California Senate Bill SB1393 Amended / Bill

 BILL NUMBER: SB 1393AMENDED BILL TEXT AMENDED IN SENATE APRIL 12, 2016 INTRODUCED BY Senator De Len FEBRUARY 19, 2016 An act to amend Section  957   44258.5 of the Health and Safety Code, to amend Sections 25302.2 and 25327 of the Public Resources Code, and to amend Sections 399.11, 400, and 9621  of the Public Utilities Code, relating to  oil and gas.   energy.  LEGISLATIVE COUNSEL'S DIGEST SB 1393, as amended, De Len.  Intrastate transmission line: safety valves.   Energy efficiency and pollution reduction.   (1) Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to compile and adopt an integrated energy policy report every 2 years and requires the report to include an overview of major energy trends and issues facing the state. As part of the 2019 edition of the report, existing law requires the Energy Commission to evaluate the actual energy efficiency savings from negative therm interactive effects generated as a result of electricity efficiency improvements.   This bill would additionally require the Energy Commission to include that evaluation in each report adopted after 2019.   (2) Existing law requires the Public Utilities Commission and the State Energy Resources Conservation and Development Commission (Energy Commission) to review specified programs overseen by the Public Utilities Commission and the Energy Commission and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities.   This bill would additionally require the Public Utilities Commission and the Energy Commission to review programs of the same type overseen by academia and the private and nonprofit sectors.   (3) This bill would make various other changes to provisions relating to energy efficiency and pollution reduction.   Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including gas corporations, as defined. The Public Utilities Act authorizes the commission to ascertain and fix just and reasonable standards, classifications, regulations, practices, measurements, or services to be furnished, imposed, observed, and followed by specified public utilities, including gas corporations.   Existing law requires the commission, unless it determines that doing so is preempted under federal law, to require the installation of automatic shutoff or remote controlled sectionalized block valves on certain intrastate transmission lines that are located in a high consequence area, as defined, or that traverse an active seismic earthquake fault. Existing law requires the owner or operator of a commission-regulated gas pipeline facility that is an intrastate transmission line to provide the commission with a valve location plan, along with any recommendations for valve locations, and authorizes the commission to make modifications to the valve location plan. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.   This bill would additionally require the commission, unless it determines that doing so is preempted under federal law, to require the installation of automatic shutoff or remote controlled sectionalized block valves on intrastate transmission lines that transport gas to or from a storage facility. Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.   The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.   This bill would provide that no reimbursement is required by this act for a specified reason.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  yes   no  . THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 44258.5 of the   Health and Safety Code   is amended to read:  44258.5. (a) For the purposes of this section, the following terms mean the following: (1) "Local publicly owned electric utility" has the same meaning as defined in Section 224.3 of the Public Utilities Code. (2) "Retail seller" has the same meaning as set forth in  subdivision (j) of  Section 399.12 of the Public Utilities Code. (3) "Transportation electrification" has the same meaning as set forth in Section 237.5 of the Public Utilities Code. (b) The state board shall identify and adopt appropriate policies, rules, or regulations to remove regulatory disincentives preventing retail sellers and local publicly owned electric utilities from facilitating the achievement of greenhouse gas emission reductions in other sectors through increased investments in transportation electrification. Policies to be considered shall include, but are not limited to, an allocation of greenhouse gas emissions allowances to retail sellers and local publicly owned electric utilities, or other regulatory mechanisms, to account for increased greenhouse gas emissions in the electric sector from transportation electrification.  SEC. 2.   Section 25302.2 of the   Public Resources Code   is amended to read:  25302.2. As part of the 2019 edition of the integrated energy policy report,  and as part of each integrated energy policy report adopted biennially thereafter,  the commission shall evaluate the actual energy efficiency savings, as defined in Section 25310, from negative therm interactive effects generated as a result of electricity efficiency improvements.  SEC. 3.   Section 25327 of the   Public Resources Code   is amended to read:  25327. (a) The Legislature finds and declares all of the following: (1) There is insufficient information available to fully realize the potential of solar photovoltaic energy generation to serve low-income customers, including those in disadvantaged communities. (2) There is insufficient understanding of the barriers to access for low-income customers to all forms of renewable energy being generated in the state. (3) There is insufficient understanding of the barriers to access for low-income customers to energy efficiency investments. (4) There is insufficient understanding of the barriers to access for low-income customers to zero-emission and near-zero-emission transportation options. (b) On or before January 1, 2017, the commission, with input from  the environmental justice advisory committee established pursuant to Section 38591 of the Health and Safety Code, other  relevant state  agencies   agencies,  and the public, shall conduct and complete a study on both of the following: (1) Barriers to, and opportunities for, solar photovoltaic energy generation as well as barriers to, and opportunities for, access to other renewable energy by low-income customers. (2) Barriers to contracting opportunities for local small businesses in disadvantaged communities. (c) On or before January 1, 2017, the commission, with input from  the environmental justice advisory committee established pursuant to Section 38591 of the Health and Safety Code, other  relevant state  agencies   agencies,  and the public, shall develop and publish a study on barriers for low-income customers to energy efficiency and weatherization investments, including those in disadvantaged communities, as well as recommendations on how to increase access to energy efficiency and weatherization investments to low-income customers. (d) On or before January 1, 2017, the State Air Resources Board, in consultation with the commission and with input from  the environmental justice advisory committee established pursuant to Section 38591 of the H   ealth and Safety Code, other  relevant state  agencies   agencies,  and the public, shall develop and publish a study on barriers for low-income customers to zero-emission and near-zero-emission transportation options, including those in disadvantaged communities, as well as recommendations on how to increase access to zero-emission and near-zero-emission transportation options to low-income customers, including those in disadvantaged communities.  SEC. 4.   Section 399.11 of the   Public Utilities Code   is amended to read:  399.11. The Legislature finds and declares all of the following: (a) In order to attain a target of generating 20 percent of total retail sales of electricity in California from eligible renewable energy resources by December 31, 2013, 33 percent by December 31, 2020, and 50 percent by December 31, 2030, it is the intent of the Legislature that the commission and the Energy Commission implement the California Renewables Portfolio Standard Program described in this article. (b) Achieving the renewables portfolio standard through the procurement of various electricity products from eligible renewable energy resources is intended to provide unique benefits to California, including all of the following, each of which independently justifies the program: (1) Displacing fossil fuel consumption within the state. (2) Adding new electrical generating facilities in the transmission network within the Western Electricity Coordinating Council service area. (3) Reducing air  pollution   pollution, particularly criteria pollutant emissions and toxic air contaminants,  in the state. (4) Meeting the state's climate change goals by reducing emissions of greenhouse gases associated with electrical generation. (5) Promoting stable retail rates for electric service. (6) Meeting the state's need for a diversified and balanced energy generation portfolio. (7) Assistance with meeting the state's resource adequacy requirements. (8) Contributing to the safe and reliable operation of the electrical grid, including providing predictable electrical supply, voltage support, lower line losses, and congestion relief. (9) Implementing the state's transmission and land use planning activities related to development of eligible renewable energy resources. (c) The California Renewables Portfolio Standard Program is intended to complement the Renewable Energy Resources Program administered by the Energy Commission and established pursuant to Chapter 8.6 (commencing with Section 25740) of Division 15 of the Public Resources Code. (d) New and modified electric transmission facilities may be necessary to facilitate the state achieving its renewables portfolio standard targets. (e) (1) Supplying electricity to California end-use customers that is generated by eligible renewable energy resources is necessary to improve California's air quality and public health,  particularly in disadvantaged communities identified pursuant to Section 39711 of the Health and Safety Code,  and the commission shall ensure rates are just and reasonable, and are not significantly affected by the procurement requirements of this article. This electricity may be generated anywhere in the interconnected grid that includes many states, and areas of both Canada and Mexico. (2) This article requires generating resources located outside of California that are able to supply that electricity to California end-use customers to be treated identically to generating resources located within the state, without discrimination. (3) California electrical corporations have already executed, and the commission has approved, power purchase agreements with eligible renewable energy resources located outside of California that will supply electricity to California end-use customers. These resources will fully count toward meeting the renewables portfolio standard procurement requirements.  SEC. 5.   Section 400 of the   Public Utilities Code   is amended to read:  400. The commission and the Energy Commission shall do all of the following in furtherance of meeting the state's clean energy and pollution reduction objectives: (a) Take into account the use of distributed generation to the extent that it provides economic and environmental benefits in disadvantaged communities  as  identified pursuant to Section 39711 of the Health and Safety Code. (b) Take into account the opportunities to decrease costs and increase benefits, including pollution reduction and grid integration, using renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite in proceedings associated with meeting the objectives. (c) Where feasible, authorize procurement of resources to provide grid reliability services that minimize reliance on system power and fossil fuel resources and, where feasible, cost effective, and consistent with other state policy objectives, increase the use of large- and small-scale energy storage with a variety of technologies, targeted energy efficiency, demand response, including, but not limited to, automated demand response, eligible renewable energy resources, or other renewable and nonrenewable technologies with zero or lowest feasible emissions of greenhouse gases, criteria pollutants, and toxic air contaminants onsite to protect system reliability. (d) Review technology incentive, research, development, deployment, and market facilitation programs overseen by the  commission and   commission,  the Energy  Commission   Commission, academia, and the private and nonprofit sectors  and make recommendations to advance state clean energy and pollution reduction objectives and provide benefits to disadvantaged communities  as  identified pursuant to Section 39711 of the Health and Safety Code. (e) To the extent  feasible,   feasible and consistent with the state and federal constitutions,  give first priority to the manufacture and deployment of clean energy and pollution reduction technologies that create employment  opportunities,   opportunities in California,  including high wage, highly skilled employment opportunities, and increased investment in the state. (f) Establish a publicly available tracking system to provide up-to-date information  at least once annually  on progress toward meeting the clean energy and pollution reduction goals of the Clean Energy and Pollution Reduction Act of 2015. (g) Establish an advisory group consisting of representatives from disadvantaged communities identified  in   pursuant to  Section 39711 of the Health and Safety Code. The advisory group shall review and provide advice on programs proposed to achieve clean energy and pollution reduction and determine whether those proposed programs will be effective and useful in disadvantaged communities.  SEC. 6.   Section 9621 of the   Public Utilities Code   is amended to read:  9621. (a) This section shall apply to a local publicly owned electric utility with an annual electrical demand exceeding 700 gigawatthours, as determined on a three-year average commencing January 1, 2013. (b) On or before January 1, 2019, the governing board of a local publicly owned electric utility shall adopt an integrated resource plan and a process for updating the plan at least once every five years to ensure the utility achieves all of the following: (1) Meets the greenhouse gas emissions reduction targets established by the State Air Resources Board, in coordination with the commission and the Energy Commission, for the electricity sector and each local publicly-owned electric utility that reflect the electricity sector's percentage in achieving the economywide greenhouse gas emissions reductions of 40 percent from 1990 levels by 2030. (2) Ensures procurement of at least 50 percent eligible renewable energy resources by 2030 consistent with Article 16 (commencing with Section 399.11) of Chapter  2.3.   2.3 of Part 1 of Division 1. (3) Meets the goals specified in subparagraphs  (C)   (D)  to (H), inclusive, of paragraph (1) of subdivision (a) of Section  454.52.   454.52, and the goal specified in subparagraph (C) of paragraph (1) of subdivision (a) of Section 454.52, as that goal is applicable to each local publicly owned electric utility. A local publicly owned electric utility shall not, solely by reason of this paragraph, be subject to requirements otherwise imposed on electrical corporations.  (c) (1) The integrated resource plan shall address procurement for the following: (A) Energy efficiency and demand response resources pursuant to Section 9615. (B) Energy storage requirements pursuant to Chapter 7.7 (commencing with Section 2835) of Part 2 of Division 1. (C) Transportation electrification. (D) A diversified procurement portfolio consisting of both short-term and long-term electricity, electricity-related, and demand response products. (E) The resource adequacy requirements established pursuant to Section 9620. (2) (A) The governing board of the local publicly owned electric utility may authorize all source procurement that includes various resource types, including demand-side resources, supply side resources, and resources that may be either demand-side resources or supply side resources, to ensure that the local publicly owned electric utility procures the optimum resource mix that meets the objectives of subdivision (b). (B) The governing board may authorize procurement of resource types that will reduce overall greenhouse gas emissions from the electricity sector and meet the other goals specified in subdivision (b), but due to the nature of the technology or fuel source may not compete favorably in price against other resources over the time period of the integrated resource plan. (d) A local publicly owned electric utility shall satisfy the notice and public disclosure requirements of subdivision (f) of Section 399.30 with respect to any integrated resource plan or plan update it considers.  SECTION 1.   Section 957 of the Public Utilities Code is amended to read: 957. (a) (1) Unless the commission determines that it is prohibited from doing so by subdivision (c) of Section 60104 of Title 49 of the United States Code, the commission shall require the installation of automatic shutoff or remote controlled sectionalized block valves on all of the following facilities, if it determines those valves are necessary for the protection of the public: (A) Intrastate transmission lines that are located in a high consequence area. (B) Intrastate transmission lines that traverse an active seismic earthquake fault. (C) Intrastate transmission lines that transport gas to or from a storage facility. (2) Each owner or operator of a commission-regulated gas pipeline facility that is an intrastate transmission line shall provide the commission with a valve location plan, along with any recommendations for valve locations. The commission may make modifications to the valve location plan or provide for variations from any location requirements adopted by the commission pursuant to this section that it deems necessary or appropriate and consistent with protection of the public. (3) The commission shall additionally establish action timelines, adopt standards for how to prioritize installation of automatic shutoff or remote controlled sectionalized block valves pursuant to paragraph (1), ensure that remote and automatic shutoff valves are installed as quickly as is reasonably possible, and establish ongoing procedures for monitoring progress in achieving the requirements of this section. (b) The commission shall authorize recovery in rates for all reasonably incurred costs incurred for implementation of the requirements of this section. (c) The commission, in consultation with the Pipeline and Hazardous Materials Safety Administration of the United States Department of Transportation, shall adopt and enforce compatible safety standards for commission-regulated gas pipeline facilities that the commission determines should be adopted to implement the requirements of this section.   SEC. 2.   No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.