The OIR presents a preliminary scoping memo that sets forth two major issue areas in this rulemaking: (1) threshold issues associated with considering the adoption and design of a greenhouse gas (GHG) performance standard, and (2) implementation issues associated with the load-based GHG emissions cap adopted in Decision (D.) .06-02-032 as part of the Commission's procurement incentive framework. This rulemaking is also the forum for addressing the implementation issues associated with a GHG performance standard that may be adopted upon addressing the threshold issues under (1) above. Drawing from the preliminary scoping memo and augmenting as appropriate, the Division of Strategic Planning has compiled a listing of the issues/questions to address in this rulemaking, organized by issue area. That listing is presented in the Attachment to this ruling.
In the OIR, the Commission stated its goal to address the threshold policy issues associated with a GHG performance standard by year end, while moving forward with key implementation issues associated with the procurement incentive framework established in D.06-02-032.3 Therefore, I have developed a schedule that focuses on addressing the GHG performance standard threshold issues first, so that a decision can be prepared for Commission consideration by year end. In doing so, I have carefully considered Commission staff resource availability as well as the work load on Respondents and interested parties, many of which will also be participating in other high-priority resource proceedings during the remainder of 2006. Finally, the proposed schedule is compatible with my sabbatical plans for late summer/early fall.
Phase 1 of this proceeding will address the threshold performance standard policy issues, as described more fully in the Attachment. My proposed schedule for Phase 1 is as follows:
Phase 1 Schedule
Pre-Workshop Comments on Phase 1 Issues June 12, 2006
Workshop June 21-23, 2006
Post-Workshop Comments To be scheduled
Draft Workshop Report/Staff Recommendations August 21, 2006
Opening Comments on Workshop Report September 1, 2006
Reply Comments on Workshop Report September 12, 2006
Final Workshop Report/Staff Recommendations September 25, 2006
Draft Decision Addressing Final Staff
Recommendations and Parties' Positions November 9, 2006
Comments on Draft Decision November 29, 2006
Reply Comments on Draft Decision December 4, 2006
Final Decision (on Agenda) December 14, 2006
The Phase 1 workshop will be facilitated by DSP staff or their consultants, and I will be in attendance.
With respect to the other issue areas in this proceeding (collectively referred to as "Phase 2" in the Attachment), I intend to move forward as expeditiously as possible, beginning this fall, with GHG emissions reporting protocols and the registration requirements discussed in D.06-02-032. In particular, the Commission articulated its preference to require the immediate registration of emissions by all generation resources serving California load with the California Climate Action Registry (CCAR).4 Recognizing that there was more work to be done before this requirement could be implemented effectively, the Commission stated that the implementation phase should "explore with CCAR ways in which their protocols can be modified to include generation/facility specific data to fit within a load-based cap" during the implementation phase.5 In conjunction with that work, a date will be established by which all power purchase agreements that Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), and Southern California Edison Company (SCE) sign for power should include a provision requiring supplier registration with the CCAR. In addition, as part of the implementation phase, the Commission will develop a method for assigning emissions values to supplies that are unregistered with the CCAR.6
In their pre-PHC comments, parties should discuss the sequence (phasing) and timing for addressing the additional implementation issues identified in the Attachment (and any additional issues that parties may identify), and the appropriate procedural forum (workshops/evidentiary hearings) for addressing them.
3 OIR, Section IV.
4 D.06-02-032, mimeo., p. 4. CCAR is a non-profit public benefit corporation created pursuant to Health and Safety Code Section 42820. It serves as a voluntary GHG registry of participating companies' emissions profiles. Participating power generators and electric utilities account for and report GHG emission inventories according to the CCAR's reporting protocols. PG&E, SCE and SDG&E are already voluntary members of CCAR.
6 Ibid., pp. 48-49. Ordering Paragraph 2.h.