BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1923


                                                                    Page  1





          Date of Hearing:  April 27, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          1923 (Wood) - As Amended April 14, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires the California Public Utilities Commission  
          (PUC) to direct electrical corporations to authorize a bioenergy  
          electric generation facility with a nameplate (total possible  
          output)  generating capacity of up to 5 MW to participate in the  
          bioenergy feed-in tariff,  if the facility delivers no more than  
          3 MW to the grid at any time and complies with specified  
          interconnection and payment requirements.









                                                                    AB 1923


                                                                    Page  2






          FISCAL EFFECT:


          One-time, short-term increased PUC workload absorbable within  
          existing resources.  However, this increased workload may  
          potentially delay implementation of other RPS programs and  
          policies.


          COMMENTS:


          1)Purpose.  According to the author, the current 3 MW  
            restriction makes it difficult for small biomass companies in  
            Humboldt County to compete in the renewable energy market.   
            New 3MW generators are expensive products and used 3 MW  
            generators are difficult to purchase as opposed to used 5 MW  
            generators.   This bill allows a 5 MW generator to be used if  
            it operates at a maximum of 3 MW.



          2)Background.  A Feed-in Tariff (FIT) is a contract that  
            provides a guaranteed fixed payment for the energy produced.   
            All investor-owned utilities (IOUs) and publicly owned  
            utilities (POUs) that serve more than 75,000 retail customers  
            are required to develop a standard contract or tariff  
            available for renewable energy facilities up to 3 MWs capped  
            at 250 MWs statewide allocated as follows:
            


              a)   110 MWs  for biogas from wastewater treatment, municipal  
               organic waste diversion, food processing, and codigestion;
              b)   90 MWs  for dairy and other agricultural bioenergy; and 


              c)   50 MWs  for bioenergy using byproducts of sustainable  








                                                                    AB 1923


                                                                    Page  3





               forest management (biomass)


           


             This bill limits the 5MW capacity to projects from the 50MW  
            set-aside for biomass.





          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081