BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 1153 (Cannella) - Greenhouse gases: scoping plan:
biomethane
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|Version: April 25, 2016 |Policy Vote: E., U., & C. 9 - |
| | 0, E.Q. 7 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: May 9, 2016 |Consultant: Narisha Bonakdar |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: SB 1153 requires the Air Resources Board (ARB), in
consultation with specified state entities, to provide a
comprehensive overview of state efforts to encourage the
development of in-state biomethane and renewable natural gas as
part of the update to the Scoping Plan, and specifies the
required components of the assessment.
Fiscal
Impact:
Approximately $912,000 (Cost of Implementation Fee (COI)) to
the ARB for staffing costs for 6 limited-term positions and
one fulltime position to perform tasks required conduct the
comprehensive overview.
Ongoing costs of $144,000 (COI) annually to the ARB for one
full-time position.
SB 1153 (Cannella) Page 1 of
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Approximately $300,000 (COI) for modeling efforts to forecast
biomethane and renewable gas future volumes from the variety
of waste streams and feedstocks.
Minor costs to California Public Utilities Commission (CPUC),
the Department of Food and Agriculture (CDFA), the State
Energy Resources Conservation and Development Commission
(CEC), the Department of Resources Recycling and Recovery
(CalRecycle), and any other relevant state entities for
consolation. (special fund)
Background: Existing law, the California Global Warming Solutions Act of
2006 (also known as AB 32):
1) Requires the 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, and sets certain requirements in
adopting the regulations. ARB may include the use of
market-based mechanisms to comply with these regulations.
(Health and Safety Code §38500 et seq.)
2) Requires ARB to prepare and approve a scoping plan by January
1, 2009, for achieving the maximum technologically feasible
and cost-effective reductions in GHG emissions from sources
or categories of sources of GHGs by 2020. ARB must evaluate
the total potential costs and total potential economic and
noneconomic benefits of the plan for reducing GHGs to the
state's economy and public health, using the best economic
models, emissions estimation techniques, and other scientific
methods. The Plan must be updated at least once every five
years. (HSC §38561)
Proposed Law:
This bill requires ARB, in consultation with the CPUC, CDFA,
CEC, CalRecycle, and any other relevant state entities, to
provide a comprehensive overview of state efforts to encourage
the development of in-state biomethane and renewable natural gas
SB 1153 (Cannella) Page 2 of
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as part of the update to the Scoping Plan. The bill requires
the overview to include at least the following:
1) The role of biomethane and renewable natural gas as part of
the state's efforts to reduce GHG emissions.
2) The estimated amount of renewable natural gas that can
cost-effectively be developed from the state's organic waste
streams.
3) The estimated cost-effectiveness of the different waste
streams.
4) An analysis of current market conditions for renewable
natural gas in California.
5) An overview of current programs to encourage development of
biomethane and renewable natural gas.
6) The identification of obstacles to increased development of
in-state biomethane and renewable natural gas.
7) The identification of solutions for legislative consideration
to address in-state biomethane and renewable natural gas
development, including, but not limited to, incentive
programs and grants, preferential loan programs to enhance
project financing, and market stabilization programs, such as
contracts for differences, tax credits, and biomethane
purchase programs.
Related
Legislation:
SB 1043 (Allen, 2016) requires ARB to consider and adopt
policies to significantly increase the sustainable production
and use of "renewable gas." The bill is pending consideration
by this committee.
SB 1153 (Cannella) Page 3 of
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AB 2206 (Williams, 2016) requests that the California Council on
Science and Technology study the heating value and siloxane
specifications for biomethane to be injected into common carrier
gas pipelines. The bill is currently on the Assembly Suspense
File.
AB 2773 (Quirk, 2016) requires CPUC to modify its technical
standards for biomethane injected into a common carrier
pipeline. The bill is currently on the Assembly Suspense File.
AB 2313 (Williams, 2016) requires the CPUC to modify its
monetary incentive program for biomethane projects. The bill is
pending consideration by this committee.
AB 577 (Bonilla, 2015) would have required the CEC to develop
and implement a grant program for projects related to biomethane
production. The bill was held on suspense by the Senate
Appropriations Committee.
AB 1900 (Gatto, Chapter 602, Statutes of 2012) directed the CPUC
to identify landfill gas constituents, develop testing protocols
for landfill gas injected into common carrier pipelines, adopt
standards for biomethane to ensure pipeline safety and
integrity, and adopt rules to ensure open access to the gas
pipeline system.
AB 2196 (Chesbro, Chapter 605, Statutes of 2012) ensures that
biogas qualifies for RPS credit, provided its production,
delivery and use meet certain conditions.
SB 1122 (Rubio, Chapter 612, Statutes of 2012) required IOUs to
collectively procure at least 250 MW of generation eligible for
the RPS from bioenergy generation project, including biogas
projects.
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Staff
Comments: Staff notes that many policies, programs and
directives to encourage use of biogas and biomethane currently
exist. Presumably, these efforts can be leveraged, potentially
reducing costs outlined by ARB. ARB suggests that the repeated
mandates necessitate a closer, more detailed look at
bio-methane. Necessary tasks include, among others:
An overview of the role of biomethane and renewable natural
gas in reducing GHGs,
current programs to encourage development of biomethane and
renewable gas in California, and barriers to utilization of
existing incentive programs.
Evaluation of the amount of biomethane and renewable gas that
can be developed from the State's waste streams.
An evaluation of the current market conditions and
cost-effectiveness of the production of the biomethane and
renewable gas from waste streams.
This is one of many bills before the committee that will
potentially impact Greenhouse Gas Reduction Fund (GGRF)
monies. The Committee may wish to consider a holistic
approach to GGRF expenditures, and consider these bills
together, rather taking a piecemeal approach.
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