Gino DiCaro

Power Plant Greenhouse Gas Standard Bill Moves Along

By Gino DiCaro, VP, Communications

Capitol Update, Aug. 11, 2006 Share this on FacebookTweet thisEmail this to a friend

While most of the focus this August is on Speaker Nunez’s mandatory emissions cap bill, AB 32—a bill the governor is likely to sign—another important greenhouse gas (GHG) bill, SB 1368 (Perata), moves along in the legislative process.

SB 1368, by Senate President Pro Tempore Don Perata (D-Oakland) which requires the California Energy Commission (CEC) to set emission standards for electricity providers and effectively prohibits them from entering into long term contracts for out-of-state coal plants, was approved last month by the two Assembly policy committees and will likely gain the approval of the Appropriations Committee on Wed., Aug. 16, thanks in no small part to the fact that the Senate Democratic leader is authoring the bill.

CMTA strongly opposes SB 1368.   The approach proposed in the bill would limit the ability of utilities to make long-term purchases, discriminate against low-cost coal resources, increase costs to businesses and retail-end customers and threaten the reliability of the state’s electric grid, particularly during peak hours.

As noted in the Senate Appropriations Committee analysis of the bill, "to the extent the [SB 1368] regulations limit the number of suppliers who may provide power to the California market, the bill could increase wholesale electricity costs."  The bottom line is: if the bill were to become law, it would unquestionably increase electricity costs.

For these reasons, CMTA opposes SB 1368.
Read more Energy articles

Capitol updates archive 989898989