Bill Text: CA AB2313 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Renewable natural gas: monetary incentive program for biomethane projects: pipeline infrastructure.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2016-09-24 - Chaptered by Secretary of State - Chapter 571, Statutes of 2016. [AB2313 Detail]

Download: California-2015-AB2313-Amended.html

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BILL NUMBER: AB 2313	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 16, 2016

INTRODUCED BY   Assembly Member Williams

                        FEBRUARY 18, 2016

   An act to add Section  39733 to the Health and Safety
Code,    399.23 to the Public Utilities Code, 
relating to  greenhouse gases.   renewable
energy resources. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2313, as amended, Williams. Renewable natural  gas.
  gas: monetary incentive program for biomethane
projects.  
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including gas corporations.
Existing law requires the commission to adopt, by rule or order, (1)
standards for biomethane that specify the concentrations of
constituents of concern that are reasonably necessary to protect
public health and ensure pipeline integrity and safety, as specified,
and (2) requirements for monitoring, testing, reporting, and
recordkeeping, as specified. Existing law requires the commission to
require gas corporation tariffs to condition access to common carrier
pipelines on the applicable customer meeting those standards and
requirements. Existing law requires the commission to adopt policies
and programs that promote the in-state production and distribution of
biomethane, as defined, that facilitate the development of a variety
of sources of in-state biomethane. The commission has adopted two
decisions implementing these requirements, the second of which
adopted a monetary incentive program for biomethane projects pursuant
to which a qualifying project is entitled to a one-time payment of
50% of the interconnection costs incurred by the biomethane producer,
up to a total payment of $1,500,000. Total cost of the monetary
incentive program for biomethane projects is limited to $40,000,000
over the 5-year life of the program.  
   This bill would require the commission to modify the monetary
incentive program for biomethane projects so that the total available
incentive limitation for a project, other than a dairy cluster
biomethane project, as defined, is increased from $1,500,000 to
$3,000,000. The bill would require the commission to increase the
total available incentive limitation for a dairy cluster biomethane
project to $5,000,000 and would require that gathering lines for
transport of biogas to a centralized processing facility for the
project be treated as an interconnection cost.  
   Existing law designates the State Air Resources Board as the state
agency charged with coordinating efforts to attain and maintain
ambient air quality standards, to conduct research into the causes of
and solution to air pollution, and to systematically attack the
serious problem caused by motor vehicles. The California Global
Warming Solutions Act of 2006 establishes the state board as the
state agency responsible for monitoring and regulating sources
emitting greenhouse gases.  
   This bill would require the state board to study and evaluate a
strategy or strategies to increase the instate production and use of
renewable natural gas, as defined, to further specified goals.

   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 399.23 is added to the 
 Public Utilities Code   , to read:  
   399.23.  The commission shall modify the monetary incentive
program for biomethane projects adopted in Decision 15-06-029 (June
11, 2015), Decision Regarding the Costs of Compliance with Decision
14-01-034 and Adoption of Biomethane Promotion Policies and Program,
as follows:
   (a) Except for a dairy cluster biomethane project, the total
available incentive limitation for a project shall be increased from
one million five hundred thousand dollars ($1,500,000) to three
million dollars ($3,000,000).
   (b) For a dairy cluster biomethane project, the total available
incentive limitation shall be raised to five million dollars
($5,000,000). For purposes of this subdivision, a dairy cluster
biomethane project means a biomethane project of three or more
dairies in close proximity to one another employing multiple
facilities for the capture of biogas that is transported by multiple
gathering lines to a centralized processing facility where the biogas
is processed to meet the biomethane standards adopted by the
commission pursuant to subdivisions (c) and (d) of Section 25421 of
the Health and Safety Code and injected into the pipeline of the gas
corporation through a single interconnection. Costs incurred for
gathering lines for a dairy cluster biomethane project shall be
treated as an interconnection cost.  
  SECTION 1.    Section 39733 is added to the Health
and Safety Code, to read:
   39733.  (a) For purposes of this section, "renewable natural gas"
means a finished fuel derived from organic waste or other renewable
sources, including, but not limited to, biogas, as defined in Section
25420, and synthetic natural gas generated from an eligible
feedstock, as determined by the state board.
   (b) The state board shall study and evaluate a strategy or
strategies to increase the instate production and use of renewable
natural gas to further achieves the state's air quality, climate,
renewable energy, waste diversion, and petroleum reduction goals.