BILL ANALYSIS Ó
AB 1900
Page 1
( Without Reference to File )
CONCURRENCE IN SENATE AMENDMENTS
AB 1900 (Gatto, et al.)
As Amended August 31, 2012
Majority vote
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|ASSEMBLY: |72-1 |(May 31, 2012) |SENATE: |31-0 |(August 31, |
| | | | | |2012) |
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Original Committee Reference: U. & C.
SUMMARY : Clarifies existing law with respect to the injection
of biomethane into common carrier pipelines. Specifically, this
bill :
1)Requires the California Public Utilities Commission (PUC) to
identify all constituents that may be found in landfill gas
that is to be injected into a common carrier pipeline.
2)Requires the PUC to develop testing protocols for gas
collected from a solid waste landfill that is to be injected
into a common carrier pipeline.
3)Prohibits a gas producer from knowingly selling, supplying,
transporting, or purchasing gas collected from a hazardous
waste landfill.
4)Requires the PUC to adopt standards, for biomethane that is to
be injected into a common carrier pipeline, to ensure pipeline
integrity and safety and other specified criteria by December
31, 2013.
5)Requires 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.
The Senate amendments would require the Office of Health Hazard
Assessment (OEHHA), the California Energy Commission (CEC) and
the Public Utilities Commission (PUC) to take actions related to
the delivery of biomethane gas within common carrier natural gas
AB 1900
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pipelines operated by Investor Owned Utilities (IOUs) and for
the state to investigate the impediments to using biomethane gas
for the purposes of distributed electricity generation.
Amendments extend the date by which PUC must adopt regulations,
add contingent enactment language.
AS PASSED BY THE ASSEMBLY , the bill was intended to address the
barriers to allowing biomethane to be injected into common
carrier pipelines and break down barriers to using in-state
biomethane. In addition, this bill's enactment is contingent
upon the enactment of AB 2196 (Chesbro) of the 2011-2012 Regular
Session.
FISCAL EFFECT : $139,000 in 2012-13 and 2013-14 from the Public
Utilities Reimbursement Account to OEHHA for a health and safety
study of landfill gas. $100,000 in 2012-13 and 2013-14 from the
Energy Resources Programs Account (General Fund) to the CEC for
hearings to identify impediments to interconnections and to
develop solutions. $150,000 in 2012-13 and 2013-14 from the
Public Utilities Reimbursement Account to the PUC to set
standards for landfill gas, adopt testing protocols and policies
that promote in-state production and distribution of biomethane,
$120,000 annually thereafter to monitor standards, protocols
and, as necessary, pilot projects.
COMMENTS : Biomethane is a renewable fuel that is produced at
several types of facilities, including dairy farms and
landfills. The gas can be collected and then transported to a
generation facility where it can be used to make electricity.
Transportation of biofuels via truck or rail is not economically
feasible. Transport via pipeline is the preferred method.
As a result of state law, IOUs (Sempra and Pacific Gas and
Electric (PG&E)) operate common carrier pipelines but will not
allow biomethane from landfills to be injected into the
pipelines they operate. Biomethane from dairies is tested and
allowed. Pipeline operators may or may not have similar
restrictions.
Landfill gas may have constituents present in the gas that could
adversely impact human health. Some constituents (such as lead
or arsenic or cadmium) could cause cancer or birth defects.
Since the delivery of the gas to a household appliance could
inadvertently provide close exposure to these constituents, IOUs
do not allow landfill gas into their pipelines. IOUs are also
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concerned about potential damage to the pipelines themselves,
depending upon what is in the gas - moisture, for example, could
cause corrosion.
CEC data : According to a California Energy Commission (CEC)
estimate, 358 megawatts (MW) is potentially available from new
landfill gas development. Of these landfills, some are small
and are therefore unlikely to be developed for gas by 2020.
Many are not near a gas transmission line. Of 10 landfills
operated by Waste Management, four are sufficiently close to a
suitable pipeline with a sufficient volume of gas to be
considered for development for landfill gas. Waste Management
estimates around 150 MW of in-state gas that could be developed
in California for delivery to a generation facility. There is
also the potential to produce electricity at a landfill if it
were equipped with a small generation facility (such as a fuel
cell). As electricity generators these facilities would qualify
for RPS. They are also eligible to bid into the utility RPS
solicitations, the Reverse Auction solicitations, and the Feed
in Tariff. Some landfills currently have fuel cells and use the
electricity generated on site. San Diego Gas and Electric
(SDG&E) currently contracts with landfills to buy electricity
from landfill generation facilities.
Analysis Prepared by : DaVina Flemings / U. & C. / (916)
319-2083
FN: 0005907