CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 491

Introduced by Assembly Member Blanca Rubio
(Coauthors: Assembly Members O’Donnell and Quirk)

February 12, 2019

An act to add Section 784.5 to the Public Utilities Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


AB 491, as introduced, Blanca Rubio. Energy: hydrogen.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including gas corporations. The California Renewables Portfolio Standard Program requires the commission to adopt policies and programs that promote the in-state production and distribution of biomethane. Existing law requires the commission to adopt, by rule or order, 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 requirements for monitoring, testing, reporting, and recordkeeping, as specified. Existing law requires a gas corporation to comply with those standards and requirements and requires that gas corporation tariffs condition access to common carrier pipelines on the applicable customer meeting those standards and requirements.
Existing law requests the California Council on Science and Technology to undertake and complete a study analyzing the regional and gas-corporation-specific issues relating to minimum heating value and maximum siloxane specifications adopted by the commission for biomethane before it can be injected into common carrier gas pipelines. If the California Council on Science and Technology agrees to undertake and complete the study, existing law requires the commission, within 6 months of its completion, to reevaluate requirements and standards adopted for injection of biomethane into common carrier pipelines and, if appropriate, change those requirements and standards or adopt new requirements and standards, giving due deference to the conclusions and recommendations made in the study.
This bill would request the California Council on Science and Technology to undertake and, on or before December 31, 2020, to complete a study analyzing the potential impacts of increased hydrogen concentration in the natural gas supply on the California natural gas system, including specified information. If the California Council on Science and Technology agrees to undertake and complete the study, the bill would require the commission, by June 1, 2021, to adopt standards for hydrogen to be injected into a common carrier pipeline, taking the study into consideration, while ensuring pipeline and pipeline facility integrity and safety. The bill would require the commission to adopt policies and programs that promote the in-state production and distribution of low-carbon hydrogen that facilitate the development of a variety of in-state technologies and support in-state clean energy job development.
Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because a violation of an order or decision of the commission implementing its requirements would be a crime, this 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   Local Program: YES  

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


SECTION 1.

 Section 784.5 is added to the Public Utilities Code, to read:

784.5.
 (a) The Legislature requests that the California Council on Science and Technology undertake and, on or before December 31, 2020, complete, a study analyzing the potential impacts of increased hydrogen concentration in the natural gas supply on the California natural gas system. The study shall include, but shall not be limited to, the following:
(1) A risk assessment, including assessing the safety concerns associated with blending hydrogen into the throughput of the existing natural gas pipeline system at percentages up to 20 percent.
(2) A determination of the maximum hydrogen percentage blended into the throughput of the natural gas pipeline system at which no or minor modifications would be needed for natural gas infrastructure and end-use systems, and an assessment of the types of modifications that may be required for higher percentages of hydrogen.
(3) An assessment of the impacts, including degradation, on durability of the existing natural gas pipeline system associated with exposure to hydrogen over long periods, particularly with hydrogen in high concentrations and at high pressures.
(4) An assessment of any impacts of hydrogen on natural gas pipeline leakage rates.
(5) An assessment of any impact on valves, fittings, materials, and welds due to hydrogen embrittlement, including, but not limited to, at low concentrations and low pressures.
(6) An assessment of any impact of hydrogen on the permeability of storage rock and of the compatibility of the full range of hydrogen blend percentages on storage infrastructure.
(7) An assessment of any impact on pipelines under cathodic protection due to potential for hydrogen dissociation.
(8) A survey and analysis of international hydrogen blending and injection studies, activities, and regulations.
(b) If the California Council on Science and Technology agrees to undertake and complete the study pursuant to subdivision (a), on or before June 1, 2021, the commission shall, by rule or order, adopt standards for hydrogen to be injected into a common carrier pipeline, taking into consideration the California Council on Science and Technology study, while ensuring pipeline and pipeline facility integrity and safety.
(c) To meet the energy and transportation needs of the state, the commission shall adopt policies and programs that promote the in-state production and distribution of low-carbon hydrogen. The policies and programs shall facilitate the development of a variety of in-state technologies and support in-state clean energy job development.

SEC. 2.

 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.