Section 1393 - Accounting Methodology(a) Requirements Applicable to Fuel Mix and GHG Emissions Accounting (1) Unbundled RECs, including those from a non-eligible renewable energy resource, shall not be used to calculate or adjust the fuel mix or GHG emissions intensity of an electricity portfolio.(2) A retail supplier's purchases of the specified system power from an asset-controlling supplier shall use the GHG emissions intensity assigned to the asset-controlling supplier by the CARB for the corresponding data year used for data reporting to CARB pursuant to section 95111(b)(3) of the MRR. A retail supplier's purchases of the specified system power of an asset-controlling supplier shall be categorized according to the fuel mix of the asset-controlling supplier pursuant to section 1394(c).(3) Net purchases of each specified gross purchase shall be calculated by deducting any specified wholesale sales from each specified gross purchase, as expressed in Equation 1: Equation 1: NPi = GPi - WSi
Where:
NPi = Net purchase i, measured in MWh
GPi = Gross purchase i, measured in MWh
WSi = Wholesale sales of gross purchase i, measured in MWh
(4) Net electricity from unspecified sources of power, including electricity purchased through the Electricity Imbalance Market, shall be calculated as the difference between the retail sales associated with an electricity portfolio in the prior year and the total procurement of specified net purchases associated with an electricity portfolio in the prior year, as expressed in Equation 2. If total procurement of specified net purchases exceeds the retail sales of an electricity portfolio, the net unspecified power attributable to the electricity portfolio shall be zero. Equation 2: U = RS - TNP
Where:
U = Net unspecified power attributable to the electricity portfolio, expressed in MWh
RS = Retail sales attributable to the electricity portfolio, expressed in MWh
TNP = Total specified net purchases attributable to the electricity portfolio, expressed in MWh
(5) For resources that investor-owned utilities have been directed to procure pursuant to Public Utilities Code section 365.1(c)(2)(A), the investor-owned utility shall report the portion of procurement attributable to the investor-owned utility as determined by the California Public Utilities Commission pursuant to Public Utilities Code section 365.1(c)(2)(B).(6) If the total procurement of specified net purchases of an electricity portfolio exceeds retail sales, each net purchase of electricity from a generator using natural gas shall be proportionally reduced so that the sum of all adjusted net purchases equals the retail sales of an electricity portfolio, as expressed in Equation 3. If an electricity portfolio has insufficient natural gas electricity sources to adjust to reconcile the excess specified net procurements with retail sales, each purchase from coal and other fossil fuel electricity sources shall then be proportionally reduced in accordance with Equation 3. If an electricity portfolio has insufficient natural gas or coal and other fossil fuel electricity sources to adjust to reconcile the excess specified net procurements with retail sales, all other specified purchases shall then be proportionally reduced in accordance with Equation 3. Equation 3: ANPi = NPi - (NP - RS) x (NPi /NPNR)
Where:
ANPi = Adjusted net purchase i, measured in MWh
NPi = Net purchase i, measured in MWh
NP = Sum of all net purchases, measured in MWh
RS = Total retail sales of an electricity portfolio, measured in MWh
NPNR = Any net purchase of a fuel type that is not an eligible renewable, large hydroelectric, or nuclear resource, measured in MWh
(7) Procurements from nuclear or large hydroelectric generating units cannot be classified as specified purchases if the associated environmental attributes have been claimed by, or traded to, a separate party.(b) Requirements Applicable to Fuel Mix Accounting (1) To claim the fuel type of an eligible renewable, a retail supplier shall procure specified purchases of electricity and the associated RECs from an eligible renewable generator, including through eligible firmed-and-shaped agreements. If claimed as a specified purchase on the power content label, the associated RECs shall not be sold. Electricity purchases from an eligible renewable generator without the associated RECs shall be classified as unspecified power.(2) The fuel mix shall be calculated by aggregating adjusted net purchases of each fuel type pursuant to the reconciliation adjustment in Equation 4, and expressed as percentages of the retail sales of the electricity portfolio as follows: Equation 4: FM j = ([SIGMA]ANPj /RS) x 100%
Where:
FMj = Percentage of fuel mix corresponding to fuel type j
ANPj = Adjusted net purchase of fuel type j, calculated pursuant to subdivision 1393(a)(6), measured in MWh
RS = Total retail sales of an electricity portfolio, measured in MWh
(3) The fuel mix shall be composed of the following fuel types: (E) Eligible renewable 3. Eligible hydroelectric(c) Requirements Applicable to GHG Emissions Accounting(1) GHG emissions of specified purchases, including eligible firmed-and-shaped products, shall be calculated based on the delivered electricity.(A) In order for specified electricity to be assigned the GHG emissions intensity of the associated generator, a retail supplier 1) must have executed a purchase agreement or ownership arrangement prior to generation of the procured electricity and, 2) have e-tags for all delivered electricity that is imported. If the specified electricity does not meet both 1) and 2), it will be assigned the GHG intensity of unspecified power.(B) In order to be assigned the GHG emissions intensity of an eligible renewable generator, the delivered electricity from the renewable generator must be procured with the associated RECs. If claimed as a specified purchase on the power content label, the associated RECs shall not be sold. Electricity purchases from an eligible renewable generator without the associated RECs shall be classified as unspecified power.(2) GHG emissions intensities of generators(A) The Energy Commission shall annually assign a GHG emissions intensity to each generator that delivers electricity to a California balancing authority, and provide the most recent GHG emissions intensities of generators for retail suppliers to use in annual reporting to the Energy Commission pursuant to section 1394.(B) For all generators with reported or assigned emissions under MRR, the Energy Commission shall calculate GHG emissions intensities as follows: Equation 5: EF = E/G
Where:
EF = Generator's emissions intensity for the previous calendar year, measured in metric tons CO2e/MWh
E = Sum of generator's most recent annual GHG emissions as reported under MRR and expressed in metric tons of CO2e
G = Generator's net electricity production as reported to MRR, measured in MWh. If net electricity production data is not available under MRR, net electricity production data submitted under Form EIA-923 Power Plant Operations Report (OMB No. 1905-0129) will be used; specifically, Page 1 Generation and Fuel Data, Year to Date Net Generation
(C) For any generators without reported or assigned emissions under MRR, the Energy Commission shall calculate the sum of GHG emissions associated with the generator using heat of combustion data and default emission factors by fuel type pursuant to section 95111(b)(2)(C) of the MRR. A generator's GHG emissions shall be calculated as follows:
Equation 6: E = ST x HC
Where:
E = Sum of generator's CO2, N2O, and CH4 emissions for the previous calendar year
ST = Stationary fuel combustion emissions intensity of CO2, N2O, and CH4, expressed in metric tons per MMBtu
HC = Heat content of fuel combusted for electricity production of a generator for the previous calendar year, expressed in MMBtu
A generator's GHG emissions intensity shall then be calculated by converting emissions to CO2e and applying the method described in Equation 5.
(D) For any generators that cannot be assigned a GHG emissions intensity using the methods described in subdivisions (c)(2)(B) or (C), including new generators and generators located outside the U.S., the Energy Commission shall assign an emissions intensity based on the average GHG emissions intensity of generators using the corresponding fuel type reported under this program.(E) The Energy Commission shall determine the portion of GHG emissions of a cogenerating unit attributable to electricity production in the previous calendar year as follows: Equation 7: Ee = Et x Fe/Ft
Where:
Ee = GHG emissions attributable to electricity production
Et = Total GHG emissions attributable to a generator in the previous calendar year
Fe = Fuel consumed by a generator for electricity production in the previous calendar year, based on data submitted under Form EIA-923 Power Plant Operations Report (OMB No. 1905-0129); specifically, Page 1 Generation and Fuel Data, Electric Fuel Consumption MMBtu.
Ft = Total fuel consumed by a generator in the previous calendar year, based on data submitted under Form EIA-923 Power Plant Operations Report (OMB No. 1905-0129); specifically, Page 1 Generation and Fuel Data, Total Fuel Consumption MMBtu
A cogenerating unit's GHG emissions intensity shall then be calculated by applying Equation 5.
(F) For generators with discrete generating units that are owned by or contracted to separate retail suppliers, the Energy Commission shall use Equation 5 to calculate GHG emissions intensities for each generating unit.(G) The Energy Commission shall not attribute carbon dioxide emissions associated with electricity production from biogenic fuels to retail suppliers for GHG emissions intensity calculations.(3) The GHG emissions intensity of unspecified power shall be assigned the default emissions factor as specified under section 95111(b)(1) of the MRR.(4) The GHG emissions intensity of an electricity portfolio shall be calculated by dividing the sum of all GHG emissions from specified adjusted net purchases and from unspecified power for the previous calendar year by the retail sales of that electricity portfolio during that same calendar year. GHG emissions intensity of an electricity portfolio shall be calculated as follows: (A) Sum all GHG emissions attributable to the electricity portfolio by multiplying the adjusted net purchase of each specified purchase or purchase of unspecified power in the electricity portfolio by the corresponding emissions factor, then summing the products as follows: Equation 8: E = [SIGMA] (ANi x EFi)
Where:
E = Sum of all GHG emissions attributable to the electricity portfolio
ANi = Adjusted net purchase from generator i or unspecified power pursuant to subdivision (a)(6)
EFi = Emissions factor of generator i
(B) Divide the sum of all GHG emissions attributable to the electricity portfolio by the retail sales of the electricity portfolio as follows: Equation 9: EI = E/RS
Where:
EI = GHG emissions intensity of electricity portfolio for the reporting period
E = Sum of GHG emissions attributable to electricity portfolio
RS= Retail sales of electricity portfolio
(d) GHG emissions exclusions (1) Retail suppliers with specified purchases of eligible firmed-and-shaped products under a purchase agreement or ownership arrangement executed prior to January 1, 2019 shall report GHG emissions associated with the delivered electricity and shall identify these emissions as excluded from the calculation of emissions intensity of the electricity portfolio.(A) Each retail supplier shall provide to the Energy Commission a purchase agreement or ownership arrangement documentation substantiating that any eligible firmed-and-shaped product for which it is claiming an exclusion was executed prior to January 1, 2019.(B) Retail suppliers with specified purchases of eligible firmed-and-shaped products under a purchase agreement or ownership arrangement that has been amended or extended as specified in paragraphs 1., 2., or 3. on or after January 1, 2019, shall report GHG emissions according to the source of the delivered electricity for inclusion in the GHG emissions intensity calculation of the electricity portfolio pursuant to subdivision (c)(1): 1. to increase the specified quantity of annual procurement;2. to increase the length of the agreement, including through automatic renewal or an extension as contemplated in the original agreement; or 3. to substitute a different eligible renewable resource.(2) The Energy Commission shall adjust GHG emissions of a local publicly owned electric utility if the utility demonstrates that it generated quantities of electricity on or after January 1, 2017 in excess of its retail sales and wholesale sales of specified sources in a prior year from specified sources that do not emit any GHGs. (A) When a local publicly owned electric utility reports excess zero-GHG generation in an annual report filed pursuant to section 1394(a), the Energy Commission shall assign each megawatt hour of excess zero-GHG generation a negative credit equal to the default emissions factor for unspecified electricity as specified under section 95111(b)(1) of the MRR. When the local publicly owned electric utility wishes to use this excess zero-GHG generation to adjust emissions in a subsequent reporting year, it shall make that election in its annual report and the Energy Commission shall confirm that there is sufficient excess zero-GHG generation for the requested adjustment and that it was generated within twenty years of its elected use. If there is insufficient excess zero-GHG generation or it was generated more than twenty years prior, the Energy Commission shall inform the local publicly owned electric utility and the utility shall submit a corrected annual report.(B) The Energy Commission shall adjust the GHG emissions of a local publicly owned electric utility only once for each megawatt hour of excess generation of zero-GHG electricity.(C) The local publicly owned electric utility shall submit agreements to the Energy Commission substantiating that the relevant generation was generated in excess of its retail and wholesale sales of specified power with each annual report that identifies excess zero-GHG generation.Cal. Code Regs. Tit. 20, § 1393
1. New section filed 9-21-98; operative 10-21-98 (Register 98, No. 39).
2. Change without regulatory effect amending section filed 1-14-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 3).
3. Amendment filed 3-5-2001; operative 3-5-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 10).
4. Repealer and new section filed 10-31-2016; operative 10-31-2016 pursuant to Government Code section 11343.4 (Register 2016, No. 45).
5. Renumbering of former section 1393 to section 1394.1 and new section 1393 filed 5-4-2020; operative 5-4-2020 pursuant to Government Code section 11343.4(b)(3) (Register 2020, No. 19). Note: Authority cited: Section 25213, Public Resources Code; and Section 398.4, Public Utilities Code. Reference: Sections 25216 and 25216.5, Public Resources Code; and Section 398.4, Public Utilities Code.
1. New section filed 9-21-98; operative 10-21-98 (Register 98, No. 39).
2. Change without regulatory effect amending section filed 1-14-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 3).
3. Amendment filed 3-5-2001; operative 3-5-2001 pursuant to Government Code section 11343.4(Register 2001, No. 10).
4. Repealer and new section filed 10-31-2016; operative 10/31/2016 pursuant to Government Code section 11343.4 (Register 2016, No. 45).
5. Renumbering of former section 1393 to section 1394.1 and new section 1393 filed 5-4-2020; operative 5/4/2020 pursuant to Government Code section 11343.4(b)(3) (Register 2020, No. 19).