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For Immediate Release: May 23, 2007
Media Contact: Claudia Chandler - 916-654-4989

New Regulations Restrict Purchase of Electricity From
Power Plants That Exceed Greenhouse Gas Emission Limits

New Performance Standard to Regulate Power Plants


Sacramento - The California Energy Commission today approved regulations that limit the purchase of electricity from power plants that fail to meet strict greenhouse gas emissions standards. New regulations, as part of SB 1368 (Perata), prohibit the state's publicly owned utilities from entering into long-term financial commitments with plants that exceed 1,100 pounds of carbon dioxide (CO2) per megawatt hour.

"Working with the Legislature, the Governor has demonstrated a clear vision with this first-in-the-nation legislation to reduce emissions," said Energy Commission Chairman Jackalyne Pfannenstiel. "His bold leadership is helping to reduce California's carbon footprint by ensuring a clean supply of electricity," continued Pfannenstiel.

The implementation of SB 1368 is part of the Energy Commission's further implementation of AB 32 (Nunez), a landmark bill signed by Governor Arnold Schwarzenegger that calls for California to reduce emissions of carbon dioxide and other gases by 25 percent by 2020.

To reduce greenhouse gas emissions, SB 1368 directed the Energy Commission, in collaboration with the California Public Utilities Commission (CPUC) and the California Air Resources Board, to establish a greenhouse gas emission performance standard for power plants.

This standard was reached by evaluating existing combined-cycle natural gas baseload power plants across the west and is the same CO2 measurement approved by the CPUC.

Created by the Legislature in 1974, the California Energy Commission is the state's primary energy policy and planning agency. The Energy Commission has five major responsibilities: forecasting future energy needs and keeping historical energy data; licensing thermal power plants 50 megawatts or larger; promoting energy efficiency through appliance and building standards; developing energy technologies and supporting renewable energy; and planning for and directing state response to energy emergency.

Members of the Energy Commission are Chairman Jackalyne Pfannenstiel; Vice Chair James D. Boyd; Commissioners Jeffrey Byron; John Geesman; and Dr. Arthur H. Rosenfeld.

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