AB 577, as amended, Bonilla. Biomethane: grant program.
The
end deletebegin insertExisting law establishes the State Energy Resources Conservation and Development Commission and requires the commission to administer various programs to award grants and other financial assistance for energy-related projects. Theend insert 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 billbegin delete would, upon appropriation,
allocate
$13,000,000 from the fund to the State Energy Resources Conservation and Development Commission for the implementation of a biomethane collection and purification grant program. The billend delete would require the commission to develop and implementbegin delete theend deletebegin insert aend insert grant program to awardbegin delete moneysend deletebegin insert grantsend insert for projects that build or develop collection and purification technology, infrastructure, and projects that upgrade existing biomethane facilities to meet certain requirements.begin insert The bill would, upon appropriation, authorize moneys in the fund to be used to fund
grants awarded pursuant to the program.end insert
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
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
P3 12 to 3 million homes or generate 2.4 billion gallons of clean,
2ultralow carbon transportation fuels.
3(f) Investing in biomethane would create cobenefits, such as
4renewable power available 24 hours a day, seven days a week,
5reduction of fossil fuel use, reduction of air and water pollution,
6and new jobs.
7(g) Biomethane could be used for things such as transportation
8fuel or
injected into the natural gas pipeline for other uses. The
9most appropriate use of biomethane varies depending on the source,
10proximity to existing natural gas pipeline injection points or large
11vehicle fleets, and the circumstances of existing facilities.
12(h) The biomethane market has been slow to develop in
13California because the collection and purification of biomethane
14can be costly. Investing in biomethane purification equipment and
15infrastructure is necessary for companies to meet existing
16biomethane safety and purity standards. Alternative funding for
17compliance with standards established pursuant to Section 25421
18of the Health and Safety Code must be found so that biomethane
19can be transmitted via California’s vast natural gas pipeline
20infrastructure.
21(i) Biomethane is
poised to play a key role in future natural gas
22and hydrogen fuel markets as a blendstock that can significantly
23reduce the carbon footprint of these two fossil-based alternative
24fuels.
Section 39718.5 is added to the Health and Safety
26Code, to read:
Upon appropriation by the Legislature, thirteen million
28dollars ($13,000,000) from the fund shall be allocated to the State
29Energy Resources Conservation and Development Commission
30for the purposes of Chapter 7.8 (commencing with Section 25680)
31of Division 15 of the Public Resources Code.
Chapter 7.8 (commencing with Section 25680) is added
34to Division 15 of the Public Resources Code, to read:
35
(a) The commission shall develop and implement a
40grant program to award moneys appropriated pursuant to Section
P4 139718.5 of the Health and Safety Code for projects that build or
2develop collection and purification technology, infrastructure, and
3projects that upgrade existing biomethane facilities to meet the
4requirements established pursuant to Section 25421 of the Health
5and Safety Code.
6(b) In granting an award, the commission shall consider both
7of the following:
8(1) Opportunities to colocate biomethane producers with vehicle
9fleets to generate biomethane and convert it to transportation fuel
10in
the same location.
11(2) Location of biomethane sources and their proximity to
12natural gas pipeline injection sites.
13(c) In prioritizing projects eligible for grants pursuant to this
14section, the commission shall maximize the reduction of
15greenhouse gas emissions achieved by a project for each dollar
16awarded.
17(d) Grants awarded pursuant to this section may be funded,
18upon appropriation by the Legislature, from the Greenhouse Gas
19Reduction Fund established pursuant to Section 16428.8 of the
20Government Code.
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