Schwarzenegger signs bill limiting coal-fired generation imports

San Francisco (Platts)--29Sep2006

California Governor Arnold Schwarzenegger on Friday signed a bill that
will limit the state's coal-fired imports by requiring signed contracts for
baseload power to comply with a greenhouse gas performance standard.

The measure S.B. 1368, will require that the GHG standard not exceed
emissions from combined-cycle natural gas generation. The law applies to power
companies and utilites that enter into new or renegotiated energy contracts
lasting at least five years.

"With this bill, we make a real dent in time against greenhouse gas
emissions," said Senate President Pro Tem Don Perata, the bill's author.
"Given the expense and emissions from some current energy sources, requiring
power companies and utilities to find cleaner sources makes strategic sense in
the fight against global warming and makes economic sense," he said.

About 20% of California's energy comes from coal, the California
Energy Commission said, but the majority of the coal-fired plants are located
outside the state. Under the new law, municipal utilities will need to comply
with S.B. 1368's requirements.

--Lisa Weinzimer, lisa_weinzimer@platts.com

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