AB 2313, as amended, Williams. Renewable natural gas: monetary incentive program for biomethane projects.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including gas corporations. 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 the commission to require gas corporation tariffs to condition access to common carrier pipelines on the applicable customer meeting those standards and requirements. Existing law requires the commission to adopt policies and programs that promote the in-state production and distribution of biomethane, as defined, that facilitate the development of a variety of sources of in-state biomethane. The commission has adopted two decisions implementing these requirements, the second of which adopted abegin insert 5end insertbegin insert-yearend insert monetary incentive programbegin insert effective June 11, 2015,end insert for biomethane projects pursuant to which a qualifying project is entitled to a one-time payment of 50% of the interconnection costs incurred by the biomethane producer, up to a total payment of $1,500,000. Total cost of the monetary incentive program for biomethane projects is limited to $40,000,000 over the 5-year life of the program.
This bill would require the commission to modify the monetary incentive program for biomethane projects so that the total available incentive limitation for a project, other than a dairy cluster biomethane project, as defined, is increased from $1,500,000 to $3,000,000. The bill would require the commission to increase the total available incentive limitation for a dairy cluster biomethane project to $5,000,000 and would require that gathering lines for transport of biogas to a centralized processing facility for the project be treated as an interconnection cost.begin insert The bill would require the commission to extend the program, as modified, until December 31, 2021.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:
Section 399.23 is added to the Public Utilities
2Code, to read:
The commission shallbegin delete modifyend deletebegin insert modify, and extend until
4December 31, 2021,end insert the monetary incentive program for
5biomethane projects adopted in Decision 15-06-029 (June 11,
62015), Decision Regarding the Costs of Compliance with Decision
714-01-034 and Adoption of Biomethane Promotion Policies and
8Program, as follows:
9(a) Except for a dairy cluster biomethane project, the total
10available incentive limitation for a project shall be increased from
11one million five hundred thousand dollars ($1,500,000) to three
12million dollars
($3,000,000).
13(b) For a dairy cluster biomethane project, the total available
14incentive limitation shall be raised to five million dollars
15($5,000,000). For purposes of this subdivision, a dairy cluster
16biomethane project means a biomethane project of three or more
17dairies in close proximity to one another employing multiple
18facilities for the capture of biogas that is transported by multiple
19gathering lines to a centralized processing facility where the biogas
20is processed to meet the biomethane standards adopted by the
P3 1commission pursuant to subdivisions (c) and (d) of Section 25421
2of the Health and Safety Code and injected into the pipeline of the
3gas corporation through a single interconnection. Costs incurred
4for gathering lines for a dairy cluster biomethane project shall be
5treated as an interconnection cost.
6
(c) This section shall remain in effect only until January 1, 2022,
7and as of that date is repealed, unless a later enacted statute, that
8is enacted before January 1, 2022, deletes or extends that date.
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