25000. This division shall be known and may be cited as the
Warren-Alquist State Energy Resources Conservation and Development
Act.
25000.1. (a) The Legislature further finds and declares that, in
addition to their other ratepayer protection objectives, a principal
goal of electric and natural gas utilities' resource planning and
investment shall be to minimize the cost to society of the reliable
energy services that are provided by natural gas and electricity, and
to improve the environment and to encourage the diversity of energy
sources through improvements in energy efficiency and development of
renewable energy resources, such as wind, solar, and geothermal
energy.
(b) The Legislature further finds and declares that, in addition
to any appropriate investments in energy production, electrical and
natural gas utilities should seek to exploit all practicable and
cost-effective conservation and improvements in the efficiency of
energy use and distribution that offer equivalent or better system
reliability, and which are not being exploited by any other entity.
(c) In calculating the cost effectiveness of energy resources,
including conservation and load management options, the commission
shall include a value for any costs and benefits to the environment,
including air quality. The commission shall ensure that any values it
develops pursuant to this section are consistent with values
developed by the Public Utilities Commission pursuant to Section
701.1 of the Public Utilities Code. However, if the commission
determines that a value developed pursuant to this subdivision is not
consistent with a value developed by the Public Utilities Commission
pursuant to subdivision (c) of Section 701.1 of the Public Utilities
Code, the commission may nonetheless use this value if, in the
appropriate record of its proceedings, it states its reasons for
using the value it has selected.
25000.5. (a) The Legislature finds and declares that overdependence
on the production, marketing, and consumption of petroleum based
fuels as an energy resource in the transportation sector is a threat
to the energy security of the state due to continuing market and
supply uncertainties. In addition, petroleum use as an energy
resource contributes substantially to the following public health and
environmental problems: air pollution, acid rain, global warming,
and the degradation of California's marine environment and fisheries.
(b) Therefore, it is the policy of this state to fully evaluate
the economic and environmental costs of petroleum use, and the
economic and environmental costs of other transportation fuels,
including the costs and values of environmental impacts, and to
establish a state transportation energy policy that results in the
least environmental and economic cost to the state. In pursuing the
"least environmental and economic cost" strategy, it is the policy of
the state to exploit all practicable and cost-effective conservation
and improvements in the efficiency of energy use and distribution,
and to achieve energy security, diversity of supply sources, and
competitiveness of transportation energy markets based on the least
environmental and economic cost.
(c) It is also the policy of this state to minimize the economic
and environmental costs due to the use of petroleum-based and other
transportation fuels by state agencies. In implementing a least-cost
economic and environmental strategy for state fleets, it is the
policy of the state to implement practicable and cost-effective
measures, including, but not necessarily limited to, the purchase of
the cleanest and most efficient automobiles and replacement tires,
the use of alternative fuels in its fleets, and other conservation
measures.
(d) For the purposes of this section, "petroleum based fuels"
means fuels derived from liquid unrefined crude oil, including
natural gas liquids, liquefied petroleum gas, or the energy fraction
of methyl tertiary-butyl ether (MTBE) or other ethers that is not
attributed to natural gas.
25001. The Legislature hereby finds and declares that electrical
energy is essential to the health, safety and welfare of the people
of this state and to the state economy, and that it is the
responsibility of state government to ensure that a reliable supply
of electrical energy is maintained at a level consistent with the
need for such energy for protection of public health and safety, for
promotion of the general welfare, and for environmental quality
protection.
25002. The Legislature further finds and declares that the present
rapid rate of growth in demand for electric energy is in part due to
wasteful, uneconomic, inefficient, and unnecessary uses of power and
a continuation of this trend will result in serious depletion or
irreversible commitment of energy, land and water resources, and
potential threats to the state's environmental quality.
25003. The Legislature further finds and declares that in planning
for future electrical generating and related transmission facilities
state, regional, and local plans for land use, urban expansion,
transportation systems, environmental protection, and economic
development should be considered.
25004. The Legislature further finds and declares that there is a
pressing need to accelerate research and development into alternative
sources of energy and into improved technology of design and siting
of power facilities.
25004.2. The Legislature further finds that cogeneration technology
is a potential energy resource and should be an important element of
the state's energy supply mix. The Legislature further finds that
cogeneration technology can assist meeting the state's energy needs
while reducing the long-term use of conventional fuels, is readily
available for immediate application, and reduces negative
environmental impacts. The Legislature further finds that
cogeneration technology is important with respect to the providing of
a reliable and clean source of energy within the state and that
cogeneration technology should receive immediate support and
commitment from state government.
25004.3. The Legislature further finds and declares all of the
following:
(a) Advanced transportation technologies hold the promise of
conserving energy, reducing pollution, lowering traffic congestion,
and promoting economic development and jobs in California.
(b) There is a pressing need to provide business assistance to
California companies engaged in producing and commercializing
advanced transportation technologies.
(c) It is the policy of the state to provide financial assistance
to California companies, particularly small businesses, that are
engaged in commercial efforts in the field of advanced transportation
technologies.
25005. The Legislature further finds and declares that prevention
of delays and interruptions in the orderly provision of electrical
energy, protection of environmental values, and conservation of
energy resources require expanded authority and technical capability
within state government.
25005.5. The Legislature further finds and declares that
information should be acquired and analyzed by the State Energy
Resources Conservation and Development Commission in order to
ascertain future energy problems and uncertainties, including, but
not limited to:
(a) The state's role in production of oil from domestic reserves,
especially within Petroleum Administration for Defense District V.
(b) The production of Alaskan North Slope oil and its projected
use in the state.
(c) Plans of the federal government for development of oil in the
Outer Continental Shelf adjacent to the state.
(d) Impacts of petroleum price increases and projected
conservation measures on the demand for energy and indirect effects
on the need for offshore oil development and Alaskan oil delivery
into the state.
(e) Potential shipment of Alaskan oil through the state.
(f) Proposals for processing petroleum outside the state to supply
the needs within the state.
(g) The impact on the state of national energy policies, including
Project Independence.
25006. It is the policy of the state and the intent of the
Legislature to establish and consolidate the state's responsibility
for energy resources, for encouraging, developing, and coordinating
research and development into energy supply and demand problems, and
for regulating electrical generating and related transmission
facilities.
25007. It is further the policy of the state and the intent of the
Legislature to employ a range of measures to reduce wasteful,
uneconomical, and unnecessary uses of energy, thereby reducing the
rate of growth of energy consumption, prudently conserve energy
resources, and assure statewide environmental, public safety, and
land use goals.
25008. It is further the policy of the state and the intent of the
Legislature to promote all feasible means of energy and water
conservation and all feasible uses of alternative energy and water
supply sources.
The Legislature finds and declares that the State of California
has extensive physical and natural resources available to it at
state-owned sites and facilities which can be substituted for
traditional energy supplies or which lend themselves readily to the
production of electricity or water. Due to increases in energy and
water costs, the state's expenditures for energy and water have also
increased, adding to the burden on California taxpayers and reducing
the amount of funds available for other public purposes.
It is in the best interest of the state to use these resources
when it can be demonstrated that long-term cost, water, and energy
use reduction will result, and where increased independence from
other fuel and water sources and development of additional revenues
for the state may be obtained.
Therefore, in recognition of recent and projected increases in the
cost of energy and water from traditional sources, it is the policy
of the state to use available resources at state facilities which can
substitute for traditional energy and water supplies or produce
electricity or water at its facilities when use or production will
reduce long-term energy or water expenditures. Criteria used in
analysis of proposed actions shall include lifecycle cost evaluation,
benefit to taxpayers, reduced fossil fuel or reduced water
consumption depending on the application, and improved efficiency.
Energy or water facilities at state-owned sites shall be scaled to
produce optimal system efficiency and best economic advantage to the
state. Energy or water produced may be reserved by the state to meet
state facility needs or may be sold to state or nonstate purchasers.
Resources and processes which may be used to substitute for
traditional energy and water supplies and for the purpose of
electrical generation at state facilities include, but are not
limited to, cogeneration, biomass, wind, geothermal, vapor
compression, water reclamation, and solar technologies.
It is the intent of the Legislature that no policy in this
section, expressed or implied, be in conflict with existing state or
federal regulations regarding the production or sale of electricity
or water, and that this policy be just and reasonable to utility
ratepayers.
25009. The Legislature finds and declares that Chapter 854 of the
Statutes of 1996 restructured the California electricity industry and
created a competitive electricity generation market. In a
competitive generation market, the recovery by powerplant owners of
their private investment and operating costs is at risk and no longer
guaranteed through regulated rates. Before the California
electricity industry was restructured, the regulated cost recovery
framework for powerplants justified requiring the commission to
determine the need for new generation, and site only powerplants for
which need was established. Now that powerplant owners are at risk to
recover their investments, it is no longer appropriate to make this
determination. It is necessary that California both protect
environmental quality and site new powerplants to ensure electricity
reliability, improve the environmental performance of the current
electricity industry and reduce consumer costs. The success of
California's restructured electricity industry depends upon the
willingness of private capital to invest in new powerplants.
Therefore, it is necessary to modify the need for determination
requirements of the state's powerplant siting and licensing process
to reflect the economics of the restructured electricity industry and
ensure the timely construction of new electricity generation
capacity.
25000. This division shall be known and may be cited as the
Warren-Alquist State Energy Resources Conservation and Development
Act.
25000.1. (a) The Legislature further finds and declares that, in
addition to their other ratepayer protection objectives, a principal
goal of electric and natural gas utilities' resource planning and
investment shall be to minimize the cost to society of the reliable
energy services that are provided by natural gas and electricity, and
to improve the environment and to encourage the diversity of energy
sources through improvements in energy efficiency and development of
renewable energy resources, such as wind, solar, and geothermal
energy.
(b) The Legislature further finds and declares that, in addition
to any appropriate investments in energy production, electrical and
natural gas utilities should seek to exploit all practicable and
cost-effective conservation and improvements in the efficiency of
energy use and distribution that offer equivalent or better system
reliability, and which are not being exploited by any other entity.
(c) In calculating the cost effectiveness of energy resources,
including conservation and load management options, the commission
shall include a value for any costs and benefits to the environment,
including air quality. The commission shall ensure that any values it
develops pursuant to this section are consistent with values
developed by the Public Utilities Commission pursuant to Section
701.1 of the Public Utilities Code. However, if the commission
determines that a value developed pursuant to this subdivision is not
consistent with a value developed by the Public Utilities Commission
pursuant to subdivision (c) of Section 701.1 of the Public Utilities
Code, the commission may nonetheless use this value if, in the
appropriate record of its proceedings, it states its reasons for
using the value it has selected.
25000.5. (a) The Legislature finds and declares that overdependence
on the production, marketing, and consumption of petroleum based
fuels as an energy resource in the transportation sector is a threat
to the energy security of the state due to continuing market and
supply uncertainties. In addition, petroleum use as an energy
resource contributes substantially to the following public health and
environmental problems: air pollution, acid rain, global warming,
and the degradation of California's marine environment and fisheries.
(b) Therefore, it is the policy of this state to fully evaluate
the economic and environmental costs of petroleum use, and the
economic and environmental costs of other transportation fuels,
including the costs and values of environmental impacts, and to
establish a state transportation energy policy that results in the
least environmental and economic cost to the state. In pursuing the
"least environmental and economic cost" strategy, it is the policy of
the state to exploit all practicable and cost-effective conservation
and improvements in the efficiency of energy use and distribution,
and to achieve energy security, diversity of supply sources, and
competitiveness of transportation energy markets based on the least
environmental and economic cost.
(c) It is also the policy of this state to minimize the economic
and environmental costs due to the use of petroleum-based and other
transportation fuels by state agencies. In implementing a least-cost
economic and environmental strategy for state fleets, it is the
policy of the state to implement practicable and cost-effective
measures, including, but not necessarily limited to, the purchase of
the cleanest and most efficient automobiles and replacement tires,
the use of alternative fuels in its fleets, and other conservation
measures.
(d) For the purposes of this section, "petroleum based fuels"
means fuels derived from liquid unrefined crude oil, including
natural gas liquids, liquefied petroleum gas, or the energy fraction
of methyl tertiary-butyl ether (MTBE) or other ethers that is not
attributed to natural gas.
25001. The Legislature hereby finds and declares that electrical
energy is essential to the health, safety and welfare of the people
of this state and to the state economy, and that it is the
responsibility of state government to ensure that a reliable supply
of electrical energy is maintained at a level consistent with the
need for such energy for protection of public health and safety, for
promotion of the general welfare, and for environmental quality
protection.
25002. The Legislature further finds and declares that the present
rapid rate of growth in demand for electric energy is in part due to
wasteful, uneconomic, inefficient, and unnecessary uses of power and
a continuation of this trend will result in serious depletion or
irreversible commitment of energy, land and water resources, and
potential threats to the state's environmental quality.
25003. The Legislature further finds and declares that in planning
for future electrical generating and related transmission facilities
state, regional, and local plans for land use, urban expansion,
transportation systems, environmental protection, and economic
development should be considered.
25004. The Legislature further finds and declares that there is a
pressing need to accelerate research and development into alternative
sources of energy and into improved technology of design and siting
of power facilities.
25004.2. The Legislature further finds that cogeneration technology
is a potential energy resource and should be an important element of
the state's energy supply mix. The Legislature further finds that
cogeneration technology can assist meeting the state's energy needs
while reducing the long-term use of conventional fuels, is readily
available for immediate application, and reduces negative
environmental impacts. The Legislature further finds that
cogeneration technology is important with respect to the providing of
a reliable and clean source of energy within the state and that
cogeneration technology should receive immediate support and
commitment from state government.
25004.3. The Legislature further finds and declares all of the
following:
(a) Advanced transportation technologies hold the promise of
conserving energy, reducing pollution, lowering traffic congestion,
and promoting economic development and jobs in California.
(b) There is a pressing need to provide business assistance to
California companies engaged in producing and commercializing
advanced transportation technologies.
(c) It is the policy of the state to provide financial assistance
to California companies, particularly small businesses, that are
engaged in commercial efforts in the field of advanced transportation
technologies.
25005. The Legislature further finds and declares that prevention
of delays and interruptions in the orderly provision of electrical
energy, protection of environmental values, and conservation of
energy resources require expanded authority and technical capability
within state government.
25005.5. The Legislature further finds and declares that
information should be acquired and analyzed by the State Energy
Resources Conservation and Development Commission in order to
ascertain future energy problems and uncertainties, including, but
not limited to:
(a) The state's role in production of oil from domestic reserves,
especially within Petroleum Administration for Defense District V.
(b) The production of Alaskan North Slope oil and its projected
use in the state.
(c) Plans of the federal government for development of oil in the
Outer Continental Shelf adjacent to the state.
(d) Impacts of petroleum price increases and projected
conservation measures on the demand for energy and indirect effects
on the need for offshore oil development and Alaskan oil delivery
into the state.
(e) Potential shipment of Alaskan oil through the state.
(f) Proposals for processing petroleum outside the state to supply
the needs within the state.
(g) The impact on the state of national energy policies, including
Project Independence.
25006. It is the policy of the state and the intent of the
Legislature to establish and consolidate the state's responsibility
for energy resources, for encouraging, developing, and coordinating
research and development into energy supply and demand problems, and
for regulating electrical generating and related transmission
facilities.
25007. It is further the policy of the state and the intent of the
Legislature to employ a range of measures to reduce wasteful,
uneconomical, and unnecessary uses of energy, thereby reducing the
rate of growth of energy consumption, prudently conserve energy
resources, and assure statewide environmental, public safety, and
land use goals.
25008. It is further the policy of the state and the intent of the
Legislature to promote all feasible means of energy and water
conservation and all feasible uses of alternative energy and water
supply sources.
The Legislature finds and declares that the State of California
has extensive physical and natural resources available to it at
state-owned sites and facilities which can be substituted for
traditional energy supplies or which lend themselves readily to the
production of electricity or water. Due to increases in energy and
water costs, the state's expenditures for energy and water have also
increased, adding to the burden on California taxpayers and reducing
the amount of funds available for other public purposes.
It is in the best interest of the state to use these resources
when it can be demonstrated that long-term cost, water, and energy
use reduction will result, and where increased independence from
other fuel and water sources and development of additional revenues
for the state may be obtained.
Therefore, in recognition of recent and projected increases in the
cost of energy and water from traditional sources, it is the policy
of the state to use available resources at state facilities which can
substitute for traditional energy and water supplies or produce
electricity or water at its facilities when use or production will
reduce long-term energy or water expenditures. Criteria used in
analysis of proposed actions shall include lifecycle cost evaluation,
benefit to taxpayers, reduced fossil fuel or reduced water
consumption depending on the application, and improved efficiency.
Energy or water facilities at state-owned sites shall be scaled to
produce optimal system efficiency and best economic advantage to the
state. Energy or water produced may be reserved by the state to meet
state facility needs or may be sold to state or nonstate purchasers.
Resources and processes which may be used to substitute for
traditional energy and water supplies and for the purpose of
electrical generation at state facilities include, but are not
limited to, cogeneration, biomass, wind, geothermal, vapor
compression, water reclamation, and solar technologies.
It is the intent of the Legislature that no policy in this
section, expressed or implied, be in conflict with existing state or
federal regulations regarding the production or sale of electricity
or water, and that this policy be just and reasonable to utility
ratepayers.
25009. The Legislature finds and declares that Chapter 854 of the
Statutes of 1996 restructured the California electricity industry and
created a competitive electricity generation market. In a
competitive generation market, the recovery by powerplant owners of
their private investment and operating costs is at risk and no longer
guaranteed through regulated rates. Before the California
electricity industry was restructured, the regulated cost recovery
framework for powerplants justified requiring the commission to
determine the need for new generation, and site only powerplants for
which need was established. Now that powerplant owners are at risk to
recover their investments, it is no longer appropriate to make this
determination. It is necessary that California both protect
environmental quality and site new powerplants to ensure electricity
reliability, improve the environmental performance of the current
electricity industry and reduce consumer costs. The success of
California's restructured electricity industry depends upon the
willingness of private capital to invest in new powerplants.
Therefore, it is necessary to modify the need for determination
requirements of the state's powerplant siting and licensing process
to reflect the economics of the restructured electricity industry and
ensure the timely construction of new electricity generation
capacity.
25000. This division shall be known and may be cited as the
Warren-Alquist State Energy Resources Conservation and Development
Act.
25000.1. (a) The Legislature further finds and declares that, in
addition to their other ratepayer protection objectives, a principal
goal of electric and natural gas utilities' resource planning and
investment shall be to minimize the cost to society of the reliable
energy services that are provided by natural gas and electricity, and
to improve the environment and to encourage the diversity of energy
sources through improvements in energy efficiency and development of
renewable energy resources, such as wind, solar, and geothermal
energy.
(b) The Legislature further finds and declares that, in addition
to any appropriate investments in energy production, electrical and
natural gas utilities should seek to exploit all practicable and
cost-effective conservation and improvements in the efficiency of
energy use and distribution that offer equivalent or better system
reliability, and which are not being exploited by any other entity.
(c) In calculating the cost effectiveness of energy resources,
including conservation and load management options, the commission
shall include a value for any costs and benefits to the environment,
including air quality. The commission shall ensure that any values it
develops pursuant to this section are consistent with values
developed by the Public Utilities Commission pursuant to Section
701.1 of the Public Utilities Code. However, if the commission
determines that a value developed pursuant to this subdivision is not
consistent with a value developed by the Public Utilities Commission
pursuant to subdivision (c) of Section 701.1 of the Public Utilities
Code, the commission may nonetheless use this value if, in the
appropriate record of its proceedings, it states its reasons for
using the value it has selected.
25000.5. (a) The Legislature finds and declares that overdependence
on the production, marketing, and consumption of petroleum based
fuels as an energy resource in the transportation sector is a threat
to the energy security of the state due to continuing market and
supply uncertainties. In addition, petroleum use as an energy
resource contributes substantially to the following public health and
environmental problems: air pollution, acid rain, global warming,
and the degradation of California's marine environment and fisheries.
(b) Therefore, it is the policy of this state to fully evaluate
the economic and environmental costs of petroleum use, and the
economic and environmental costs of other transportation fuels,
including the costs and values of environmental impacts, and to
establish a state transportation energy policy that results in the
least environmental and economic cost to the state. In pursuing the
"least environmental and economic cost" strategy, it is the policy of
the state to exploit all practicable and cost-effective conservation
and improvements in the efficiency of energy use and distribution,
and to achieve energy security, diversity of supply sources, and
competitiveness of transportation energy markets based on the least
environmental and economic cost.
(c) It is also the policy of this state to minimize the economic
and environmental costs due to the use of petroleum-based and other
transportation fuels by state agencies. In implementing a least-cost
economic and environmental strategy for state fleets, it is the
policy of the state to implement practicable and cost-effective
measures, including, but not necessarily limited to, the purchase of
the cleanest and most efficient automobiles and replacement tires,
the use of alternative fuels in its fleets, and other conservation
measures.
(d) For the purposes of this section, "petroleum based fuels"
means fuels derived from liquid unrefined crude oil, including
natural gas liquids, liquefied petroleum gas, or the energy fraction
of methyl tertiary-butyl ether (MTBE) or other ethers that is not
attributed to natural gas.
25001. The Legislature hereby finds and declares that electrical
energy is essential to the health, safety and welfare of the people
of this state and to the state economy, and that it is the
responsibility of state government to ensure that a reliable supply
of electrical energy is maintained at a level consistent with the
need for such energy for protection of public health and safety, for
promotion of the general welfare, and for environmental quality
protection.
25002. The Legislature further finds and declares that the present
rapid rate of growth in demand for electric energy is in part due to
wasteful, uneconomic, inefficient, and unnecessary uses of power and
a continuation of this trend will result in serious depletion or
irreversible commitment of energy, land and water resources, and
potential threats to the state's environmental quality.
25003. The Legislature further finds and declares that in planning
for future electrical generating and related transmission facilities
state, regional, and local plans for land use, urban expansion,
transportation systems, environmental protection, and economic
development should be considered.
25004. The Legislature further finds and declares that there is a
pressing need to accelerate research and development into alternative
sources of energy and into improved technology of design and siting
of power facilities.
25004.2. The Legislature further finds that cogeneration technology
is a potential energy resource and should be an important element of
the state's energy supply mix. The Legislature further finds that
cogeneration technology can assist meeting the state's energy needs
while reducing the long-term use of conventional fuels, is readily
available for immediate application, and reduces negative
environmental impacts. The Legislature further finds that
cogeneration technology is important with respect to the providing of
a reliable and clean source of energy within the state and that
cogeneration technology should receive immediate support and
commitment from state government.
25004.3. The Legislature further finds and declares all of the
following:
(a) Advanced transportation technologies hold the promise of
conserving energy, reducing pollution, lowering traffic congestion,
and promoting economic development and jobs in California.
(b) There is a pressing need to provide business assistance to
California companies engaged in producing and commercializing
advanced transportation technologies.
(c) It is the policy of the state to provide financial assistance
to California companies, particularly small businesses, that are
engaged in commercial efforts in the field of advanced transportation
technologies.
25005. The Legislature further finds and declares that prevention
of delays and interruptions in the orderly provision of electrical
energy, protection of environmental values, and conservation of
energy resources require expanded authority and technical capability
within state government.
25005.5. The Legislature further finds and declares that
information should be acquired and analyzed by the State Energy
Resources Conservation and Development Commission in order to
ascertain future energy problems and uncertainties, including, but
not limited to:
(a) The state's role in production of oil from domestic reserves,
especially within Petroleum Administration for Defense District V.
(b) The production of Alaskan North Slope oil and its projected
use in the state.
(c) Plans of the federal government for development of oil in the
Outer Continental Shelf adjacent to the state.
(d) Impacts of petroleum price increases and projected
conservation measures on the demand for energy and indirect effects
on the need for offshore oil development and Alaskan oil delivery
into the state.
(e) Potential shipment of Alaskan oil through the state.
(f) Proposals for processing petroleum outside the state to supply
the needs within the state.
(g) The impact on the state of national energy policies, including
Project Independence.
25006. It is the policy of the state and the intent of the
Legislature to establish and consolidate the state's responsibility
for energy resources, for encouraging, developing, and coordinating
research and development into energy supply and demand problems, and
for regulating electrical generating and related transmission
facilities.
25007. It is further the policy of the state and the intent of the
Legislature to employ a range of measures to reduce wasteful,
uneconomical, and unnecessary uses of energy, thereby reducing the
rate of growth of energy consumption, prudently conserve energy
resources, and assure statewide environmental, public safety, and
land use goals.
25008. It is further the policy of the state and the intent of the
Legislature to promote all feasible means of energy and water
conservation and all feasible uses of alternative energy and water
supply sources.
The Legislature finds and declares that the State of California
has extensive physical and natural resources available to it at
state-owned sites and facilities which can be substituted for
traditional energy supplies or which lend themselves readily to the
production of electricity or water. Due to increases in energy and
water costs, the state's expenditures for energy and water have also
increased, adding to the burden on California taxpayers and reducing
the amount of funds available for other public purposes.
It is in the best interest of the state to use these resources
when it can be demonstrated that long-term cost, water, and energy
use reduction will result, and where increased independence from
other fuel and water sources and development of additional revenues
for the state may be obtained.
Therefore, in recognition of recent and projected increases in the
cost of energy and water from traditional sources, it is the policy
of the state to use available resources at state facilities which can
substitute for traditional energy and water supplies or produce
electricity or water at its facilities when use or production will
reduce long-term energy or water expenditures. Criteria used in
analysis of proposed actions shall include lifecycle cost evaluation,
benefit to taxpayers, reduced fossil fuel or reduced water
consumption depending on the application, and improved efficiency.
Energy or water facilities at state-owned sites shall be scaled to
produce optimal system efficiency and best economic advantage to the
state. Energy or water produced may be reserved by the state to meet
state facility needs or may be sold to state or nonstate purchasers.
Resources and processes which may be used to substitute for
traditional energy and water supplies and for the purpose of
electrical generation at state facilities include, but are not
limited to, cogeneration, biomass, wind, geothermal, vapor
compression, water reclamation, and solar technologies.
It is the intent of the Legislature that no policy in this
section, expressed or implied, be in conflict with existing state or
federal regulations regarding the production or sale of electricity
or water, and that this policy be just and reasonable to utility
ratepayers.
25009. The Legislature finds and declares that Chapter 854 of the
Statutes of 1996 restructured the California electricity industry and
created a competitive electricity generation market. In a
competitive generation market, the recovery by powerplant owners of
their private investment and operating costs is at risk and no longer
guaranteed through regulated rates. Before the California
electricity industry was restructured, the regulated cost recovery
framework for powerplants justified requiring the commission to
determine the need for new generation, and site only powerplants for
which need was established. Now that powerplant owners are at risk to
recover their investments, it is no longer appropriate to make this
determination. It is necessary that California both protect
environmental quality and site new powerplants to ensure electricity
reliability, improve the environmental performance of the current
electricity industry and reduce consumer costs. The success of
California's restructured electricity industry depends upon the
willingness of private capital to invest in new powerplants.
Therefore, it is necessary to modify the need for determination
requirements of the state's powerplant siting and licensing process
to reflect the economics of the restructured electricity industry and
ensure the timely construction of new electricity generation
capacity.
