38561.9.
(a) For purposes of this section, “decarbonization” means a process to reduce or eliminate associated emissions of greenhouse gases.(b) (1) On or before December 31, 2025, to advance efforts to achieve the state’s goal for carbon neutrality by 2045, and upon appropriation by the Legislature for those purposes, the state board, in consultation with the State Energy Resources Conservation and Development Commission and the Public Utilities Commission, shall complete an assessment of the use of hydrogen in all of the following applications within the state:
(A) Light-, medium-, and
heavy-duty vehicles, including long-distance trucks.
(B) Long-distance trains.
(C) Off-road equipment.
(D) Household and commercial appliances.
(E) Maritime shipping.
(F) Aviation.
(G) Industrial and agricultural processes, including chemical feedstocks.
(H) Electricity generation.
(2) The state board may include additional applications it determines to be relevant in the assessment.
(c) The assessment shall evaluate for each application specified in subdivision (b) as follows:
(1)The potential for other zero-carbon alternatives that are not hydrogen for the application including, but not limited to, electrification.
(2)
(1) The potential for reductions in emissions of greenhouse gases using hydrogen for the application. The assessment shall also evaluate the potential for reductions in
emissions of greenhouse gases by
using alternative decarbonization options for the application, including electrification or combinations of decarbonization methods, if applicable.
(3)An approximation of the amount of hydrogen that would be needed to replace fossil fuels in the application to realistically decarbonize the application in the state.
(4)
(2) A range of cost of the hydrogen needed to replace fossil fuels for the application in the state based on the cost as of January 1,
2024, and projected estimated cost by 2045. The assessment shall also evaluate the cost, as of January 1, 2024, using alternative decarbonization options for the application, including electrification or combinations of decarbonization methods, if applicable, for this application and the projected cost by 2045.
(5)
(3) The energy efficiency of using hydrogen for the application. The assessment shall also evaluate the energy efficiency of using alternative decarbonization options for the application, including electrification or combinations of decarbonization methods, if applicable,
for the application.
(6)
(4) Health and safety, environmental, and climate risk associated with transportation and storage of hydrogen for the application, including, but not limited to, the risk of hydrogen leakage.
(7)
(5) Health and safety, environmental, and climate risk associated with
the use of hydrogen for the application, including, but not limited to, the emission of air and water pollutants.
(d) For applications for which hydrogen is being used or is projected to be used to partially replace fossil fuels, such as blending hydrogen with natural gas, or to be used alongside another zero-carbon alternative, such as electrification, the assessment is to additionally address all criteria in subdivision (c) for a realistic partial-hydrogen-use scenario.
(e) For the purposes of the assessment, the state board shall assume zero-carbon hydrogen production. hydrogen produced without fossil fuel feedstocks.
(f) The assessment shall incorporate the findings of, and shall not duplicate, the evaluation completed pursuant to Section 38561.8.
(g) The assessment shall establish a preferential ordering of the applications specified in subdivision (b) by considering the criteria in subdivision (c) for each application, any findings in the evaluation prepared pursuant to Section 38561.8, the available supply of hydrogen in the state, the existing use, as of January 1, 2024, of hydrogen produced using fossil fuel, the infrastructure required to store and transport hydrogen, the availability of materials and designs that minimize leakage risk and of technology to detect leaks, and any other criteria the state board, the State Energy Resources Conservation and Development Commission,
or the Public Utilities Commission consider necessary, that takes the form of a ranked list prioritizing applications for a finite supply of zero-carbon hydrogen in the state in pursuit of the state’s carbon neutrality and zero-carbon electricity goals.
(h) The state board may contract with an educational institution, research laboratory, or related organization to conduct this assessment.
(i) In preparing the assessment, the state board may review and incorporate information required for the assessment from other studies.
(i)
(j) Upon completion of the assessment, the state board shall post the assessment on its internet website.
(j)
(k) The state board, the State Energy Resources Conservation and Development Commission, and the Public Utilities Commission shall consider the findings of the assessment in their plans, rulemakings, reports, or other processes related to the planning, implementation, or regulation of hydrogen production, distribution, storage, or usage in the
state.