BILL NUMBER: AB 2313	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 26, 2016
	AMENDED IN ASSEMBLY  MARCH 16, 2016

INTRODUCED BY   Assembly Member Williams

                        FEBRUARY 18, 2016

   An act to add  and repeal  Section 399.23 to the Public
Utilities Code, relating to renewable energy resources.


	LEGISLATIVE COUNSEL'S DIGEST


   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 a  5   -year  monetary incentive program
 effective June 11, 2015,  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.  The bill would
require the commission to extend the program, as modified, until
December 31, 2021. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 399.23 is added to the Public Utilities Code,
to read:
   399.23.  The commission shall  modify  
modify, and extend until December 31, 2021,  the monetary
incentive program for biomethane projects adopted in Decision
15-06-029 (June 11, 2015), Decision Regarding the Costs of Compliance
with Decision 14-01-034 and Adoption of Biomethane Promotion
Policies and Program, as follows:
   (a) Except for a dairy cluster biomethane project, the total
available incentive limitation for a project shall be increased from
one million five hundred thousand dollars ($1,500,000) to three
million dollars ($3,000,000).
   (b) For a dairy cluster biomethane project, the total available
incentive limitation shall be raised to five million dollars
($5,000,000). For purposes of this subdivision, a dairy cluster
biomethane project means a biomethane project of three or more
dairies in close proximity to one another employing multiple
facilities for the capture of biogas that is transported by multiple
gathering lines to a centralized processing facility where the biogas
is processed to meet the biomethane standards adopted by the
commission pursuant to subdivisions (c) and (d) of Section 25421 of
the Health and Safety Code and injected into the pipeline of the gas
corporation through a single interconnection. Costs incurred for
gathering lines for a dairy cluster biomethane project shall be
treated as an interconnection cost. 
   (c) This section shall remain in effect only until January 1,
2022, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2022, deletes or extends
that date.