Article 5. Generation Facilities of California Public Utilities Code >> Division 1.5. >> Chapter 3. >> Article 5.
In evaluating the eligibility for financing of additional
generation facilities, the authority shall utilize the Energy
Commission's and the Independent System Operator's, or their
successor's, information relating to the need for additional
generating facilities and their forecasts of electric supply and
demand for the state.
(a) All generation-related projects and enterprises financed
pursuant to this division shall provide electricity to the consumers
of this state at the cost of generating that electricity, including
the costs of financing those projects or enterprises. To the extent
that electricity is not needed in the state, or that it is
financially advantageous to California consumers, the electricity may
be sold outside the state at just and reasonable rates.
(b) If a participating party is an electrical corporation, the
commission shall determine the cost of generating electricity and to
which entities the electricity is sold.
(c) If a participating party is a local publicly owned electric
utility seeking to provide electricity to consumers in its service
territory, the governing board of that utility shall determine the
cost of generating electricity and to which entities the electricity
(d) If neither subdivision (b) nor subdivision (c) applies, the
authority shall determine the cost of generating electricity and to
which entities the electricity is sold, consistent with subdivision
In addition to the other powers provided in this division,
the activities of the authority under this article are intended to
supplement private and public sector power supplies, taking into
account generation facilities in operation or under development as of
the effective date of this section, consistent with achieving
reasonable energy capacity reserves within five years of the
effective date of this division.
The authority shall have the authority to receive and act on
applications for financial assistance from owners of existing
powerplants whose owners or operators commit to undertake capacity
expansion through facility retrofits, new construction, or both, that
will improve the efficiency and environmental performance of
All generation facilities constructed or improved pursuant to
this division shall comply with Chapter 1 (commencing with Section
1720) of Part 7 of Division 2 of the Labor Code.
The authority may not invest in any nuclear facilities or
develop additional hydroelectric facilities without first receiving
specific statutory authorization to do so on a project-by-project
(a) If the authority determines under Section 3350 that
additional electric generation supply is required to meet the
purposes of this division, the authority may undertake the following
activities to ensure that the authority, or any participating party,
is able to build, own, and operate generation facilities as part of a
least cost electric supply policy:
(1) Identify suitable sites for the construction of generation
facilities, taking into account fuel supply, interconnection,
community, and environmental factors.
(2) Secure rights to the sites identified, including, but not
limited to, fee simple acquisition, leaseholds, or options.
(3) Conduct any studies that may be necessary to construct and
operate generation facilities at the site, including, but not limited
to, environmental, engineering, or feasibility studies.
(4) Conduct, in coordination with the Energy Commission, all
applicable public and community involvement processes.
(5) Apply for permits, licenses, or other local, state, or federal
approvals, including, but not limited to, compliance with the
applicable procedures of the Energy Commission.
(b) The authority may request proposals from qualified
participating parties to purchase, lease, or otherwise acquire sites
for the purpose of developing generation facilities that will provide
the lowest cost power to consumers over the life of the facilities,
consistent with Section 3351.
(c) The authority shall comply with all applicable air quality
laws and regulations and the Warren-Alquist State Energy Resources
Conservation and Development Act (Division 15 (commencing with
Section 25000) of the Public Resources Code).