Bill Text: CA SB1420 | 2023-2024 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Hydrogen production facilities: certification and environmental review.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Passed) 2024-09-25 - Chaptered by Secretary of State. Chapter 608, Statutes of 2024. [SB1420 Detail]
Download: California-2023-SB1420-Introduced.html
Bill Title: Hydrogen production facilities: certification and environmental review.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Passed) 2024-09-25 - Chaptered by Secretary of State. Chapter 608, Statutes of 2024. [SB1420 Detail]
Download: California-2023-SB1420-Introduced.html
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1420
| Introduced by Senators Caballero, Archuleta, Dodd, and Newman |
February 16, 2024 |
An act to add Section 43869.5 to the Health and Safety Code, and to amend Sections 21189.81, 25545, and 25741 of the Public Resources Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1420, as introduced, Caballero.
Hydrogen.
(1) Existing law requires the State Air Resources Board to adopt hydrogen fuel regulations that ensure state funding for the production and use of hydrogen fuel contributes to the reduction of the emissions of greenhouse gases, criteria air pollutants, and toxic air contaminants, and ensure the production and direct use of hydrogen fuel in motor vehicles also contributes to a reduced dependence on petroleum, as provided.
This bill would require the state board to adopt regulations requiring that no less than 33.3% of the retail hydrogen produced for, or dispensed by, fueling stations that receive state funds is made from renewable hydrogen, as provided. The bill would also require that no less than 60% of the retail hydrogen produced or dispensed in California for use in transportation is made from renewable hydrogen by
December 31, 2030, and that the remainder of the retail hydrogen produced or dispensed in California for use in transportation is made from a mix of renewable hydrogen and clean hydrogen by December 31, 2045, as provided.
Under existing law, a person who knowingly violates regulations adopted by the state board pertaining to motor vehicle fuels is guilty of a misdemeanor.
Because a knowing violation of the hydrogen fuel regulations adopted pursuant to this bill would be a crime, the bill would impose a state-mandated local program.
(2) Existing law establishes the California Renewables Portfolio Standard Program, which requires the Public Utilities Commission (PUC) to implement annual procurement targets for eligible renewable energy resources for retail sellers of electricity. Existing law defines “eligible renewable energy resource” for this purpose as an
electrical generating facility that meets certain criteria, including that the facility uses specified types of renewable energy.
This bill would add renewable hydrogen, as defined, that meets certain requirements, including that its use does not result in a net increase in emissions of oxides of nitrogen or other air pollutants and greenhouse gases from the electrical sector, to the types of renewable energy an electrical generating facility may use to qualify as an eligible renewable energy resource for purposes of the California Renewables Portfolio Standard Program. The bill would also add linear generators using renewable fuels to the types of renewable energy an electrical generating facility may use to qualify as an eligible renewable energy resource.
Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because a violation of a PUC action implementing this bill’s requirements would be a crime, the bill would impose a state-mandated local program.
(3) The California Environmental Quality Act (CEQA) requires preparation of specified documentation before a public agency approves or carries out certain projects. Existing law authorizes the Governor to certify energy infrastructure projects meeting specified requirements for streamlining benefits related to CEQA. Existing law defines “energy infrastructure project” for these purposes to include eligible renewable energy resources under the California Renewables Portfolio Standard Program, excluding resources that use biomass fuels. Existing law expressly excludes from that definition of “energy infrastructure project” any project using hydrogen as a fuel.
This bill would delete the exclusion of eligible renewable energy
resources that use biomass fuels from those provisions. The bill would also delete the exclusion of projects using hydrogen as a fuel from those provisions, and would instead expressly authorize the Governor to certify projects that produce or use renewable or clean hydrogen for the streamlining benefits related to CEQA, as specified. Because the bill would authorize the Governor to certify additional projects, thereby increasing the duties on lead agencies in conducting the environmental review of energy infrastructure projects certified by the Governor, this bill would impose a state-mandated local program.
(4) Existing law authorizes persons proposing specified electrical generation, electrical transmission, and energy storage projects to apply, on or before June 30, 2029, to the State Energy Resources Conservation and Development Commission (Energy Commission) to certify sites and related facilities as environmental leadership development
projects, as specified. Existing law makes a site and related facility certified by the Energy Commission subject to the streamlining benefits related to CEQA with no further action by the applicant or the Governor. Under existing law, the Energy Commission’s certification is in lieu of any permit, certificate, or similar document required by any governmental agency and supersedes any applicable statute, ordinance, or regulation, except as specified.
This bill would expand the facilities eligible to be certified as environmental leadership development projects by the Energy Commission to include projects that produce or use renewable hydrogen or clean hydrogen, as specified.
(5) 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 specified reasons.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 43869.5 is added to the Health and Safety Code, to read:43869.5.
(a) It is the policy of the state that hydrogen produced for use in a fuel cell electric vehicle shall have a well-to-gate carbon intensity equal to or less than the carbon intensity of electricity from the California electrical grid when used to power an electric vehicle. To further this policy, the state board shall develop and adopt regulations that, at a minimum, require all of the following:(1) On a statewide basis, no less than 33.3 percent of the retail hydrogen produced for, or dispensed by, fueling stations that receive state funds is made from renewable hydrogen and has a well-to-gate carbon intensity that is less than or equal to the annual average carbon intensity of electricity from the California electrical grid, as determined by
the state board.
(2) On a statewide basis, by December 31, 2030, no less than 60 percent of the retail hydrogen produced or dispensed in California for use in transportation is made from renewable hydrogen and has a well-to-gate carbon intensity that is less than or equal to the annual average carbon intensity of electricity from the California electrical grid, as determined by the state board.
(3) On a statewide basis, by December 31, 2045, no less than 60 percent of the retail hydrogen produced or dispensed in California for use in transportation is made from renewable hydrogen and has a well-to-gate carbon intensity that is less than or equal to the annual average carbon intensity of electricity from the California electrical grid, as determined by the state board, and the remainder of the retail hydrogen produced or dispensed in California for use in transportation is made
from a mix of renewable hydrogen and qualified clean hydrogen.
(b) Consistent with the requirements of Section 454.53 of the Public Utilities Code, the regulations adopted pursuant to this section shall not increase carbon emissions anywhere else in the Western Interconnection and shall not allow resource shuffling.
(c) For purposes of this section, the following terms have the following meanings:
(1) “Qualified clean hydrogen” means hydrogen produced through a process that results in a well-to-gate lifecycle greenhouse gas emissions rate of not greater than four kilograms of carbon dioxide equivalent per kilogram of hydrogen and that has a carbon intensity that is less than or equal to the annual average carbon intensity of the electricity from the California electrical grid, as determined by the state board.
(2) “Renewable hydrogen” has the same meaning as defined in Section 25741 of the Public Resources Code.
SEC. 2.
Section 21189.81 of the Public Resources Code is amended to read:21189.81.
For purposes of this chapter, the following definitions apply:(a) “Applicant” means a public or private entity or its affiliates, or a person or entity that undertakes a public works project, that proposes a project and its successors, heirs, and assignees.
(b) “Disadvantaged community” means an area identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code or an area identified as a disadvantaged unincorporated community pursuant to Section 65302.10 of the Government Code.
(c) “Electrical transmission facility project” means a project for the construction and operation of an electrical
transmission facility the meets either of the following:
(1) An electrical transmission facility project identified by the Independent System Operator in its annual transmission planning process that meets either of the following criteria:
(A) The project will facilitate delivery of electricity from renewable energy resources or zero-carbon resources.
(B) The project will facilitate delivery of electricity from energy storage projects.
(2) An electrical transmission facility project identified by a local publicly owned electric utility that would satisfy a transmission expansion need approved by the governing body of the local publicly owned electric utility and that meets either of the following criteria:
(A) The project will facilitate delivery of electricity from renewable energy resources or zero-carbon resources.
(B) The project will facilitate delivery of electricity from energy storage projects.
(d) (1) “Energy infrastructure project” means any of the following:
(A) An eligible renewable energy resource, as defined in Section 399.12 of the Public Utilities Code, excluding resources that utilize biomass
fuels. Code.
(B) New energy storage systems of 20 megawatts or more, that are capable of discharging for at least two hours, provided that a pumped hydro facility may qualify only if it is less than or equal to 500 megawatts and has been directly appropriated funding by the state before January 1, 2023.
(C) A project for which the applicant has certified that a capital investment of at least two hundred fifty million dollars ($250,000,000) made over a period of five years and the project is for either of the following:
(i) The manufacture, production, or assembly of an energy storage system or component manufacturing, wind system or component manufacturing, and solar photovoltaic energy system or
component manufacturing.
(ii) The manufacture, production, or assembly of specialized products, components, or systems that are integral to renewable energy or energy storage technologies.
(D) An electric electrical transmission facility project, provided that nothing in this chapter affects the jurisdiction of the California Coastal Commission pursuant to Division 20 (commencing with Section 30000) to regulate such projects if located in the coastal zone.
(E)An energy infrastructure project does not include projects utilizing hydrogen as a fuel.
(E) (i) An energy infrastructure project that produces or uses renewable hydrogen, as defined in Section 25741, or qualified clean hydrogen.
(ii) For purposes of this subparagraph, “qualified clean hydrogen” means hydrogen produced through a process that results in a well-to-gate lifecycle greenhouse gas emissions rate of not greater than four kilograms of carbon dioxide equivalent per kilogram of hydrogen and that has a carbon intensity that is less than or equal to the annual average carbon intensity of the electricity from the California electrical grid, as determined by the State Air Resources Board.
(2) Any project to develop a facility within the meaning of subdivision (b) of Section 25545 shall meet the requirements of Sections 25545.3.3 and 25545.3.5, except that
those requirements shall also apply to solar photovoltaic and terrestrial wind electrical generating power plants with a generating capacity of between 20 and 50 megawatts and energy storage projects capable of storing between 80 and 200 megawatt hours of electrical energy.
(e) “Infrastructure project” means a project that is certified pursuant to Sections 21189.82 and 21189.83 as any of the following:
(1) An energy infrastructure project.
(2) A semiconductor or microelectronic project.
(3) A transportation-related project.
(4) A water-related project.
(f) “Semiconductor or microelectronic project” means a project that meets
the requirements related to investment in new or expanded facilities and is awarded funds under the federal Creating Helpful Incentives to Produce Semiconductors Act of 2022 (Public Law 117-167), commonly known as the CHIPS Act of 2022, and the requirements of Section 21183.5.
(g) (1) “Transportation-related project” means a transportation infrastructure project that advances one or more of, and does not conflict with, the following goals related to the Climate Action Plan for Transportation Infrastructure adopted by the Transportation Agency:
(A) Build toward an integrated, statewide rail and transit network.
(B) Invest in networks of safe and accessible bicycle and pedestrian infrastructure.
(C) Include investments in light-,
medium-, and heavy-duty zero-emission vehicle infrastructure.
(D) Develop a zero-emission freight transportation system.
(E) Reduce public health and economic harms and maximize community benefits.
(F) Make safety improvements to reduce fatalities and severe injuries of all users towards zero.
(G) Assess and integrate assessments of physical climate risk.
(H) Promote projects that do not significantly increase passenger vehicle travel.
(I) Promote compact infill development while protecting residents and businesses from displacement.
(J) Protect natural and
working lands.
(2) Transportation-related projects are public works for the purposes of Section 1720 of the Labor Code and shall comply with the applicable provisions of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(h) (1) “Water-related project” means any of the following:
(A) A project that is approved to implement a groundwater sustainability plan that the Department of Water Resources has determined is in compliance with Sections 10727.2 and 10727.4 of the Water Code or to implement an interim groundwater sustainability plan adopted pursuant to Section 10735.6 of the Water Code.
(B) (i) A water storage project funded by the California Water Commission pursuant to
Chapter 8 (commencing with Section 79750) of Division 26.7 of the Water Code.
(ii) In addition to clause (i), the applicant shall demonstrate that the project will minimize the intake or diversion of water except during times of surplus water and prioritizes the discharge of water for ecological benefits or to mitigate an emergency, including, but not limited to, dam repair, levee repair, wetland restoration, marshland restoration, or habitat preservation, or other public benefits described in Section 79753 of the Water Code.
(C) Projects for the development of recycled water, as defined in Section 13050 of the Water Code.
(D) Contaminant and salt removal projects, including groundwater desalination and associated treatment, storage, conveyance, and distribution facilities. This shall not include seawater
desalination.
(E) Projects exclusively for canal or other conveyance maintenance and repair.
(2) Water-related projects are public works for the purposes of Section 1720 of the Labor Code and shall comply with the applicable provisions of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(3) “Water-related project” does not include the design or construction of through-Delta conveyance facilities of the Sacramento-San Joaquin Delta.
SEC. 3.
Section 25545 of the Public Resources Code is amended to read:25545.
For purposes of this chapter, the following definitions apply:(a) “California Native American tribe” has the same meaning as set forth in Section 21073.
(b) “Facility” means any of the following:
(1) A solar photovoltaic or terrestrial wind electrical generating powerplant with a generating capacity of 50 megawatts or more and any facilities appurtenant thereto.
(2) An energy storage system as defined in Section 2835 of the Public Utilities Code that is capable of storing 200 megawatthours or more of energy.
(3) A stationary
electrical generating powerplant using any source of thermal energy, with a generating capacity of 50 megawatts or more, excluding any powerplant that burns, uses, or relies on fossil or nuclear fuels.
(4) A discretionary project as described in Section 21080 for which the applicant has certified that a capital investment of at least two hundred fifty million dollars ($250,000,000) will be made over a period of five years and the discretionary project is for (A) the manufacture, production, or assembly of an energy storage system or component manufacturing, wind system or component manufacturing, and solar photovoltaic energy system or component manufacturing, or (B) the manufacture, production, or assembly of specialized products, components, or systems that are integral to renewable energy or energy storage technologies.
(5) An electric
electrical transmission line carrying electricity from a facility described in paragraph (1), (2), or (3) that is located in the state to a point of junction with any interconnected electrical transmission system.
(6) (A) A project that produces or uses renewable hydrogen, as defined in Section 25741, or qualified clean hydrogen.
(B) For purposes of this paragraph, “qualified clean hydrogen” means hydrogen produced through a process that results in a well-to-gate lifecycle greenhouse gas emissions rate of not greater than four kilograms of carbon dioxide equivalent per kilogram of hydrogen and that has a carbon intensity that is less than or equal to the annual average carbon intensity of the electricity from the California electrical
grid, as determined by the State Air Resources Board.
(c) “Site” means any location on which an eligible facility is constructed or is proposed to be constructed.
SEC. 4.
Section 25741 of the Public Resources Code is amended to read:25741.
As used in this chapter, the following terms have the following meaning:(a) “Renewable electrical generation facility” means a facility that meets all of the following criteria:
(1) The facility uses biomass, solar thermal, photovoltaic, wind, geothermal, fuel cells using renewable fuels, linear generators using renewable fuels, small hydroelectric generation of 30 megawatts or less, digester gas, municipal solid waste conversion, landfill gas, ocean wave, ocean thermal, or tidal current,
or renewable hydrogen, and any additions or enhancements to the facility using that technology.
(2) The facility satisfies one of the following requirements:
(A) The facility is located in the state or near the border of the state with the first point of connection to the transmission network of a balancing authority area primarily located within the state. For purposes of this subparagraph, “balancing authority area” has the same meaning as defined in Section 399.12 of the Public Utilities Code.
(B) The facility has its first point of interconnection to the transmission network outside the state, within the Western Electricity Coordinating Council (WECC) service area, and satisfies all of the following requirements:
(i) It commences initial commercial operation after January 1, 2005.
(ii) It will not cause or contribute to any violation of a California environmental quality standard or requirement.
(iii) It participates in the accounting system to verify compliance with the renewables portfolio standard once established by the commission pursuant to subdivision (b) of Section 399.25 of the Public Utilities Code.
(C) The facility meets the requirements of clauses (ii) and (iii) in of subparagraph (B), but does not meet the requirements of clause (i) of subparagraph (B) because it commenced initial operation prior to
before January 1, 2005, if the facility satisfies either of the following requirements:
(i) The electricity is from incremental generation resulting from expansion or repowering of the facility.
(ii) Electricity generated by the facility was procured by a retail seller or local publicly owned electric utility as of January 1, 2010.
(3) If the facility is outside the United States, it is developed and operated in a manner that is as protective of the environment as a similar facility located in the state.
(4) If eligibility of the facility is based on the use of landfill gas, digester gas, or another renewable fuel delivered to the facility through a common carrier pipeline, the transaction for the procurement of
that fuel, including the source of the fuel and delivery method, satisfies the requirements of Section 399.12.6 of the Public Utilities Code and is verified pursuant to the accounting system established by the commission pursuant to Section
399.25 of the Public Utilities Code, or a comparable system, as determined by the commission.
(5) If a facility, including a facility that includes a linear generator or a turbine, uses renewable hydrogen, both of the following apply:
(A) The use of renewable hydrogen shall not result in a net increase in emissions of oxides of nitrogen or other air pollutants and greenhouse gases from the electrical sector.
(B) The procurement and use of renewable hydrogen shall align with best practices regarding hydrogen production, distribution, storage, and use, including minimizing leakage risk, that are available at the time the facility applies for certification as an eligible renewable energy resource, as defined in Section
399.12 of the Public Utilities Code.
(b) “Municipal solid waste conversion,” as used in subdivision (a), means a technology that uses a noncombustion thermal process to convert solid waste to a clean-burning fuel for the purpose of generating electricity, and that meets all of the following criteria:
(1) The technology does not use air or oxygen in the conversion process, except ambient air to maintain temperature control.
(2) The technology produces no discharges of air contaminants or emissions, including greenhouse gases as defined in Section 38505 of the Health and Safety Code.
(3) The technology produces no discharges to surface or groundwaters of the state.
(4) The technology produces no hazardous wastes.
(5) To the maximum extent feasible, the technology removes all recyclable materials and marketable green waste compostable materials from the solid waste stream prior to
before the conversion process and the owner or operator of the facility certifies that those materials will be recycled or composted.
(6) The facility at which the technology is used is in compliance with all applicable laws, regulations, and ordinances.
(7) The technology meets any other conditions established by the commission.
(8) The facility certifies that any local agency sending solid waste to the facility diverted at least 30 percent of all solid waste it collects through solid waste reduction, recycling, and composting. For purposes of this paragraph, “local agency” means any city, county, or special district, or subdivision thereof, which
that is authorized to provide solid waste handling services.
(c) “Renewable energy public goods charge” means that portion of the nonbypassable system benefits charge required to be collected to fund renewable energy pursuant to the Reliable Electric Service Investments Act (Article 15 (commencing with Section 399) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code).
(d)“Report” means the report entitled “Investing in Renewable Electricity Generation in California” (June 2001, Publication Number P500-00-022) submitted to the Governor and the Legislature by the commission.
(d) “Renewable hydrogen” means hydrogen derived from water using eligible renewable energy resources, as defined in Section 399.12 of the Public Utilities Code, or produced directly from those eligible renewable energy resources.
(e) “Retail seller” means a “retail seller” as defined in Section 399.12 of the Public Utilities Code.
