BILL ANALYSIS Ó
AB 577
Page 1
ASSEMBLY THIRD READING
AB
577 (Bonilla)
As Amended May 28, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+---------------------+---------------------|
|Natural |9-0 |Williams, Dahle, | |
|Resources | | | |
| | | | |
| | |Cristina Garcia, | |
| | |Hadley, Harper, | |
| | |McCarty, Rendon, | |
| | |Mark Stone, Wood | |
| | | | |
|----------------+------+---------------------+---------------------|
|Appropriations |17-0 |Gomez, Bigelow, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, Eggman, | |
| | |Gallagher, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Gordon, Holden, | |
| | |Jones, Quirk, | |
| | |Rendon, Wagner, | |
| | |Weber, Wood | |
| | | | |
AB 577
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| | | | |
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SUMMARY: Establishes the Biomethane Collection and Purification
Grant Program (Program). Specifically, this bill:
1)Establishes the Program and requires the California Energy
Commission (CEC) to develop and implement grants for projects
that build or develop collection and purification technology,
infrastructure, and projects that upgrade existing biomethane
facilities to meet the state's biomethane standards.
2)When awarding grants, requires CEC to consider:
a) Opportunities to collocate biomethane producers with
vehicle fleets to generate biomethane and convert it to
transportation fuel at the same location; and,
b) Location of biomethane sources and their proximity to
natural gas pipeline injection sites.
3)Requires CEC to prioritize projects that provide the maximum
greenhouse gas (GHG) reductions for each dollar awarded.
4)Specifies that grants may be funded from the Greenhouse Gas
Reduction Fund (GGRF) upon appropriation by the Legislature.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, this bill has
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1)Unknown cost pressures to the GGRF to fund the Program.
2)Unknown increased administrative costs for CEC to develop and
implement the Program.
COMMENTS: The anaerobic digestion of biodegradable organic matter
produces biogas, which consists of methane, carbon dioxide, and
other trace amounts of gases. Depending on where it is produced,
biogas can be categorized as landfill gas or digester gas.
Landfill gas is produced by decomposition of organic waste in a
municipal solid waste landfill. Digester gas is typically
produced from livestock manure, sewage treatment or food waste.
According to a 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.
Biogas can also be used in place of gasoline or diesel for
transportation. According to a November 2014 report by the
Bioenergy Association of California, California could generate as
much as 10% of its total gas consumption (2,415 gasoline gallon
equivalents) from organic waste, or the equivalent of 7,000 MW of
renewable power. Biogas has significant GHG emissions reduction
potential; a recent report by the International Panel on Climate
Change states that methane has 34 times the heat-trapping effects
of carbon dioxide over a 100-year period. Biogas produced from
the anaerobic digestion of organic waste (i.e., food and green
waste) has a negative carbon intensity (-15), wastewater treatment
biogas has a carbon intensity of 7.89, dairy digester biogas has a
carbon intensity of 13.45, and landfill biogas has a carbon
intensity between 11.26 and 15.56. For comparison, the carbon
intensity of gasoline is 99.18, and diesel is 98.3. Other
environmental benefits of biogas include locally sourced renewable
energy, improved air and water quality and other ecosystem
benefits, waste reduction, as well as reducing California's
dependence on fossil fuels and vulnerability to wildfire (for
forestry biomass).
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Current bioenergy production in California includes 33 biomass
plants that generate a combined 600 MW of electricity (nearly 2%
of California's total electricity supply); 11 dairy digesters that
produce electricity, combined heat and power, and biogas; 500 MW
of electricity is generated at biogas facilities at wastewater
treatment plants and landfills; and, 50 million to 100 million
gasoline gallon equivalent produced at in-state ethanol and
biodiesel facilities.
The CEC's Bioenergy Action Plan states:
Despite its many benefits, bioenergy production uses only 15%
of California's available biomass waste, and production is
decreasing. Regulatory and financial incentives for renewable
power do not adequately monetize the many benefits of
bioenergy, and regulatory barriers compound these challenges.
Some incentives for bioenergy have been inconsistent or
discontinued while others have failed to account for the
additional costs and benefits of biomass. Environmental,
waste disposal, public health, and pipeline safety regulations
often complicate bioenergy permitting and development and
sometimes contradict each other. Access to transmission lines,
pipelines and other distribution networks also pose
significant challenges to bioenergy development.
Some of these challenges require additional research and
demonstration to ensure that bioenergy production is
environmentally and economically sustainable. Other barriers
require regulatory changes, including permit streamlining and
consolidation, utility procurement requirements, financial
incentives that reflect the many benefits of bioenergy, and
other changes.
The Plan identifies several recommended actions, including
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"facilitate access to transmission, pipelines, and other
distribution networks." This bill would provide funding that
could be used to achieve this recommended action.
Analysis Prepared by: Elizabeth
MacMillan / NAT. RES. / (916) 319-2092 FN: 0000824