The emissions performance standard (EPS), established by Senate Bill 1368 (Perata, Chapter 598, Statutes of 2006), limits long-term investments in baseload generation by the state’s utilities for power plants based on greenhouse gas emissions.

The California Energy Commission established an EPS for the baseload generation of local publicly owned electric utilities. The standard is a rate of emissions of greenhouse gases that is no higher than the rate of emissions of greenhouse gases for combined-cycle natural gas baseload generation. All financial investments must meet the EPS.

The following types of EPS compliant investments include:

  • Construction or purchase (turnkey agreements) of new power plants designed and intended for baseload generation.
  • Purchase of existing power plants designed and intended for baseload generation, or ownership shares thereof, other than combined-cycle natural gas power plants in operation or permitted before June 30, 2007. 
  • Capital investments in existing utility-owned power plants designed and intended for baseload generation, other than those for routine maintenance, that: 
    • For combined-cycle, natural gas power plants permitted before June 20, 2007, increase the generation capacity by 50 megawatts (MW) or more.
    • For other power plants, intended to extend the life of one or more units by five years or more.
    • Intended to increase the rated capacity of the power plant.
    • Intended to convert a non-baseload power plant into a baseload power plant.