AB 577, as amended, Bonilla. Biomethane: grant program.
Existing 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. 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 require the commission to develop and implement a grant program to award grants for projects that produce biomethane, that build or develop collection and purification technology or infrastructure, or that upgrade or expand existing biomethane facilities. The bill would, upon appropriation, authorize moneys in the fund to be used to fund grants awarded pursuant to the program.
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
242 to 3 million homes or generate 2.4 billion gallons of clean,
25ultralow carbon transportation fuels.
P3 1(f) Investing in biomethane would create cobenefits, such as
2renewable power available 24 hours a day, seven days a week,
3reduction of fossil fuel use, reduction of air and water pollution,
4and new jobs.
5(g) Biomethane could be used for things such as transportation
6fuel
or injected into the natural gas pipeline for other uses. The
7most appropriate use of biomethane varies depending on the source,
8proximity to existing natural gas pipeline injection points or large
9vehicle fleets, and the circumstances of existing facilities.
10(h) The biomethane market has been slow to develop in
11California because the collection and purification of biomethane
12can be costly. Investing in biomethane purification equipment and
13infrastructure is necessary for companies to meet existing
14biomethane safety and purity standards. Alternative funding for
15compliance with standards established pursuant to Section 25421
16of the Health and Safety Code must be found so that biomethane
17can be transmitted via California’s vast natural gas pipeline
18infrastructure.
19(i) Biomethane is
poised to play a key role in future natural gas
20and hydrogen fuel markets as a blendstock that can significantly
21reduce the carbon footprint of these two fossil-based alternative
22fuels.
Chapter 7.8 (commencing with Section 25680) is added
24to Division 15 of the Public Resources Code, to read:
25
(a) (1) The commission shall develop and implement
30a grant program to award moneys appropriated pursuant to Section
3139718.5 of the Health and Safety Code for projects
that do any of
32the following:
33(A) Produce biomethane.
34(B) Upgrade or expand existing biomethane production facilities.
35(C) Develop collection and purification technology or
36infrastructure for biomethane.
37(2) Biomethane produced from those projects shall meet the
38requirements established pursuant to Section 25421 of the Health
39and Safety Code.
P4 1(b) In granting an award, the commission shall consider both
2of the following:
3(1) Opportunities to colocate biomethane producers with vehicle
4fleets to generate biomethane and convert it to transportation fuel
5in the same location.
6(1) The highest and best use of local biomethane projects.
end insert
7(2) Location of biomethane sources and their proximity to
8natural gas pipeline injection sites.
9(c) In prioritizing projects eligible for grants pursuant to this
10section, the commission shall maximize the reduction of
11greenhouse gas emissions achieved by a project for each dollar
12awarded.
13(d) Grants awarded pursuant to this section may be funded, upon
14appropriation by the Legislature, from the Greenhouse Gas
15Reduction Fund established pursuant to Section 16428.8 of the
16Government Code.
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