BILL ANALYSIS Ó
AB 2313
Page 1
ASSEMBLY THIRD READING
AB
2313 (Williams)
As Amended April 26, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Utilities |9-4 |Gatto, Burke, Eggman, |Patterson, Chávez, |
| | | |Hadley, Obernolte |
| | | | |
| | | | |
| | |Cristina Garcia, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | | | |
| | | | |
| | |Roger Hernández, | |
| | |Quirk, Santiago, | |
| | |Williams | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |14-6 |Gonzalez, Bloom, |Bigelow, Chang, |
| | |Bonilla, Bonta, |Gallagher, Jones, |
| | |Calderon, McCarty, |Obernolte, Wagner |
| | |Eggman, Eduardo | |
| | |Garcia, Chau, Holden, | |
AB 2313
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| | |Quirk, Santiago, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Increases monetary incentives for biomethane projects
until December 31, 2021. Specifically, this bill:
1)Requires the California Public Utilities Commission (PUC) to
modify an existing 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 $1.5 million to $3 million.
2)Requires the PUC to increase the total available incentive
limitation for a dairy cluster biomethane project to $5
million. A dairy cluster biomethane project is a project of
three or more dairies in close proximity to one another, as
specified.
3)Requires gathering lines for the transport of biogas to a
centralized processing facility to be treated as an
interconnection cost.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, no additional state costs.
COMMENTS:
1)Rationale. In June 2015, the PUC issued a decision
(D.1506029) providing a five-year monetary incentive program
AB 2313
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to encourage biomethane producers to design, construct, and to
successfully operate biomethane projects that interconnect
with the gas utilities' pipeline systems. Each biomethane
project built over the next five years, or until program funds
are exhausted, is eligible to receive 50% of the project's
interconnection costs, up to $1.5 million per project. The
program is capped at $40 million.
According to the author, the individual project cap isn't
reflective of the actual cost to interconnect, which is
estimated to be between $1.5 million and $3 million per mile.
This bill increases the cap per project to facilitate the
development of biomethane projects throughout California in
the solid waste, dairy, and waste water sectors.
Background. California uses more than two trillion cubic feet
of natural gas per year, but could produce almost 300 billion
cubic feet of renewable gas per year just from organic waste
from food, livestock, agriculture, yard waste, construction
debris, soiled paper and forest biomass. Three hundred
billion cubic feet is equal to 0.3 trillion cubic feet.
According to the American Biogas Council, California has 276
operational biogas systems, but has the potential for 1,187
more.
The current monetary incentive requires PG&E, San Diego Gas
and Electric, SoCalGas, and Southwest Gas to establish
accounts to track the costs associated with the monetary
incentive a biomethane producer may receive if it successfully
interconnects and operates the project with the gas utility.
The program is capped at $40 million and the utilities may
recover the monetary incentive amount in rates, plus interest,
from its customers.
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This bill modifies the amount a project may receive but stays
within the existing $40 million cap.
Analysis Prepared by:
Sue Kateley / U. & C. / (916) 319-2083 FN:
0002971