Power plants would face pollution-control and reporting requirements

The state would set nitrogen oxide and sulfur dioxide limits for covered electric generating units, and owners or operators would have to meet them. Covered units are in-state units owned or operated by electric utilities that emitted at least 200 tons of nitrogen oxides, sulfur dioxide, or both in 2024. Units that burn only natural gas or fuel oil are excluded. Units with both required pollution-control systems already installed are excluded. A unit that stops operating or converts to burn only natural gas or fuel oil by December 31, 2034, is excluded. Nitrogen oxide limits must reflect a selective catalytic reduction system. Sulfur dioxide limits must reflect a flue gas desulfurization system or dry spray absorber. The Division would propose the final rule by July 2029. The Commission would require compliance on a practicable date after December 31, 2034. Units planning to operate after that date would have to install and operate the required controls by December 31, 2034, unless an exception applies.

Investor-owned utilities and wholesale electric cooperatives would have to report costs and operations when a federal order keeps a scheduled-to-retire unit available or connected. The reporting rules cover owners or operators of units subject to a qualifying federal order who must file an electric resource plan with the Commission. Reports must include available information about operating costs, capital costs, generation, output, and resources curtailed by the order. The Commission would generally make the information public, but confidential information would be available only under a required nondisclosure agreement. An investor-owned utility may apply for a financing order to recover costs of complying with the federal order. The rules apply only while the order is in effect and to the extent they do not conflict with that order. The first report would be due 150 days after the order is issued or 150 days after this section's effective date, whichever is later. Reports would continue every 90 days until the order ends.

The Public Utilities Commission would have to approve enough accredited capacity for certain large utilities to follow covered-unit retirement limits and state emissions requirements reliably. This applies to investor-owned utilities serving more than 500,000 customers when the Commission approves or changes a supply-resource portfolio. The Commission must explain in writing that the approved portfolio meets the capacity requirement. The Commission may still consider cost and rate impacts when the portfolio meets that requirement. The requirement includes applicable state laws, including carbon dioxide reduction requirements. The requirement would continue until the state determines that the utility has achieved the specified carbon dioxide reductions or until the utility has retired every covered unit it owns or operates, whichever occurs later.