Bill Text: CA SB1062 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Conversion of electrical generation facilities using biomass.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2024-08-15 - August 15 hearing: Held in committee and under submission. [SB1062 Detail]

Download: California-2023-SB1062-Amended.html

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Amended  IN  Senate  March 20, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 1062

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Introduced by Senator Dahle

February 08, 2024

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An act relating to air quality. An act to add Chapter 16 (commencing with Section 25993) to Division 15 of the Public Resources Code, and to add and repeal Section 399.20.4 of the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL'S DIGEST

SB 1062, as amended, Dahle. Air quality standards: idled biomass facilities: emissions technology. Energy: conversion of biomass energy generation facilities.

Existing law requires the Public Utilities Commission to direct electrical corporations to collectively procure at least 250 megawatts of cumulative rated generation capacity from developers of bioenergy projects that commence operation on or before June 1, 2013, as provided.

This bill would require the Department of Conservation to develop the Biomass Technology Transition Program to support the conversion of energy generation facilities using biomass and traditional combustion technologies to newer advanced bioenergy technology facilities that result in reductions in the emissions of criteria pollutants, toxic air contaminants, and greenhouse gases. The bill would require the department, on or before December 1, 2025, to identify generation facilities with a generation capacity of 10 megawatts or greater that uses, or are in the process of recommissioning or the redevelopment of those facilities to use, forest biomass and the operators of those facilities have demonstrated to the department their sincere interest, to the satisfaction of the department, in converting the facilities to advanced bioenergy technologies that result in a reduction in emissions of criteria pollutants, toxic air contaminants, and greenhouse gases. The bill would require a relevant local air pollution control district or air quality management district to review and consider specific advanced air emission control technologies that are appropriate for the identified generation facilities, as provided. By imposing additional requirements on air districts, this bill would impose a state-mandated local program. The bill would require the department, on or before January 1, 2032, to establish a grant program to support the distribution of advanced bioenergy technologies from those identified generation facilities that meet certain requirements.

The bill would require electrical corporations with 100,000 or more connections and local publicly owned electric utilities with 100,000 or more connections to collectively procure, through financial commitments of 15 years, 125 megawatts of cumulative rated generation capacity from those facilities identified by the department that use or adopt the advanced air emission control technologies recommended by the relevant air district, develop business plans, and commit to the conversion of the generation facilities to advanced bioenergy technology facilities, as provided. By imposing additional requirements on local publicly owned electric utilities, this bill would impose a state-mandated local program. The bill would provide that the financial commitments terminate, at the latest, on January 1, 2041, and may be terminated earlier, as provided.

Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because certain provisions of the bill would be a part of the act and a violation of a commission action implementing requirements of the bill would be a crime, this 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 with regard to certain mandates no reimbursement is required by this act for specified reasons.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law imposes various limitations on emissions of air contaminants for the control of air pollution from vehicular and nonvehicular sources. Existing law generally designates the State Air Resources Board as the state agency with the primary responsibility for the control of vehicular air pollution, and air pollution control districts and air quality management districts with the primary responsibility for the control of air pollution from all sources other than vehicular sources.

This bill would state the intent of the Legislature to enact subsequent legislation relating to idled biomass facilities that are in need of new emissions technology in order to meet current air quality standards.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

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Bill Text

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

SECTION 1.

 Chapter 16 (commencing with Section 25993) is added to Division 15 of the Public Resources Code, to read:

CHAPTER  16. Biomass Technology Transition Program

Article  1. General Provisions

25993.

 Unless the context requires otherwise, for purposes of this chapter, the following definitions apply:

(a) “Department” means the Department of Conservation.

(b) “District” has the same meaning as set forth in Section 39025 of the Health and Safety Code.

(c) “Generation facility” means an electrical generation facility using biomass.

(d) “Program” means the Biomass Technology Transition Program developed pursuant to Section 25993.10.

Article  2. Biomass Technology Transition Program

25993.10.

 (a) The department, in consultation with the Public Utilities Commission, the State Air Resources Board, the Governor’s Office of Business and Economic Development, the California Infrastructure and Economic Development Bank, and districts, shall establish and administer the Biomass Technology Transition Program with relevant program terms to support the conversion of generation facilities using traditional combustion technologies to newer advanced bioenergy technology facilities that result in reductions in the emissions of criteria pollutants, toxic air contaminants, and greenhouse gases.

(b) On or before December 1, 2025, the department, in consultation with the State Air Resources Board and the Governor’s Office of Business and Economic Development, shall establish relevant program terms for purposes of the program.

25993.11.

 (a) On or before December 1, 2025, the department shall identify generation facilities with a generation capacity of 10 megawatts or greater that use, or are in the process of recommissioning or the redevelopment of those facilities to use, forest biomass and the operators of those facilities have demonstrated to the department their sincere interest, to the satisfaction of the department, in converting their facilities to advanced bioenergy technology facilities that result in a reduction in emissions of criteria pollutants, toxic air contaminants, and greenhouse gases.

(b) The relevant district shall review and recommend to the department specific advanced air emission control technologies, such as ceramic filtration and other criteria pollution control technologies, that are appropriate for each identified generation facility considering the attainment status of the air basin in which the facility is located, proximity to sensitive receptors, and other factors determined appropriated by the district.

25993.12.

 A generation facility identified pursuant to Section 25993.11 is an eligible facility for purposes of Section 399.20.4 of the Public Utilities Code if the operator of the facility does both of the following:

(a) Uses or adopts advanced air emission control technologies recommended by the relevant local air district pursuant to subdivision (b) of Section 25993.11.

(b) Develops business plans and commits to the conversion of the generation facility to an advanced bioenergy technology facility as provided in Section 25993.13.

25993.13.

 (a) To receive a grant pursuant to Section 25993.14, the operator of a generation facility shall develop business plans pursuant to guidelines established by the department. The guidelines shall, at minimum, include both of the following metrics:

(1) (A) On or before January 1, 2030, if the initial market benchmarks are met, as determined by the department, for advanced bioenergy technologies, such as renewable natural gas, hydrogen, or other advanced energy technology development, the operator begins development of business plans to convert to those technologies. Those business plans shall also include a carbon sequestration component. The development of the business plans shall be completed on or before January 1, 2032.

(B) On or before January 1, 2033, if the advanced market benchmarks are met, as determined by the department, the generation facility shall convert to an advanced bioenergy technology facility. The department shall provide assistance to those converted generation facilities to obtain offtake agreements for new products through the grant program established pursuant to Section 25993.14.

(2) (A) If the department determines, on or before January 1, 2030, that the initial benchmarks are not met, the department shall, on or before January 1, 2032, and every two years thereafter, determine if the initial benchmarks are met.

(B) If the department determines that the initial benchmarks are met in a determination required pursuant to subparagraph (A), the operator of the generation facility shall adopt the business plans specified in subparagraph (B) of paragraph (1) within two years of the department’s determination and the generation facility shall convert to an advanced bioenergy technology facility upon a determination by the department that the advanced market benchmarks are met.

(b) Notwithstanding Section 399.20.4 of the Public Utilities Code, financial commitments made to the generation facility pursuant to that section shall terminate upon the occurrence of any of the following:

(1) The completion of the conversion by the generation facility to an advanced bioenergy technology facility that does not produce electricity.

(2) The operator of the generation facility fails to prepare a business plan required by paragraph (1) or (2) of subdivision (a).

(3) The operator of the generation facility fails to convert the generation facility as required by paragraph (1) or (2) of subdivision (a).

(c) For purposes of this section, the department, in consultation with the State Air Resources Board, the Governor’s Office of Business and Economic Development, the California Infrastructure and Economic Development Bank, and relevant federal agencies, shall establish market benchmarks for advanced bioenergy technologies.

25993.14.

 On or before January 1, 2032, the department shall establish a grant program to support the distribution of advanced bioenergy technologies, including, but not limited to, sustainable aviation fuel or other biofuels, linear generators, renewable natural gas or biomass conversion to hydrogen, as determined appropriate by the department, from generation facilities identified pursuant to Section 25993.11 and in compliance with Section 25993.13 that result in substantially lower emissions of criteria pollutant, toxic air contaminants, and greenhouse gases.

SEC. 2.

 Section 399.20.4 is added to the Public Utilities Code, to read:

399.20.4.

 (a) In addition to subdivision (f) of Section 399.20 and subdivision (b) of Section 399.30, on or before December 1, 2026, electrical corporations with 100,000 or more connections and local publicly owned electric utilities with 100,000 or more connections shall collectively procure, through financial commitments of 15 years, 125 megawatts of cumulative rated generation capacity from generation facilities that comply with Section 25993.12 of the Public Resources Code. The commission shall allocate the proportionate share, as determined pursuant to subdivision (c), of the 125 megawatts to each electrical corporation and local publicly owned electric utility.

(b) A community choice aggregator may participate in the procurement pursuant to subdivision (a) if the commission, in consultation with the Department of Conservation, on or before December 1, 2025, determines that a process described in paragraph (5) of subdivision (f) of Section 399.20 is appropriate for purposes of this section and Chapter 16 (commencing with 25993) of Division 15 of the Public Resources Code.

(c) On or before December 1, 2025, the commission, in consultation with the Department of Conservation, shall determine the proportionate share for purposes of subdivision (a).

(d) An early termination of the financial commitment described in subdivision (a) shall occur if the facility has converted to an advanced bioenergy technology facility that does not produce electricity. The commission shall establish and require standard contractual language to reflect the potential early termination without penalty to either party for contracts made to effectuate the financial commitment described in subdivision (a). The commission shall also provide the standard contractual language to the local publicly owned electric utilities for inclusion in contracts made by the local publicly owned electric utilities for the financial commitments made pursuant to subdivision (a).

(e) (1) For electrical corporations, before approving a financial commitment made pursuant to this section, the commission shall ensure that any advanced air emissions control technologies, as required by Section 25993.12 of the Public Resources Code, are installed at the generation facility.

(2) Before entering into a financial commitment, a local publicly owned electric utility shall ensure that any advanced air emissions control technologies, as required by Section 25993.12 of the Public Resources Code, are installed at the generation facility.

(f) (1) Financial commitments made pursuant to this section shall not extend beyond January 1, 2041.

(2) This section shall remain in effect only until January 1, 2041, and as of that date is repealed.

SEC. 3.

 As to certain provisions of this act, no reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because 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.

As to other provisions of this act, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

SECTION 1.

It is the intent of the Legislature to enact subsequent legislation relating to idled biomass facilities that are in need of new emissions technology in order to meet current air quality standards.