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4.4 – Energy Draft Environmental Impact Report February 2021 14800 W. Schulte Road Logistics Center 4.4-5 Senate Bill 1368 On September 29, 2006, Governor Arnold Schwarzenegger signed into law SB 1368 (Perata, Chapter 598, Statutes of 2006). The law limits long-term investments in baseload generation by the state’s utilities to those power plants that meet an emissions performance standard jointly established by the CEC and the CPUC. The CEC regulations do the following (Perata, Chapter 598, Statutes of 2006): • Establish a standard for baseload generation owned by, or under long-term contract to, publicly owned utilities of 1,100 pounds carbon dioxide (CO2) per megawatt-hour. This encourages the development of power plants that meet California’s growing energy needs while minimizing their emissions of GHGs. • Require posting of notices of public deliberations by publicly owned utilities on long-term investments on the CEC website. This facilitates public awareness of utility efforts to meet customer needs for energy over the long-term while meeting the state’s standards for environmental impact. • Establish a public process for determining the compliance of proposed investments with the emissions performance standard. Assembly Bill 1493 Adopted in 2002 by the state legislature, AB 1493 (“Pavley” regulations) required that CARB develop and adopt, no later than January 1, 2005, regulations to a chieve the maximum feasible and cost-effective reduction of GHG emissions from motor vehicles. The first California request to implement GHG standards for passenger vehicles, known as a waiver request, was made in December 2005 and was denied by the EPA in March 2008. That decision was based on a finding that California’s request to reduce GHG emissions from passenger vehicles did not meet the Clean Air Act requirement of showing that the waiver was needed to meet “compelling and extraordinary conditions.” The EPA granted California the authority to implement GHG emission reduction standards for new passenger cars, pickup trucks, and sport utility vehicles on June 30, 2009. On September 24, 2009, CARB adopted amendments to the Pavley regulations that reduce GHG emissions in new passenger vehicles from 2009 through 2016. These amendments were part of California’s commitment to a nationwide program to reduce new passenger vehicle GHGs from by 2016. CARB’s September 2009 amendments allowed for California’s enforcement of the Pavley rule while providing vehicle manufacturers with new compliance flexibility. The amendments also prepared California to harmonize its rules with the federal rules for passenger vehicles. It was expected that the Pavley regulations would reduce GHG emissions from California passenger vehicles by approximately 22% by 2012 and approximately 30% by 2016 while improving fuel efficiency and reducing motorists’ costs. Executive Order S-1-07 Issued on January 18, 2007, Executive Order S-1-07 sets a declining Low Carbon Fuel Standard for GHG emissions measured in CO2-equivalent (CO2e) grams per unit of fuel energy sold in California. The target of the Low Carbon Fuel Standard was to reduce the carbon intensity of California passenger vehicle fuels by at least 10% by 2020. The carbon intensity measures the amount of GHG emissions in the lifecycle of a fuel, including extraction/feedstock production, processing, transportation, and final consumption, per unit of energy delivered. CARB adopted the implementing regulation in April 2009. The regulation was expected to increase the production of biofuels, including those from alternative sources, such as algae, wood, and agricultural waste. In addition, the Low Carbon Fuel Standard was expected to drive the availability of plug-in hybrid, battery electric, and fuel-cell