BILL NUMBER: AB 2313	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 19, 2016
	AMENDED IN SENATE  AUGUST 15, 2016
	AMENDED IN SENATE  AUGUST 2, 2016
	AMENDED IN SENATE  JUNE 14, 2016
	AMENDED IN ASSEMBLY  APRIL 26, 2016
	AMENDED IN ASSEMBLY  MARCH 16, 2016

INTRODUCED BY   Assembly Member Williams
   (Coauthor: Senator Hertzberg)

                        FEBRUARY 18, 2016

   An act to add Section 784.2 to, and add and repeal Section 399.19
of, 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: pipeline infrastructure.
   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 relative to those constituents of concern. 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,
and requires that these policies and programs facilitate the
development of a variety of sources of in-state biomethane. The
commission has adopted two decisions implementing these requirements,
the 2nd 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  
authorize the use of incentive payments subject to this limitation
for interconnection costs and costs incurred for  gathering
lines for transport of biogas to a centralized processing facility
for the  project be treated as an interconnection cost.
  project.  The bill would require the commission
to extend the program, as modified, until December 31, 2021. Before
the exhaustion of the funds available pursuant to the monetary
incentive program, and before the expiration of the program, the bill
would require the commission to consider  options to promote the
in-state production and distribution of biomethane, including 
whether to allow recovery in rates of the costs of investments to (1)
facilitate direct investment in the procurement and installation of
utility infrastructure necessary to achieve interconnection between
the natural gas transmission and distribution pipeline network and
biomethane generation and collection  equipment, and
  equipment and of gathering lines for a dairy cluster
biomethane project,  (2) provide for the installation of utility
infrastructure to achieve interconnection with facilities that
generate  biomethane.   biomethane, and 
 (3) ensure that these investments for infrastructure are prudent
and reasonable and provide a direct benefit to, and are in the
interests of, all classes of ratepayers. 
   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.
   Because the bill extends the monetary incentive program and
requires action by the commission to implement certain of its
requirements, and became failure to comply with these commission
actions would be a crime, the bill would impose a state-mandated
local program by creating a new crime.
   The 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.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 399.19 is added to the Public Utilities Code,
to read:
   399.19.  The commission shall 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).   ($5,000,000), which may be used for
interconnection costs and costs incurred for gathering lines 
 to help reduce emissions of short-lived climate pollutants
pursuant to Section 39730 of the Health and Safety Code.  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.
  SEC. 2.  Section 784.2 is added to the Public Utilities Code, to
read:
   784.2.  Before the exhaustion of the funds made available pursuant
to 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, and before the expiration of that
program, the commission shall consider  options to further the
goals of Section 399.24, including consideration of  whether to
allow recovery in rates of the costs of investments to do each of the
following:
    (a)     Ensure that prudent and reasonable
  investments for infrastructure pursuant to subdivisions
(b) and (c) provide a direct benefit, such as safety, reliability,
affordability, or greenhouse gas reduction, to, and are in the
interests of, all classes of ratepayers.  
   (a) 
    (b)  Facilitate direct investment in the procurement and
installation of utility infrastructure necessary to achieve
interconnection between the natural gas transmission and distribution
pipeline network and biomethane generation and collection equipment,
 including, for a dairy digester cluster project, as defined
in Section 399.19, gathering lines.   and of gathering
lines for a dairy cluster biomethane project.  
   (b) 
    (c)  Provide for the installation of utility
infrastructure to achieve interconnection with facilities that
generate biomethane.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.