Bill Text


PDF |Add To My Favorites |Track Bill | print page

SB-1352 Gas corporations: renewable gas procurement.(2019-2020)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
Date Published: 04/03/2020 09:00 PM
SB1352:v98#DOCUMENT

Amended  IN  Senate  April 03, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1352


Introduced by Senator Hueso

February 21, 2020


An act to amend Section 651 of Sections 650 and 651 of, and to amend the heading of Article 10 (commencing with Section 650) of Chapter 3 of Part 1 of Division 1 of, the Public Utilities Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


SB 1352, as amended, Hueso. Gas corporations: biomethane renewable gas procurement.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including gas corporations. Existing law requires the commission to adopt policies and programs that promote the in-state production and distribution of biomethane, as defined, that facilitate the development of a variety of sources of in-state biomethane. law, relative to restructuring of the gas industry, requires the commission to require each gas corporation to provide bundled basic gas service to all core customers in its service territory unless the customer chooses or contracts to have natural gas purchased and supplied by another entity. Existing law requires the commission, in consultation with the State Air Resources Board, to consider adopting specific biomethane procurement targets or goals for each gas corporation, as specified. Existing law requires that prior to establishing biomethane procurement targets or goals, that the commission find that the targets or goals are cost-effective means to achieving forecast reduction in emissions of short-lived climate pollutants pursuant to specified laws and that the targets or goals comply with all applicable state and federal laws.
This bill would require the commission to establish a biomethane renewable gas, as defined, procurement program that requires each gas corporation, corporation to procure renewable gas in an amount so that, by January 1, 2030, to procure at least 20 percent of its the total volume of gas delivered to core customers in California with biomethane. by that gas corporation is renewable gas. The bill would require the commission, in designing and implementing the program, to ensure that the biomethane renewable gas procurement program is a cost-effective means to achieve forecast reductions in emissions of short-lived climate pollutants pursuant to specified laws and that the program complies with all applicable state and federal laws.
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 provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements 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   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 The heading of Article 10 (commencing with Section 650) of Chapter 3 of Part 1 of Division 1 of the Public Utilities Code is amended to read:
Article  10. Biomethane Renewable Gas Procurement

SEC. 2.

 Section 650 of the Public Utilities Code is amended to read:

650.
 For purposes of this article, “biomethane” the following terms have the following meanings:
(a) “Biomethane” means a biogas that meets the standards adopted pursuant to subdivisions (c) and (d) of Section 25421 of the Health and Safety Code for injection into a common carrier gas pipeline.
(b) “Renewable gas” means gas that meets the standards adopted pursuant to subdivisions (c) and (d) of Section 25421 of the Health and Safety Code for injection into a common-carrier gas pipeline, that is any of the following:
(1) Biomethane.
(2) Gas derived from biomass conversion consistent with Section 40106 of the Public Resources Code.
(3) Green electrolytic hydrogen, as defined in Section 400.2, or hydrogen derived from catalytic cracking or steam methane reforming of biomethane that does not meet the standards for injection into the common carrier gas pipelines.
(4) Gas derived or generated by an eligible renewable energy resource meeting the requirements of the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3).
(5) Any other form of renewable gas as determined by the commission in consultation with the State Air Resources Board.

SECTION 1.SEC. 3.

 Section 651 of the Public Utilities Code is amended to read:

651.
 (a) The commission, in consultation with the State Air Resources Board, shall establish a biomethane renewable gas procurement program that requires each gas corporation, corporation to procure renewable gas in an amount so that, by January 1, 2030, to procure at least 20 percent of its the total volume of gas delivered to core customers in California with biomethane. by that gas corporation is renewable gas. In designing and implementing the biomethane renewable gas procurement program, the commission shall ensure both of the following:
(1) That the biomethane renewable gas procurement program is a cost-effective means of achieving the state’s climate and clean energy goals, including the forecast reduction in the emissions of short-lived climate pollutants pursuant to Section 39730.5 of the Health and Safety Code and other greenhouse gases pursuant to Division 25.5 (commencing with Section 38500) of the Health and Safety Code.
(2) That the biomethane renewable gas procurement program complies with all applicable state and federal laws.
(b) When adopting specific biomethane renewable gas procurement requirements for each gas corporation pursuant to subdivision (a), the commission shall do all of the following:
(1) Consider the recommendations developed pursuant to Section 39730.8 of the Health and Safety Code.
(2) Ensure the requirements are consistent with the organic waste disposal reduction targets specified in Section 39730.6 of the Health and Safety Code and the regulations adopted pursuant to Section 42652.5 of the Public Resources Code to achieve those targets.
(3) Ensure that biomethane renewable gas eligible for any procurement program meets one of the following conditions:
(A) The biomethane renewable gas is delivered to California through a dedicated pipeline.
(B) The biomethane renewable gas is delivered to California through a common carrier gas pipeline and meets both of the following requirements:
(i) The source of biomethane renewable gas injects the biomethane renewable gas into a common carrier gas pipeline that physically flows within California, or toward the end user in California for which the biomethane renewable gas was produced.
(ii) The seller or purchaser of the biomethane renewable gas demonstrates that the capture or production of biomethane renewable gas directly results in at least one of the following environmental benefits to California:
(I) The reduction or avoidance of the emission of any criteria air pollutant, toxic air contaminant, or greenhouse gas in California.
(II) The reduction or avoidance of pollutants that could have an adverse impact on waters of the state.
(III) The alleviation of a local nuisance within California that is associated with the emission of odors.
(4) Consider the potential for using excess or off-grid electricity from eligible renewable energy resources to generate renewable gas and decarbonize the gas system.

SEC. 2.SEC. 4.

 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.