Bills to Aid Gas Plants, School Energy Bills & Reduce Building Emissions Advance

Measures to increase payments to needed, but struggling gas power plants in California, to assess how to increase the use of electric air and space heating in homes, and to extend intervenor compensation to schools were sent to the Assembly Appropriations Committee. The Assembly Utilities & Energy Committee passed these and other energy bills April 25.

AB 2693 by Assemblymember Bill Quirk (D-Hayward) would require the California Public Utilities Commission to work with the state grid operator to determine which gas-fired plants are needed for grid reliability and to pay the operators sufficient revenue so their facilities stay online.

“My intention is to make sure the lights stay on,” Quirk told the committee. He added he was trying to juggle not keeping unneeded plants operating while ensuring needed ones with low emission rates remain online.

“Purely market-based protocols are not working,” said Mark Joseph, representing electrical and utility workers.

The measure was supported by electric worker unions, a consumer advocate and Calpine.

However, it faced considerable opposition from generators—gas and solar—and the California Manufacturers & Technology Association.

Solar and energy storage advocates worry their resources will be short changed while CMTA is concerned a change in gas plant payments could increase its members’ energy bills.

The legislation adds “more complexity into the mix and will delay the resource adequacy proceeding,” Jan Smutny-Jones, Independent Energy Producers' executive director, warned.

Quirk noted a CPUC decision on multi-year power supply cushions is due in June and at the time the need for the bill will be reassessed. Many stakeholders hope that CPUC decision will negate the need for pricey contracts between the California Independent System Operator and gas generators, including, for example, with Calpine for its Metcalf plant near San Jose.

AB 2693 passed 15-0.

Another successful measure, which also faces considerable opposition, was AB 2431 by Assemblymember Shirley Weber (D-San Diego). Her bill would allow representatives of public education agencies with 5,000 or fewer students to intervene in utility rate cases and be compensated for their participation costs.

“It levels the playing field a little bit,” Weber said.

Constrained school funds have been diverted from needed academic services to energy costs. That is particularly true in San Diego, which according to Weber, has seen rate increases up to 40 percent.

The Chamber of Commerce, CMTA and PacifiCorp raised concerns about the precedent the bill would set, possibly opening the door to other public agencies receiving ratepayer-funded intervenor compensation from the CPUC.

From 2014 to 2017, the commission doled out $36.8 million for intervenor compensation awards to approximately 65 parties, according to the bill analysis.

Weber’s bill passed on a 10-2 vote.

AB 3232 by Assemblymember Laura Freidman (D-Burbank) would require the California Energy Commission to assess the potential for reducing greenhouse gas emissions from homes and high rises by focusing on electrifying space and water heating.

“There is no requirement or mandate, and cooking is not included,” Freidman said.

Levels of carbon emissions from buildings are on par those produced by all the state’s power plants, the lawmaker noted.

Swapping out gas-fired building air and space heating with solar thermal storage, heat pumps and efficiency would help achieve the state goal of cutting building emissions 40 percent by 2030.

AB 3232 passed 8-5.

The Assembly committee also approved the following bills: AB 1879 by Assemblymember Miguel Santiago (D-Los Angeles) to prohibit the CPUC from placing a moratorium on natural gas hookups. Last year, in response to the shrunken supply of gas at Aliso Canyon and winter weather, energy regulators threatened to halt connections of new buildings to gas lines to keep constrained supplies from being further stretched. They backed off in response to objections from hundreds of businesses. AB 2077 by Assemblymember Monique Limon (D-Santa Barbara) directs the CPUC to approve a rate agreement between Southern California Edison and the City of Santa Barbara regarding the municipality’s 100 percent renewable energy target for 2030. AB 3187 by Assemblymember Timothy Grayson (D-Concord) authorizes gas companies to incorporate into rates mandated investments to interconnect biomethane gas producers into pipelines. — Elizabeth McCarthy

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Bills to Aid Gas Plants, School Energy Bills & Reduce Building Emissions Advance

William J. Kelly

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