This division shall be known and may be cited as the Warren-Alquist State Energy Resources Conservation and Development Act.
Chapter 1Title and General Provisions
Section § 25000
This law is officially known as the Warren-Alquist State Energy Resources Conservation and Development Act.
Warren-Alquist Act State Energy Resources Energy Conservation Energy Development Resource Management California Energy Policy Environmental Legislation Energy Efficiency Sustainable Energy Renewable Resources State Energy Regulation Energy Statute Conservation Act Energy Legislation Development Act
Section § 25000.1
This law emphasizes that electric and natural gas utilities should prioritize keeping energy costs low while benefiting society and the environment. The goal includes improving energy efficiency and investing in renewable energy like wind, solar, and geothermal.
Utilities should also focus on conservation and efficient energy use if they offer reliable services comparable to traditional methods and aren't being utilized by others.
When assessing energy resources, the commission must consider environmental costs and benefits, ensuring consistency with the Public Utilities Commission's standards. If there's a conflict with these standards, the commission can use its valuation by explaining its decision during proceedings.
(a)CA Public Resources Code § 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)CA Public Resources Code § 25000.1(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)CA Public Resources Code § 25000.1(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.
ratepayer protection resource planning energy efficiency renewable energy wind energy solar energy geothermal energy energy conservation environmental costs energy distribution system reliability energy investment load management Public Utilities Commission air quality benefits
Section § 25000.5
This law section highlights California's stance on reducing reliance on petroleum-based fuels due to their negative impact on energy security and the environment, including issues like air pollution and global warming. The state aims to evaluate and compare the costs of petroleum and other fuels to establish a transportation policy that is both environmentally and economically wise.
California also seeks to minimize these costs in its own operations by utilizing clean, efficient vehicles and alternative fuels, fostering energy security, and promoting diverse supply sources.
'Petroleum-based fuels' are clarified to include those derived from crude oil and certain gases.
(a)CA Public Resources Code § 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)CA Public Resources Code § 25000.5(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)CA Public Resources Code § 25000.5(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)CA Public Resources Code § 25000.5(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.
energy security petroleum-based fuels environmental impact transportation fuels alternative fuels air pollution global warming economic cost energy efficiency state transportation policy marine environment clean vehicles state fleets conservation measures fuel diversity
Section § 25001
This law states that having a steady and dependable supply of electricity is crucial for the health, safety, and overall well-being of California's people and economy. It emphasizes that it's the state's government's duty to ensure that electricity is consistently available to protect public health and safety, support the general welfare, and safeguard the environment.
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.
electrical energy reliable supply public health safety state economy government responsibility general welfare environmental quality energy protection electricity supply California people state government energy needs public safety
Section § 25002
This law states that the fast-growing demand for electricity is partly because of wasteful and inefficient use of power. If this continues, it could seriously harm the state's energy, land, and water resources, and negatively impact the environment.
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.
electric energy demand inefficient power use wasteful energy consumption resource depletion environmental impact energy resources land resources water resources environmental quality uneconomic power use irreversible commitment of resources energy consumption trends environmental threats power demand growth sustainable energy use
Section § 25003
This law states that when planning for new power plants and electrical transmission facilities, considerations should include state, regional, and local plans related to land use, urban growth, transportation, environmental protection, and economic development.
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.
electrical generating facilities transmission facilities land use planning urban expansion transportation systems environmental protection economic development state plans regional plans local plans energy infrastructure future planning power plant development sustainable development infrastructure planning
Section § 25004
This section highlights the urgent need to speed up research and development in finding alternative energy sources and enhancing the technology for designing and locating power facilities.
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.
alternative energy energy research power facility design siting technology energy development renewable energy sources energy innovation green technology sustainable power energy infrastructure energy technology improvement power plant siting energy efficiency environmental impact clean energy solutions
Section § 25004.2
This section of the law recognizes cogeneration technology as a valuable energy resource that can help meet California's energy needs. It highlights the benefits of this technology, such as reducing reliance on conventional fuels, being ready for immediate use, and minimizing environmental harm. The law emphasizes the importance of state government supporting and committing to cogeneration technology to ensure a reliable and clean energy source.
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.
cogeneration technology energy resource state energy supply reliable energy clean energy environmental impact conventional fuels state government support immediate application energy needs long-term fuel reduction sustainable energy energy mix California energy policy renewable energy solutions
Section § 25004.3
This section of the law highlights California's commitment to supporting advanced transportation technologies, which can help save energy, reduce pollution, ease traffic, and boost the economy. There is a strong need to support businesses in this field. Therefore, the state wants to provide financial aid, especially to small businesses, to help them succeed in developing and bringing these technologies to market.
The Legislature further finds and declares all of the following:
(a)CA Public Resources Code § 25004.3(a) Advanced transportation technologies hold the promise of conserving energy, reducing pollution, lowering traffic congestion, and promoting economic development and jobs in California.
(b)CA Public Resources Code § 25004.3(b) There is a pressing need to provide business assistance to California companies engaged in producing and commercializing advanced transportation technologies.
(c)CA Public Resources Code § 25004.3(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.
advanced transportation technologies energy conservation pollution reduction traffic congestion economic development job creation business assistance commercialization financial assistance small businesses California companies policy state support innovation technology development
Section § 25005
This law highlights the need for the state government to have more power and technical skills to ensure a steady supply of electricity, protect the environment, and conserve energy resources. The aim is to avoid disruptions in electricity services while keeping environmental impacts and energy use in check.
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.
prevention of delays interruptions in electricity orderly provision electrical energy protection of environmental values energy conservation state government role expanded authority technical capability environmental protection energy resource management electricity supply state government responsibilities energy stability sustainability
Section § 25005.5
This section highlights the need for the State Energy Resources Conservation and Development Commission to gather and analyze data to foresee potential energy issues in California. This includes understanding the state’s involvement in domestic oil production, especially in certain districts, and managing Alaskan oil production and its use within California.
It also involves keeping track of federal plans for offshore oil development near the state, as well as the effects of rising petroleum prices and energy conservation efforts on demand and supply. Additionally, it covers potential shipments of Alaskan oil through California and considers the implications of processing petroleum outside the state to meet local needs.
Finally, it examines how national energy policies might affect the state.
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)CA Public Resources Code § 25005.5(a) The state’s role in production of oil from domestic reserves, especially within Petroleum Administration for Defense District V.
(b)CA Public Resources Code § 25005.5(b) The production of Alaskan North Slope oil and its projected use in the state.
(c)CA Public Resources Code § 25005.5(c) Plans of the federal government for development of oil in the Outer Continental Shelf adjacent to the state.
(d)CA Public Resources Code § 25005.5(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)CA Public Resources Code § 25005.5(e) Potential shipment of Alaskan oil through the state.
(f)CA Public Resources Code § 25005.5(f) Proposals for processing petroleum outside the state to supply the needs within the state.
(g)CA Public Resources Code § 25005.5(g) The impact on the state of national energy policies, including Project Independence.
State Energy Commission future energy problems domestic oil production Petroleum Administration for Defense District V Alaskan North Slope oil Outer Continental Shelf development petroleum price impacts energy conservation measures offshore oil development Alaskan oil shipment petroleum processing proposals national energy policies Project Independence energy demand effects federal government oil plans
Section § 25006
The state aims to take charge of managing energy resources by encouraging and supporting research into energy problems. The goal is to effectively coordinate and regulate electrical generation and transmission facilities.
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.
energy resources management energy supply issues energy demand problems coordinating energy research developing energy solutions electricity generation transmission facilities regulation state energy responsibility energy policy legislature intent on energy energy development energy coordination California energy policy
Section § 25007
This law aims to reduce wasteful and unnecessary energy use in California. It supports efforts to slow down energy consumption growth, conserve energy resources wisely, and ensure that environmental, public safety, and land use objectives across the state are met.
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.
energy conservation reduce energy consumption wasteful energy use prudent energy use statewide goals energy resources public safety land use goals environmental objectives reduce waste uneconomical energy use growth of energy consumption
Section § 25008
This law emphasizes California's commitment to conserving energy and water by utilizing alternative resources. The state intends to use its natural and physical resources at state-owned sites to produce energy and water more efficiently, thereby reducing costs and dependency on traditional sources. This approach includes using renewable energy sources like wind, solar, and geothermal, among others.
The goal is to lower expenses, benefit taxpayers, and potentially generate revenue. The law ensures that any initiatives respect existing state and federal regulations and are fair to consumers. Projects should focus on lifecycle costs and ensure optimal efficiency for the state.
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.
energy conservation water conservation alternative energy sources state-owned sites electricity production cost reduction fossil fuel reduction resource substitution renewable energy technologies cogeneration biomass wind energy geothermal energy solar technologies water reclamation
Section § 25009
This section explains that California's electricity industry was restructured in 1996 to create a competitive market for power generation. Previously, powerplant owners were guaranteed the chance to recover their costs through regulated rates, and the state decided when new plants were needed. Now, since powerplant owners face more financial risks, the state will no longer determine the need for new powerplants. Instead, the focus is on balancing environmental protection, reliable electricity supply, improved efficiency, and reduced costs. The state's regulations are being adjusted to encourage private investment in new powerplants, ensuring timely construction and maintenance of electricity capacity.
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.
electricity industry restructuring competitive electricity generation powerplant investment risk regulated rates environmental protection electricity reliability private capital investment powerplant siting process construction of electricity capacity economic implications restructured electricity markets need determination modification electricity generation market consumer cost reduction environmental performance improvements
