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SB-439 Renewable hydrogen.(2021-2022)

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Date Published: 02/16/2021 09:00 PM
SB439:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 439


Introduced by Senator Archuleta

February 16, 2021


An act to add Section 400.4 to the Public Utilities Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


SB 439, as introduced, Archuleta. Renewable hydrogen.
Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including gas corporations. Existing law authorizes the PUC to establish rules and to fix the rates and charges for all public utilities, subject to control by the Legislature, and requires that the rates and charges of a public utility be just and reasonable. Existing law requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake specified actions to advance the state’s clean energy and pollution reduction objectives, including, where feasible, cost effective, and consistent with other state policy objectives, increasing the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, as defined. Existing law requires the PUC, State Air Resources Board, and Energy Commission to consider green electrolytic hydrogen an eligible form of energy storage, and to consider other potential uses of green electrolytic hydrogen.
This bill would authorize a gas corporation that serves an area that will host the 2028 Olympics to identify and propose a renewable hydrogen project, as defined, or multiple projects, in cooperation with the United States Olympic Paralympic Committee, the City of Los Angeles, or the County of Los Angeles to achieve described purposes. If a renewable hydrogen project is identified and proposed, the bill would authorize the gas corporation to file an application with the PUC for approval to undertake the project or projects. The bill would require the PUC to approve, or modify and approve, a project or projects and associated investments in renewable hydrogen and hydrogen-related infrastructure, and to authorize recovery of those expenses incurred through a reasonable cost recovery mechanism.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

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

400.4.
 (a) For purposes of this section, the following terms have the following meanings:
(1) “Project” means a renewable hydrogen project or multiple renewable hydrogen projects. Projects include, but are not limited to, zero-emission hydrogen-fueled housing for the athletes, zero-emission hydrogen transportation infrastructure, and dedicated hydrogen pipelines.
(2) “Renewable hydrogen” means hydrogen derived from one of the following:
(A) Electrolysis of water or aqueous solutions using renewable source electricity.
(B) Catalytic cracking or steam methane reforming of biomethane.
(C) Thermochemical conversion of biomass, including the organic portion of municipal solid waste (MSW).
(3) “Renewable source electricity” means electricity generated by an eligible renewable energy resource meeting the requirements of the California Renewable Portfolio Standard Program (Article 16 (commending with Section 399.11)).
(b) A gas corporation that serves an area that will host the 2028 Olympics may identify and propose a renewable hydrogen project in cooperation with the United States Olympic Paralympic Committee, the City of Los Angeles, or the County of Los Angeles for the purpose of reducing emissions of greenhouse gases associated with the 2028 Olympic games and to help make that Olympics the cleanest on record.
(c) If a renewable hydrogen project is identified and proposed pursuant to subdivision (b), the gas corporation shall file an application with the commission for approval to undertake the project. An application for approval may include more than one project.
(d) The commission shall approve, or modify and approve, a project and associated investments in renewable hydrogen and hydrogen-related infrastructure, and to authorize recovery of those expenses incurred through a reasonable cost recovery mechanism.