AB 2206, as amended, Williams. Renewable gas.
(1) The
end deletebegin insertTheend insert California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to adopt regulations to require the reporting and verification of statewide greenhouse gas emissions and to monitor and enforce compliance with this program. The act requires the state board to adopt a statewide greenhouse gas emissions limit, as defined, to be achieved by 2020 equivalent to the statewide greenhouse gas emissions level in 1990. Existing law requires the state board to complete a comprehensive strategy to reduce emissions of short-lived climate pollutants, as defined, in the state.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including gas corporations. The California Renewables Portfolio Standard Program requires the Public Utilities Commission to establish a renewables portfolio standard requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, at specified percentages of the total kilowatthours sold to their retail end-use customers during specified compliance periods.
This bill would require the state board, in coordination with the Public Utilitiesbegin insert Commission and State Energy Resources and Conservation Developmentend insert Commission, tobegin insert consider and, as appropriate,end insert adopt a policybegin insert or programsend insert to increase the production and use of renewable gas, as specified, generated by either an eligible renewable energy resource that meets the requirements of the California Renewables Portfolio Standard Program or direct solar energy, as specified.
(2) Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law authorizes certain public utilities, including gas corporations, to propose research and development programs and authorizes the commission to allow inclusion of expenses for research and development in the public utility’s rates. Existing law requires the commission to consider specified guidelines in evaluating the research, development, and demonstration programs proposed by gas corporations.
end deleteThe California Renewables Portfolio Standard Program requires the commission to adopt policies and programs that promote the in-state production and distribution of biomethane. Existing law requires the commission to adopt, by rule or order, (1) standards for biomethane that specify the concentrations of constituents of concern that are reasonably necessary to protect public health and ensure pipeline integrity and safety, as specified, and (2) requirements for monitoring, testing, reporting, and recordkeeping, as specified. Existing law requires a gas corporation to comply with those standards and requirements and requires that gas corporation tariffs condition access to common carrier pipelines on the applicable customer meeting those standards and requirements.
end deleteThis bill would request the California Council on Science and Technology to undertake and complete a study analyzing the regional and gas corporation specific issues relating to minimum heating value and maximum siloxane specifications adopted by the commission for biomethane before it can be injected into common carrier gas pipelines. If the California Council on Science and Technology agrees to undertake and complete the study, the bill would require each gas corporation operating common carrier pipelines in California to proportionately contribute to the expenses to undertake the study with the cost recoverable in rates. The bill would authorize the commission to modify certain available monetary incentives to allocate some of the incentive moneys to pay for the costs of the study so as to not further burden ratepayers with additional expense. If the California Council on Science and Technology agrees to undertake and complete the study, the bill would require the commission, within 6 months of its completion, to reevaluate requirements and standards adopted for injection of biomethane into common carrier pipelines and, if appropriate, change those requirements and standards or adopt new requirements and standards, giving due deference to the conclusions and recommendations made in the study.
end delete(3) Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
end deleteBecause certain provisions of the bill would be a part of the act and a violation of an order or decision of the commission implementing its requirements would be a crime, this bill would impose a state-mandated local program by creating a new crime.
end deleteThe California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
end deleteThis bill would provide that no reimbursement is required by this act for a specified reason.
end deleteVote: majority.
Appropriation: no.
Fiscal committee: yes.
State-mandated local program: begin deleteyes end deletebegin insertnoend insert.
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 the state’s emissions of greenhouse
5gases.
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) and the adoption of a comprehensive strategy to
10reduce emissions of short-lived climate pollutants (Chapter 4.2
11(commencing with Section 39730) of Part 2 of Division 26 of the
P4 1Health and
Safety Code). For California to meet its goals for
2reducing emissions of greenhouse gases and short-lived climate
3pollutants, the state must reduce emissions from the natural gas
4sector and increase the production and distribution of renewable
5and low-carbon gas supplies.
6(c) Biomethane is gas generated from organic waste through
7anaerobic digestion, gasification, pyrolysis, or other conversion
8technology that converts organic matter to gas. Biomethane may
9be produced from multiple sources, including agricultural waste,
10forest waste, landfill gas, wastewater treatment byproducts, and
11diverted organic waste.
12(d) Biomethane provides a sustainable and clean alternative to
13natural gas. If 10 percent of California’s natural gas use were to
14be replaced with biomethane use, emissions of
greenhouse gases
15would be reduced by tens of millions of metric tons of carbon
16dioxide equivalent every year.
17(e) Investing in biomethane would create cobenefits, including
18flexible generation of electricity from a renewable source that is
19available 24 hours a day, reduction of fossil fuel use, reduction of
20air and water pollution, and new jobs.
21(f) Biomethane can also be used as transportation fuel or injected
22into natural gas pipelines for other uses. The most appropriate use
23of biomethane varies depending on the source, proximity to existing
24natural gas pipeline injection points or large vehicle fleets, and the
25circumstances of existing facilities.
26(g) The biomethane market has been slow to develop in
27California
because the collection, purification, and pipeline
28injection of biomethane can be costly.
29(h) Biomethane is poised to play a key role in future natural gas
30and hydrogen fuel markets as a blendstock that can significantly
31reduce the carbon footprint of these two fossil-based alternative
32fuels.
33(i) Biomethane is one of the most promising alternative vehicle
34fuels because it generates the least net emissions of greenhouse
35gases. According to the low-carbon fuel standard regulations
36(Subarticle 7 (commencing with Section 95480) of Article 4 of
37Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the
38California Code of Regulations) adopted by the State Air Resources
39Board, vehicles running on biomethane generate significantly
P5 1lower emissions of greenhouse gases than vehicles
running on
2electricity or fossil fuel-derived hydrogen.
3(j) The California Council on Science and Technology was
4established by California academic research institutions, including
5the University of California, the University of Southern California,
6the California Institute of Technology, Stanford University, and
7the California State University, and was organized as a nonprofit
8corporation pursuant to Section 501(c)(3) of the Internal Revenue
9Code, in response to Assembly Concurrent Resolution No. 162
10(Resolution Chapter 148 of the Statutes of 1988).
11(k) The California Council on Science and Technology was
12
uniquely established at the request of the Legislature for the
13specific purpose of offering expert advice to state government on
14public policy issues significantly related to science and technology.
15(l) It is in the public’s interests, and in the interest of ratepayers
16of the state’s gas corporations, that the policies and programs
17adopted by the Public Utilities Commission be guided by the best
18science reasonably available.
Section 39734 is added to the Health and Safety Code,
20to read:
(a) For purposes of this section, “biogas” has the same
22meaning as in Section 25420.
23(b) To meet the state’s renewable energy, low-carbon fuel, and
24waste diversion goals, the state board, in coordination with the
25Public Utilitiesbegin insert Commission and State Energy Resources and
26Conservation Developmentend insert Commission, shallbegin insert consider and, as
27appropriate,end insert adoptbegin delete a policyend deletebegin insert
policies or programsend insert thatbegin delete isend deletebegin insert
areend insert
28 consistent with existing state policies and programs to increase
29the production and use of renewable gas, including biogas,
30generated by either of the following:
31(1) An eligible renewable energy resource that meets the
32requirements of the California Renewables Portfolio Standard
33Program (Article 16 (commencing with Section 399.11) of Chapter
342.3 of Part 1 of Division 1 of the Public Utilities Code).
35(2) Direct solar energy.
36(c) In adopting the policy described in subdivision (b), the state
37board shall ensure that eligible renewable gas provides direct
38benefits to the state’s environment by reducing or avoiding all of
39the following:
40(1) Emissions of criteria pollutants.
P6 1(2) Emissions that adversely affect the waters of the state.
2(3) Nuisances associated with the emission of odors.
Section 784.1 is added to the Public Utilities Code, to
4read:
(a) The Legislature requests that the California Council
6on Science and Technology undertake and complete a study
7analyzing the regional and gas corporation specific issues relating
8to minimum heating value and maximum siloxane specifications
9for biomethane before it can be injected into common carrier gas
10pipelines, including those specifications adopted in Sections 4.4.3.3
11and 4.4.4 of commission Decision 14-01-034 (January 16, 2014),
12Decision Regarding the Biomethane Implementation Tasks in
13Assembly Bill 1900. The study shall consider and evaluate other
14states’ standards, the source of biomethane, the dilution of
15biomethane after it is injected into the pipeline, the equipment and
16technology upgrades
required to meet the minimum heating value
17specifications, including the impacts of those specifications on the
18cost, volume of biomethane sold, equipment operation, and safety.
19The study shall also consider whether different sources of biogas
20should have different standards or if all sources should adhere to
21one standard for the minimum heating value and maximum
22permissible level of siloxanes. The study shall develop the best
23science reasonably available and not merely be a literature review.
24In order to meet the state’s goals for reducing emissions of
25greenhouse gases and short-lived climate pollutants and the state’s
26goals for promoting the use of renewable energy resources in place
27of burning fossil fuels, the California Council on Science and
28Technology, if it agrees to undertake and complete the study, shall
29complete the study within nine months of entering into a contract
30to undertake and
complete the study.
31(b) (1) If the California Council on Science and Technology
32agrees to undertake and complete the study pursuant to subdivision
33(a), the commission shall require each gas corporation operating
34common carrier pipelines in California to proportionately
35contribute to the expenses to undertake the study pursuant to
36Sections 740 and 740.1. The commission may modify the monetary
37incentives made available pursuant to commission Decision
3815-06-029 (June 11, 2015), Decision Regarding the Costs of
39Compliance with Decision 14-01-034 and Adoption of Biomethane
40Promotion Policies and Program, to allocate some of the moneys
P7 1that would be made available for incentives to instead be made
2available to pay for the costs of the study so as to not further burden
3ratepayers with
additional expense.
4(2) The commission’s authority pursuant to paragraph (1) shall
5apply notwithstanding whether the gas corporation has proposed
6the program pursuant to Section 740.1.
7(c) If the California Council on Science and Technology agrees
8to undertake and complete the study pursuant to subdivision (a),
9within six months of its completion, the commission shall
10reevaluate its requirements and standards adopted pursuant to
11Section 25421 of the Health and Safety Code relative to the
12requirements and standards for biomethane to be injected into
13common carrier pipelines and, if appropriate, change those
14requirements and standards or adopt new requirements and
15standards, giving due deference to the conclusions and
16recommendations made in the study by the California Council on
17Science
and Technology.
No reimbursement is required by this act pursuant to
19Section 6 of Article XIII B of the California Constitution because
20the only costs that may be incurred by a local agency or school
21district will be incurred because this act creates a new crime or
22infraction, eliminates a crime or infraction, or changes the penalty
23for a crime or infraction, within the meaning of Section 17556 of
24the Government Code, or changes the definition of a crime within
25the meaning of Section 6 of Article XIII B of the California
26Constitution.
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