Compliance With Interim Emissions Performance Standard. A greenhouse gas Emissions Performance Standard (“EPS”) was established by Senate Bill 1368 (“SB 1368”), which requires that the Commission consider emissions costs associated with new long-term (five years or greater) power contracts procured on behalf of California ratepayers. To implement SB 1368, in D.00-00-000, the Commission adopted an EPS that applies to contracts for a term of five or more years for baseload generation with an annualized plant capacity factor of at least 60 percent. The PPA is not a covered procurement subject to the EPS because the generating facility has a forecast annualized capacity factor of less than 60 percent and therefore is not baseload generation under paragraphs 1(a)(ii) and 3(2)(a) of the Adopted Interim EPS Rules. Notification of compliance with D.00-00-000 is provided through this Advice Letter, which has been served on the service list in the RPS rulemaking, R.00-00-000.
Compliance With Interim Emissions Performance Standard. A greenhouse gas Emissions Performance Standard (“EPS”) was established by Senate Bill 1368 (“SB 1368”), which requires that the Commission consider emissions costs associated with new long-term contracts for baseload generation procured on behalf of California ratepayers. The EPS was intended to reduce California’s financial risk exposure to potential future compliance costs associated with future GHG emissions restrictions.26 Essentially the legislature and the Commission were concerned that California ratepayers not be exposed to the high cost of retrofits or potential supply disruptions if the generator must satisfy future emission control regulations. 25 D.00-00-000 at 61-62 26 Id. at 3. As a result, in D.00-00-000, the Commission adopted an EPS that applies to contracts to procure baseload generation for a term of five or more years.27 Baseload generation to which EPS applies is “electricity generation from a power plant” with an annualized plant capacity factor of at least 60 percent.28 In other words, the statute and D.00-00-000 appear to apply only to contracts for procurement of energy, not REC-only transactions. Though D. 00-00-000 does not explicitly address the interaction between EPS compliance and REC-only transactions, the Commission distinguished the transfer of RECs from the GHG emissions rate associated with the renewable facility and found that “RECs would not have any value for EPS compliance under our rules.”29 Therefore, the PSA is not a covered procurement subject to the EPS because it does not involve procurement of electric energy. Even if the Commission were to apply the EPS requirements to REC-only transactions, the PSA would satisfy the EPS. The PSA procures RECs associated with electric energy generated at TransAlta’s wind facility that is not baseload and is for a term less than 5 years.
Compliance With Interim Emissions Performance Standard. In D.00-00-000, the Commission adopted an Emissions Performance Standard (“EPS”) that applies to new and renewal contracts for a term of five or more years for baseload generation with an annualized plant capacity factor of at least 60 percent. D.00-00-000 determined that certain renewable resources and technologies are pre-approved as EPS- compliant. This includes facilities like Bottle Rock, which fall within the following categories: Based on the record in this proceeding, it is reasonable to make an upfront determination that the following renewable resources and technologies are EPS- compliant:
Compliance With Interim Emissions Performance Standard. In D.00-00-000, the Commission adopted an Emissions Performance Standard (“EPS”) that applies to new and renewal contracts for a term of five or more years for baseload generation with an annualized plant capacity factor of at least 60 percent. The Project and associated Amended PPA is not a form of covered procurement subject to the EPS because the generating facility has a forecast annualized capacity factor of less than 60 percent and therefore does not constitute baseload generation as defined by statute and the Adopted Interim EPS Rules. Notification of compliance with D.00-00-000 is provided through this Advice Letter, which has been served on the service list in the RPS rulemaking, Rulemaking (“R.”) 00-00-000.
Compliance With Interim Emissions Performance Standard. A greenhouse gas Emissions Performance Standard (“EPS”) was established by SB 1368, which requires that the Commission consider emissions costs associated with new long-term (five years or greater) power contracts procured on behalf of California ratepayers. In D.00-00-000, the Commission adopted an EPS that applies to contracts for a term of five or more years for baseload generation with an annualized plant capacity factor of at least 60 percent. The PPA is not a covered procurement subject to the EPS because the generating facility has a forecast annualized capacity factor of less than 60 percent and therefore is not baseload generation under paragraphs 1(a)(ii) and 3(2)(a) of the Adopted Interim EPS Rules. Notification of compliance with 10 The IE used for the 2009 RPS Solicitation, Xxxxx Xxxxxxxxx from Xxxxxx Seco Consulting, was not available; therefore Xxxxx X. Xxxxxx from Merrimack Energy Group, Inc., was selected. D.00-00-000 is provided through this Advice Letter, which has been served on the service list in the RPS rulemaking, R.00-00-000.
