BILL NUMBER: AB 1900 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Gatto
FEBRUARY 22, 2012
An act to amend Sections 25420 and 25421 of the Health and Safety
Code, to amend Sections 25741, 25746, and 25751 of the Public
Resources Code, and to amend Sections 399.17, 399.18, 399.21, and
399.25 of, and to add Sections 399.24 and 769 to, the Public
Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1900, as introduced, Gatto. Renewable energy resources:
biomethane.
Existing law requires the Public Utilities Commission (PUC) to
specify the maximum amount of vinyl chloride that may be found in
landfill gas. Existing law prohibits a gas producer from knowingly
selling, supplying, or transporting to a gas corporation, and a gas
corporation from knowingly purchasing, landfill gas containing vinyl
chloride in a concentration exceeding the maximum amount determined
by the commission. Existing law requires a person who produces,
sells, supplies, or releases landfill gas for sale offsite to a gas
corporation to sample and test, bimonthly, the gas at the point of
distribution for chemicals known to the state to cause cancer or
reproductive toxicity.
This bill would provide that the PUC's duty to specify the maximum
amount of vinyl chloride that may be found in landfill gas applies
to gas that is to be injected into a common carrier pipeline. This
bill would require the PUC to develop reasonable, prudent, and
minimally restrictive testing protocols for gas collected from a
solid waste landfill that is to be injected into a common carrier
pipeline to determine if the gas contains chemicals known to the
state to cause cancer or reproductive toxicity. This bill would
prohibit a gas producer from knowingly selling, supplying,
transporting, or purchasing gas collected from a hazardous waste
landfill.
This bill would require the PUC, by January 1, 2014, to establish
a program that requires electrical corporations to collectively enter
into at least 5 contracts to procure biomethane through intrastate
common carrier pipelines, as specified.
Existing law requires the State Energy Resources Conservation and
Development Commission (Energy Commission) to certify eligible
renewable energy resources that it determines meet specified
statutory criteria.
This bill would require the Energy Commission to establish a
precertification system for facilities that are not yet operational
and are applying for certification as eligible renewable energy
resources. This bill would allow the Energy Commission, in
establishing the precertification system, to establish conditions for
certification. This bill would require the Energy Commission to
certify a facility if, after becoming operational, the facility meets
all of the conditions established in the precertification approval.
The Energy Commission would not be permitted to alter these
conditions retroactively, unless doing so is necessary for the health
and safety of the public. This bill would apply retroactively to all
Energy Commission precertifications of a facility as an eligible
renewable energy resource where an owner or operator of the facility
executed a contract for a renewable source of energy, as defined,
before January 1, 2013. This bill would also require the Energy
Commission, in certifying an eligible renewable energy resource
utilizing biomethane, to certify facilities using biomethane
according to biomethane source categories, as specified. This bill
would also require the Energy Commission to ensure that operator of a
facility seeking certification purchasing dedicated biomethane
demonstrates that the biomethane is injected into a pipeline that is
directly connected to an interstate pipeline system that, at the time
of the execution of the biomethane procurement contract, regularly
provides natural gas to the facility that contracts for that
dedicated biomethane.
Existing law requires the Energy Commission to design and
implement an accounting system to verify compliance with the
California Renewables Portfolio Standard Program requirements by
retail sellers and local publicly owned electric utilities.
This bill would require the Energy Commission to design and
implement an accounting system to ensure that consumption of
biomethane and the resulting electrical products are counted a total
of one time for the purpose of meeting the renewables portfolio
standard requirements and receiving greenhouse gas benefits, as
provided by the laws of this state or any other state, or by the laws
of any other country.
Existing law allows the PUC to set heating and purity requirements
for biomethane injected into a gas pipeline. Existing law allows gas
corporations to impose tariffs on biomethane injected into their
pipelines.
This bill would require a gas corporation to accept biomethane
into its pipeline, provided the biomethane meets the heating and
purity requirements established by the commission. This bill would
provide that a gas corporation tariff that restricts biomethane that
meets the heating and purity requirements established by the
commission is invalid and reenforceable. This bill would prohibit a
gas corporation from proposing a tariff that restricts biomethane
that meets the heating and purity requirements established by the
commission.
This bill would make other conforming changes.
Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the PUC
is a crime.
Because this bill would require action by the PUC to implement
certain of its requirements, a violation of which would be a crime,
these provisions would impose a state-mandated local program by
creating a new crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25420 of the Health and Safety Code is amended
to read:
25420. For purposes of this chapter, the following definitions
apply:
(a) "Dedicated use of gas by an eligible renewable energy resource"
means the use of gas captured at a solid waste facility and
transported from the site where the gas is captured to an eligible
renewable energy resource, as defined in the California Renewables
Portfolio Standard Program (Article 16 (commencing with Section
399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public
Utilities Code), that utilizes best available control technology for
the control of air pollutants, using a pipeline that is not a common
carrier pipeline used to transport natural gas to customers other
than the eligible renewable energy resource.
(a)
( b) "Department" means the Department of
Toxic Substances Control.
(b)
( c) "Gas corporation" has the same meaning
as defined in Section 222 of the Public Utilities Code and is subject
to rate regulation by the Public Utilities Commission.
(d) "Hazardous waste landfill" means a landfill that is a
hazardous waste facility, as defined in Section 25117.1.
(c)
( e) "Person" means an individual, trust,
firm, joint stock company, partnership, association, business
concern, limited liability company, or corporation. "Person" also
includes any city, county, district, and the state or any department
or agency thereof, or the federal government or any department or
agency thereof to the extent permitted by law.
(f) "Solid waste landfill" means a landfill that is a solid waste
facility, as defined in Section 40194 of the Public Resources Code,
or at which solid waste, as defined in Section 40191 of the Public
Resources Code, is disposed.
SEC. 2. Section 25421 of the Health and Safety Code is amended to
read:
25421. (a) Until the rule or order specified in subdivision (b)
is adopted, no gas producer shall knowingly sell, supply, or
transport landfill gas to a gas corporation, and no gas corporation
shall knowingly purchase landfill gas, if that gas contains vinyl
chloride in a concentration that exceeds the operative no significant
risk level set forth in Article 7 (commencing with Section 12701) of
Chapter 3 of Division 2 of Title 22 of the California Code of
Regulations.
(b) On or before January 1, 1990, the
25421. (a) (1)
The Public Utilities Commission shall, by rule or
order, specify the maximum amount of vinyl chloride that may be found
in landfill gas pursuant to the requirements of subdivision
(a) that is to be injected into a common carrier
pipeline. The maximum amount adopted by the commission shall not
exceed the no significant risk level set in Section 25705 of Title 27
of the California Code of Regulations .
(2) This subdivision does not require the commission to revise any
standard in effect on the effective date of this paragraph.
(c) No
(b) A gas corporation shall
not knowingly and intentionally expose any customer, employee,
or other person to gas from a landfill gas
if that gas contains any chemical known to the state to cause
cancer or reproductive toxicity without first giving clear and
reasonable warning to that individual, except as provided by Section
25249.10.
(d) Every person who produces, sells, supplies, or releases
landfill gas for sale offsite to a gas corporation shall, twice each
month, sample and test the gas at the point of distribution for the
presence of chemicals known to the state to cause cancer or
reproductive toxicity in accordance with the test guidelines prepared
under Section 41805.5. The air pollution control district or air
quality management district within which the landfill is situated
shall review the testing procedures for compliance with the
guidelines and require the correction of any deficiencies. The
district shall require, among other things, that the gas be analyzed
by a laboratory certified by the department and shall transmit the
results of the analysis to the department for its determination of
compliance or noncompliance with subdivisions (a) and (b). The
department shall fix and impose upon the gas producer a fee to cover
its costs under this subdivision. The results of each sample and test
shall be reported promptly to the gas corporation to which the
landfill gas is sold, and any person or public agency requesting a
copy of the report.
(c) The Public Utilities Commission shall develop reasonable,
prudent, and minimally restrictive testing protocols for gas
collected from a solid waste landfill that is to be injected into a
common carrier pipeline to determine if the gas contains chemicals
known to the state to cause cancer or reproductive toxicity in
accordance with the test guidelines prepared under Section 41805.5.
(1) In developing the protocols, the Public Utilities Commission
shall consider environmental protection, the protection of public
health and safety, and the environmental cobenefits of achieving the
renewables portfolio standard and of promoting the use of landfill
gases that otherwise would be flared by, instead, directing the
landfill gases to a productive use.
(2) Every person who produces, sells, supplies, or releases gas
collected at a solid waste landfill, that is to be injected into a
common carrier pipeline for sale offsite to a gas corporation or
noncore customer, shall comply with the standards and testing
protocols set by the Public Utilities Commission.
(d) (1) A gas producer shall not knowingly sell, supply, or
transport landfill gas to a gas corporation, and a gas corporation
shall not knowingly purchase landfill gas, unless that gas meets the
requirement set forth in a rule or order issued pursuant to
subdivision (a).
(2) A gas producer shall not knowingly sell, supply, or transport
gas collected from a hazardous waste landfill to a gas corporation. A
gas corporation shall not knowingly purchase gas collected from a
hazardous waste landfill.
(e) Nothing in this This section
prohibits does not prohibit the onsite usage
of landfill gas for the generation of electricity by an eligible
renewable energy resour ce, the direct
delivery of landfill gas by either dedicated or common
carrier pipeline for the generation of electricity, the
production of steam, or other industrial application
applications .
(f) The A gas corporation shall
obtain the results of the test conducted pursuant to subdivision
(d) (c) and shall not
purchase no or accept for transport any
landfill gas which that the test
shows to contain vinyl chloride that exceeds the amount permitted
in pursuant to subdivision (a)
, or if the rule or order has been adopted, as specified in
subdivision (b) .
(g) This section applies only to landfill gas delivered to the
pipeline of a gas corporation.
(g) Before January 1, 2013, this section shall not apply to the
dedicated use of gas by an eligible renewable energy resource for gas
captured at a solid waste landfill.
SEC. 3. 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) "Renewable electrical 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, municipal solid
waste conversion, 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
of a balancing authority area primarily located within the state.
For purposes of this subparagraph, "balancing authority area" has the
same meaning as defined in Section 399.12 of the Public Utilities
Code.
(B) The facility has its first point of interconnection to the
transmission network outside the state, within the Western
Electricity Coordinating Council (WECC) service area, and satisfies
all of the following requirements:
(i) It commences initial commercial operation after January 1,
2005.
(ii) It will not cause or contribute to any violation of a
California environmental quality standard or requirement.
(iii) It participates in the accounting system to verify
compliance with the renewables portfolio standard once established by
the commission pursuant to subdivision (b)
(f) of Section 399.25 of the Public Utilities Code.
(C) The facility meets the requirements of clauses (ii) and (iii)
in subparagraph (B), but does not meet the requirements of clause (i)
of subparagraph (B) because it commenced 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) Electricity generated by the facility was procured by a
retail seller or local publicly owned electric utility as of January
1, 2010.
(3) If the facility is outside 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.
(b) "Municipal solid waste conversion," as used in subdivision
(a), 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:
(1) The technology does not use air or oxygen in the conversion
process, except ambient air to maintain temperature control.
(2) The technology produces no discharges of air contaminants or
emissions, including greenhouse gases as defined in Section 38505 of
the Health and Safety Code.
(3) The technology produces no discharges to surface or
groundwaters of the state.
(4) The technology produces no hazardous wastes.
(5) 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.
(6) The facility at which the technology is used is in compliance
with all applicable laws, regulations, and ordinances.
(7) The technology meets any other conditions established by the
commission.
(8) 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) "Renewable energy public goods charge" means that portion of
the nonbypassable system benefits charge required to be collected to
fund renewable energy 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).
(d) "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.
(e) "Retail seller" means a "retail seller" as defined in Section
399.12 of the Public Utilities Code.
SEC. 4. Section 25746 of the Public Resources Code is amended to
read:
25746. (a) One percent of the money collected pursuant to the
renewable energy public goods charge shall be used in accordance with
this chapter to promote renewable energy and disseminate information
on renewable energy technologies, including emerging renewable
technologies, and to help develop a consumer market for renewable
energy and for small-scale emerging renewable energy technologies.
(b) If the commission provides funding for a regional accounting
system to verify compliance with the renewable portfolio standard by
retail sellers, pursuant to subdivision (b)
(f) of Section 399.25 of the Public Utilities Code, the
commission shall recover all costs from user fees.
SEC. 5. Section 25751 of the Public Resources Code is amended to
read:
25751. (a) The Renewable Resource Trust Fund is hereby created in
the State Treasury.
(b) The following accounts are hereby established within the
Renewable Resource Trust Fund:
(1) Existing Renewable Resources Account.
(2) Emerging Renewable Resources Account.
(3) Renewable Resources Consumer Education Account.
(c) The money in the fund may be expended, only upon appropriation
by the Legislature in the annual Budget Act, for the following
purposes:
(1) The administration of this article by the state.
(2) The state's expenditures associated with the accounting system
established by the commission pursuant to subdivision (b)
(f) of Section 399.25 of the Public Utilities
Code.
(d) That portion of revenues collected by electrical corporations
for the benefit of in-state operation and development of existing and
emerging renewable resource technologies, pursuant to Section 399.8
of the Public Utilities Code, shall be transmitted to the commission
at least quarterly for deposit in the Renewable Resource Trust Fund
pursuant to Section 25740.5. After setting aside in the fund money
that may be needed for expenditures authorized by the annual Budget
Act in accordance with subdivision (c), the Treasurer shall
immediately deposit money received pursuant to this section into the
accounts created pursuant to subdivision (b) in proportions
designated by the commission for the current calendar year.
Notwithstanding Section 13340 of the Government Code, the money in
the fund and the accounts within the fund are hereby continuously
appropriated to the commission without regard to fiscal years for the
purposes enumerated in this chapter.
(e) Upon notification by the commission, the Controller shall pay
all awards of the money in the accounts created pursuant to
subdivision (b) for purposes enumerated in this chapter. The
eligibility of each award shall be determined solely by the
commission based on the procedures it adopts under this chapter.
Based on the eligibility of each award, the commission shall also
establish the need for a multiyear commitment to any particular award
and so advise the Department of Finance. Eligible awards submitted
by the commission to the Controller shall be accompanied by
information specifying the account from which payment should be made
and the amount of each payment; a summary description of how payment
of the award furthers the purposes enumerated in this chapter; and an
accounting of future costs associated with any award or group of
awards known to the commission to represent a portion of a multiyear
funding commitment.
(f) The commission may transfer funds between accounts for
cashflow purposes, provided that the balance due each account is
restored and the transfer does not adversely affect any of the
accounts.
(g) The Department of Finance shall conduct an independent audit
of the Renewable Resource Trust Fund and its related accounts
annually, and provide an audit report to the Legislature not later
than March 1 of each year for which this article is operative. The
Department of Finance's report shall include information regarding
revenues, payment of awards, reserves held for future commitments,
unencumbered cash balances, and other matters that the Director of
Finance determines may be of importance to the Legislature.
SEC. 6. Section 399.17 of the Public Utilities Code is amended to
read:
399.17. (a) (1) Subject to this section, the requirements of this
article apply to an electrical corporation that as of January 1,
2010, had 60,000 or fewer customer accounts in California and met
either of the following requirements:
(A) Served retail end-use customers outside California.
(B) Was located in a control area that is not under the
operational balancing authority of the Independent System Operator or
other California balancing authority and receives the majority of
its electrical requirements from generating facilities located
outside of California.
(2) This section applies to a successor entity to all or a portion
of the service territory of an electrical corporation meeting the
requirements of paragraph (1), but only to the extent that the
successor entity will have 60,000 or fewer customer accounts in
California.
(b) For an electrical corporation or qualifying successor entity
meeting the requirements of subdivision (a), electricity products
from eligible renewable energy resources may be used for compliance
with the renewables portfolio standard procurement requirements
notwithstanding any procurement content limitation in Section 399.16
and an eligible renewable energy resource includes a facility that is
located outside California, if the facility is connected to the WECC
transmission system, provided all of the following conditions are
met:
(1) Any portion of the electricity generated by the facility and
allocated by the electrical corporation or qualifying successor
entity for its California customers, and is not used to fulfill
renewable energy procurement requirements in other states.
(2) The electrical corporation or qualifying successor entity
participates in, and complies with, the accounting system
administered by the Energy Commission pursuant to subdivision
(b) (f) of Section 399.25.
(3) The Energy Commission verifies that the electricity generated
by the facility is eligible to meet the procurement requirements of
this article.
(c) The commission shall determine the procurement requirements
for an electrical corporation or qualifying successor entity meeting
the requirements of subdivision (a) as a specified percentage of
total kilowatthours sold by the electrical corporation to its retail
end-use customers in California in a compliance period.
(d) An electrical corporation or qualifying successor entity
meeting the requirements of subdivision (a) may use an integrated
resource plan prepared in compliance with the requirements of another
state utility regulatory commission, to fulfill the requirement to
prepare a renewable energy procurement plan pursuant to this article,
provided the plan meets the requirements of Sections 399.13, 399.14,
and 399.25, as modified by this section.
(e) Procurement and administrative costs associated with long-term
contracts for eligible renewable energy resources pursuant to this
article entered into by an electrical corporation or qualifying
successor entity meeting the requirements of subdivision (a) and
approved by the commission, are reasonable and prudent and shall be
recoverable in rates of the electrical corporation or its successor's
California customers, provided the costs are not recoverable in
rates in other states served by the electrical corporation.
(f) Procurement expenditures for electricity products from
eligible renewable energy resources pursuant to this section by an
electrical corporation or successor entity meeting the requirements
of subdivision (a) shall be subject to a limitation on procurement
expenditures established by the commission pursuant to subdivision
(c) (h) of Section 399.15.
SEC. 7. Section 399.18 of the Public Utilities Code is amended to
read:
399.18. (a) This section applies to an electrical corporation
that as of January 1, 2010, met either of the following conditions:
(1) Served 30,000 or fewer customer accounts in California and had
issued at least four solicitations for eligible renewable energy
resources prior to June 1, 2010.
(2) Had 1,000 or fewer customer accounts in California and was not
connected to any transmission system or to the California
Independent System Operator.
(b) For an electrical corporation or its successor, electricity
products from eligible renewable energy resources may be used for
compliance with this article, notwithstanding any procurement content
limitation in Section 399.16, provided that both of the following
conditions are met:
(1) The electrical corporation or its successor participates in,
and complies with, the accounting system administered by the Energy
Commission pursuant to subdivision (b) (f)
of Section 399.25.
(2) The Energy Commission verifies that the electricity generated
by the facility is eligible to meet the requirements of Section
399.15.
SEC. 8. Section 399.21 of the Public Utilities Code is amended to
read:
399.21. (a) The commission, by rule, shall authorize the use of
renewable energy credits to satisfy the renewables portfolio standard
procurement requirements established pursuant to this article,
subject to the following conditions:
(1) Prior to authorizing any renewable energy credit to be used
toward satisfying the renewables portfolio standard procurement
requirements, the commission and the Energy Commission shall conclude
that the tracking system established pursuant to subdivision
(c) (h) of Section 399.25, is
operational, is capable of independently verifying that electricity
earning the credit is generated by an eligible renewable energy
resource, and can ensure that renewable energy credits shall not be
double counted by any seller of electricity within the service
territory of the WECC.
(2) Each renewable energy credit shall be counted only once for
compliance with the renewables portfolio standard of this state or
any other state, or for verifying retail product claims in this state
or any other state.
(3) All revenues received by an electrical corporation for the
sale of a renewable energy credit shall be credited to the benefit of
ratepayers.
(4) Renewable energy credits shall not be created for electricity
generated pursuant to any electricity purchase contract with a retail
seller or a local publicly owned electric utility executed before
January 1, 2005, unless the contract contains explicit terms and
conditions specifying the ownership or disposition of those credits.
Procurement under those contracts shall be tracked through the
accounting system described in subdivision (b)
(f) of Section 399.25 and included in the quantity of
eligible renewable energy resources of the purchasing retail seller
pursuant to Section 399.15.
(5) Renewable energy credits shall not be created for electricity
generated under any electricity purchase contract executed after
January 1, 2005, pursuant to the federal Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. Sec. 2601 et seq.). Procurement under
the electricity purchase contracts shall be tracked through the
accounting system implemented by the Energy Commission pursuant to
subdivision (b) (f) of Section 399.25
and count toward the renewables portfolio standard procurement
requirements of the purchasing retail seller.
(6) A renewable energy credit shall not be eligible for compliance
with a renewables portfolio standard procurement requirement unless
it is retired in the tracking system established pursuant to
subdivision (c) (h) of Section 399.25
by the retail seller or local publicly owned electric utility within
36 months from the initial date of generation of the associated
electricity.
(b) The commission shall allow an electrical corporation to
recover the reasonable costs of purchasing, selling, and
administering renewable energy credit contracts in rates.
SEC. 9. Section 399.24 is added to the Public Utilities Code, to
read:
399.24. (a) By January 1, 2014, the commission shall establish a
program that requires electrical corporations to collectively enter
into at least five contracts to procure biomethane through intrastate
common carrier pipelines, subject to all of the following:
(1) None of these contracts shall replace an existing,
substantially similar agreement.
(2) Each contract shall result in new displacement of natural gas.
(3) At least two of the contracts shall be for landfill gas.
(4) Each contract shall be executed by January 1, 2015.
(b) The commission shall ensure that an electrical corporation
recovers its reasonable costs incurred as a result of participating
in a contract pursuant to subdivision (a).
(c) For the purposes of this section, "biomethane" means methane
not derived, in whole or in part, from fossil fuels. "Biomethane"
includes landfill gas, digester gas, wastewater gas, and municipal
solid waste conversion.
SEC. 10. Section 399.25 of the Public Utilities Code is amended to
read:
399.25. The Energy Commission shall do all of the following:
(a) Certify eligible renewable energy resources that it determines
meet the criteria described in subdivision (e) of Section 399.12.
(b) (1) Establish a precertification system for facilities that
are not yet operational and are applying for certification as
eligible renewable energy resources. In establishing this
precertification system, the Energy Commission may, consistent with
the criteria described in subdivision (e) of Section 399.12,
establish conditions for the certification of a facility as an
eligible renewable energy resource when the facility becomes
operational. If, after becoming operational, the facility meets all
of the conditions established in the precertification approval, the
Energy Commission shall certify the facility as an eligible renewable
energy resource. The Energy Commission shall not retroactively alter
the conditions for certification established in
a precertification approval of a facility
applying for certification as an eligible renewable energy resource,
unless doing so is necessary for the health and safety of the public.
(2) Paragraph (1) shall apply retroactively to an Energy
Commission precertification of a facility as an eligible renewable
energy resource where an owner or operator of the facility executed a
contract for procurement of a renewable source of energy under
paragraph (1) of subdivision (a) of Section 25741 of the Public
Resources Code before January 1, 2013.
(c) In certifying an eligible renewable energy resource utilizing
biomethane, determine which one of the following biomethane source
categories is applicable:
(1) A source of biomethane that results in new displacement of
fossil fuels and directly achieves air quality improvements in an air
basin in or affecting California.
(2) A source of biomethane that results in new displacement of
fossil fuels but does not directly achieve air quality improvements
in an air basin in or affecting California.
(3) A source of biomethane that neither results in new
displacement of fossil fuels nor directly achieves air quality
improvements in an air basin in or affecting California.
(d) Based on the applicable biomethane source category under
subdivision (c), apply the following conditions to the certification
of an eligible renewable energy resource utilizing biomethane:
(1) Biomethane from a source the Energy Commission determines
meets the requirements of paragraph (1) of subdivision (c) may be
used to meet the product content requirements of paragraphs (1), (2),
or (3) of subdivision (b) of Section 399.16.
(2) Biomethane from a source the Energy Commission determines
meets the requirements of paragraph (2) or (3) of subdivision (c) may
be used to meet the product content requirements of paragraph (3) of
subdivision (b) of Section 399.16.
(e) Ensure that the operator of the facility seeking certification
demonstrates that the biomethane is injected into a pipeline that is
directly connected to an interstate pipeline system that, at the
time of the execution of the biomethane, procurement contract,
regularly provides natural gas to the facility.
(b)
(f) Design and implement an accounting system to verify
compliance with the renewables portfolio standard by retail sellers
and local publicly owned electric utilities, to ensure that
electricity generated by an eligible renewable energy resource is
counted only once for the purpose of meeting the renewables portfolio
standard of this state or any other state, to certify renewable
energy credits produced by eligible renewable energy resources, and
to verify retail product claims in this state or any other state. In
establishing the guidelines governing this accounting system, the
Energy Commission shall collect data from electricity market
participants that it deems necessary to verify compliance of retail
sellers and local publicly owned electric utilities, in accordance
with the requirements of this article and the California Public
Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code). In seeking data from electrical
corporations, the Energy Commission shall request data from the
commission. The commission shall collect data from electrical
corporations and remit the data to the Energy Commission within 90
days of the request.
(g) Design and implement an accounting system to ensure that
consumption of biomethane and the resulting electrical products are
counted a total of one time for the purpose of the renewables
portfolio standard requirements and receiving greenhouse gas
benefits, as provided by the laws of this state or any other state,
or by the laws of any other country.
(c)
(h) Establish a system for tracking and verifying
renewable energy credits that, through the use of independently
audited data, verifies the generation of electricity associated with
each renewable energy credit and protects against multiple counting
of the same renewable energy credit. The Energy Commission shall
consult with other western states and with the WECC in the
development of this system.
(d)
(i) Certify, for purposes of compliance with the
renewables portfolio standard requirements by a retail seller, the
eligibility of renewable energy credits associated with eligible
renewable energy resources procured by a local publicly owned
electric utility, if the Energy Commission determines that all of the
conditions of Section 399.31 have been met.
(j) For the purposes of this section, "biomethane" means methane
not derived, in whole or in part, from fossil fuels. "Biomethane"
includes landfill gas, digester gas, wastewater gas, and municipal
solid waste conversion.
SEC. 11. Section 769 is added to the Public Utilities Code, to
read:
769. (a) In order to facilitate achievement of the California
Renewables Portfolio Standard Program, a gas corporation shall accept
biomethane into its pipeline, provided the biomethane meets the
heating and purity requirements established by the commission.
(b) A gas corporation tariff is invalid and shall not be enforced
to the extent it restricts biomethane that meets the heating and
purity requirements established by the commission.
(c) A gas corporation shall not propose a tariff that restricts
biomethane that meets the heating and purity requirements established
by the commission.
SEC. 12. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.