Bill Text: CA SB1496 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Energy: State Energy Resources Conservation and

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2012-08-16 - Set, second hearing. Held in committee and under submission. [SB1496 Detail]

Download: California-2011-SB1496-Amended.html

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BILL NUMBER: SB 1496	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 10, 2012

INTRODUCED BY   Senator Simitian

                        FEBRUARY 24, 2012

   An act to add Section 21090.2 to, and to add Chapter 3.5
(commencing with Section 25250) to Division 15 of, the Public
Resources Code, relating to energy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1496, as amended, Simitian. Energy: State Energy Resources
Conservation and Development Commission: natural gas.
   (1) The Warren-Alquist State Energy Resources Conservation and
Development Act (act) establishes the State Energy Resources
Conservation and Development Commission (Energy Commission) and
requires the commission to prepare a biennial integrated energy
policy report containing specified information related to major
energy trends and issues facing the state, as well as a biennial
energy policy review.
   This bill would enact the Liquefied Natural Gas Market Assessment
Act and would require the Energy Commission, as a component of the
integrated energy policy report, to conduct a study of the 
need for   effect of  liquefied natural gas imports
 to meet   and exports on  the state's
energy demand. The bill would also require the Energy Commission,
prior to a lease or permit being issued by the State Lands Commission
or the California Coastal Commission to license a liquefied natural
gas facility on the California coast, to update its study of the
 need for   effect of  liquefied natural
gas imports  and exports  at least 60 days prior to a
hearing by the State Lands Commission or the California Coastal
Commission if the Energy Commission has not issued an integrated
energy policy report within 180 days of the hearing.  The bill
would require the Energy Commission   to create and maintain
a matrix of information regarding liquefied natural gas terminal
projects. 
   The bill would also require a liquefied natural gas terminal
project applicant to include in the application evidence that it has
consulted with the United States Department of Defense and its
impacted service components. For a project involving the construction
or operation of a liquefied natural gas terminal for which an
application submitted to the Federal Energy Regulatory Commission
(FERC) or the United States Maritime Administration has not been
deemed data adequate on or before January 1, 2013, and the
application is being processed for further action by the FERC or the
United States Maritime Administration, an environmental impact report
prepared for that project by a lead agency would be required to
contain specified information. By requiring a local agency to prepare
an environmental impact report that contains specified information,
the bill would increase the level of service provided by a local
agency, thereby imposing a state-mandated local program.
   The bill would also require the commission to impose a fee upon a
liquefied natural gas terminal project applicant proposing a
liquefied natural gas terminal that would be subject to the bill's
provisions and would authorize the commission to expend the fees,
upon appropriation by the Legislature, to implement those provisions.

   (2)  The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The state has a critical role in decisions regarding the
siting and design of new onshore and offshore infrastructure for the
importation  and exportation  of liquefied natural gas with
regard to public health, safety, and the environment.
   (b) California has a rich history of innovative and strong
environmental laws and should continue to strive for the best
protections possible.
   (c) Utilities in California are required to meet new demand
through energy efficiency programs before acquiring other sources of
electricity.
   (d) Accelerating the use of renewable energy resources wherever
feasible and ensuring a diverse and affordable portfolio of fuel
sources may minimize supply interruptions and increase reliability.
   (e) Decisions regarding the importation  and exportation 
of liquefied natural gas should be based on a comprehensive review
of current and projected natural gas supply and demand in California.

   (f) The possible importation  and exportation  of
liquefied natural gas should be reviewed as part of the state's
integrated energy policy report, which contains an overview of major
energy trends and issues facing the state, including supply, demand,
and price.
  SEC. 2.  Section 21090.2 is added to the Public Resources Code, to
read:
   21090.2.  (a) In addition to any other requirements under this
division, for a project involving the construction or operation of an
onshore or offshore liquefied natural gas terminal in California for
which an application submitted to the Federal Energy Regulatory
Commission or the United States Maritime Administration has not been
deemed data adequate on or before January 1, 2013, and the
application is being processed for further action by the Federal
Energy Regulatory Commission or the United States Maritime
Administration, an environmental impact report shall include all of
the following:
   (1) A comparative analysis of feasible alternative project
technologies pursuant to Section 15126.6 of Title 14 of the
California Code of Regulations.
   (2) An analysis of potential disproportionately high and adverse
human health or environmental effects on minority and low-income
populations.
   (3) A full life-cycle analysis of the impacts of greenhouse gases.

   (b) This section shall not be construed as a limitation on the
power of a public agency to otherwise disapprove the project pursuant
to any other provision of law.
   (c) This section shall not be construed as a limitation to comply
with any other requirements of this division or any other provision
of law.
  SEC. 3.  Chapter 3.5 (commencing with Section 25250) is added to
Division 15 of the Public Resources Code, to read:
      CHAPTER 3.5.  LIQUEFIED NATURAL GAS MARKET ASSESSMENT ACT


   25250.  This chapter shall be known and may be cited as the
Liquefied Natural Gas Market Assessment Act.
   25250.5.  For purposes of this chapter, the following definitions
apply:
   (a) "Liquefied natural gas" or "LNG" means natural gas cooled to
minus 259 degrees Fahrenheit so that it forms a liquid at
approximately atmospheric pressure.
   (b) (1) Onshore or offshore liquefied natural gas terminal in
California" means facilities located onshore or offshore in
California, designed to receive liquefied natural gas from oceangoing
vessels, including those facilities required for storage and
regasification of the liquefied natural gas, the marine vessels
associated with these facilities, and any new pipelines, including,
but not limited to, all new pipelines from these offshore or onshore
terminals to shore and facilities necessary for the transmission of
the regasified natural gas from those facilities, to the point of
interconnection with any existing natural gas transportation or
distribution system.
   (2) "Onshore or offshore liquefied natural gas terminal in
California" does not include an LNG storage tank located or filled at
a California port, or a portable pressurized container approved by
the United States Department of Transportation for the storage,
transportation, or delivery of LNG, that is used for vessel or
vehicle fuel.
   25251.  (a) As a component of the integrated energy policy report,
the commission shall conduct a study of the  need for
  effect of  liquefied natural gas imports 
to meet   and exports on  the state's energy
demand.
   (b) The study shall assess all of the following:
   (1) The future demand for natural gas in California, including,
but not limited to, natural gas as an alternative transportation
fuel.
   (2) The future supply of natural gas in California available from
domestic production and imported into California through interstate
pipelines, the supply available from domestic production within
California, and the supply available from foreign production and
imported into California through international pipelines from Mexico
and Canada, including any liquefied natural gas terminal proposed to
be built outside the state and the nation that would  be the
source of natural gas imported   import or export, or
both import and export, natural gas  into  or from  the
state.
   (3) All supplemental sources of natural gas and natural gas
alternatives that can be reasonably expected to be available to meet
projected energy demand, including, but not limited to, conservation,
energy efficiency programs, and renewable energy resources.
   (4) Projections of the price for natural gas under reasonable
supply and demand circumstances.
   (c) The report shall consider the impact of reducing electricity
derived from coal pursuant to Chapter 3 (commencing with Section
8340) of Division 4.1 of the Public Utilities Code, and the potential
of demand reduction opportunities, including, but not limited to,
the upgrading and retrofitting of energy infrastructure, the role of
renewable energy, and greater efficiency in building codes.
   (d) The report shall include an analysis of what impact new fossil
fuel infrastructure will have on mandates on investor owned
utilities under any provision of law, including, but not limited to,
the California Renewables Portfolio Standard Program (Article 16
(commencing with Section 399.11) of Chapter 2.3 of Part 1 of Division
1 of the Public Utilities Code).
   (e) The commission shall update its study of the  need for
  effects of  liquefied natural gas imports 
and exports  at least 60 days prior to the hearing conducted by
the State Lands Commission or the California Coastal Commission prior
to issuing a lease or permit to license a liquefied natural gas
facility on the California coast, if the commission has not issued an
integrated energy policy report within 180 days of the hearing. 

   25251.5.  (a) On or before July 1, 2013, the commission shall
create a matrix on its Internet Web site that meets, to the extent
that data are publicly available, all of the following requirements:
   (1) The matrix shall be in a format that allows the public to
contrast and compare each onshore or offshore liquefied natural gas
terminal in California, either existing or proposed. The matrix shall
also include information from liquefied natural gas facilities
located in Alaska, Canada, the west coast of the continental United
States, and the west coast of Mexico, including Baja California, that
may provide natural gas to California.
   (2) The matrix shall include a summary of environmental impacts,
mitigation measures, and alternatives discussed in the environmental
impact report (EIR) completed for the onshore or offshore liquefied
natural gas terminal project, along with an online link to the EIR.
For projects outside of the state and nation, the matrix shall
contain a link to an equivalent environmental review document, if
available.
   (3) For each existing and proposed onshore or offshore liquefied
natural gas terminal project, the matrix shall include all of the
following information:
   (A) The project's location.
   (B) The project's owner.
   (C) The project's Internet Web site, if any.
   (D) The project's contact information.
   (E) The project's description.
   (F) The projected average natural gas production capacity in cubic
feet per day.
   (G) The projected peak natural gas production capacity in cubic
feet per day.
   (H) The liquefied natural gas and natural gas storage capacity, if
any.
   (I) The potential export capacity of a terminal.
   (J) The approximate cost of the project.
   (K) The projected online date.
   (L) The siting process applicable to the project.
   (b) The commission shall update the matrix as information  becomes
available but no less than quarterly, and shall include the major
project components and the potential environmental impacts associated
with the onshore or offshore liquefied natural gas terminal project
proposal that has filed an application or has publicly announced
plans to build an onshore or offshore terminal.
   (c) The commission shall post a new application for approval to
build and operate an onshore or offshore liquefied natural gas
terminal in California to the matrix within 30 days after the
submittal of the application. 
   25252.  An applicant for the construction or operation of a
liquefied natural gas terminal project shall provide evidence in its
application that it has consulted with the United States Department
of Defense and its impacted service components, and include within
the application a description of the consultation with regard to
potential impacts upon national security, including potential impacts
on the land, sea, and airspace identified by the Department of
Defense and its impacted service components, for conducting
operations or training, or for the research, development, testing,
and evaluation of weapons, sensors, and tactics.
   25253.  The commission shall impose a fee upon a liquefied natural
gas terminal project applicant proposing a liquefied natural gas
terminal that is subject to being evaluated pursuant to this article.
The fee shall cover the costs that may be incurred by the commission
to implement this article, including the costs of any temporary
personnel or consultants. The commission may expend the fees
collected pursuant to this section, upon appropriation by the
Legislature, to implement this article.
  SEC. 4.   No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.