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 SENATE  AUGUST 2, 2016
	AMENDED IN SENATE  JUNE 14, 2016
	AMENDED IN ASSEMBLY  APRIL 26, 2016
	AMENDED IN ASSEMBLY  MARCH 16, 2016

INTRODUCED BY   Assembly Member Williams
   (Coauthor: Senator Hertzberg)

                        FEBRUARY 18, 2016

   An act to add  and repeal Sections 399.23 and 
 Section  784.2  to   to, and add and
repeal Section 399.23 of,  the Public Utilities Code, relating
to renewable energy resources.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2313, as amended, Williams. Renewable natural gas: monetary
incentive program for biomethane projects: pipeline infrastructure.
   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 relative to those constituents of concern. 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   2nd  of
which adopted a 5-year monetary incentive program effective June 11,
2015, 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. The bill would require
the commission to extend the program, as modified, until December
31, 2021.  Upon exhaustion of the funds available pursuant to the
monetary incentive program, the bill would require the commission to
consider whether to allow recovery in rates of the costs of
investments to (1) facilitate direct investment in the procurement
and installation of utility infrastructure necessary to achieve
interconnection between the natural gas transmission and distribution
pipeline network and biomethane generation and collection equipment,
and (2) provide for the installation of utility infrastructure 
 to achieve interconnection with facilities that generate
biomethane.  
   This bill would require the commission, in consultation with the
State Air Resources Board and State Energy Resources Conservation and
Development Commission, to adopt rules for gas corporations by
January 2, 2018, relative to investments in infrastructure
interconnecting to biomethane sources, as specified. The provisions
requiring the adoption of these rules would remain in effect only
until January 1, 2026. 
   Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime.
   Because the bill  extends   the monetary incentive
program and  requires action by the commission to implement
certain of its  requirements and   requirements,
and became  failure to comply with  the commission's
rules   these commission actions  would be a crime,
the bill would impose a state-mandated local program by creating a
new crime.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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, and extend until December
31, 2021, 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.
   (c) This section shall remain in effect only until January 1,
2022, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2022, deletes or extends
that date. 
  SEC. 2.    Section 784.2 is added to the Public
Utilities Code, to read:
   784.2.  (a) To further the goals of the state's comprehensive
strategy to reduce emissions of short-lived climate pollutants
pursuant to Section 39730 of the Health and Safety Code and the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code), by
January 2, 2018, in consultation with the State Air Resources Board
and the Energy Commission, the commission shall establish rules for
gas corporations that do all of the following:
   (1) Facilitate direct investment in the procurement and
installation of utility infrastructure necessary to achieve
interconnection between the natural gas transmission and distribution
pipeline network and biomethane generation and collection equipment,
including, for a dairy digester cluster project, as defined in
Section 399.23, gathering lines.
   (2) Provide for the installation of utility infrastructure to
achieve interconnection with facilities that generate biomethane.
   (3) Provide that prudent and reasonable investments for
infrastructure pursuant to paragraphs (1) and (2) are recoverable in
rates and recovered as a direct benefit to, and in the interests of,
all classes of ratepayers.
   (4) Financially protect ratepayers by ensuring that infrastructure
is installed for biomethane projects that will actually be built and
operated and that will be cost effective, considering the volume and
carbon intensity of the biomethane, the costs of interconnection,
alternatives available to the biomethane use and distribution, and
other costs and benefits.
   (5) Ensure that biomethane facilities that interconnect to the
natural gas transmission and distribution pipeline network meet all
applicable laws and standards, including those laws, rules, and
regulations pertaining to safety, gas quality, and environmental
protection.
   (b) This section shall remain in effect only until January 1,
2026, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2026, deletes or extends
that date. 
   SEC. 2.    Section 784.2 is added to the  
Public Utilities Code   , to read:  
   784.2.  Upon exhaustion of the funds made available pursuant to
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, the commission shall consider whether
to allow recovery in rates of the costs of investments to do each of
the following:
   (a) Facilitate direct investment in the procurement and
installation of utility infrastructure necessary to achieve
interconnection between the natural gas transmission and distribution
pipeline network and biomethane generation and collection equipment,
including, for a dairy digester cluster project, as defined in
Section 399.23, gathering lines.
   (b) Provide for the installation of utility infrastructure to
achieve interconnection with facilities that generate biomethane.

  SEC. 3.  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.