Article 14 - Disclosure of Sources of Electrical Generation

California Public Utilities Code — §§ 398.1-398.6

Sections (6)

Amended by Stats. 2016, Ch. 656, Sec. 1. (AB 1110) Effective January 1, 2017.

(a)The Legislature finds and declares that there is a need for reliable, accurate, timely, and consistent information regarding fuel sources for electric generation offered for retail sale in California.
(b)The purpose of this article is to establish a program under which entities offering electric services in California disclose accurate, reliable, and simple to understand information on the sources of energy, and the associated emissions of greenhouse gases, that are used to provide electric services.

Amended by Stats. 2016, Ch. 656, Sec. 2. (AB 1110) Effective January 1, 2017.

The definitions set forth in this section shall govern the construction of this article.

(a)“Greenhouse gas emissions intensity” means the sum of all annual emissions of greenhouse gases associated with a generation source divided by the annual production of electricity from the generation source.
(b)“Retail supplier” means an entity that offers an electricity product for sale to retail consumers in California, including an electrical corporation, local publicly owned electric utility, electric service provider, and community choice aggregator.
(c)“System operator” means the Independent System Operator with

responsibility for the efficient use and reliable operation of the transmission grid, as provided by Section 345, or a local publicly owned electric utility that does not utilize the Independent System Operator.

(d)“Purchases of electricity from specified sources” or “purchases from specified sources” means electricity transactions that are traceable to specific generation sources by any auditable contract trail or equivalent, such as a tradable commodity system, that provides commercial verification that the electricity source claimed has been sold once and only once to a retail consumer. Retail suppliers may rely on annual data to determine whether a transaction meets this definition, rather than hour-by-hour matching of loads and resources.
(e)“Electricity from unspecified sources” means electricity that is not traceable to specific generation sources by any auditable

contract trail or equivalent, including a tradable commodity system, that provides commercial verification that the electricity source claimed has been sold once, and only once, to a retail consumer.

Amended by Stats. 2012, Ch. 606, Sec. 6. (AB 2227) Effective January 1, 2013.

(a)Beginning January 1, 1998, or as soon as practicable thereafter, each generator that provides meter data to a system operator shall report to the system operator electricity generated in kilowatthours by hour by generator, the fuel type or fuel types and fuel consumption by fuel type by month on an historical recorded quarterly basis. Facilities using only one fuel type may satisfy this requirement by reporting fuel type only. With regard to any facility using more than one fuel type, reports shall reflect the fuel consumed as a percentage of electricity generation.
(b)The Energy Commission shall have authorization to access the electricity

generation data in kilowatthours by hour for each facility that provides meter data to the system operator, and the fuel type or fuel types.

(c)With regard to out-of-state generation, the Energy Commission shall have authorization to access the electricity generation data in kilowatthours by hour at the point at which out-of-state generation is metered, to the extent the information has been submitted to a system operator.
(d)Trade secrets as defined in subdivision (d) of Section 3426.1 of the Civil Code contained in the information provided to the system operators pursuant to this section shall be treated as confidential. These data may be disclosed only by the system operators and only by authorization of the generator except that the Energy Commission shall have authorization

to access these data, shall consider all these data to be trade secrets, and shall only release these data in an aggregated form such that trade secrets cannot be discerned.

Amended by Stats. 2021, Ch. 228, Sec. 1. (AB 242) Effective January 1, 2022.

(a)Every retail supplier that makes an offering to sell electricity that is consumed in California shall disclose its electricity sources and the associated greenhouse gases emissions intensity for the previous calendar year.
(b)The disclosures required by this section shall be made to potential end-use consumers in all product-specific written promotional materials that are distributed to consumers by either printed or electronic means, including the retail supplier’s internet website, if one exists, except that advertisements and notices in general circulation media shall not be subject to this requirement.
(c)The disclosures required by this section shall be made annually to end-use consumers of

the offered electricity. The annual disclosure shall be made on the retail supplier’s internet website by October 1 of each year, and in written promotional materials by the end of the first complete billing cycle for the fourth quarter of the year, and shall be consistent with information provided to the Energy Commission pursuant to Section 398.5. A retail supplier may distribute the disclosures required by this section via email to any end-use consumer that has consented to receive email in lieu of printed materials.

(d)The disclosures required by this section shall be made separately for each portfolio offering made by the retail supplier.
(e)On or before January 1, 1998, the Energy Commission shall specify guidelines for the format and means for disclosure required by Section 398.3 and this section, based on the requirements of this article and subject to public

hearing.

(f)The costs of making the disclosures required by this section shall be considered to be generation related.
(g)The disclosures required by this section shall comply with the following:
(1)A retail supplier’s disclosure of its electricity sources shall be expressed as a percentage of annual sales derived from each of the following categories:
(A)Electricity from unspecified sources.
(B)Purchases of electricity from specified sources.
(2)A retail supplier’s disclosure of its electricity sources shall also separately identify total California system electricity, which is the sum of all in-state generation and

net electricity imports by fuel type.

(h)Each of the categories specified in subdivision (g) shall be additionally identified as a percentage of annual sales that is derived from the following fuels, sources of energy, or electricity products:
(1)Coal.
(2)Large hydroelectric (greater than 30 megawatts).
(3)Natural gas.
(4)Nuclear.
(5)Eligible renewable energy resources pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11)), including any of the following:
(A)Biomass and biowaste.
(B)Geothermal.
(C)Eligible hydroelectric.
(D)Solar.
(E)Wind.
(6)Other categories as determined by the Energy Commission.
(7)The portion of annual sales derived from unbundled renewable energy credits shall be included in the disclosures in a format determined by the Energy Commission. A retail supplier may include additional information related to the sources of the unbundled renewable energy credits.
(i)All electricity sources disclosed as purchases of electricity from specified sources shall meet the requirements of subdivision (d) of Section 398.2.
(j)Purchases of electricity from specified sources identified pursuant to this section shall be from sources connected to the Western Electricity Coordinating Council interconnected grid.
(k)(1) Each retail supplier shall disclose both the greenhouse gas emissions intensity of any electricity portfolio offered to its retail customers and the Energy Commission’s calculation of greenhouse gas emissions intensity associated with all statewide retail electricity sales, consistent with the requirements of this subdivision.
(2)The Energy Commission shall do all of the following:
(A)Adopt a methodology, in consultation with the State Air Resources Board, for the calculation of greenhouse gas emissions intensity for each purchase of

electricity by a retail supplier to serve its retail customers.

(B)Calculate the greenhouse gas emissions intensity associated with statewide retail electricity sales based on the greenhouse gas emissions for total California system electricity.
(C)Rely on the most recent verified greenhouse gas emissions data while ensuring that greenhouse gas emissions intensity factors for electricity from specified and unspecified sources are available to retail suppliers with sufficient advance notice to permit timely reporting.
(D)Establish guidelines for adjustments to a greenhouse gas emissions intensity factor for a reporting year for any local publicly owned electric utility demonstrating generation of quantities of electricity in previous years in excess of its total retail sales and wholesale sales from specified

sources that do not emit any greenhouse gases. Adjustments authorized by the guidelines established by the Energy Commission shall not permit excess generation procured in a single year to be counted more than once or to be resold to another retail supplier as a specified source.

(E)Ensure that there is no double-counting of the greenhouse gas emissions or emissions attributes associated with any unit of electricity production reported by a retail supplier for any specific generating facility or unspecified source located within the Western Electricity Coordinating Council when calculating greenhouse gas emissions intensity.
(F)(i) On or before January 1, 2018, adopt guidelines, through an open process, subject to public comment, and adopted by a vote of the Energy Commission, for the reporting and disclosure of greenhouse gas emissions intensity associated

with retail sales based on the requirements of this subdivision. Beginning June 1, 2020, retail suppliers shall be required to report data on greenhouse gas emissions intensity associated with retail sales occurring after December 31, 2018.

(ii) Any new community choice aggregator formed after January 1, 2016, shall not be required to report data on greenhouse gas emissions intensity associated with retail sales until at least 24 months, but shall be required to report that data no later than 36 months, after serving its first retail customer.

(3)Any marketing or retail product claims relating to the greenhouse gas emissions intensity of the electric supply portfolio of a retail supplier shall be consistent with the methodology adopted by the Energy Commission pursuant to this section. Retail suppliers may provide additional information to customers describing other actions

relating to greenhouse gases that are unrelated to the electric supply portfolio.

(l)The provisions of this section shall not apply to generators providing electric service onsite, under an over-the-fence transaction as described in Section 218, or to an affiliate or affiliates, as defined in subdivision (a) of Section 372.

Amended by Stats. 2016, Ch. 656, Sec. 4. (AB 1110) Effective January 1, 2017.

(a)Retail suppliers shall annually report to the Energy Commission, for each electricity offering for the previous calendar year, each of the following:
(1)The kilowatthours purchased, by generator and fuel type during the previous calendar year, consistent with the meter data, including losses, reported to the system operator.
(2)The kilowatthours purchased from unspecified sources in California and from unspecified sources imported into California from other subregions within the Western Electricity Coordinating Council.
(3)For each electricity offering, the kilowatthours sold at

retail.

(4)For each electricity offering, the disclosures made to consumers pursuant to Section 398.4.
(b)Information submitted to the Energy Commission pursuant to this section that is a trade secret as defined in subdivision (d) of Section 3426.1 of the Civil Code shall not be released except in an aggregated form such that trade secrets cannot be discerned.
(c)The Energy Commission shall specify guidelines and standard formats, based on the requirements of this article and subject to public hearing, for the submittal of information pursuant to this article.
(d)In developing the rules and procedures specified in this section, the Energy Commission shall seek to minimize the reporting burden and cost of reporting that it imposes on retail

suppliers.

(e)The provisions of this section shall not apply to generators providing electric service onsite, under an over-the-fence transaction as described in Section 218, or to an affiliate or affiliates, as defined in subdivision (a) of Section 372.
(f)The Energy Commission may verify environmental and procurement claims made by retail suppliers.

Added by Stats. 2022, Ch. 367, Sec. 2. (SB 1158) Effective January 1, 2023.

(a)For purposes of this section, the following definitions apply:
(1)“Avoided greenhouse gas emissions” means greenhouse gas emissions associated with hourly purchases of electricity from specified sources that are in excess of the retail supplier’s loss-adjusted load for that hour to the extent that the excess electricity reduced the emissions of greenhouse gases associated with electricity from unspecified sources during that hour.
(2)“Electricity source type” means the fuel, source of energy, or electricity product, as described in subdivision (h) of Section 398.4.
(3)“Load-serving entity” has the same meaning

as defined in Section 380.

(4)“Loss-adjusted load” means the total amount of electricity, measured at the utility-scale generation source, that a retail supplier requires in order to provide for retail sales after electrical losses in transmission and distribution.
(b)Beginning January 1, 2028, every retail supplier that offers an electricity product for sale to retail customers in the state shall annually report to the Energy Commission all of the following information:
(1)The retail supplier’s sources of electricity used to serve loss-adjusted load for each hour during the previous calendar year.
(2)To the extent feasible, the emissions of greenhouse gases associated with each of those sources of electricity. In calculating those emissions of

greenhouse gases, the retail supplier shall not include or consider any avoided greenhouse gas emissions.

(3)An annual total of greenhouse gas emissions and an annual average greenhouse gas emissions intensity, calculated as the annual total greenhouse gas emissions divided by the retail supplier’s annual total loss-adjusted load.
(4)An annual total of avoided greenhouse gas emissions.
(c)On or before July 1, 2024, the Energy Commission shall adopt rules, through an open process, subject to public comment, and adopted by a vote of the Energy Commission, to implement the requirements of this section.
(d)The Energy Commission shall share the information collected pursuant to subdivision (b) with the commission, the State Air Resources Board, and the

system operator, to the extent needed, for purposes of the following:

(1)Evaluating load-serving entities’ integrated resource plans pursuant to Section 454.52, as determined and deemed necessary by the Public Utilities Commission.
(2)The State Air Resources Board’s regulations for the mandatory reporting of the emissions of greenhouse gases.
(3)Estimating hourly greenhouse gas emission factors for electricity from unspecified sources, to the extent feasible.
(e)The Energy Commission shall annually publish on its internet website an aggregated summary of the data reported by each retail supplier pursuant to this section, which may include all of the following:
(1)Electricity from

specified sources expressed as a percentage of annual loss-adjusted load that is derived from each electricity source type.

(2)Electricity from unspecified sources expressed as a percentage of annual loss-adjusted load.
(3)The total emissions of greenhouse gases associated with all electricity used to serve loss-adjusted load. In calculating those emissions of greenhouse gases, any avoided greenhouse gas emissions shall not be included or considered.
(4)The average greenhouse gas emissions intensity of all electricity used to serve loss-adjusted load.
(5)The total avoided greenhouse gas emissions.
(f)In order to ensure that a retail supplier can obtain the information necessary to

comply with the requirements of this section and to protect the confidentiality of market sensitive data, all of the following shall be required:

(1)All sellers of electricity from generation facilities shall timely provide each purchaser of the facility’s electricity that is subject to the reporting requirement in subdivision (b) with the purchaser’s hourly share of electricity that is scheduled into a California balancing authority and the emissions of greenhouse gases associated with that electricity.
(2)All sellers of electricity from energy storage facilities shall timely provide each purchaser of the facility’s exported electricity that is subject to the reporting requirement in subdivision (b) with the purchaser’s hourly share of exported electricity and the hourly electricity consumed by the energy storage facility in prior hours sufficient to provide the exported

electricity after taking into account round-trip losses within the energy storage facility. If the purchaser of the facility’s exported electricity is not responsible for providing the electricity consumed by the energy storage facility in prior hours, the seller of electricity from the energy storage facility shall also provide the purchaser with the electricity source type and the emissions of greenhouse gases associated with the electricity consumed by the energy storage facility in prior hours.

(3)An entity allocating electricity from specified sources shall timely provide each retail supplier to whom a share of the electricity is allocated with the retail supplier’s hourly share of electricity from each specified source and the emissions of greenhouse gases associated with that electricity.
(4)The recipients of hourly data pursuant to this subdivision shall maintain the

confidentiality of the data received and use it solely for the purpose of meeting the requirements of this section.

(5)The recipients of hourly data pursuant to this subdivision shall share the hourly data as necessary, and under the same confidentiality requirements, with subsequent purchasers of the electricity from specified sources.
(g)(1) The commission shall review the total annual emissions of greenhouse gases and the annual average greenhouse gas emissions intensity reported for each load-serving entity pursuant to this section and may assess whether those emissions of greenhouse gases, combined with the load-serving entity’s procurement plans for subsequent years, demonstrate adequate progress toward achieving the load-serving entity’s greenhouse gas emissions targets established pursuant to Section 454.52. The commission shall provide its findings

for each community choice aggregator to the community choice aggregator’s governing board.

(2)The governing board of each local publicly owned electric utility shall review the total annual emissions of greenhouse gases and the annual average greenhouse gas emissions intensity reported for each local publicly owned electric utility pursuant to this section and may assess whether those emissions of greenhouse gases, combined with the local publicly owned electric utility’s procurement plans for subsequent years, demonstrate adequate progress toward achieving the local publicly owned electric utility’s greenhouse gas emissions targets established pursuant to Section 9621. A local publicly owned electric utility may use existing board processes to facilitate this paragraph.
(h)Information submitted to the Energy Commission pursuant to this section that is a trade secret, as defined

in subdivision (d) of Section 3426.1 of the Civil Code, shall not be released except in an aggregated form such that trade secrets cannot be discerned.

(i)It is the intent of the Legislature that the reporting, evaluation, and progress assessment requirements of this section shall not constitute a new electricity procurement obligation for load-serving entities or for local publicly owned electric utilities.
(j)The requirements of this section shall not apply to the following types of retail suppliers:
(1)Load-serving entities that are not subject to the requirements of Section 454.52.
(2)Local publicly owned electric utilities that are not subject to the requirements of Section 9621.
(k)In developing the rules and procedures specified in this section, the Energy Commission shall seek to minimize the reporting burden and the cost of reporting that it imposes on retail suppliers.
(l)The Energy Commission may modify or adjust the requirements of this section for any electrical corporation with 60,000 or fewer customer accounts in the state or any retail supplier with an annual electrical demand of less than 1,000 gigawatthours, if the Energy Commission finds that the costs to comply with the requirements of this section unduly burden the electrical corporation or retail supplier.
(m)The Energy Commission may delay when retail suppliers shall begin reporting pursuant to this section if the Energy Commission determines that it is infeasible or unreasonably costly for retail suppliers to obtain the necessary data or develop the necessary reporting

tools within the timeframe established in subdivision (b).

(n)The Energy Commission may verify environmental and procurement claims made by retail suppliers.
(o)This section shall not apply to generators providing electric service onsite, under an over-the-fence transaction as described in Section 218, or to an affiliate or affiliates, as defined in subdivision (a) of Section 372.