PacifiCorp 2007 Integrated Resource Plan (May 30, 2007)

PacifiCorp – 2007 IRPChapter 3 – The Planning Environmentance standard begins immediately upon the establishment of the standard. Existing combinedcyclepower plants that are in operation, or have a California Energy Commission final permitdecision to operate as of June 30, 2007, are grandfathered under the bill and deemed to be incompliance with the greenhouse gas emission performance standard.California Global Warming Solutions Act of 2006 (AB32)On September 27, 2006, California Governor Arnold Schwarzenegger signed into law AssemblyBill 32 (AB 32), known as the California Global Warming Solutions Act of 2006. California hassince become the focus of climate change policy due to its massive economy, the fact that it isthe 12 th largest emitter of greenhouse gases in the world, and has had a history of catalyzing theformation of national environmental policy and regulation.The bill itself is fairly performance-oriented and could result in a comprehensive, and thus effective,greenhouse gas mitigation strategy beyond the traditional focus solely on utilities. Under thelegislation, greenhouse gas emissions would be reduced to 1990 levels by 2020 (a 25% reduction)and further reduced to 80% below 1990 levels by 2050. In determining and measuring theselevels, the protocols of the California Climate Action Registry are to be incorporated to themaximum extent feasible. AB 32 also sets forth the following milestones for the California AirResources Board:• By July 1, 2007, the Air Resources Board forms Environmental Justice and Economic &Technology Advancement advisory committees.• By July 1, 2007, the Air Resources Board adopts list of discrete early action measures thatcan be adopted and implemented before January 1, 2010.• By January 1, 2008, the Air Resources Board adopts regulations for mandatory greenhousegas emissions reporting. The Air Resources Board defines a 1990 emissions baseline forCalifornia (including emissions from imported power) and adopts that as the 2020 statewidecap.• By January 1, 2009, the Air Resources Board adopts plan indicating how emission reductionswill be achieved from significant sources of greenhouse gas emissions via regulations,market mechanisms and other actions.• During 2009, the Air Resources Board staff drafts rule language to implement its plan andholds a series of public workshop on each measure (including market mechanisms).• By January 1, 2010, early action measures take effect.• During 2010, the Air Resources Board conducts series of rulemakings, after workshops andpublic hearings, to adopt greenhouse gas regulations including rules governing marketmechanisms.• By January 1, 2011, the Air Resources Board completes major rulemakings for reducingGHGs including market mechanisms. The Air Resources Board may revise the rules andadopt new ones after January 1, 2011 in furtherance of the 2020 cap.• By January 1, 2012, greenhouse gas rules and market mechanisms adopted by the Air ResourcesBoard take effect and are legally enforceable. (Note: This deadline dovetails wellwith the post-2012 Kyoto Protocol negotiations.)• December 31, 2020, is the deadline for achieving the 2020 greenhouse gas emissions capenforced by the Air Resources Board.37