Bill Text: CA AB1559 | 2021-2022 | Regular Session | Amended

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Bill Title: Energy: Innovative Renewable Energy for Buildings Act of 2022.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2022-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1559 Detail]

Download: California-2021-AB1559-Amended.html

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Amended  IN  Assembly  January 03, 2022

Amended  IN  Assembly  March 18, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 1559

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Introduced by Assembly Member O’Donnell

February 19, 2021

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An act to add and repeal Chapter 9.5 (commencing with Section 25810) of Division 15 of the Public Resources Code, relating to energy, and making an appropriation therefor. energy.

LEGISLATIVE COUNSEL'S DIGEST

AB 1559, as amended, O’Donnell. Energy: Innovative Renewable Energy for Buildings Act of 2021. 2022.

Existing law requires the State Energy Resources Conservation and Development Commission to administer the Alternative and Renewable Fuel and Vehicle Technology Program to provide financial assistance for the development and deployment of innovative technologies that transform California’s fuel and vehicle types to help attain the state’s climate change policies.

This bill, the Innovative Renewable Energy for Buildings Act of 2021, 2022, would, until January 1, 2031, 2032, require the commission to establish and implement a program to provide financial incentives to producers for the production of renewable propane, renewable hydrogen, and renewable dimethyl ether meeting certain requirements and that is used as an energy source for buildings in the state. The bill would make implementation of the program contingent upon an appropriation in the annual Budget Act or other statute for these purposes. The bill would establish the Innovative Renewable Energy for Buildings Fund and would specify that moneys in the fund, upon appropriation by the Legislature, are available for expenditure of purposes of the program.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include in its regulation of those emissions the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund.

This bill would transfer $150,000,000 from the Greenhouse Gas Reduction Fund to the Innovative Renewable Energy for Buildings Fund. The bill would appropriate those moneys, as provided, for the purposes of the program.

Digest Key

Vote: TWO_THIRDSMAJORITY   Appropriation: YESNO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

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

SECTION 1.

 Chapter 9.5 (commencing with Section 25810) is added to Division 15 of the Public Resources Code, to read:

CHAPTER  9.5. Innovative Renewable Energy for Buildings Act of 2021 2022

25810.

 This chapter shall be known, and may be cited, as the Innovative Renewable Energy for Buildings Act of 2021. 2022.

25811.

 For purposes of this chapter, the following definitions apply:

(a) “Liquefied petroleum gas” has the same meaning as set forth in Section 380 of the Vehicle Code.

(b) “Renewable DME” means dimethyl ether derived from renewable feedstock.

(c) “Renewable hydrogen” means hydrogen derived from any of the following:

(1) Electrolysis of water or aqueous solutions using renewable electricity.

(2) Catalytic cracking or steam methane reforming of biomethane.

(3) Thermochemical conversion of biomass, including the organic portion of municipal solid waste.

(d) “Renewable propane,” also known as biopropane, bioLPG, renewable LPG, or rLPG, is a low-pressure liquefied gas comprised of propane derived from nonpetroleum or renewable sources and other molecules derived from nonpetroleum or renewable sources, which may include renewable DME or renewable hydrogen.

25812.

 (a) The commission shall establish and implement a program to provide financial incentives to any producer for the production of any of the following that is used as an energy source for buildings in the state:

(1) Renewable propane derived entirely from renewable feedstock.

(2) Renewable hydrogen produced for blending with propane, liquefied petroleum gas, or renewable propane.

(3) Renewable DME produced for blending with propane, liquefied petroleum gas, or renewable propane.

(b) The financial incentive provided pursuant to subdivision (a) shall be based on the volumetric amount of renewable propane, renewable hydrogen, or renewable DME produced, as follows:

(1) One dollar and fifty cents ($1.50) per gallon for the first 25,000,000 gallons of those gases produced.

(2) One dollar and twenty five cents ($1.25) per gallon for any volumetric amount above 25,000,000 gallons produced.

(c) To obtain an incentive under the program, the producer shall submit to the commission documentation, in a format determined by the commission, of the amount of renewable propane, renewable hydrogen, or renewable DME produced during the previous calendar year and the disposition of those gases, including information on the use of those gases categorized by the types of retail end users of those gases.

25813.

 The Innovative Renewable Energy for Buildings Fund is hereby established in the State Treasury. Moneys in the fund, upon appropriation by the Legislature, are available for expenditure for the purposes of this chapter.

25814.

(a)The sum of one hundred fifty million dollars ($150,000,000) is transferred from the Greenhouse Gas Reduction Fund to the Innovative Renewable Energy for Buildings Fund.

(b)(1)The sum of fifty million dollars ($50,000,000) is hereby appropriated from the Innovative Renewable Energy for Buildings Fund to the commission for the purposes of this chapter.

(2)For the 2022–23 fiscal year and the 2023–24 fiscal year, the sum of fifty million dollars ($50,000,000) for each of those fiscal years is hereby appropriated from the Innovative Renewable Energy for Buildings Fund to the commission for the purposes of this chapter.

(c)Notwithstanding Section 16304 of the Government Code, the amounts appropriated pursuant to subdivision (b) are available for encumbrance until December 31, 2030.

25814.

 The implementation of the program is contingent upon an appropriation in the annual Budget Act or other statute for purposes of this chapter.

25815.

 Notwithstanding Section 10231.5 of the Government Code, beginning January 1, 2023, 2024, and annually thereafter, the commission shall submit a report to the Legislature in accordance with Section 9795 of the Government Code detailing the volumetric amount of renewable propane, renewable hydrogen, and renewable DME receiving incentives under the program and the uses of those gases categorized by the types of retail end users of those gases.

25816.

 This chapter shall remain in effect only until January 1, 2031, 2032, and as of that date is repealed.