Bill Text: CA AB2313 | 2015-2016 | Regular Session | Chaptered
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-Chaptered.html
BILL NUMBER: AB 2313 CHAPTERED
BILL TEXT
CHAPTER 571
FILED WITH SECRETARY OF STATE SEPTEMBER 24, 2016
APPROVED BY GOVERNOR SEPTEMBER 24, 2016
PASSED THE SENATE AUGUST 23, 2016
PASSED THE ASSEMBLY AUGUST 30, 2016
AMENDED IN SENATE AUGUST 19, 2016
AMENDED IN SENATE AUGUST 15, 2016
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 Section 784.2 to, and add and repeal Section 399.19
of, the Public Utilities Code, relating to renewable energy
resources.
LEGISLATIVE COUNSEL'S DIGEST
AB 2313, 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,
and requires that these policies and programs facilitate the
development of a variety of sources of in-state biomethane. The
commission has adopted two decisions implementing these requirements,
the 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 authorize the use of incentive
payments subject to this limitation for interconnection costs and
costs incurred for gathering lines for transport of biogas to a
centralized processing facility for the project. The bill would
require the commission to extend the program, as modified, until
December 31, 2021. Before the exhaustion of the funds available
pursuant to the monetary incentive program, and before the expiration
of the program, the bill would require the commission to consider
options to promote the in-state production and distribution of
biomethane, including 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 of gathering lines for a dairy cluster
biomethane project, (2) provide for the installation of utility
infrastructure to achieve interconnection with facilities that
generate biomethane, and (3) ensure that these investments for
infrastructure are prudent and reasonable and provide a direct
benefit to, and are in the interests of, all classes of ratepayers.
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 became failure to comply with 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 399.19 is added to the Public Utilities Code,
to read:
399.19. 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), which may be used for interconnection costs and costs
incurred for gathering lines to help reduce emissions of short-lived
climate pollutants pursuant to Section 39730 of the Health and Safety
Code. 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.
(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. Before the 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, and before the expiration of that
program, the commission shall consider options to further the goals
of Section 399.24, including consideration of whether to allow
recovery in rates of the costs of investments to do each of the
following:
(a) Ensure that prudent and reasonable investments for
infrastructure pursuant to subdivisions (b) and (c) provide a direct
benefit, such as safety, reliability, affordability, or greenhouse
gas reduction, to, and are in the interests of, all classes of
ratepayers.
(b) 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 of gathering lines for a dairy cluster biomethane project.
(c) 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.
