The move requires that all “new long-term commitments for baseload generation to serve California consumers be with power plants that have emissions no greater than a combined cycle gas turbine plant,” approximately 500 kg/MWh.
The EPS covers both new plant construction, including major investments on existing baseload plants and new or renewal contracts with a term of five years or more.
The PUC’s actions implement a Senate bill which prohibits the purchase of baseload generation by utilities unless it complies with a GHG emissions performance standard.
PUC commissioner Dian M. Grueneich said: “This decision leaves the door open to new, advanced technologies and carbon sequestration projects that will allow the energy industry to develop clean and sustainable sources of power.”
The adopted emissions performance standard is intended to serve as a short-term bridge until an enforceable load-based GHG emissions limit is established and in operation.
At the same time, the California Independent System Operator Corporation (CaISO) has filed a financing plan with the Federal Energy Regulatory Commission (FERC) for major transmission lines to remote locations in order to supply renewable energy to the grid.
The new payment mechanism, if approved and implemented, is designed to remove financial barriers that can hinder development of wind, solar, and geothermal resources.
Currently, transmission lines that connect new generation to the grid are paid for by the developer and recovered via the CaISO’s Transmission Access Charge (TAC). However, a new financing mechanism is required to facilitate the development of transmission projects that reach remote locations where several companies are developing renewable energy resources, possibly over a period of many years.
The new proposals call for the initial costs of multi-user resource transmission projects to be paid by the transmission owners and recouped through the TAC. As generators connect to a new line they will pay a share of the costs, based on generating capacity, allowing renewable developers to begin paying for transmission after generation begins, as opposed to shouldering the costs up front.
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