Section § 8350

Explanation

This law outlines rules for load-serving entities and electric utilities concerning financial commitments for new electrical generating facilities. A load-serving entity, or California's Public Utilities Commission (PUC), cannot approve long-term financial deals for new power plants in California or nearby areas unless these facilities meet specific pollution control standards.

If a new facility is within California, it must adhere to the best available technology (BACT) standards and comply with local state and federal environmental laws. If the facility is outside California but affects a shared pollution area that includes parts of California, it must still meet California's BACT standards.

(a)CA Public Utilities Code § 8350(a) For purposes of this section, the following terms have the following meanings:
(1)CA Public Utilities Code § 8350(a)(1) “Load-serving entity” has the same meaning as that term is defined in Section 8340.
(2)CA Public Utilities Code § 8350(a)(2) “Long-term financial commitment” has the same meaning as that term is defined in Section 8340.
(3)CA Public Utilities Code § 8350(a)(3) “New electrical generating facility” means an electrical generating unit for which all legally required permits have been received after January 1, 2011. If an electrical generating unit is added to an existing powerplant after January 1, 2011, only the incremental capacity from that unit added after January 1, 2011, is a new electrical generating facility.
(4)CA Public Utilities Code § 8350(a)(4) “Shared pollution area” means an airshed encompassing a portion of California and a portion of an adjacent state or country, as determined by the United States Environmental Protection Agency.
(b)CA Public Utilities Code § 8350(b) A load-serving entity or local publicly owned electric utility shall not enter into, and the commission shall not approve for an electrical corporation, a long-term financial commitment with or for a new electrical generating facility constructed in California or in a shared pollution area if that facility does not meet the following requirements:
(1)CA Public Utilities Code § 8350(b)(1) If the new electrical generating facility is in California, the facility meets best available control technology (BACT) standards, to control air pollution emissions from the operation of the facility, and complies with air pollution control district or air quality management district rules and regulations, and state and federal law.
(2)CA Public Utilities Code § 8350(b)(2) If the new electrical generating facility is outside of California in a shared pollution area, the facility meets best available control technology (BACT) standards, to control air pollution emissions from the operation of the facility, that apply in the air basin in California adjacent to the facility.