Bill Text: CA AB2390 | 2011-2012 | Regular Session | Amended
Bill Title: Electricity: biomass: incentive programs.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Engrossed - Dead) 2012-08-16 - In committee: Held under submission. [AB2390 Detail]
Download: California-2011-AB2390-Amended.html
BILL NUMBER: AB 2390 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 6, 2012
AMENDED IN SENATE JUNE 26, 2012
AMENDED IN ASSEMBLY MAY 1, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Chesbro
(Coauthors: Assembly Members Huffman and Ma)
FEBRUARY 24, 2012
An act to add Chapter 13 (commencing with Section 25990) to
Division 15 of the Public Resources Code , and to add
Sections 399.5 and 399.6 to the Public Utilities Code ,
relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
AB 2390, as amended, Chesbro. Electricity: biomass: incentive
programs: Electric Program Investment Charge.
programs.
(1) Existing
Existing law authorizes the Public Utilities Commission
(PUC), in consultation with the State Energy Resources Conservation
and Development Commission (Energy Commission), to authorize
electrical corporations to collect moneys for the self-generation
incentive program (SGIP) at 2008 calendar year levels through
December 31, 2014. Existing law requires the PUC to require
electrical corporations to administer the SGIP, until January 1,
2016. Existing law limits eligibility for SGIP incentives to
distributed energy resources that the PUC, in consultation with the
State Air Resources Board, determines will achieve reductions in
emissions of greenhouse gases pursuant to the California Global
Warming Solutions Act of 2006.
This bill would state legislative findings and declarations
regarding the use of waste products from forest thinning and fire
prevention activities to generate electricity at biomass facilities.
The bill would require the Energy Commission, in consultation with
the Department of Forestry and Fire Protection, to establish an
incentive program to compensate producers and collectors of biomass
material associated with forest fuel reduction and fire prevention
activities that are delivered to eligible biomass facilities, as
defined, for use as a fuel source.
(2) The Reliable Electric Service Investments Act required the PUC
to require the state's 3 largest electrical corporations, until
January 1, 2012, to identify a separate electrical rate component,
commonly referred to as the "public goods charge," to collect
specified amounts to fund energy efficiency, renewable energy, and
research, development, and demonstration programs that enhance system
reliability and provide in-state benefits. An existing decision of
the PUC institutes an Electric Program Investment Charge (EPIC),
subject to refund, to fund renewable energy and research,
development, and demonstration programs.
This bill would require the Energy Commission to expend moneys
lawfully collected pursuant to the EPIC charge to provide incentives
to the producers and collectors of biomass materials associated with
forest fuel reduction and fire prevention activities, if the biomass
materials are delivered to an eligible biomass facility, as
specified.
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. The Legislature finds and declares all of the
following:
(a) Prudent forest thinning and fire prevention activities are
important for protecting public safety.
(b) The utility of fire prevention activities can be supplemented
by harnessing the energy potential of waste products in the form of
woody biomass material from forest fuels reduction activities and
generating renewable electricity at biomass generation facilities.
(c) Several large fires have resulted in significant costs to
California investor-owned utilities that affect electric rates. These
costs include actual cost settlements with homeowners, fire
suppression cost reimbursement to the state and federal emergency
service agencies, transmission and distribution equipment
replacement, and ever increasing costs of insuring utility
infrastructure.
(d) The Department of Forestry and Fire Protection estimates that
almost 25 million acres of forest are considered high- and
medium-priority landscapes at risk to wildfire.
(e) Ratepayers will benefit by reducing the risk and associated
costs of fire related to the electric infrastructure.
SEC. 2. Chapter 13 (commencing with Section 25990) is added to
Division 15 of the Public Resources Code, to read:
CHAPTER 13. BIOMASS INCENTIVE PROGRAM
25990. For the purposes of this section, the following terms have
the following meanings:
(a) "Community scale biomass facilities" means an electric
generation facility that uses biomass that has a generation capacity
of under three megawatts and meets both of the following criteria:
(1) The facility is located in an area identified by the
Department of Forestry and Fire Protection as high- and
medium-priority landscapes at risk to wildfire.
(2) The facility uses as a fuel source only forest biomass
materials, such as shrubs, limbs, and small trees, collected from a
high- or medium-priority landscape considered at risk to wildfire, as
determined by the Department of Forestry and Fire Protection,
pursuant to a project consistent with the California Environmental
Quality Act (Division 13 (commencing with Section 21000) or the
federal National Environmental Policy Act (42 U.S.C. Sec. 4321 et
seq.), as applicable.
(b) "Eligible biomass facility" means an electric generation
facility that meets both all of the
following:
(1) Uses as a fuel source forest biomass materials, such as
shrubs, limbs, and small trees, collected from a high- or
medium-priority landscape considered at risk to wildfire, as
determined by the Department of Forestry and Fire Protection.
(2) Uses best management standards to ensure that biomass fuel use
does not adversely impact water quality, soil productivity,
biodiversity, and wildlife and is in material compliance with all
applicable laws and regulations for forest management on state,
federal, or private lands that are intended to protect water quality,
wildlife habitat, and other public trust resources.
(3) Is a renewable electrical generation facility, as defined in
subdivision (a) of Section 25741.
25991. The commission shall, in consultation with the Department
of Forestry and Fire Protection, establish an incentive program to
compensate producers and collectors of biomass materials associated
with forest fuel reduction and fire prevention activities that are
delivered to eligible biomass facilities, including community scale
biomass facilities, for use as a fuel source.
25992. In implementing the program, the commission shall
encourage the maximum amount of hazardous forest fuels removal.
SEC. 3. Section 399.5 is added to the Public
Utilities Code, to read:
399.5. (a) Twenty million dollars ($20,000,000) of any money the
commission orders to be collected and transferred to the Energy
Commission pursuant to Decision 11-12-035 (Phase 1 Decision
Establishing Interim Research, Development and Demonstration and
Renewable Program funding Levels, dated December 15, 2011) and
Decision 12-05-037 (Phase 2 Decision Establishing Purposes and
Governance for Electric Program Investment Charge and Establishing
Funding Collections for 2013-2020) shall be expended annually by the
Energy Commission to provide incentives to the producers and
collectors of biomass materials associated with forest fuel reduction
and fire prevention activities, if those biomass materials are
delivered to an eligible biomass facility, as specified in Chapter 13
(commencing with Section 25990) of Division 15 of the Public
Resources Code.
(b) This section does not authorize the commission to order the
collection of moneys pursuant to either Decision 11-12-035 or
Decision 12-05-037 or to increase the amount collected through the
Electric Program Investment Charge (EPIC).
SEC. 4. Section 399.6 is added to the Public
Utilities Code, to read:
399.6. The Energy Commission shall only spend funds pursuant to
Section 399.5 if funds are lawfully collected pursuant to either
Decision 11-12-035 or Decision 12-05-037.
