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AB-1143 Energy: Renewable Gas Building Program.(2019-2020)



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AB1143:v98#DOCUMENT

Amended  IN  Assembly  March 25, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1143


Introduced by Assembly Member Quirk

February 21, 2019


An act to amend Section 922 of, and to amend the heading of Article 13 (commencing with Section 922) of add Section 748.7 to, and to add Article 14 (commencing with Section 923) to Chapter 4 of Part 1 of Division 1 of, the Public Utilities Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1143, as amended, Quirk. Energy: Fuels, Technology, and Equipment for Clean Heating (TECH) Initiative. Renewable Gas Building Program.
The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms in regulating those emissions. The implementing regulations adopted by the state board provide for the direct allocation of greenhouse gas allowances to electrical corporations and gas corporations pursuant to a market-based compliance mechanism.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law requires the commission to develop and supervise the administration of the Technology and Equipment for Clean Heating (TECH) Initiative, a statewide market development initiative, to require gas corporations to advance the state’s market for low-emission space and water heating equipment for new and existing residential buildings through upstream market development, consumer education, contractor and vendor training, and the provision of upstream and midstream incentives to install low-emission space and water heating equipment in existing and new buildings, with certain technologies. Existing law requires the commission to develop guidelines, which, among other requirements, include a list of eligible technologies, as part of its supervision of the administration of the initiative. Building Initiative for Low-Emissions Development Program to require gas corporations to provide incentives to eligible applicants, as defined, for the deployment of near-zero-emission building technologies to significantly reduce the emissions of greenhouse gases from buildings, as specified.
This bill would expand the initiative to require gas corporations to advance the state’s market for low-emission space and water heating equipment for all new and existing buildings, rather than only residential buildings, and to require gas corporations to do so additionally through the use of renewable gaseous fuels. The bill would require those guidelines to include a list of both eligible technologies, as required pursuant to existing law, and eligible renewable gaseous fuels, among those other requirements. require the commission to develop and supervise the administration of the Renewable Gas Building Program to require gas corporations to provide incentives to residential customers or developers who choose, or are required, to purchase renewable gas to significantly reduce the emissions of greenhouse gases from the buildings sector. The bill would, for 4 fiscal years beginning July 1, 2020, require the commission to annually allocate $50,000,000 of the revenues received by a gas corporation as a result of the direct allocation of greenhouse gas emissions allowances as part of a market-based compliance mechanism to fund the Renewable Gas Building Program. The bill would provide that the amounts of the incentives provided by the program is to be determined by the commission and would reserve not less that 30% of the moneys allocated for low-income residential housing.
Existing law makes any public utility and any corporation or person other than a public utility that violates any part of any order, decision, rule, direction, demand, or requirement of the commission guilty of a crime.
Because a violation of commission-ordered requirements under this bill would be a crime, the bill would impose a state-mandated local program.
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.

 Section 748.7 is added to the Public Utilities Code, to read:

748.7.
 Beginning with the fiscal year commencing July 1, 2020, and ending with the fiscal year ending June 30, 2024, the commission shall annually allocate fifty million dollars ($50,000,000) of the revenues, including any accrued interest, received by a gas corporation as a result of the direct allocation of greenhouse gas emissions allowances provided to gas corporations as part of a market-based compliance mechanism adopted pursuant to subdivision (c) of Section 38562 of the Health and Safety Code to fund the Renewable Gas Building Program (Article 14 (commencing with Section 923)).

SEC. 2.

 Article 14 (commencing with Section 923) is added to Chapter 4 of Part 1 of Division 1 of the Public Utilities Code, to read:
Article  14. Renewable Gas Building Program

923.
 (a) The commission shall develop and supervise the administration of the Renewable Gas Building Program to require gas corporations to provide incentives to residential customers or developers who choose, or are required, to purchase renewable gas to significantly reduce the emissions of greenhouse gases from the buildings sector.
(b) The amounts of the incentives provided pursuant to the program shall be determined by the commission.
(c) The program shall reserve a minimum of 30 percent of the amount allocated pursuant to Section 748.7 for low-income residential housing. For these purposes, “low-income residential housing” has the same meaning as defined in Section 921.

SECTION 1.The heading of Article 13 (commencing with Section 922) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code is amended to read:
13.Fuels, Technology, and Equipment for Clean Heating (TECH) Initiative
SEC. 2.Section 922 of the Public Utilities Code is amended to read:
922.

(a)(1)The commission shall develop and supervise the administration of the Fuels, Technology, and Equipment for Clean Heating (TECH) Initiative, a statewide market development initiative, to require gas corporations to advance the state’s market for low-emission space and water heating equipment for new and existing buildings through upstream market development, consumer education, contractor and vendor training, and the provision of upstream and midstream incentives to install low-emission space and water heating equipment in existing and new buildings, with technologies identified pursuant to subdivision (b), and through the use of renewable gaseous fuels.

(2)The commission may determine whether each gas corporation or a third party, including the Energy Commission, shall administer the TECH Initiative.

(b)As a part of the TECH Initiative, the commission shall identify and target key low-emission space and water heating equipment technologies that are in an early stage of market development and would assist the state in achieving the state’s greenhouse gas emissions reduction goal for 2030 and other long-term greenhouse gas emissions reduction goals established by the Legislature. In identifying and targeting these technologies, the commission shall give consideration to technologies and renewable gaseous fuels that have the greatest potential to reduce the emissions of greenhouse gases in California and that improve the health and safety of, and energy affordability for, low-income households.

(c)(1)In supervising the administration of the TECH Initiative, the commission, in coordination with the Energy Commission, shall develop guidelines and evaluation metrics, implement outreach strategies for hard-to-reach customers, and provide for job training and employment opportunities.

(2)(A)The guidelines shall include, at a minimum, a list of eligible renewable gaseous fuels and eligible technologies, a process for evaluating new technologies, and a process and set of metrics by which to evaluate and track the TECH Initiative’s results.

(B)The metrics shall include, but are not limited to, the market share for eligible technologies, projected utility bill savings, and the cost per metric ton of avoided greenhouse gas emissions.

(d)Moneys allocated pursuant to Section 748.6 shall be available to each gas corporation, or the third-party administrator, for allocation consistent with this section.

(e)Each gas corporation shall provide the commission with any information required by the commission to complete the report on the TECH Initiative required pursuant to Section 910.4.

SEC. 3.

 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.