BILL NUMBER: AB 1900	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 6, 2012
	AMENDED IN SENATE  JUNE 14, 2012
	AMENDED IN ASSEMBLY  MAY 25, 2012
	AMENDED IN ASSEMBLY  MAY 2, 2012
	AMENDED IN ASSEMBLY  APRIL 19, 2012
	AMENDED IN ASSEMBLY  APRIL 11, 2012

INTRODUCED BY   Assembly Members Gatto, Chesbro, and Roger Hernández
   (Coauthors: Assembly Members Gordon and Skinner)
   (  Coauthor:   Senator  
Cannella   Coauthors:   Senators  
Cannella   and Liu  )

                        FEBRUARY 22, 2012

   An act to amend Sections 25420 and 25421 of the Health and Safety
Code,  to add Section 25326 to the Public Resources Code, 
and to add Sections 399.24 and 769 to the Public Utilities Code,
relating to energy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1900, as amended, 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 PUC. 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. 
   Existing law requires the Office of Environmental Health Hazard
Assessment (OEHHA) to evaluate the environmental and health risks
posed by various hazardous substances. 
   This bill would require  the PUC   OEHHA
 to identify all constituents that may be found in landfill gas
that is to be injected into a common carrier pipeline and that could
adversely impact the health and safety of the public, and to specify
the maximum amount of those constituents that may be found in that
landfill gas. This bill would require the PUC to develop reasonable
and prudent 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 any of the identified constituents at
levels that exceed the standards set by  the PUC 
 OEHHA . This bill would prohibit a gas producer from
knowingly selling, supplying, transporting, or purchasing gas
collected from a hazardous waste landfill. 
    The Warren-Alquist State Energy Resources Conservation and
Development Act establishes the State Energy Resources Conservation
and Development Commission (Energy Commission) and requires it to
prepare an integrated energy policy report on or before November 1,
2003, and every 2 years thereafter. The act requires the report to
contain an overview of major energy trends and issues facing the
state, including, but not limited to, supply, demand, pricing,
reliability, efficiency, and impacts on public health and safety, the
economy, resources, and the environment.  
   This bill would require the Energy Commission to hold public
hearings to identify impediments that limit procurement of
electricity generated from biomethane in California, including, but
not limited to, impediments to interconnection. The bill would
require the Energy Commission to offer solutions to those impediments
as part of the above-mentioned report. 
    This bill would require the PUC, on or before January 1,
2014, to consider adopting pilot projects involving the injection of
biomethane into common carrier pipelines where a project satisfies
certain safety, quality, and efficiency requirements, as specified.
 This bill would require the PUC to adopt policies and
programs that promote the in-state production and distribution of
biomethane. 
   Existing law requires the PUC to establish rates for gas which is
utilized in cogeneration technology projects, as specified. 

   This bill would require the PUC to hold public hearings to
identify impediments that limit procurement of electricity generated
from biomethane in California, including, but not limited to,
impediments to interconnection. The bill would require the PUC to
offer solutions to those impediments in a quarterly report by the
commission on the renewables portfolio standard. 
   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 the PUC to adopt pipeline access rules
that will ensure nondiscriminatory open access to each corporation's
gas pipeline system to any party for the purpose of physically
interconnecting with the gas pipeline system and effectuating the
delivery of gas.
   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.
   This bill would become operative only if this bill and AB 2196 of
the 2011-12 Regular Session are both enacted and become effective on
or before January 1, 2013.
   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) "Commission" means the Public Utilities Commission.
   (b) "Delivery of landfill gas by dedicated pipeline" means gas
captured at a solid waste facility and transported from that site 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, or otherwise subject to
the jurisdiction of the commission.
   (c) "Department" means the Department of Toxic Substances Control.

   (d) "Gas corporation" has the same meaning as defined in Section
222 of the Public Utilities Code and is subject to rate regulation by
the commission.
   (e) "Hazardous waste landfill" means a landfill that is a
hazardous waste facility, as defined in Section 25117.1. 
   (f) "Office" means the Office of Environmental Health Hazard
Assessment.  
   (f) 
    (g)  "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. 
   (g) 
    (h)  "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) (1) The  commission   office
 shall, by rule or order, identify all constituents that may be
found in landfill gas that is to be injected into a common carrier
pipeline and that could adversely impact the health and safety of the
public. Potential impacts include, but are not limited to, health
and safety hazards to utility employees or to the general public,
damage to pipeline facilities, and other impacts that may inhibit the
marketability of gas.
   (2) The  commission     office 
shall, by rule or order, specify the maximum amount of constituents
identified pursuant to paragraph (1) that may be found in landfill
gas that is to be injected into a common carrier pipeline. The
maximum amount adopted by the  commission  
office  shall not exceed the equivalent of the no significant
risk level set in Section 25705 of Title 27 of the California Code of
Regulations for constituents that are specified in that section.
   (3)  This subdivision does not require the commission to
revise any standard in effect on the effective date of this
paragraph.   The   office shall provide the
commission with the information required by this subdivision for the
commission to implement this section. 
   (b) The  commission  office  shall make
findings that are sufficient to ensure that the standards adopted
pursuant to subdivision (a) do not do either of the following:
   (1) Expose any customer, employee, or other person to 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.
   (2) Expose a natural gas pipeline to an unreasonable risk of harm
to pipeline integrity.
   (c) The commission shall develop reasonable and prudent 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 any of the constituents that the  commission
  office  has identified pursuant to subdivision
(a) at levels that exceed the standards set by the 
commission   office  .
   (1) Recognizing the potential environmental benefits of landfill
gas that satisfies required standards and specifications, the
commission shall ensure that the protocols it adopts pursuant to this
 section   subdivision  provide for
efficient testing procedures that accurately, and, where needed,
continuously, identify levels of constituents in landfill gas that is
to be injected into a common carrier pipeline.
   (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 commission.
   (d) (1) A gas producer shall ensure that landfill gas it seeks to
inject into a pipeline satisfies the standards set by the 
commission   office  pursuant to subdivision (a). A
gas corporation shall administer testing protocols consistent with
those standards, and shall not knowingly accept landfill gas that
does not satisfy those standards.
   (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) This section does not prohibit the onsite usage of landfill
gas for the generation of electricity or any other onsite productive
use by an eligible renewable energy resource, or the delivery of
landfill gas by a dedicated pipeline for the generation of
electricity, the production of steam, or any other productive use or
other industrial applications.
   SEC. 3.    Section 25326 is added to the  
Public Resources Code  , to read:  
   25326.  (a) The commission shall hold public hearings to identify
impediments that limit procurement of electricity generated from
biomethane in California, including, but not limited to, impediments
to interconnection. The commission shall offer solutions to those
impediments as part of the integrated energy policy report prepared
pursuant to Section 25302.
   (b) For the purposes of this section, "biomethane" means landfill
gas or digester gas, consistent with subdivision (a) of Section
25741. 
   SEC. 3.   SEC. 4.   Section 399.24 is
added to the Public Utilities Code, to read: 
   399.24.  (a) On or before January 1, 2014, the commission shall
consider adopting pilot projects that satisfy all of the following
requirements:
   (1) Are capable of being safely implemented.
   (2) Demonstrate the accuracy of the commission's testing protocols
established pursuant to subdivision (a) of Section 25421 of the
Health and Safety Code.
   (3) Demonstrate the level of consistency of the quality of gas
injected into the gas pipeline system.
   (4) Demonstrate the capacity of biomethane to be procured at the
lowest cost and best fit.
   (b) 
    399.24.    (a)  To meet the energy and
transportation needs of the state, the commission shall adopt
policies and programs that promote the in-state production and
distribution of biomethane. The policies and programs shall
facilitate the development of a variety of sources of in-state
biomethane. 
   (b) For the purposes of this section, "biomethane" means landfill
gas or digester gas, consistent with subdivision (a) of Section 25741
of the Public Resources Code.  
  SEC. 4.    Section 454.4 of the Public Utilities
Code is amended to read:
   454.4.  (a) The commission shall establish rates for gas which is
utilized in cogeneration technology projects not higher than the
rates established for gas utilized as a fuel by an electric plant in
the generation of electricity, except that this rate shall apply only
to that quantity of gas which an electrical corporation serving the
area where a cogeneration technology project is located, or an
equivalent area, would require in the generation of an equivalent
amount of electricity based on the corporation's average annual
incremental heat rate and reasonable transmission losses or that
quantity of gas actually consumed by the cogeneration technology
project in the sequential production of electricity and steam, heat,
or useful work, whichever is the lower quantity.
   (b) The commission shall hold public hearings to identify
impediments that limit procurement of electricity generated from
biomethane in California, including, but not limited to, impediments
to interconnection. The commission shall offer solutions to those
impediments in the commission's Renewables Portfolio Standard
Quarterly Report issued pursuant to the Supplemental Report of the
2006 Budget Act, Item 8660-001-0462. 
  SEC. 5.  Section 769 is added to the Public Utilities Code, to
read:
   769.  For each gas corporation, the commission shall adopt
pipeline access rules that will ensure nondiscriminatory open access
to each corporation's gas pipeline system to any party for the
purpose of physically interconnecting with the gas pipeline system
and effectuating the delivery of gas.
  SEC. 6.  This act shall become operative only if this act and
Assembly Bill 2196 of the 2011-12 Regular Session are both enacted
and become effective on or before January 1, 2013.
  SEC. 7.  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.