Bill Text: CA SB1122 | 2011-2012 | Regular Session | Amended

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

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Bill Title: Energy: renewable bioenergy projects.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-09-27 - Chaptered by Secretary of State. Chapter 612, Statutes of 2012. [SB1122 Detail]

Download: California-2011-SB1122-Amended.html

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BILL NUMBER: SB 1122	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 18, 2012
	AMENDED IN SENATE  MAY 29, 2012
	AMENDED IN SENATE  APRIL 16, 2012

INTRODUCED BY   Senator Rubio

                        FEBRUARY 17, 2012

   An act to  amend, renumber, and add Section 701.3
  add C   hapter 7.6 (commencing with Section
2833)   to Part 2 of Division 1  of the Public
Utilities Code, relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1122, as amended, Rubio. Energy: renewable biomass and biogas
projects.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities. Existing law, adopted prior to the
enactment of the California Renewables Portfolio Standard Program,
provides that until the commission completes an electric generation
procurement methodology that values the environmental and diversity
costs and benefits associated with various generation technologies,
the commission shall direct that a specific portion of future
electrical generating capacity needed for California be reserved or
set aside for renewable resources.
   This  bill would make certain legislative findings and
declarations regarding new and emerging small- and community-scale
distributed renewable generation technologies. The  bill would
require the commission  to adopt a methodology  , by
June 1,  2014   2013  ,  that
accounts for the benefits to ratepayers and the environment from
reducing air pollution and global warming emissions by generating
electricity from specified sources of biogas and biomass. 
 to direct electrical corporations, as defined, to collectively
procure at least 250 megawatts of electrical generating capacity from
small   and community-scale biomass and biogas projects, as
defined. The   bill would, among other things, require the
commission, in implementing that procurement requirement, to direct
each electrical corporation to develop standard contract terms and
conditions, as specified, and to provide a streamlined contracting
process for the above procurement requirement. The bill would also
require the commission, at least once a year, to solicit electricity
from small   - and community-scale biomass or biogas
projects through a competitive solicitation process for specified
project application categories. The bill would authorize the
commission to monitor that solicitation process, and if the
commission determines the prices of a bid are not reasonable, suspend
the bidding within that project application category.  
   Existing law authorizes the furnishing of utility services by
publicly owned public utilities, which are subject to the control of
their governing bodies.  
   This bill would specify that before June 1, 2013, each local
publicly owned utility that sells electricity at retail to 75,000 or
more customers is strongly encouraged to consider and adopt, if
appropriate, a procurement target for small- and community-scale
biomass and biogas projects. 
   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.    Chapter 7.6 (commencing with Section
2833) is added to Part 2 of Division 1 of the   Public
Utilities Code   , to read: 
      CHAPTER 7.6.  RENEWABLE BIOMASS AND BIOGAS PROJECTS


   2833.  (a) The Legislature finds and declares the following:
   (1) New and emerging small- and community-scale distributed
renewable generation technologies can greatly reduce greenhouse gas
pollution in California, while providing quantifiable benefits to
California ratepayers and the environment, contributing to the state'
s renewable energy, air quality, and climate goals, and providing
increased electric system reliability.
   (2) Current commission procurement programs do not fully account
for the benefits of methane and other emissions reductions that
result from the utilization of low-emission biomass and biogas
technologies from landfills and organic waste diversion, wastewater
treatment plants, food and agricultural processing, animal husbandry
facilities, byproducts of sustainable forest management and wildfire
prevention, and farms.
   (3) Resource diversity benefits California ratepayers in the long
term by reducing both the price of electricity and the risks to the
reliability of the electric system.
   (b) For the purposes of this section, the following terms have the
following meanings:
   (1) "Electrical corporation" means an electrical corporation, as
defined in Section 218, that furnishes electricity to more than
100,000 customers.
   (2) "Small- and community-scale biogas or biomass projects" means
electrical generation projects that are no larger than five
megawatts, that were not operative before January 1, 2013, and that
comply with the regulations of the air quality management or air
pollution control district and all other applicable environmental
compliance standards.
   (c) By June 1, 2013, the commission shall direct the electrical
corporations to collectively procure at least 250 megawatts of
electrical generating capacity from small- and community-scale
biomass and biogas projects.
   (d) In implementing this section, the commission shall do all of
the following:
   (1) Allocate the 250 megawatts identified in subdivision (c) among
the electrical corporations.
   (2) Direct each electrical corporation to, at least once a year,
solicit electricity from small- and community-scale biomass or biogas
projects through a competitive solicitation process for each of the
following project application categories:
   (A) For dairy digester gas, 85 megawatts.
   (B) For biogas from wastewater treatment, 50 megawatts.
   (C) For agricultural biomass and biogas, 50 megawatts.
   (D) For biomass using byproducts of sustainable forest management,
30 megawatts.
   (E) For landfill gas and organic waste diversion, 35 megawatts.
   (3) Direct the electrical corporations to develop standard
contract terms and conditions that reflect the operational
characteristics of the projects, and to provide a streamlined
contracting process.
   (4) Select the offers that represent the least-cost, best-fit
resources for the electrical corporation.
   (5) Coordinate, to the maximum extent feasible, any incentive or
subsidy programs for biogas and biomass with the solicitation
requirement in paragraph (2) in order to provide maximum benefits to
ratepayers and to ensure that incentives are used to reduce contract
prices.
   (6) Ensure that electrical corporations give priority to resources
that result in the most greenhouse gas reductions as part of their
contract. As part of the solicitation process, the commission shall
require the electrical corporations to evaluate the value of
greenhouse gas reductions.
   (7) Allocate a proportional share of costs to the electric service
provider and community choice aggregator customers through
nonbypassable charges.
   (e) During the bidding process in a solicitation pursuant to
subdivision (d), the commission may monitor the bidding process in
the solicitation, and, if the commission determines the prices of a
bid are not reasonable, suspend the bidding within that project
application category.
   2834.  (a) The Legislature finds and declares all of the
following:
   (1) New and emerging community-scale distributed renewable
generation technologies can greatly reduce greenhouse gas pollution
in California, while providing quantifiable benefits to California
ratepayers and the environment, contributing to the state's renewable
energy, air quality, and climate goals, and providing increased
electric system reliability.
   (2) The Energy Commission has acknowledged in its 2011 Integrated
Energy Policy Report that "i]ncreased bioenergy production could
provide the state with several economic, environmental, and
reliability benefits."
   (3) Significant potential exists for the utilization of
low-emission biomass and biogas technologies from landfills and
organic waste diversion, wastewater treatment plants, food and
agricultural processing, animal husbandry facilities, byproducts of
sustainable forest management and wildfire prevention, and farms.
   (4) Resource diversity benefits California ratepayers in the long
term by reducing both the price of electricity and the risks to the
reliability of the electric system.
   (b) Before June 1, 2013, each local publicly owned utility that
sells electricity at retail to 75,000 or more customers is strongly
encouraged to consider and adopt, if appropriate, a procurement
target for small- and community-scale biomass and biogas projects. To
achieve that target, each local publicly owned utility shall set an
interim deadline of December 31, 2016, and a final deadline of
December 31, 2020.  
  SECTION 1.    Section 701.3 of the Public
Utilities Code is amended and renumbered to read:
   701.2.  Until the commission completes an electric generation
procurement methodology that values the environmental and diversity
costs and benefits associated with various generation technologies,
the commission shall direct that a specific portion of future
electrical generating capacity needed for California be reserved or
set aside for renewable resources.  
  SEC. 2.    Section 701.3 is added to the Public
Utilities Code, to read:
   701.3.  (a) The Legislature finds and declares the following:
   (1) New and emerging distributed renewable generation technologies
can greatly reduce methane pollution in California while providing
quantifiable benefits to California ratepayers and the environment,
contributing to the state's local renewable energy and climate goals,
and providing increased electric system reliability.
   (2) The commission has refused to account for the benefits of
methane and other emissions reductions that result from the
utilization of low-emission biomass and biogas technologies from
landfills and organic waste diversion, waste water treatment plants,
food and agricultural processing, animal waste facilities, and farms,
and has failed to promote resource diversity in the renewable
distributed generation programs it administers.
   (b) For the purposes of this section, the following terms have the
following meanings:
   (1) "Electrical corporation" means an electrical corporation, as
defined in Section 218, that furnishes electricity to more than
100,000 customers.
   (2) "Small biogas or biomass projects" means electrical generation
projects that are no larger than five megawatts, and that comply
with all applicable requirements of the State Air Resources Board and
the air quality management or air pollution control district.
   (c) By June 1, 2014, the commission shall adopt a methodology that
accounts for the benefits to ratepayers and the environment from
reducing air pollution and global warming emissions by generating
electricity from landfills and organic waste diversion, waste water
treatment plants, food and agricultural processing, animal waste
facilities, and farms.