California Energy Commission staffers were directed to make changes to one of the state’s global warming reduction regulations rejected in June by the Office of Administrative Law. The rules are intended to implement SB 1368, which effectively prevents the state from importing electricity on a long-term basis from conventional coal plants. The changes are expected to address concerns outlined by the OAL and will be based on written comments provided by the parties and discussed at an August 2 public workshop. The Office of Administrative Law sent the Energy Commission’s rules to restrict greenhouse gas emissions from public power agency coal power projects back to the drawing board last month (Circuit, July 13, 2007). The commission is set to adopt revised regulations at its August 29 business meeting and the regulations then will be resubmitted to the OAL. Approval or rejection is then expected to take another 30 days. OAL issued a decision disapproving the commission’s initial rulemaking action on June 29 on the grounds that among other things, it: -Doesn’t demonstrate that an exemption from the greenhouse gases emissions performance standard is necessary for investments in generating units added to compliant power plants that result in an increase of less than 50 MW; -Doesn’t make clear whether an exemption from greenhouse gas emissions performance standards for investments resulting in an increase of no more than a 10 percent increase in rated capacity is limited to investments for routine maintenance, and; -Isn’t clear on whether procurements involving power plants under 10MW are covered by or exempt from the CEC-established greenhouse gas emission performance standard. SB 1368 complements the state’s Global Warming Solutions Act, AB 32, that seeks to reduce greenhouse gas emissions. As part of the workshop, the Natural Resources Defense Council, Union of Concerned Scientists, and Sierra Club submitted written comments regarding the OAL’s rejection of the proposed regulations, declaring that the CEC regulations should clarify that SB 1368 applies to procurements involving power plants of all sizes, although the commission would only enforce the standard for those power plants 10 MW and larger. The organizations also expressed their support for the exemption of adding 50 MW or less to a deemed compliant power plant in the proposed regulations. However, they said that the allowance of a 10 percent increase in rated capacity for investments made in existing power plants isn’t necessary to effectuate SB 1368’s purpose.
