Amended in Assembly May 5, 2015

Amended in Assembly April 6, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 577


Introduced by Assembly Member Bonilla

February 24, 2015


An act to add Section 39718.5 to the Health and Safety Code, and to add Chapter 7.8 (commencing with Section 25680) to Division 15 of the Public Resources Code, relating to biomethane.

LEGISLATIVE COUNSEL’S DIGEST

AB 577, as amended, Bonilla. Biomethane: grant program.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The state board is required to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation.

This bill would, upon appropriation,begin delete require the State Air Resources Board toend delete allocatebegin delete an unspecified percentage of the moneys inend deletebegin insert $13,000,000 fromend insert the fund to the State Energy Resources Conservation and Development Commission for the implementation of a biomethane collection and purification grant program. The bill would require the commission to develop and implement the grant program to award moneys for projects that build or develop collection and purification technology, infrastructure, and projects that upgrade existing biomethane facilities to meet certain requirements.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) California imports 91 percent of its natural gas, which is
4responsible for 25 percent of all greenhouse gas (GHG) emissions.
5This costs California billions of dollars in lost revenues and jobs.

6(b) California made a commitment to address climate change
7with the California Global Warming Solutions Act of 2006
8(Division 25.5 (commencing with Section 38500) of the Health
9and Safety Code). For California to meet its GHG reductions goals,
10the GHG emissions from the natural gas sector must be reduced.

11(c) Biomethane is gas generated from organic waste through
12anaerobic digestion, gasification, pyrolysis, or other conversion
13technology that converts organic matter to gas. Biomethane may
14be produced from sources such as agricultural waste, forest waste,
15landfill gas, wastewater treatment byproducts, and diverted organic
16waste.

17(d) Biomethane provides a more sustainable and cleaner
18 alternative to natural gas. If 10 percent of California’s natural gas
19use were to be replaced with biomethane, GHG emissions would
20be reduced by tens of millions of metric tons of carbon dioxide
21equivalent every year.

22(e) Almost 300 billion cubic feet of biomethane could be
23produced in California each year. This biomethane could power
242 to 3 million homes or generate 2.4 billion gallons of clean,
25ultralow carbon transportation fuels.

26(f) Investing in biomethane would create cobenefits, such as
27renewable power available 24 hours a day, seven days a week,
28reduction of fossil fuel use, reduction of air and water pollution,
29and new jobs.

30(g) Biomethane could be used for things such as transportation
31fuel or injected into the natural gas pipeline for other uses. The
P3    1most appropriate use of biomethane varies depending on the source,
2proximity to existing natural gas pipeline injection points or large
3vehicle fleets, and the circumstances of existing facilities.

4(h) The biomethane market has been slow to develop in
5California because the collection and purification of biomethane
6can be costly. Investing in biomethane purification equipment and
7infrastructure is necessary for companies to meet existing
8biomethane safety and purity standards. Alternative funding for
9compliance with standards established pursuant to Section 25421
10of the Health and Safety Code must be found so that biomethane
11can be transmitted via California’s vast natural gas pipeline
12infrastructure.

13(i) Biomethane is poised to play a key role in future natural gas
14and hydrogen fuel markets as a blendstock that can significantly
15reduce the carbon footprint of these two fossil-based alternative
16fuels.

17

SEC. 2.  

Section 39718.5 is added to the Health and Safety
18Code
, to read:

19

39718.5.  

Upon appropriation by the Legislature,begin delete the state board
20shall allocate ____ percent of the moneysend delete
begin insert thirteen million dollars
21($13,000,000)end insert
from the fundbegin insert shall be allocatedend insert to the State Energy
22Resources Conservation and Development Commission for the
23purposes of Chapter 7.8 (commencing with Section 25680) of
24Division 15 of the Public Resources Code.

25

SEC. 3.  

Chapter 7.8 (commencing with Section 25680) is added
26to Division 15 of the Public Resources Code, to read:

27 

28Chapter  7.8. Biomethane Collection and Purification
29Grant Program
30

 

31

25680.  

(a) The commission shall develop and implement a
32grant program to award moneys appropriated pursuant to Section
3339718.5 of the Health and Safety Code for projects that build or
34develop collection and purification technology, infrastructure, and
35projects that upgrade existing biomethane facilities to meet the
36requirements established pursuant to Section 25421 of the Health
37and Safety Code.

38(b) In granting an award, the commission shall consider both
39of the following:

P4    1(1) Opportunities to colocate biomethane producers with vehicle
2fleets to generate biomethane and convert it to transportation fuel
3in the same location.

4(2) Location of biomethane sources and their proximity to
5natural gas pipeline injection sites.

6(c) In prioritizing projects eligible for grants pursuant to this
7section, the commission shall maximize the reduction of
8greenhouse gas emissions achieved by a project for each dollar
9awarded.



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