Today's Law As Amended


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AB-2302 Hydrogen underground storage: study.(2021-2022)



As Amends the Law Today


SECTION 1.

 Section 400.4 is added to the Public Utilities Code, to read:

400.4.
 (a) The Legislature requests the California Council on Science and Technology (council), in consultation with the commission and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the role of hydrogen underground storage facilities and hydrogen infrastructure in the state’s long-term greenhouse gas reduction strategies. The study shall include an analysis of pure hydrogen and blends of hydrogen and natural gas in all considered scenarios. The study shall also include, but shall not be limited to, all of the following:
(1) A review of ongoing and nascent efforts to quantify demand for hydrogen resulting from the inclusion of hydrogen as a fuel in electrical grid use cases, the transportation sector, fuel switching in existing natural gas use cases, and all other relevant applications in order to reach the state’s long-term greenhouse gas reduction goals.
(2) An analysis of the financial viability and cost effectiveness of using pipeline injection, onsite electrical generation, hydrogen underground storage, and other relevant hydrogen technologies that can be leveraged to meet the forecasted demand, and the impact of using existing infrastructure when possible.
(3) Identification of suitable locations for financially viable and cost-effective hydrogen technologies considering proximity to electrical grid infrastructure, environmental quality, and public health.
(4) An analysis of existing regulations, codes, and standards that govern hydrogen underground storage.
(5) An analysis of the costs and risks associated with repurposing existing facilities into sites suitable for hydrogen underground storage.
(6) An analysis of costs and risks associated with geologic hydrogen underground storage, including underground hard rock storage.
(7) Identification of suitable locations for hydrogen underground storage in the state considering proximity to electrical grid infrastructure, environmental quality, and public health, and including, if appropriate, geologic storage, idle fields owned by the State Lands Commission, and repurposed oil fields, gas fields, and natural gas storage facilities.
(8) Policy recommendations for how to safely, affordably, and effectively create hydrogen underground storage that meets forecasted demand.
(b) If the council agrees to undertake and complete the study pursuant to subdivision (a), the council shall, upon completion of the study, transmit it to the commission and to the appropriate policy and fiscal committees of the Legislature for their consideration.