Bill Text: CA AB1550 | 2023-2024 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Renewable hydrogen.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2024-02-01 - Died on third reading file. [AB1550 Detail]
Download: California-2023-AB1550-Amended.html
meaning: meanings:
Bill Title: Renewable hydrogen.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2024-02-01 - Died on third reading file. [AB1550 Detail]
Download: California-2023-AB1550-Amended.html
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CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 1550
| Introduced by Assembly Member Bennett |
February 17, 2023 |
An act to add Section 43869.5 to the Health and Safety Code, to amend Section 25741 of the Public Resources Code, and to add Section 399.12.3 to the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1550, as amended, Bennett.
Green hydrogen.
Existing law requires the State Air Resources Board to develop and adopt hydrogen fuel regulations to ensure that state funding for the production and use of hydrogen fuel contributes to the reduction of greenhouse gas emissions, criteria air pollutant emissions, and toxic air contaminant emissions, including by requiring that, on a statewide basis, no less than 33.3% of the hydrogen produced for, or dispensed by, fueling stations that receive state funds be made from eligible renewable energy resources, as specified. Under existing law, a violation of those regulations, and other provisions pertaining to motor vehicle fuels, is a crime.
This bill would require, on and after January 1, 2045, that all hydrogen produced and used in California for the generation of electricity or fueling of vehicles be green hydrogen, as defined, in furtherance
of the state’s policy to achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045. The bill would require the state board, in consultation with the Public Utilities Commission and the State Energy Resources Conservation and Development Commission, to develop interim targets to ensure the state achieves that requirement. Because a violation of a state board regulation implementing this requirement would be a crime, the bill would impose a state-mandated local program.
The California Renewables Portfolio Standard Program requires the Public Utilities Commission (PUC) to establish a renewables portfolio standard requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, so that the total kilowatthours of those products sold to their retail
end-use customers achieves 25% of retail sales by December 31, 2016, 33% by December 31, 2020, 44% by December 31, 2024, 52% by December 31, 2027, and 60% by December 31, 2030.
This bill would prohibit green hydrogen used by a generating facility from qualifying as an eligible renewable energy resource for purposes of that requirement unless it satisfies all applicable requirements established by the State Energy Resources Conservation and Development Commission (Energy Commission) and meets specified requirements. For all electricity generated using green hydrogen that is credited toward the renewables portfolio standard procurement obligations, the bill would require that sufficient renewable and environmental green attributes, as defined, of green hydrogen production and capture be transferred to the retail seller or local publicly owned electric utility that uses that green hydrogen to ensure that there are zero net emissions
associated with the production of electricity from the generating facility using the green hydrogen. The bill would require all sellers and purchasers of green hydrogen to comply with a system for tracking and verifying the use of green hydrogen established by the Energy Commission, as specified.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because certain of the above provisions would be part of the act and a violation of a PUC action implementing this bill’s requirements would be a crime, the bill would impose a state-mandated local program.
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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 43869.5 is added to the Health and Safety Code, to read:43869.5.
(a) (1) On and after January 1, 2045, all hydrogen produced and used in California for the generation of electricity or fueling of vehicles shall be green hydrogen in furtherance of the state’s policy to achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, pursuant to Section 38562.2.(2) The state board, in consultation with the Public Utilities Commission and the State Energy Resources Conservation and Development Commission, shall develop interim targets to ensure the
state achieves the requirement of paragraph (1).
(b) (1) For purposes of the requirement in subdivision (a) that all hydrogen produced and used in California for the generation of electricity be green hydrogen, “green
hydrogen” means hydrogen gas produced through electrolysis and consistent with all of the following:
(A) The production process uses both electricity that is eligible under the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code) and a material feedstock that is water.
(B) The facility generating the electricity used for the production of the green hydrogen does not use tradable renewable energy credits to demonstrate reliance on renewable electricity.
(C) The facility generating the electricity used for the production of the green hydrogen demonstrates that the electricity it uses comes from a
new renewable generation resource developed specifically to serve the green hydrogen production process, consistent with prohibitions of resource shuffling in subdivision (a) of Section 454.53 of the Public Utilities Code, and that the new renewable generation resource has a first point of interconnection to the California balancing authority in which the electrolytic hydrogen production facility is sited.
(2) For purposes of the requirement in subdivision (a) that all hydrogen produced and used in California for the generation of electricity be green hydrogen, “green hydrogen” does not include hydrogen gas manufactured using steam reforming or any other conversion technology that produces hydrogen from a fossil fuel feedstock.
SEC. 2.
Section 25741 of the Public Resources Code is amended to read:25741.
As used in this chapter, the following terms have the following(a) “Renewable electrical generation facility” means a facility that meets all of the following criteria:
(1) The facility uses biomass, solar thermal, photovoltaic, wind, geothermal, fuel cells using renewable fuels, small hydroelectric generation of 30 megawatts or less, digester gas, municipal solid waste conversion, landfill gas, ocean wave, ocean thermal, green hydrogen, as defined in
subdivision (b) of Section 43869.5 of the Health and Safety Code, or tidal current, and any additions or enhancements to the facility using that technology.
(2) The facility satisfies one of the following requirements:
(A) The facility is located in the state or near the border of the state with the first point of connection to the transmission network of a balancing authority area primarily located within the state. For purposes of this subparagraph, “balancing authority area” has the same meaning as defined in Section 399.12 of the Public Utilities Code.
(B) The facility has its first point of interconnection to the transmission network outside the state, within the Western Electricity Coordinating Council (WECC) service
area, and satisfies all of the following requirements:
(i) It commences initial commercial operation after January 1, 2005.
(ii) It will not cause or contribute to any violation of a California environmental quality standard or requirement.
(iii) It participates in the accounting system to verify compliance with the renewables portfolio standard once established by the commission pursuant to subdivision (b) of Section 399.25 of the Public Utilities Code.
(C) The facility meets the requirements of clauses (ii) and (iii) of subparagraph (B), but does not meet the requirements of clause (i) of subparagraph (B) because it commenced initial operation
before January 1, 2005, if the facility satisfies either of the following requirements:
(i) The electricity is from incremental generation resulting from expansion or repowering of the facility.
(ii) Electricity generated by the facility was procured by a retail seller or local publicly owned electric utility as of January 1, 2010.
(3) If the facility is outside the United States, it is developed and operated in a manner that is as protective of the environment as a similar facility located in the state.
(4) If eligibility of the facility is based on the use of landfill gas, digester gas, or another renewable fuel delivered to the facility through a common carrier
pipeline, the transaction for the procurement of that fuel, including the source of the fuel and delivery method, satisfies the requirements of Section 399.12.6 of the Public Utilities Code and is verified pursuant to the accounting system established by the commission pursuant to Section 399.25 of the Public Utilities Code, or a comparable system, as determined by the commission.
(5) If eligibility of the facility is based on the use of green hydrogen delivered to the facility through a pipeline, the transaction for the procurement of that fuel, including the source of the fuel and delivery method, satisfies the requirements of Section 399.12.3 of the Public Utilities Code and is verified pursuant to the accounting system established by the commission pursuant to Section 399.25 of the Public Utilities Code, or a comparable system, as
determined by the commission.
(b) “Municipal solid waste conversion,” as used in subdivision (a), means a technology that uses a noncombustion thermal process to convert solid waste to a clean-burning fuel for the purpose of generating electricity, and that meets all of the following criteria:
(1) The technology does not use air or oxygen in the conversion process, except ambient air to maintain temperature control.
(2) The technology produces no discharges of air contaminants or emissions, including greenhouse gases as defined in Section 38505 of the Health and Safety Code.
(3) The technology produces no discharges to surface or groundwaters of the state.
(4) The technology produces no hazardous wastes.
(5) To the maximum extent feasible, the technology removes all recyclable materials and marketable green waste compostable materials from the solid waste stream before the conversion process and the owner or operator of the facility certifies that those materials will be recycled or composted.
(6) The facility at which the technology is used is in compliance with all applicable laws, regulations, and ordinances.
(7) The technology meets any other conditions established by the commission.
(8) The facility certifies that any local agency sending solid waste
to the facility diverted at least 30 percent of all solid waste it collects through solid waste reduction, recycling, and composting. For purposes of this paragraph, “local agency” means any city, county, or special district, or subdivision thereof, that is authorized to provide solid waste handling services.
(c) “Renewable energy public goods charge” means that portion of the nonbypassable system benefits charge required to be collected to fund renewable energy pursuant to the Reliable Electric Service Investments Act (Article 15 (commencing with Section 399) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code).
(d) “Report” means the report entitled “Investing in Renewable Electricity Generation in California” (June 2001, Publication Number P500-00-022) submitted to
the Governor and the Legislature by the commission.
(e) “Retail seller” means a “retail seller” as defined in Section 399.12 of the Public Utilities Code.
SEC. 3.
Section 399.12.3 is added to the Public Utilities Code, to read:399.12.3.
(a) For purposes of this section, “green hydrogen” has the same meaning as defined in subdivision (b) of Section 43869.5 of the Health and Safety Code.(b) Green hydrogen used by a generating facility shall not qualify as an eligible renewable energy resource unless it satisfies all applicable requirements established by the Energy Commission and meets any of the following requirements:
(1) The green hydrogen is used by an onsite generating facility within California or that has a first point of interconnection to a California balancing authority.
(2) The green hydrogen is used by an offsite generating facility within California or that has a first point of interconnection to a California balancing authority and is delivered to the generating facility through a dedicated pipeline.
(3) The green hydrogen is delivered to a generating facility through a common carrier pipeline and the green hydrogen physically flows within California or toward the generating facility for which the green hydrogen was procured under the original contract.
(c) For all electricity generated using green hydrogen that is credited toward the renewables portfolio standard procurement obligations established pursuant to this article, sufficient renewable and environmental green attributes of green hydrogen production and capture shall be
transferred to the retail seller or local publicly owned electric utility that uses that green hydrogen to ensure that there are zero net emissions associated with the production of electricity from the generating facility using the green hydrogen. This subdivision shall be applied in a manner consistent with the definition of “green attributes” as specified by the commission in Decision 08-08-028 (August 21, 2008), Decision on Definition and Attributes of Renewable Energy Credits for Compliance with the California Renewables Portfolio Standard, as may be modified by a subsequent decision of the commission.
(d) All sellers and purchasers of green hydrogen shall comply with a system for tracking and verifying the use of green hydrogen, as established by the Energy Commission, that is equivalent to the system required by subdivision (c) of
Section 399.25.
(e) The use of green hydrogen shall be assigned to the appropriate portfolio content category based on the application of the criteria in subdivision (b) of Section 399.16 to the procurement of electricity by the retail seller or local publicly owned electric utility from the generating facility using the green hydrogen.
