BILL NUMBER: AB 222	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 14, 2009

INTRODUCED BY   Assembly  Member   Adams
  Members   Adams   and Ma 
    (   Coauthors:   Assembly Members 
 Blakeslee,   Fletcher,   Fuentes,  
Galgiani,   Gilmore,   Mendoza,   Smyth,
  and Torrico   ) 

                        FEBRUARY 4, 2009

   An act to  amend Sections 25741, 25806, 40194, and 40201 of,
and to repeal Section 40117 of, the Public Resources Code, 
relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 222, as amended, Adams. Energy: biofuels. 
   Existing 
    (1)     Existing  law establishes the
Public Interest Research, Development, and Demonstration Fund in the
State Treasury, and provides that the money collected by the public
goods charge to support cost-effective energy efficiency and
conservation activities and public interest energy research,
development, and demonstration projects not adequately provided by
competitive and regulated markets, be deposited in the fund for use
by the State Energy Resources Conservation and Development Commission
(Energy Commission). Existing law requires the Energy Commission to
use those funds to develop, implement, and administer the Public
Interest Research, Development, and Demonstration Program to develop
technologies to, among other things, improve environmental quality,
enhance electrical system reliability, increase efficiency of
energy-using technologies, lower electrical system costs, or provide
other tangible benefits to electric utility customers.  Existing
law defines "in-state renewable electricity generation facility" for
the purposes of the program to include, among other things, a
facility that uses municipal solid waste conversion. 
   This bill would  state an intent of the Legislature to
enact legislation to advance biofuels and green power production.
  instead define "in-state renewable electricity
generation facility" to include a facility that uses  
conversion at a biorefinery. The bill would define "biorefinery" to
mean a facility that uses a noncombustion thermal, chemical,
biological, or mechanical conservation process, or a combination of
those processes, to produce marketable products from carbonaceous
materials.  
   (2) The California Integrated Waste Management Act of 1989
requires cities and counties, on and after January 1, 2000, to divert
50% of all solid waste through source reduction, recycling, and
composting activities. The act defines various terms, including
"recycling" which means the process of collecting, sorting,
cleansing, treating, and reconstituting solid waste and returning
that solid waste to the economic mainstream in the form of raw
material or new, reused, or reconstituted products, but excludes
"transformation." The act defines "transformation" to mean
incineration, pyrolysis, distillation, or biological conversion, but
excludes composting, gasification, and biomass conversion.  

   The bill would additionally define "solid waste facility" to
include a biorefinery that primarily processes solid waste. The bill
would revise and recast the definition of "transformation" to
exclude, among other things, solid waste conversion at a biorefinery
from the definition of "transformation." The bill would repeal the
provision defining "gasification." The bill would also make
conforming changes. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 25741 of the   Public
Resources Code   is amended to read: 
   25741.  As used in this chapter, the following terms have the
following meaning:
   (a) "Delivered" and "delivery" mean the electricity output of an
in-state renewable electricity generation facility that is used to
serve end-use retail customers located within the state. Subject to
verification by the accounting system established by the commission
pursuant to subdivision (b) of Section 399.13 of the Public Utilities
Code, electricity shall be deemed delivered if it is either
generated at a location within the state, or is scheduled for
consumption by California end-use retail customers. Subject to
criteria adopted by the commission, electricity generated by an
eligible renewable energy resource may be considered "delivered"
regardless of whether the electricity is generated at a different
time from consumption by a California end-use customer.
   (b) "In-state renewable electricity generation facility" means a
facility that meets all of the following criteria:
   (1)  (A)    The facility uses biomass, solar
thermal, photovoltaic, wind, geothermal, fuel cells using renewable
fuels, small hydroelectric generation of 30 megawatts or less,
digester gas,  municipal solid waste  conversion
 at a biorefin   ery  , landfill gas, ocean wave,
ocean thermal, or tidal current, and any additions or enhancements to
the facility using that technology. 
   (B) For the purposes of this paragraph, "biorefinery" means a
facility that uses a noncombustion thermal, chemical, biological, or
mechanical conversion process, or a combination of those processes,
to produce marketable products, including, but not limited to,
renewable fuels, chemicals, and electricity, from a carbonaceous
material, including, but not limited to, any of the following: 

   (i) Dedicated energy crops.  
   (ii) Agricultural crop residues.  
   (iii) Bark, lawn, yard, and garden clippings.  
   (iv) Leaves, silvicultural residue, and tree and brush pruning.
 
   (v) Wood, wood chips, and wood waste.  
   (vi) Nonrecyclable pulp or nonrecyclable paper materials. 

   (vii) Waste fat, oils, and greases.  
   (viii) Other types of solid waste.  
   (C) A "biorefinery" that receives solid waste feedstock shall
satisfy all of the following criteria:  
   (i) Meet or exceed standards set by the State Air Resources Board,
local air pollution control districts, or local air quality
management districts regarding air contaminants or emissions,
including greenhouse gases, as defined in subdivision (g) of Section
38505 of the Health and Safety Code.  
   (ii) Meet or exceed standards set by the State Water Resources
Control Board or regional water quality control boards regarding
discharges to surface waters or groundwaters of the state.  

   (iii) Routinely test the ash or other residue from the facility at
least once quarterly, or on a more frequent basis as determined by
the agency responsible for regulating the testing and disposal of ash
or residue. Notwithstanding Section 25143.5 of the Health and Safety
Code, if hazardous wastes are present, the ash or residue is sent to
a class 1 hazardous waste disposal facility.  
   (iv) Preprocess the solid waste feedstock to remove, to the
maximum extent feasible, all recyclable materials prior to the
conversion process.  
   (v) Meet all of the requirements of this division for solid waste
handling prior to the conversion process, and convert the solid waste
feedstock into products that have market value.  
   (vi) Is in compliance with all applicable laws, regulations, and
ordinances. 
   (2) The facility satisfies one of the following requirements:
   (A) The facility is located in the state or near the border of the
state with the first point of connection to the transmission network
within this state and electricity produced by the facility is
delivered to an in-state location.
   (B) The facility has its first point of interconnection to the
transmission network outside the state and satisfies all of the
following requirements:
   (i) It is connected to the transmission network within the Western
Electricity Coordinating Council (WECC) service territory.
   (ii) It commences initial commercial operation after January 1,
2005.
   (iii) Electricity produced by the facility is delivered to an
in-state location.
   (iv) It will not cause or contribute to any violation of a
California environmental quality standard or requirement.
   (v) If the facility is outside of the United States, it is
developed and operated in a manner that is as protective of the
environment as a similar facility located in the state.
   (vi) It participates in the accounting system to verify compliance
with the renewables portfolio standard by retail sellers, once
established by the Energy Commission pursuant to subdivision (b) of
Section 399.13 of the Public Utilities Code.
   (C) The facility meets the requirements of clauses (i), (iii),
(iv), (v), and (vi) in subparagraph (B), but does not meet the
requirements of clause (ii) because it commences initial operation
prior to January 1, 2005, if the facility satisfies either of the
following requirements:
   (i) The electricity is from incremental generation resulting from
expansion or repowering of the facility.
   (ii) The facility has been part of the existing baseline of
eligible renewable energy resources of a retail seller established
pursuant to paragraph (2) of subdivision (b) of Section 399.15 of the
Public Utilities Code or has been part of the existing baseline of
eligible renewable energy resources of a local publicly owned
electric utility established pursuant to Section 387 of the Public
Utilities Code. 
   (3) For the purposes of this subdivision, "solid waste conversion"
means a technology that uses a noncombustion thermal process to
convert solid waste to a clean-burning fuel for the purpose of
generating electricity, and that meets all of the following criteria:
 
   (A) The technology does not use air or oxygen in the conversion
process, except ambient air to maintain temperature control.
 
   (B) The technology produces no discharges of air contaminants or
emissions, including greenhouse gases as defined in Section 38505 of
the Health and Safety Code.  
   (C) The technology produces no discharges to surface or
groundwaters of the state.  
   (D) The technology produces no hazardous wastes. 

   (E) To the maximum extent feasible, the technology removes all
recyclable materials and marketable green waste compostable materials
from the solid waste stream prior to the conversion process and the
owner or operator of the facility certifies that those materials will
be recycled or composted.  
   (F) The facility at which the technology is used is in compliance
with all applicable laws, regulations, and ordinances. 

   (G) The technology meets any other conditions established by the
commission.  
   (H) The facility certifies that any local agency sending solid
waste to the facility diverted at least 30 percent of all solid waste
it collects through solid waste reduction, recycling, and
composting. For purposes of this paragraph, "local agency" means any
city, county, or special district, or subdivision thereof, which is
authorized to provide solid waste handling services. 
   (c) "Procurement entity" means any person or corporation that
enters into an agreement with a retail seller to procure eligible
renewable energy resources pursuant to subdivision (f) of Section
399.14 of the Public Utilities Code.
   (d) "Renewable energy public goods charge" means that portion of
the nonbypassable system benefits charge authorized to be collected
and to be transferred to the Renewable Resource Trust Fund pursuant
to the Reliable Electric Service Investments Act (Article 15
(commencing with Section 399) of Chapter 2.3 of Part 1 of Division 1
of the Public Utilities Code).
   (e) "Report" means the report entitled "Investing in Renewable
Electricity Generation in California" (June 2001, Publication Number
P500-00-022) submitted to the Governor and the Legislature by the
commission.
   (f) "Retail seller" means a "retail seller" as defined in Section
399.12 of the Public Utilities Code.
  SEC. 2.    Section 25806 of the   Public
Resources Code   is amended to read: 
   25806.  (a) A person who submits to the commission an application
for certification for a proposed generating facility shall submit
with the application a fee of one hundred thousand dollars ($100,000)
plus two hundred fifty dollars ($250) per megawatt of gross
generating capacity of the proposed facility. The total fee
accompanying an application may not exceed three hundred fifty
thousand dollars ($350,000).
   (b) A person who receives certification of a proposed generating
facility shall pay an annual fee of fifteen thousand dollars
($15,000). The first payment of the annual fee is due on the date
this section takes effect. For a facility certified on or after the
effective date of this section, the first payment of the annual fee
is due on the date the commission adopts the final decision. All
subsequent payments are due by July 1 of each year in which the
facility retains its certification. The fiscal year for the annual
fee is July 1 to June 30, inclusive.
   (c) The fees in subdivisions (a) and (b) shall be adjusted
annually to reflect the percentage change in the Implicit Price
Deflator for State and Local Government Purchases of Goods and
Services, as published by the United States Department of Commerce.
   (d) No fee is required to accompany an application for
certification, and no annual fee is required thereafter, for a
generating facility that uses a renewable resource as its primary
fuel or power source. For purposes of this subdivision, a renewable
resource includes, but is not limited to, biomass, solar thermal,
geothermal, digester gas,  municipal solid waste 
conversion  at a biorefinery as defined in subparagraphs (B) and
(C) of paragraph (1) of subdivision (b) of Section 25741  ,
landfill gas, ocean thermal, and solid waste converted to a clean
burning fuel by using a noncombustion thermal process.
   (e) The Energy Facility License and Compliance Fund is hereby
created in the State Treasury. All fees received by the commission
pursuant to this section shall be remitted to the Treasurer for
deposit in the fund. The money in the fund shall be expended, upon
appropriation by the Legislature, for processing applications for
certification and for compliance monitoring.
   SEC. 3.    Section 40117 of the   Public
Resources Code   is repealed.  
   40117.  "Gasification" means a technology that uses a
noncombustion thermal process to convert solid waste to a clean
burning fuel for the purpose of generating electricity, and that, at
minimum, meets all of the following criteria:
   (a) The technology does not use air or oxygen in the conversion
process, except ambient air to maintain temperature control.
   (b) The technology produces no discharges of air contaminants or
emissions, including greenhouse gases, as defined in subdivision (g)
of Section 38505 of the Health and Safety Code.
   (c) The technology produces no discharges to surface or
groundwaters of the state.
   (d) The technology produces no hazardous waste.
   (e) To the maximum extent feasible, the technology removes all
recyclable materials and marketable green waste compostable materials
from the solid waste stream prior to the conversion process and the
owner or operator of the facility certifies that those materials will
be recycled or composted.
   (f) The facility where the technology is used is in compliance
with all applicable laws, regulations, and ordinances.
   (g) The facility certifies to the board that any local agency
sending solid waste to the facility is in compliance with this
division and has reduced, recycled, or composted solid waste to the
maximum extent feasible, and the board makes a finding that the local
agency has diverted at least 30 percent of all solid waste through
source reduction, recycling, and composting. 
   SEC. 4.    Section 40194 of the   Public
Resources Code   is amended to read: 
   40194.  "Solid waste facility" includes a solid waste transfer or
processing station, a composting facility,  a gasification
facility,  a transformation facility,  a biorefinery as
defined in subparagraphs (B) and (C) of paragraph (1) of subdivision
(b) of Section 25741 that primarily processes solid waste,  and
a disposal facility. For purposes of Part 5 (commencing with Section
45000), "solid waste facility" additionally includes a solid waste
operation that may be carried out pursuant to an enforcement agency
notification, as provided in regulations adopted by the board.
   SEC. 5.    Section 40201 of the   Public
Resources Code   is amended to read: 
   40201.  "Transformation" means  the  incineration
 , pyrolysis, distillation, or biological conversion other
than composting   of solid waste, with or without the
recovery of energy  . "Transformation" does not include
composting,  gasification, or  biomass conversion
 , or solid waste conversion at a biorefinery as defined in
subparagraphs (B) and (C) of paragraph (1) of   subdivision
(b) of Section 25741  . 
  SECTION 1.    It is the intent of the Legislature
to enact legislation to advance biofuels and green power production
in California.