COM/MP1/lil Date of Issuance 11/7/2008
Decision 08-11-029 November 6, 2008
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking to Implement the Commission's Procurement Incentive Framework and to Examine the Integration of Greenhouse Gas Emissions Standards into Procurement Policies. |
Rulemaking 06-04-009 (Filed April 13, 2006) |
DECISION GRANTING INTERVENOR COMPENSATION
TO THE GREEN POWER INSTITUTE FOR SUBSTANTIAL CONTRIBUTIONS
TO DECISION (D.) 07-09-017 AND D.08-03-018
TABLE OF CONTENTS
Title Page
DECISION GRANTING INTERVENOR COMPENSATION TO THE GREEN POWER INSTITUTE FOR SUBSTANTIAL CONTRIBUTIONS TO DECISION (D.) 07-09-017 AND D.08-03-018 22
2. Requirements for Awards of Compensation 88
4. Substantial Contribution 1010
5. Contributions of Other Parties 1313
6. Reasonableness of Requested Compensation 1313
6.1. Hours and Costs Related to and Necessary for
Substantial Contribution 1414
8. Waiver of Comment Period 1919
Attachment A - Intervenor Compensation Summary
DECISION GRANTING INTERVENOR COMPENSATION
TO THE GREEN POWER INSTITUTE FOR SUBSTANTIAL CONTRIBUTIONS
TO DECISION (D.) 07-09-017 AND D.08-03-018
This decision awards $60,608.50 in compensation to the Green Power Institute (GPI) for its substantial contributions to Decision (D.) 07-09-017 and D.08-03-018. This represents a decrease of $1,392.50 from the amount requested due to adjustments to GPI representative's hourly rates. This award will be paid from the intervenor compensation program fund, pursuant to D.00-01-020. This proceeding remains open to consider issues in Phase 1 and Phase 2.
1. Background
In the Order Instituting Rulemaking (OIR) initiating Rulemaking (R.) 06-04-009, the California Public Utilities Commission (Commission or Public Utilities Commission) provided that Phase 2 would be used to implement a load-based Greenhouse Gas (GHG) emissions cap for electricity utilities, as adopted in D.06-02-032 as part of the procurement incentive framework, and also would be used to take steps to incorporate GHG emissions associated with customers' direct use of natural gas into the procurement incentive framework.1
On September 27, 2006, Governor Schwarzenegger signed into law Assembly Bill (AB 32), "The California Global Warming Solutions Act of 2006." This legislation requires California Air Resources Board (ARB) to adopt a GHG emissions cap on all major sources in California, including the electricity and natural gas sectors, to reduce statewide emissions of GHGs to 1990 levels.
We held a prehearing conference (PHC) in Phase 2 on November 28, 2006. The Phase 2 scoping memo, which was issued on February 2, 2007, determined that, with enactment of AB 32, the emphasis in Phase 2 should shift to support implementation of the new statute. Because of the need for "a single, unified set of rules for a GHG cap and a single market for GHG emissions credits in California," the Phase 2 scoping memo provided that "Phase 2 should focus on development of general guidelines for a load-based emissions cap that could be applied . . . to all electricity sector entities that serve end-use customers in California,"2 including both investor-owned utilities (IOUs) that the Commission regulates and publicly owned utilities (POUs).
As detailed in the Phase 2 scoping memo, the Public Utilities Commission and Energy Commission are undertaking Phase 2 on a collaborative basis, through R.06-04-009 and Docket 07-OIIP-01, respectively, to develop joint recommendations to ARB regarding GHG regulatory policies as it implements AB 32. The Phase 2 scoping memo noted that the policies in D.06-02-032 issued in R.04-04-003 were adopted prior to passage of AB 32. It placed parties on notice that, in the course of Phase 2, the Commission might adopt policies that would modify portions of D.06-02-032 as a result of AB 32, subsequent actions by ARB, or the record developed in the course of this proceeding.3
AB 32 requires that, on or before January 1, 2008, ARB adopt regulations to require the reporting and verification of statewide GHG emissions and to monitor and enforce compliance with the program. (Section 38530(a).) The statute specifies that "statewide GHG emissions" includes the total annual emissions of GHG gases in the state. (Section 38505(m).) While certain language in AB 32 focuses on "electricity consumed in the state," we interpret the statutory definition of "statewide GHG emissions" to include emissions from electricity generated in California and exported from the state, in addition to electricity consumed in the state.
On April 19, 2007, the Public Utilities Commission and the Energy Commission held a symposium which addressed linking GHG cap-and-trade systems. Reporting issues were also discussed.
The Public Utilities Commission and the Energy Commission jointly held a workshop on April 12 and 13, 2007 that addressed GHG reporting and verification issues, among other subjects. Based on information presented at that workshop, subsequent ARB workshops, and existing reporting protocols of the Energy Commission and the California Climate Action Registry, staff from the two agencies (Joint Staff or Staff) developed a Joint Staff proposal for an electricity retail provider GHG reporting protocol. Pursuant to a June 12, 2007 ruling by the Administrative Law Judges (ALJs), parties were invited to comment on the Joint Staff proposal. The ALJ ruling also asked parties to comment, among other things, on whether modifications to the Joint Staff reporting proposal would be needed to support a deliverer/first-seller GHG regulatory structure for the electricity sector.
In D.06-02-032, the Public Utilities Commission stated an intent to apply a load-based GHG emissions cap to the three major IOUs, and also to Community Choice Aggregators (CCAs) and Electric Service Providers (ESPs) operating within the service territory of the three major IOUs. D.06-10-020 amended the OIR, and the Public Utilities Commission specified that, with the passage of Senate Bill (SB) 1368, all ESPs, all CCAs, and all electrical corporations, including all IOUs, multi-jurisdictional utilities, and electric cooperatives, are respondents to this rulemaking. The Phase 2 scoping memo specified that Phase 2 would address whether the load-based GHG emissions cap should apply to the additional respondents added by D.06-10-020.
As Phase 2 has progressed, the Public Utilities Commission has modified the scope of Phase 2 through D.07-05-059 and D.07-07-018 amending the OIR.4 D.07-05-059 specified that Phase 2 should be used to develop guidelines for a load-based GHG emissions cap for the entire electricity sector and recommendations to ARB regarding a statewide GHG emissions limit as it pertains to the electricity and natural gas sectors. To that end, D.07-05-059 also expanded the natural gas inquiry in Phase 2 to address GHG emissions associated with the transmission, storage, and distribution of natural gas in California, in addition to the use of natural gas by non-electricity generator end-use customers as originally contemplated in the OIR. The list of respondents to this proceeding was amended to include all investor-owned gas utilities, including those that provide wholesale or retail sales, distribution, transmission, and/or storage of natural gas.
D.07-07-018 amended the OIR further to consider issues raised by and alternatives considered in the June 30, 2007 Market Advisory Committee report entitled, "Recommendations for Designing a Greenhouse Gas Cap-and-Trade System for California," to the extent that they were not already within the scope of Phase 2. Thus, D.07-07-018 provided for consideration of alternatives to a load-based cap for the electricity sector, a deviation from the policies adopted in D.06-02-032.
By Administrative Law Judge (ALJ) rulings, parties were asked to submit comments and legal briefs on issues raised by the Market Advisory Committee report. On August 21, 2007, the Public Utilities Commission and the Energy Commission held a joint en banc hearing addressing the type and point of GHG regulation in the electricity sector, including alternatives to a load-based cap-and-trade approach. In a November 9, 2007 ALJ ruling, parties were provided an opportunity to file additional comments on issues regarding the type and point of regulation for the electricity sector.
By July 12, 2007 ALJ ruling, parties were directed to file comments on preliminary recommendations of the Public Utilities Commission staff regarding the regulatory treatment of GHG emissions in the natural gas sector. The staff paper attached to the ALJ ruling identified and discussed various policy issues associated with developing regulations to control GHG emissions in the natural gas sector. A PHC was held on August 1, 2007 to address the manner in which regulation of GHG emissions in the natural gas sector should be considered in this proceeding. By ALJ ruling dated November 28, 2007, parties were asked to file comments on the approach to GHG regulation that would be appropriate for the natural gas sector.
Phase 2 is also addressing how to distribute annual emissions allowances under a cap-and-trade mechanism to individual entities, to the extent appropriate, and how such a process should be administered. An October 15, 2007 ALJ ruling requested comments on allowance allocation issues, and a workshop was held on this topic on November 5, 2007.
As part of our Phase 2 analysis, the Public Utilities Commission hired a consultant to conduct detailed modeling of the electricity sector impacts of potential GHG emissions cap scenarios. The modeling analysis is to take into account the policy options developed in other portions of the proceeding in order to analyze various options for cap design and implementation for the electricity sector. The consultants are also considering the natural gas sector in their modeling process. However, separate, detailed modeling of the natural gas sector is not being undertaken. The modeling effort is examining the level and costs of emission reductions that can be achieved by the electricity and natural gas sectors before the 2020 deadline set by AB 32. It is also addressing the rate at which these types of reductions can be achieved, which will inform our recommendations for annual emissions goals for the electricity and natural gas sectors. A November 9, 2007 ALJ ruling requested comments on modeling-related issues and on a staff paper on emission reduction measures. A workshop on input assumptions and initial model results was held on November 14, 2007.
On September 6, 2007, the Public Utilities Commission adopted D.07-09-017 that recommended to ARB proposed regulations such as reporting and verification requirements applicable to retail providers and marketers in the electricity sector.
On March 13, 2008, the Public Utilities Commission adopted D.08-03-018 that recommended ARB adopt a mix of direct mandatory/regulatory requirements for the electricity and natural gas sectors and a cap-and-trade system that includes the electricity sector. D.08-03-018 provides a broad framework for regulating GHG emissions from the electricity and natural gas sectors, and the Commission anticipated that additional details and issues would be resolved in subsequent decisions.
1 In D.07-01-039 in Phase 1 of this proceeding, the Public Utilities Commission adopted a GHG emissions performance standard for new long-term financial commitments to baseload electricity generation. D.07-05-063 denied applications for rehearing of D.07-01-039. D.07-08-009 denied a petition for modification, but clarified how the adopted cogeneration thermal credit methodology will be applied to bottoming-cycle cogeneration. On February 13, 2008, SCE filed an amended Petition to Modify D.07-01-039, which is pending.
2 Phase 2 scoping memo, mimeo. at 8.
3 Id., mimeo. at 10-11.
4 On December 21, 2007, the assigned Commissioner issued a ruling modifying the Phase 2 scoping memo to specify the manner in which natural gas issues raised in the OIR and the issues added by D.07-05-059 and D.07-07-018 would be considered in Phase 2.
