BILL ANALYSIS Ó
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Bob Wieckowski, Chair
2015 - 2016 Regular
Bill No: SB 687 Hearing Date: 4/29/15
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|Author: |Allen |
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|Version: |4/16/2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Rebecca Newhouse |
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Subject: Renewable gas standard
ANALYSIS:
Existing law:
1. Under the California Global Warming Solutions Act of 2006,
requires the California Air Resources Board (ARB) to
determine the 1990 statewide greenhouse gas (GHG) emissions
level and approve a statewide GHG emissions limit that is
equivalent to that level, to be achieved by 2020, and to
adopt GHG emissions reductions measures by regulation. ARB
is authorized to include the use of market-based mechanisms
to comply with these regulations. (Health and Safety Code
§38500 et seq.)
2. Provides that eligible renewable electrical generation
facilities must use biomass, solar thermal, photovoltaic,
wind, geothermal, renewable fuel cells, small hydroelectric,
digester gas, limited non-combustion municipal solid waste
conversion, landfill gas, ocean wave, ocean thermal, and
tidal current to generate electricity, and requires that
renewable electrical generation facilities must meet certain
requirements, as specified (Public Resources Code §25741).
3. Under the Renewable Portfolio Standard (RPS) requires
investor-owned utilities (IOUs), publicly owned utilities
(POUs) and certain other retail sellers of electricity to
achieve 33% of their energy sales from an eligible renewable
electrical generation facility by December 31, 2020, and
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establishes portfolio requirements and a timeline for
procurement quantities of three product categories. (Public
Utilities Code §399.11 et seq.).
4. Sets specific eligibility requirements for biomethane
contracted after March 29, 2012, in order to qualify as an
RPS-eligible resource. (PUC §399.12.6)
5. Requires the Office of Environmental Health Hazard Assessment
(OEHHA), in consultation with the State Air Resources Board,
and other specified agencies, to compile a list of
constituents of concern that could pose risks to human health
and that are found in biogas at concentrations that
significantly exceed the concentrations of those constituents
in natural gas and requires OEHHA to determine the health
protective levels for that list, as specified, and requires
ARB to identify realistic exposure scenarios and the health
risks associated with those scenarios, as specified and the
acceptable threshold concentrations of those constituents.
(HSC §25421)
6. Requires the California Public Utilities Commission (PUC) to
adopt standards for biomethane to be injected into a common
carrier pipeline that specify constituent concentrations that
are reasonably necessary to ensure the protection of human
health, giving due deference to the findings by OEHHA, ARB,
and other specified agencies. (HSC §25421)
7. Requires California Energy Commission (CEC) to hold public
hearings to identify impediments that limit procurement of
biomethane in California, including, but not limited to,
impediments to interconnection, and requires CEC to offer
solutions to those impediments as part of the integrated
energy policy. (PRC §25326)
8. Requires PUC to adopt policies and programs that promote the
in-state production and distribution of biomethane. (PUC
§399.24 )
9. Requires PUC to adopt pipeline access rules that ensure that
each gas corporation provides nondiscriminatory open access
to its gas pipeline system to any party for the purposes of
physically interconnecting with the gas pipeline system and
effectuating the delivery of gas. (PUC §784)
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10.Requires businesses that generate specified amounts of
organic waste to arrange for recycling services for that
material. (PRC §42649.81)
This bill:
1. Defines "renewable gas" as gas generated from organic waste
or other renewable sources, including electricity generated
by an eligible renewable energy resource meeting RPS
requirements.
2. Requires the ARB, on or before June 30, 2016, and in
consultation with CEC and PUC, to adopt a carbon-based
renewable gas standard (RGS) that requires each gas seller to
provide certain percentages of renewable gas to retail
end-use customers.
3. Requires ARB to require gas sellers to make reasonable
progress sufficient to ensure that by the end of the
compliance period, the following percentages of renewable gas
supplied to retail end-use customers are met:
A. 1% by 2019;
B. 3% by 2022;
C. 5% by 2024;
D. 10% by 2029;
4. Requires that renewable gas, to be eligible to count towards
the procurement requirements in the bill, must meet at least
one of the following conditions:
A. the renewable gas is used onsite by an end-use customer
in the state;
B. the renewable gas is used by an end-use customer in the
state and delivered through a dedicated pipeline;
C. the renewable gas is delivered to end-use customers in
the state through a common carrier pipeline and meets
specified requirements.
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5. Requires ARB to notify all gas sellers in California of how
to comply with the renewable gas standard procurement
requirements, and authorizes the State Board of Equalization
to supply ARB with specified information to assist in the
identification of gas sellers that are not gas corporations.
6. Requires PUC to notify ARB of each gas corporation that
provides gas service to end-use customers in the state.
7. Requires ARB to maintain and publicize a list of eligible
renewable gas providers.
8. Requires ARB, in consultation with CEC, to adopt a flexible
compliance mechanism, such as tradable renewable gas credits,
and specifies that if ARB adopts tradable credits, those
credits are to be based on the carbon intensity of the
renewable gas, give equal value to renewable gas used onsite
and renewable gas injected into a common carrier pipeline,
and allow for credit banking and borrowing.
9. Requires ARB to consult with PUC in development of
regulations, as they affect gas corporations subject to
regulations by PUC, to implement the RGS, in order to
minimize duplicative reporting and regulatory requirements.
10.Require ARB, in consultation with PUC and CEC, ensure that
moneys made available through cap-and-trade auction revenue,
or from the Alternative and Renewable Fuel and Vehicle
Technology Program, or the Air Quality Improvement Program,
are used to reduce the costs to implement the RGS.
11.Requires ARB waive the enforcement of the RGS if it finds
that a gas seller has demonstrated specified conditions
beyond the control of the gas seller and that prevent
compliance.
12.Requires ARB to issue a lifecycle GHG emissions analysis for
various biogas types and end uses, and that also includes an
assessment of other public health and environmental benefits.
13.Requires CEC to provide an assessment to ARB and the
Legislature, on or before January 1, 2018, on the following:
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A. Opportunities to colocate renewable gas production with
existing vehicle fleets and other transportation fueling
opportunities;
B. Renewable energy production sites that can use
renewable gas onsite to reduce fossil fuel gas consumption
for electricity generation, heating or cooling, or other
purposes;
C. Recommendations to reduce the costs of pipeline
interconnection for renewable gas projects in the state;
Background
1.Methane and Short-Lived Climate Pollutants.
Methane is the principal component of natural gas and is
termed a short-lived climate pollutant, as it has a much
shorter lifetime in the atmosphere than CO2, but has a much
higher global warming potential. According to the US EPA,
methane is over 24 times more effective than CO2 in trapping
heat in the atmosphere over a 100-year period.
Atmospheric methane concentrations have been increasing as a
result of human activities related to agriculture, fossil fuel
extraction and distribution, and waste generation and
processing. Many emissions sources of methane are unregulated
and recent scientific reports indicate that the US EPA has
underestimated methane emissions by as much as 50%.
A 2012 study published in the journal Nature Climate Change
found that reducing emissions of short-lived climate
pollutants, including methane and soot, by 30 to 60% by 2050
would slow the annual rate of sea level rise by about 18% by
2050. In addition, the study found that, compared to just
cutting CO2 emissions, reducing the release of short-lived
climate pollutants would do more to slow sea level rise before
2050. However, the study noted that lowering CO2 emissions
would be required to limit warming and warming-related impacts
beyond that point.
SB 605 (Lara), Chapter 523, Statutes of 2014, directs ARB to
develop a comprehensive short-lived climate pollutant strategy
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by January 1, 2016. In developing the strategy, ARB is
required to complete an inventory of sources and emissions of
short-lived climate pollutants in the state based on available
data, identify research needs to address data gaps and
existing and potential new control measures to reduce
emissions.
2.Biogas and Biomethane.
Through a series of steps involving the bacterial breakdown of
organics, carbon-based material can be converted to methane in
oxygen-deprived conditions. This process occurs naturally,
and is often uncontrolled in landfills and dairy farms,
contributing to significant GHG emissions. However, capturing
and utilizing the gas is facilitated through the use of
anaerobic digesters, which operate with various temperatures,
pH and bacteria types, can break down organic wastes,
dramatically speeding up the natural decomposition process,
and produce primarily methane, significant quantities of
carbon dioxide and trace amounts of other gasses including
hydrogen, carbon monoxide, nitrogen, oxygen, and hydrogen
sulfide, which, all together, is termed "biogas." The biogas
can be processed further to produce high purity, or "pipeline"
quality methane, and is termed biomethane to differentiate it
from natural gas. In addition to landfills and dairy,
biomethane is generated from digestion processes at wastewater
treatment plants.
Burning biomethane results in CO2, however the process is
considered carbon neutral since the CO2 was recently removed
from the atmosphere. There are very significant climate
benefits associated with capturing the methane, and preventing
its release into the atmosphere, where it is almost 25 times
more powerful climate forcer than CO2.
Additionally, energy produced through burning biomethane can
displace energy consumption from fossil-fuels.
3.AB 32, Cap and Trade and Low Carbon Fuel Standard (LCFS).
ARB has broad authority to regulate methane as a GHG under AB
32 and create programs and implement measures to reduce GHGs
in the state to achieve the statewide 2020 GHG emissions goal.
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According to ARB's updated scoping plan, the state's largest
anthropogenic methane-producing sources are enteric
fermentation (belching by animals), manure management,
landfills, natural gas transmission, and wastewater treatment.
Methane emissions also come from non-anthropogenic sources
such as wetlands, oceans, and forests. Methane gas from
production and distribution is a growing source of emissions
in many countries, including the United States, due to
increased exploration and use of natural gas for energy.
In order to address these emissions, ARB has implemented
several programs that target methane emissions, or provide
incentives for the use of renewably generated methane.
Methane from landfills: Effective June 17, 2010, ARB approved
a regulatory measure as an AB 32 discrete early action measure
that requires owners and operators of certain uncontrolled
municipal solid waste landfills to install gas collection and
control systems, and requires existing and newly installed gas
and control systems to operate in an optimal manner.
Cap-and-Trade Program. Pursuant to AB 32, ARB adopted a
cap-and-trade program that places a "cap" on aggregate GHG
emissions from large GHG emitters, which are responsible for
approximately 85% of the state's GHG emissions. The cap
declines over time, eventually reaching the target emission
level in 2020. Large emitters must obtain compliance
instruments equal to their emissions in that period.
Compliance instruments include allowances and offsets, where
allowances are generated by the state in an amount equal to
the cap, and offsets result from emissions reductions
achieved in an uncapped sector and are quantified and
verified using an ARB approved compliance offset protocol.
To date, ARB has adopted offset protocols for four project
types including dairy digesters to capture fugitive methane
emissions.
LCFS: Pursuant to their authority under AB 32, ARB adopted the
LCFS in 2009, which requires transportation fuel suppliers in
the state to meet certain average annual carbon limitations.
The program ultimately requires a 10% reduction in the carbon
intensity of a particular fuel by 2020. The carbon intensity
measures the net carbon emissions of the entire life-cycle of
the fuel, including carbon emitted during production,
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refining, and transportation, and conversion of the fuel to
useable energy. Fuel suppliers can meet the standard by
reducing the carbon intensity of their fuels, or by purchasing
credits from other suppliers of other fuels that have carbon
intensities below state requirements.
As renewable gas, or biomethane, already meets the 10%
reduction requirement in 2020, the fuel qualifies for credits
under the program.
Budget allocations: The 2014-15 Budget allocates $832 million in
cap-and-trade auction revenue to a variety of transportation,
energy, and resources programs aimed at reducing GHG emissions.
Specifically, $15 million was appropriated to California
Department of Food and Agriculture to fund agricultural energy
and operational efficiency programs, with $12 million directed
for financial assistance for the installation of dairy
digesters, and $3 million to support deployment and use of
renewable natural gas, its analogues, and other low-carbon
renewable biofuels derived from agricultural waste, for use in
the transportation sector.
Department of Resources Recycling and Recovery (CalRecycle)
was also awarded $25 million of cap-and-trade auction funds in
2014-15. They have established multiple programs for some of
these funds to reduce GHG emissions through providing
financial assistance to expand existing capacity or establish
new facilities to process California-generated organic waste
through composting or anaerobic digestion to produce
low-carbon fuel.
This year's 2015-16 Budget proposes identical appropriations
for those two programs at the California Department of Food
and Agriculture (CDFA) and CalRecycle.
4.Statewide Waste Diversion Goals.
CalRecycle is tasked with diverting at least 75% of solid
waste statewide by 2020. Currently, organic materials,
including green waste, make up one-third of the waste stream
(approximately 11 million tons) and food waste continues to be
the highest single category of disposal at over 15%. Green
materials, such as lumber, cardboard, and leaves and grass
comprise over 20%.
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CalRecycle is also charged with implementing its Strategic
Directive 6.1, which calls for reducing organic waste disposal
by 50% by 2020. According to CalRecycle, significant gains in
organic waste diversion (through recycling technologies for
organic waste including composting and anaerobic digestion)
are necessary to meet the 75% goal and to implement Strategic
Directive 6.1. Anaerobic digestion, which produces biogas
that can be processed to biomethane fuel, is particularly
suited to handle food waste.
As previously noted, organic waste that ends up in landfills
generates landfill gas, 50% of which is methane, from the
anaerobic decomposition of organic materials such as food,
paper, wood, and green material.
In order to address the large percentage of organic waste
disposed of in landfills, AB 1826 (Chesbro), Chapter 727,
Statutes of 2014, requires businesses that generate specified
amounts of organic and greenwaste to arrange for recycling
services of that waste. In addition to diverting organics to
higher and better uses, the bill has the added benefit of
reducing GHG emission from landfills, since even landfills
with methane-control technologies can produce significant
fugitive methane emissions.
5.Landfill Gas and AB 1900.
More than 20 years ago, concern arose regarding the emission
of vinyl chloride at a particular Class I hazardous waste
landfill, where dangerously high levels of the carcinogen
were measured. Because Class II landfills do not accept
hazardous waste, the emissions from these landfills were
assumed to be free of hazardous chemicals, however,
subsequent analysis of Class II landfills biogas detected
vinyl chloride and other toxics in non-hazardous waste gas
emissions as well, and a 1987 report from the South Coast Air
Quality Management District identified vinyl chloride and
benzene in 90% of the Class II landfills tested. The study
concluded that the presence of the toxins resulted from
either illegal dumping, or as an intermediate of microbial
digestion of chlorinated chemicals. In response, California
adopted strict requirements regarding the allowable levels of
vinyl chloride and the required testing protocols for vinyl
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chloride for the legal sale, supply or transport of landfill
gas to a gas corporation in the state. Prior to 2013, the
Southern California Gas Company prohibited the use of
landfill gas in its natural gas pipelines.
In 2012, the Gas Technology Institute (GTI) released results
of analytical tests on 27 landfill gas samples processed
using one of three gas clean-up technologies. Based on their
results, GTI concluded that landfill gas can be processed to
meet typical gas quality standards, or tariffs, to be
introduced with natural gas supplies. GTI data indicates
that vinyl chloride was undetectable in all samples of
post-processed landfill gas.
In an effort to encourage the production and use of
biomethane in California, including methane produced from
landfill biogas, the Legislature passed AB 1900 (Gatto),
Chapter 602, Statutes of 2012, which required PUC to adopt
health and safety standards for biomethane for pipeline
injection based on recommendations from the Office of
Environmental Health Hazard Assessment and the ARB.
In response to AB 1900, PUC issued a decision in February
2013 opening a rulemaking to create rules for how gas
utilities and producers should process biomethane, and how it
can be safely injected into utility pipelines. On January
16, 2014, PUC issued a Decision adopting health and safety
standards that limit the amounts of certain constituents
determined to be harmful to either human health or pipeline
integrity in pipeline injected biomethane.
AB 1900 also requires utilities adopt rules allowing
non-discriminatory pipeline injection of biomethane and calls
for PUC to "adopt policies and programs that promote the
in-state production and distribution of biomethane."
CEC is required by AB 1900 to hold public hearings to identify
impediments that limit procurement of biomethane in California
and offer solutions as part of the integrated energy policy.
6.Biomethane under RPS.
Current law identifies electrical generation facilities that
use digester gas, municipal solid waste conversion, or
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landfill gas, among other fuels, as renewable electrical
generation facilities and can be certified, if they meet
specific requirements, by CEC as RPS-eligible, and therefore
may be used by retail sellers of electricity, and
publicly-owned utilities (POUs) to satisfy their renewable
portfolio standard (RPS) procurement goals. Changes to the RPS
law by SB 2X (Simitian), Chapter 1, Statutes of 2011,
established three portfolio content categories within which
new RPS procurement is classified and sets quantitative
procurement limits for each category and places the highest
value on renewable energy that is directly delivered into
California.
Biomethane, upgraded from landfill gas or digester gas, may be
claimed as a fuel source for a natural gas power plant near,
or in California in order to be certified by CEC, and
therefore be RPS-eligible. However, because this gas is often
delivered from sources distant to California, it is not clear
that the biomethane injected into a natural gas pipeline
system for delivery to a designated power plant actually
displaces in-state fossil fuel consumption because the
biomethane may not be physically delivered to the purchasing
electric generation facility for a variety of reasons. These
reasons include the extensive commingling of the biomethane
with natural gas, inconsistent direction of gas flow and
multiple extraction points on the pipeline system before the
gas reaches the electric generation facility. This issue is
unique to biomethane as a renewable resource, since other
RPS-eligible facilities have the fuel source and generating
facility at the same site.
AB 2196 (Chesbro), Chapter 605, Statutes of 2012, clarified
RPS eligibility for pipeline biomethane with requirements
comparable to other renewable energy sources. AB 2196
grandfathered biomethane contracts prior to March 29, 2012,
but required that injection of biomethane into common carrier
pipelines meet specific requirements to ensure that renewable
gas displaces natural gas in the pipeline, and ultimately for
electricity generation, and that in-state environmental
benefits are achieved, in order to be RPS-eligible for
biomethane contracts executed after that date.
Some of these requirements include that the source of
biomethane injects the biomethane into a common carrier
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pipeline that physically flows within California or toward the
generating facility for which the biomethane was procured
under the original contract and that the seller or purchaser
of the biomethane demonstrates that the capture and injection
of biomethane into a common carrier pipeline directly results
in at least one of several specified environmental benefits to
California, including avoidance of criteria air pollutants, or
pollutants that could have an adverse impact on waters of the
state.
In order for "renewable gas" to qualify under the procurement
requirements specified in AB 687, the bill specifies
requirements for that renewable gas similar to the
requirements of AB 2196 for biomethane RPS eligibility.
Comments
1. Purpose of Bill.
According to the author, "California is a leader in efforts
to combat climate change- one of the most daunting challenges
facing humanity. Currently, California's gas sector causes
one-quarter of the state's greenhouse gas emissions, and is a
major contributor to global warming.
"California uses more than 2 trillion cubic feet of natural
gas per year and that amount is going up. Natural gas is
used to generate more than half of the state's electricity,
the majority of its home heating and hot water, and a growing
share of transportation fuels. Although cleaner and cheaper
than other fossil fuels, natural gas is a major source of
greenhouse gas emissions and air and water pollution. In
addition, California imports 91 percent of its gas, making
the state vulnerable to supply and price fluctuations and
costing more than $9 billion per year in lost revenues and
jobs as those jobs are outsourced to other states and to
Canada.
"Renewable gas made from organic waste can significantly cut
greenhouse gas emissions and landfilling. Increasing the use
of renewable gas will create jobs and economic productivity,
and strengthen California's energy security."
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2. How Much Renewable Gas is Available?
The sponsor states that California could generate more than
10% of its total gas consumption, 284 billion cubic feet of
gas per year, from organic waste, if all technically
available organic waste were converted to biogas.
However, "technically available organic waste" does not
equate to readily available. Although, the passage of AB
1826 (Chesbro, 2014), by requiring businesses recycle their
organic waste, may help ensure that increasing amounts of
organic and greenwaste feedstock are available for conversion
into renewable fuels.
In an effort to address potential issues with limited
renewable gas supply, SB 687 was amended out of the Senate
Energy, Utilities and Communication Committee to include
cost-containment provisions that allow the requirements of
the RGS to be waived for a gas seller that demonstrates
specified conditions beyond the control of the gas seller
that prevent compliance.
3. Not all Renewable Gas is Created Equal.
Depending on how the renewable gas is created, there may be
variations in the carbon intensity of the fuel, as well as
the amount of energy required to treat and purify the gas for
use. The bill specifies percentages that must be procured by
gas sellers by various dates; however, it is unclear whether
those percentages correspond to volumes of renewable gas or
other characteristics, such as reductions in carbon
intensity.
If a volumetric approach is taken, two fuels that meet the
requirements of a renewable gas specified in SB 687, but that
have different GHG emissions impacts based on life-cycle
assessments, would count identically under the program toward
meeting the procurement requirements specified in the bill.
Procurement requirements based on a carbon intensity score
take GHG life- cycle emissions into account, and rank fuels
more fairly based on their overall GHG emissions reductions.
As the bill moves forward, the author is planning on amending
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the bill to clarify that the percentage requirements in the
bill correspond to reductions in carbon intensity of the
fuel.
4. Definition.
AB 1900 defined "biomethane" as biogas that meets PUCs health
and safety concentration standards. However, SB 687 refers
to procurement requirements of "renewable gas" defined as
biogas, as specified, or synthetic natural gas. However, the
bill does not define "synthetic natural gas."
The bill also never refers to "biomethane."
As the bill moves forward, the relationship between
biomethane and "renewable gas" should be clarified.
Additionally, the term "synthetic natural gas" should be
defined.
5. Timing.
The bill requires ARB to adopt a carbon-based renewable gas
standard by June 30, 2016. As the bill is not an urgency
statute, this only leaves 6 months for ARB to implement a
completely new program.
Additionally, the bill specifies that ARB is required to
ensure a gas seller is making reasonable progress to meeting
the compliance periods, but the bill requires them to begin
doing this on January 1, 2016, before they are required to
adopt the RGS program.
The committee may wish to amend the bill to move the date of
adoption of the program out until June 30, 2017, and make
that the date they are required to begin ensuring gas sellers
make reasonable progress to meet their first compliance
procurement deadline.
6. A Complicated, Shifting Policy Mix.
SB 687 intends to spur growth in the in-state production of
renewable gas through renewable gas procurement requirements.
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However, there are currently several environmental statutes
designed at reducing the state's GHG emissions and increasing
renewable energy procurement, which affect biogas, including
AB 32 (Núñez, Pavley), Chapter 488, Statutes of 2006, and the
RPS.
AB 32 grants ARB broad authority to adopt regulations to
reduce GHGs, including methane.
As noted, through AB 32's cap-and-trade program, offset
generated from dairy digesters can be purchased by entities
to fulfill their compliance obligation.
Also pursuant to authority under AB 32, ARB adopted the Low
Carbon Fuel Standard which requires a 10% reduction in carbon
intensity of transportation fuels in California by 2020.
Biogas, or biomethane, produced renewably already meets the
10% carbon intensity reduction, and therefore generates LCFS
credits under the program. These credits can be sold through
the LCFS market to fuel supplies that do not meet the carbon
intensity target. In this way, LCFS provides an incentive to
develop the renewable gas market.
And finally, the RPS also includes biomethane as an eligible
renewable resource for electricity generation, and, if the
gas meets certain requirements, it qualifies for the most
valuable procurement category, or "bucket one." As utilities
are required to serve 33% of their retail sales with
renewable energy by 2020, with 75% of that coming from the
"bucket one" category, demand for biomethane generated
in-state will most likely continue to increase.
Additionally, two measures being heard by this committee
today, including SB 350 (De León), which would codify
ambitious 2030 goals for petroleum use, RPS procurement, and
energy efficiency, as well as SB 32 (Pavley), which sets a
GHG emissions reduction target of 80% below 1990 levels by
2050, if enacted, will also change the state's greenhouse gas
emissions and clean energy landscape.
Driving the market for renewable gas in California, as SB 687
intends to do, could provide significant GHG emission
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reductions, and help the state make important strides toward
a statewide 75% waste diversion goal. However, the bill
would also add an additional level of complexity to the
state's GHG emission reduction measures and clean energy
portfolio, and it is worth considering how this bill fits
with already established programs affecting renewable gas, as
well as additional GHG emission reduction and clean energy
proposals currently before the Legislature.
SOURCE: Bioenergy Association of California
SUPPORT:
Alternative Fuels Advocates, LLC
American Biogas Council
Anaergia
Biosynthetic Technologies, Inc.
California Association of Sanitation Agencies
Calysta
City Of Fresno
Clean Energy and Clean Energy Renewable Fuels
County of Sanitation Districts of Los Angeles County
CR&R
East Bay Municipal Utility District
Eisenmann Corporation
Harvest Power, Inc.
Hitachi Zosen Inova U.S.A. LLC
Los Angeles County Board of Supervisors
Organic Waste Systems
Phoenix Energy
TSS Consultants
UPS
Waste Management
OPPOSITION:
Agricultural Council of California
Agricultural Energy Consumers Association
California Cotton Ginners and Growers Association
California Farm Bureau Federation
California Fresh Fruit Association
California Municipal Utilities Association
California Poultry Federation
Foster Farms
Milk Producers Council
Pacific Gas and Electric Company
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Western Agricultural Processors Association
Western Growers
ARGUMENTS IN SUPPORT:
Supporters state that SB 687 will help California diversify and
decarbonize its gas supply, and that the RGS will produce
thousands of clean energy jobs, improve air and water quality,
reduce landfilling, cut the risk of catastrophic wildfires, as
well as help the state reduce its heavy dependence on out of
state natural gas which costs the state billions of dollars each
year.
ARGUMENTS IN OPPOSITION:
Opponents state that SB 687's new mandate could significantly
increase costs, has considerable technological challenges, may
not treat all sellers equally, and may not be the most efficient
way to achieve the state's objectives. The Agricultural Energy
Consumers Association (AECA) also states that not all biogas
can, or should be placed in the state natural gas pipeline
system, and that the highest and best use of biogas is
transportation. The AECA also states that there are still
significant barriers to biomethane production, and that SB 687
does nothing to address these barriers.
DOUBLE REFERRAL:
This measure was heard in Senate Energy, Utilities and
Communications Committee on April 7, 2015, and passed out of
committee with a vote of 7-3.
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