BILL NUMBER: AB 222 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 8, 2009
AMENDED IN ASSEMBLY MAY 28, 2009
AMENDED IN ASSEMBLY MAY 5, 2009
AMENDED IN ASSEMBLY APRIL 14, 2009
INTRODUCED BY Assembly Members Adams and Ma
(Coauthors: Assembly Members Blakeslee, Conway, Duvall, Emmerson,
Fletcher, Fuentes, Galgiani, Gilmore, Knight, Mendoza, Smyth, and
Torrico)
( Coauthors: Senators Benoit
and Calderon )
FEBRUARY 4, 2009
An act to amend Sections 25741, 25806, 40194, and 40201 of, to add
Section 41786.5 Sections 40103 and 41786.5
to, and to repeal Section 40117 of, the Public Resources Code,
relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 222, as amended, Adams. Energy: biofuels.
(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 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 nonincineration
thermal, chemical, biological, or mechanical conservation
process, or a combination of those processes, to produce clean
burning fuel for generating electricity or a renewable fuel
from carbonaceous materials not derived from fossil fuel or
solid waste feedstock .
(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.
This bill would authorize a jurisdiction , if the act
requires a solid waste diversion of more than 50%, a
jurisdiction to consider solid waste diverted by
to a biorefinery as disposal reduction in
meeting the solid waste diversion level requirement above 50% if the
jurisdiction makes a specified certification to the board.
(3) The act defines various terms, including "gasification,"
"solid waste facility," and "transformation" for the purposes of the
act.
This bill would repeal the term "gasification." The bill would
additionally define "solid waste facility" to include a biorefinery
that processes solid waste. The bill would revise and recast the
definition of "transformation" to exclude from that definition, among
other things, anaerobic digestion, as defined, and solid
waste conversion at a biorefinery.
Vote: majority. Appropriation: no. Fiscal committee: 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: m eanings:
(a) (1) "Biorefinery" means a facility that uses a
noncombustion nonincineration thermal, chemical,
biological, or mechanical conversion process, or a combination of
those processes, to produce a clean burning fuel for the
purposes of generating electricity or a renewable fuel from
either carbonaceous material, including, but
not derived from fossil fuels or from a solid waste
feedstock. Carbonaceous materials include, but are not limited
to, any of the following:
(A) Dedicated energy crops.
(B) Agricultural crop residues.
(C) Bark, lawn, yard, and garden clippings.
(D) Leaves, silvicultural residue, and tree and brush prunings.
(E) Wood, wood chips, and wood waste.
(F) Nonrecyclable pulp or nonrecyclable paper materials.
(G) Waste fat, oils, and greases.
(H) Other types of solid waste.
(2) A facility utilizing anaerobic digestion is not a biorefinery.
(2)
(3) A biorefinery shall satisfy all of the following
criteria:
(A) 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.
(B) 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.
(C) 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.
(D) Preprocess the solid waste feedstock to remove, to the maximum
extent feasible, all recyclable materials prior to the conversion
process.
(E) Meet all of the requirements of Division 30 (commencing with
Section 40000) for solid waste handling prior to the conversion
process , and convert the solid waste feedstock into
products that have market value .
(F) Is in compliance with all applicable laws, regulations, and
ordinances.
(G) On an annual basis, submit a report to the commission
summarizing the percentage of feedstock processed through the
facility that is derived from fossil fuel sources.
(4) Only energy derived from nonfossil biogenic portion of the
feedstock processed through a biorefinery shall be considered
renewable.
(b) "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.
(c) "In-state renewable electricity generation facility" means a
facility that meets all of the following criteria:
(1) The facility uses biomass, solar thermal, photovoltaic, wind,
geothermal, fuel cells using renewable fuels, small hydroelectric
generation of 30 megawatts or less, digester gas, conversion at a
biorefinery, landfill gas, ocean wave, ocean thermal, or tidal
current, and any additions or enhancements to the facility using that
technology.
(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.
(d) "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.
(e) "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).
(f) "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.
(g) "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, conversion at a biorefinery as defined in
Section 25741, landfill gas, ocean thermal, and solid waste
converted to a clean burning fuel by using a noncombustion thermal
process. Section 25741, landfill gas, and ocean
thermal.
(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 40103 is added to the
Public Resources Code , to read:
40103. "Anaerobic digestion" means a process using the bacterial
breakdown of compostable organic material in the absence of oxygen
and meeting other parameters as established by the board.
SEC. 3. SEC. 4. Section 40117 of the
Public Resources Code is repealed.
SEC. 4. SEC. 5. 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 transformation facility,
a biorefinery , as defined in Section 25741 ,
that 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. SEC. 6. Section 40201 of the
Public Resources Code is amended to read:
40201. "Transformation" means incineration of solid waste, with
or without the recovery of energy. "Transformation" does not include
composting, biomass conversion, anaerobic digestion, or
solid waste conversion at a biorefinery as defined in Section 25741.
SEC. 6. SEC. 7. Section 41786.5 is
added to the Public Resources Code, to read:
41786.5. (a) For the purposes of meeting a solid waste diversion
level of up to 50 percent, a jurisdiction shall not include solid
waste diverted to a biorefinery , as defined in Section
25741 , as disposal reduction as calculated under Section
41780.05.
(b) For the purposes of meeting a solid waste diversion level
above 50 percent, a jurisdiction may include solid waste diverted to
a biorefinery , as defined in Section 25741 ,
that is above the 50-percent diversion level as disposal reduction as
calculated under Section 41780.05, if the jurisdiction certifies to
the board as a part of the jurisdiction's annual report that the
jurisdiction has removed all recyclable materials from the diverted
solid waste to the maximum extent feasible. This subdivision
shall become operative if this division requires a solid waste
diversion level that is above 50 percent.
(c) This section shall become operative if this division requires
a solid waste diversion level of above 50-percent.