Today's Law As Amended


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SB-733 Gas corporations: renewable gas procurement.(2021-2022)



As Amends the Law Today


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. Renewable Gas Procurement

SEC. 2.

 Section 652 is added to the Public Utilities Code, to read:

652.
 (a) For purposes of this article, “renewable hydrogen” means hydrogen where all energy inputs and feedstock used in the production and delivery of the hydrogen are consistent with the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3). Any electricity used shall be from an eligible renewable energy resource, as defined in Section 399.12. Any nonelectric energy input or feedstock shall be from a source included in paragraph (1) of subdivision (a) of Section 25741 of the Public Resources Code.
(b) The commission shall open a new proceeding, or a new phase of an existing proceeding, to do all of the following:
(1) Consider establishing renewable hydrogen procurement goals for each gas corporation and core transport agent.
(2) Consider requiring each gas corporation and core transport agent to annually procure a proportionate share of renewable hydrogen to meet the procurement goals established pursuant to paragraph (1).
(3) Before establishing renewable hydrogen procurement targets or goals, the commission shall make the following findings:
(A) The targets or goals are a cost-effective means of achieving the forecasted 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.
(B) The targets or goals comply with all applicable state and federal laws.
(C) The safety risk of using renewable hydrogen in pipelines will be appropriately regulated, mitigated, and monitored. Hydrogen shall not be transported in pipelines until the commission acts to set safety standards and the pipelines meet those standards.
(D) Combustion end uses that may be affected by the addition of hydrogen to pipelines are appropriately regulated and controlled to avoid increased emissions of oxides of nitrogen or any other air pollutant.

SEC. 3.

 Section 653 is added to the Public Utilities Code, to read:

653.
 (a) The commission, in furtherance of the goals of Sections 399.24 and 651, shall evaluate whether authorizing a gas corporation to recover in its rate base expenses incurred from investments in infrastructure to interconnect facilities producing biomethane, renewable hydrogen, or both, from the point of receipt to the pipeline system is just and reasonable.
(b) As part of the evaluation pursuant to subdivision (a), the commission shall consider to what extent a gas corporation’s investments in infrastructure and its potential recovery of expenses impact the unit price of biomethane or renewable hydrogen, the effect on the gas corporation’s customer rates and bills, the impact on competition with nonutility enterprises, the ability to achieve state greenhouse gas reduction goals, and other relevant impacts, effects, or considerations determined by the commission.
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.