
and with other relevant local, regional, state, and federal
standards, ordinances, or laws. If the commission finds that there
is noncompliance with any state, local, or regional ordinance or
regulation in the application, it shall consult and meet with the
state, local, or regional governmental agency concerned to attempt to
correct or eliminate the noncompliance. If the noncompliance cannot
be corrected or eliminated, the commission shall inform the state,
local, or regional governmental agency if it makes the findings
required by Section 25525.
(2) The commission shall not find that the proposed facility
conforms with applicable air quality standards pursuant to paragraph
(1) unless the applicable air pollution control district or air
quality management district certifies that complete emissions offsets
for the proposed facility have been identified and will be obtained
by the applicant prior to the commission's licensing of the project,
to the extent that the proposed facility requires emission offsets to
comply with local, regional, state, or federal air quality
standards.
(e) Provision for restoring the site as necessary to protect the
environment, if the commission denies approval of the application.
(f) In the case of a geothermal site and related facility,
findings on whether there are sufficient commercial quantities of
geothermal resources available to operate the proposed facility for
its planned life.
(g) In the case of a site and related facility using resource
recovery (waste-to-energy) technology, specific conditions requiring
that the facility be monitored to ensure compliance with paragraphs
(1), (2), (3), and (6) of subdivision (a) of Section 42315 of the
Health and Safety Code.
(h) In the case of a facility, other than a resource recovery
facility subject to subdivision (g), specific conditions requiring
the facility to be monitored to ensure compliance with toxic air
contaminant control measures adopted by an air pollution control
district or air quality management district pursuant to subdivision
(d) of Section 39666 or Section 41700 of the Health and Safety Code,
whether the measures were adopted before or after issuance of a
determination of compliance by the district.
SEC. 8. Section 25523.5 of the Public Resources Code is repealed.
SEC. 9. Section 25524 of the Public Resources Code is amended to
read:
25524. The commission shall not certify any geothermal site and
related facility unless it finds that the geothermal field dedicated
to the proposed powerplant is reasonably capable of providing
geothermal resources in sufficient commercial quantities to supply
the powerplant over its planned life.
SEC. 10. Section 25525 of the Public Resources Code is amended to
read:
25525. The commission shall not certify any facility contained in
the application when it finds, pursuant to subdivision (b) of
Section 25523, that the facility does not conform with any applicable
state, local, or regional standards, ordinances, or laws, unless the
commission determines that such facility is required for public
convenience and necessity and that there are not more prudent and
feasible means of achieving such public convenience and necessity.
In making the determination, the commission shall consider the entire
record of the proceeding, including, but not limited to, the impacts
of the facility on the environment, consumer benefits, and electric
system reliability. In no event shall the commission make any
finding in conflict with applicable federal law or regulation. The
basis for these findings shall be reduced to writing and submitted as
part of the record pursuant to Section 25523.
SEC. 11. Section 25540.6 of the Public Resources Code is amended
to read:
25540.6. (a) Notwithstanding any other provision of law, no
notice of intention is required, and the commission shall issue its
final decision on the application, as specified in Section 25523,
within 12 months after the filing of the application for
certification of the powerplant and related facility or facilities,
or at any later time as is mutually agreed by the commission and the
applicant, for any of the following:
(1) A thermal powerplant which will employ cogeneration
technology, a thermal powerplant that will employ natural gas-fired
technology, or a solar thermal powerplant.
(2) A modification of an existing facility.
(3) A thermal powerplant which it is only technologically or
economically feasible to site at or near the energy source.
(4) A thermal powerplant with a generating capacity of up to 100
megawatts.
(5) A thermal powerplant designed to develop or demonstrate
technologies which have not previously been built or operated on a
commercial scale. Such a research, development, or commercial
demonstration project may include, but is not limited to, the use of
renewable or alternative fuels, improvements in energy conversion
efficiency, or the use of advanced pollution control systems. Such a
facility may not exceed 300 megawatts unless the commission, by
regulation, authorizes a greater capacity. Section 25524 does not
apply to such a powerplant and related facility or facilities.
(b) Projects exempted from the notice of intention requirement
pursuant to paragraph (1), (4), or (5) of subdivision (a) shall
include, in the application for certification, a discussion of the
applicant's site selection criteria, any alternative sites that the
applicant considered for the project, and the reasons why the
applicant chose the proposed site. That discussion shall not be
required for cogeneration projects at existing industrial sites. The
commission may also accept an application for a noncogeneration
project at an existing industrial site without requiring a discussion
of site alternatives if the commission finds that the project has a
strong relationship to the existing industrial site and that it is
therefore reasonable not to analyze alternative sites for the
project.
SEC. 12. Section 25541 of the Public Resources Code is amended to
read:
25541. The commission may exempt from this chapter thermal
powerplants with a generating capacity of up to 100 megawatts and
modifications to existing generating facilities that do not add
capacity in excess of 100 megawatts, if the commission finds that no
substantial adverse impact on the environment or energy resources
will result from the construction or operation of the proposed
facility or from the modifications.
SEC. 13. Section 25541.5 of the Public Resources Code is repealed.
SEC. 14. Section 25541.5 is added to the Public Resources Code, to
read:
25541.5. (a) On or before January 1, 2001, the Secretary of the
Resources Agency shall review the regulatory program conducted
pursuant to this chapter that was certified pursuant to subdivision
(k) of Section 15251 of Title 14 of the California Code of
Regulations, to determine whether the regulatory program meets the
criteria specified in Section 21080.5. If the Secretary of the
Resources Agency determines that the regulatory program meets those
criteria, the secretary shall continue the certification of the
regulatory program.
(b) If the Secretary of the Resources Agency continues the
certification of the regulatory program, the commission shall amend
the regulatory program from time to time, as necessary to permit the
secretary to continue to certify the program.
(c) This section does not invalidate the certification of the
regulatory program, as it existed on January 1, 2000, pending the
review required by subdivision (a).
SEC. 15. Section 25543 is added to the Public Resources Code, to
read:
25543. (a) It is the intent of the Legislature to improve the
process of siting and licensing new thermal electric powerplants to
ensure that these facilities can be sited in a timely manner, while
protecting environmental quality and public participation in the
siting process.
(b) Notwithstanding Section 7550.5 of the Government Code, the
commission shall prepare a report to the Governor and the Legislature
on or before March 31, 2000, that identifies administrative and
statutory measures that, preserving environmental protections and
public participation, would improve the commission's siting and
licensing process for thermal powerplants of 50 megawatts and larger.
The report shall include, but is not limited to, all of the
following:
(1) An examination of potential process efficiencies associated
with required hearings, site visits, and documents.
(2) A review of the impacts on both process efficiency and public
participation of restrictions on communications between applicants,
the public, and staff or decisionmakers.
(3) An assessment of means for improving coordination with the
licensing activities of local jurisdictions and participation by
other state agencies.
(4) An assessment of organizational structure issues including the
adequacy of the amounts and organization of current technical and
legal resources.
(5) Recommendations for administrative and statutory measures to
improve the siting and licensing process.
(c) The commission may immediately implement any administrative
recommendations. Regulations, as identified in paragraph (5),
adopted within 180 days of the effective date of this section may be
adopted as emergency regulations in accordance with Chapter 3.5
(commencing with Section 11340) of the Government Code. For purposes
of that chapter, including Section 11349.6 of the Government Code,
the adoption of the regulations shall be considered by the Office of
Administrative Law to be necessary for the immediate preservation of
the public peace, health, safety, and general welfare.