BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 1900 (Gatto) - Renewable energy resources: biomethane.
Amended: August 6, 2012 Policy Vote: E,U&C 11-0 EQ 7-0
Urgency: No Mandate: Yes
Hearing Date: August 6, 2012 Consultant:
Bob Franzoia
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 1900 would require the Office of Health Hazard
Assessment (OEHHA), the California Energy Commission (CEC) and
the Public Utilities Commission (PUC) to take actions related to
the delivery of biomethane gas within the state for the purposes
of electricity generation.
Fiscal Impact: $139,000 in 2012-13 and 2013-14 from the Public
Utilities Reimbursement Account to OEHHA for a health and safety
study of landfill gas.
$100,000 in 2012-13 and 2013-14 from the Energy Resources
Programs Account (General Fund) to the CEC for hearings to
identify impediments to interconnections and to develop
solutions.
$150,000 in 2012-13 and 2013-14 from the Public Utilities
Reimbursement Account to the PUC to set standards for
landfill gas, adopt testing protocols and policies that
promote in-state production and distribution of biomethane,
$120,000 annually thereafter to monitor standards, protocols
and, as necessary, pilot projects.
Background: As noted in the policy committee analysis,
biomethane is a renewable fuel that is produced at several types
of facilities, including dairy farms and landfills. The gas can
be collected and then transported to a generation facility where
it can be used to make electricity. Transportation of biofuels
via truck or rail is not economically feasible with pipelines
being the preferred method of transportation. This energy
release allows biogas to be used as a fuel. The methane can also
be used onsite, such as at dairies, in anaerobic digesters where
it is typically used in a combustion engine to convert the
energy in the gas into electricity and heat.
AB 1900 (Gatto)
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As a result of state law, California's major gas corporations,
Sempra Utilities and Pacific Gas and Electric, operate common
carrier pipelines but will not allow biomethane from landfills
to be injected into the pipelines they operate.
Landfill gas may have constituents present that could adversely
impact human health. Some constituents, for example, lead,
arsenic and cadmium could cause cancer or birth defects. Since
the delivery of the gas to a household appliance could
inadvertently provide close exposure to these constituents, gas
corporations do not allow landfill or dairy gas into their
pipelines. Gas corporations are also concerned about potential
damage to the pipelines themselves, depending upon what is in
the gas, moisture, for example, could cause corrosion.
Related Legislation: AB 2196 (Chesbro) would clarify the
definition of an eligible renewable electrical generation
facility to include a facility that generates electricity
utilizing biomethane delivered through a common carrier pipeline
if the source and delivery of the fuel can be verified by the
CEC. AB 2196, which contains contingent enactment language with
AB 1900, is on today's agenda.
Staff Comments: SB 1018 (Budget Committee) Chapter 39/2012
appropriated $139,000 from the Public Utilities Reimbursement
Account to OEHHA for additional staffing to identify
constituents of biomethane injected into a common carrier
pipeline that are reasonably anticipated to be hazardous to
human health and to determine inhalation standards for those
identified constituents.