California Assembly Bill AB2313 Amended / Bill

 BILL NUMBER: AB 2313AMENDED BILL TEXT AMENDED IN SENATE JUNE 14, 2016 AMENDED IN ASSEMBLY APRIL 26, 2016 AMENDED IN ASSEMBLY MARCH 16, 2016 INTRODUCED BY Assembly Member Williams  (   Coauthor:   Senator   Hertzberg   )  FEBRUARY 18, 2016 An act to add and repeal  Section 399.23   Sections 399.23 and 784.2  to the Public Utilities Code, relating to renewable energy resources. LEGISLATIVE COUNSEL'S DIGEST AB 2313, as amended, Williams. Renewable natural gas: monetary incentive program for biomethane  projects.   projects:   pipeline infrastructure.  Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including gas corporations. Existing law requires the commission to adopt, by rule or order, (1) 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 (2) requirements for monitoring, testing, reporting, and  recordkeeping, as specified.   recordkeeping relative to those constituents of concern.  Existing law requires the commission to require gas corporation tariffs to condition access to common carrier pipelines on the applicable customer meeting those standards and requirements. Existing law requires the commission to adopt policies and programs that promote the in-state production and distribution of biomethane, as defined, that facilitate the development of a variety of sources of in-state biomethane. The commission has adopted two decisions implementing these requirements, the second of which adopted a 5-year monetary incentive program effective June 11, 2015, for biomethane projects pursuant to which a qualifying project is entitled to a one-time payment of 50% of the interconnection costs incurred by the biomethane producer, up to a total payment of $1,500,000. Total cost of the monetary incentive program for biomethane projects is limited to $40,000,000 over the 5-year life of the program. This bill would require the commission to modify the monetary incentive program for biomethane projects so that the total available incentive limitation for a project, other than a dairy cluster biomethane project, as defined, is increased from $1,500,000 to $3,000,000. The bill would require the commission to increase the total available incentive limitation for a dairy cluster biomethane project to $5,000,000 and would require that gathering lines for transport of biogas to a centralized processing facility for the project be treated as an interconnection cost. The bill would require the commission to extend the program, as modified, until December 31, 2021.  This bill would require the commission, in consultation with the State Air Resources Board and State Energy Resources Conservation and Development Commission, to adopt rules for gas corporations by January 2, 2018, relative to investments in infrastructure interconnecting to biomethane sources, as specified. The provisions requiring the adoption of these rules would remain in effect only until January 1, 2026.   Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.   Because the bill requires action by the commission to implement certain of its requirements and failure to comply with the commission' s rules would be a crime, the 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. State-mandated local program:  no   yes  . THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 399.23 is added to the Public Utilities Code, to read: 399.23. The commission shall modify, and extend until December 31, 2021, the monetary incentive program for biomethane projects adopted in Decision 15-06-029 (June 11, 2015), Decision Regarding the Costs of Compliance with Decision 14-01-034 and Adoption of Biomethane Promotion Policies and Program, as follows: (a) Except for a dairy cluster biomethane project, the total available incentive limitation for a project shall be increased from one million five hundred thousand dollars ($1,500,000) to three million dollars ($3,000,000). (b) For a dairy cluster biomethane project, the total available incentive limitation shall be raised to five million dollars ($5,000,000). For purposes of this subdivision, a dairy cluster biomethane project means a biomethane project of three or more dairies in close proximity to one another employing multiple facilities for the capture of biogas that is transported by multiple gathering lines to a centralized processing facility where the biogas is processed to meet the biomethane standards adopted by the commission pursuant to subdivisions (c) and (d) of Section 25421 of the Health and Safety Code and injected into the pipeline of the gas corporation through a single interconnection. Costs incurred for gathering lines for a dairy cluster biomethane project shall be treated as an interconnection cost. (c) This section shall remain in effect only until January 1, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2022, deletes or extends that date.  SEC. 2.   Section 784.2 is added to the   Public Utilities Code   , to read:   784.2. (a) To further the goals of the state's comprehensive strategy to reduce emissions of short-lived climate pollutants pursuant to Section 39730 of the Health and Safety Code and the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code), by January 2, 2018, in consultation with the State Air Resources Board and the Energy Commission, the commission shall establish rules for gas corporations that do all of the following: (1) Facilitate direct investment in the procurement and installation of utility infrastructure necessary to achieve interconnection between the natural gas transmission and distribution pipeline network and biomethane generation and collection equipment, including, for a dairy digester cluster project, as defined in Section 399.23, gathering lines. (2) Provide for the installation of utility infrastructure to achieve interconnection with facilities that generate biomethane. (3) Provide that prudent and reasonable investments for infrastructure pursuant to paragraphs (1) and (2) are recoverable in rates and recovered as a direct benefit to, and in the interests of, all classes of ratepayers. (4) Financially protect ratepayers by ensuring that infrastructure is installed for biomethane projects that will actually be built and operated and that will be cost effective, considering the volume and carbon intensity of the biomethane, the costs of interconnection, alternatives available to the biomethane use and distribution, and other costs and benefits. (5) Ensure that biomethane facilities that interconnect to the natural gas transmission and distribution pipeline network meet all applicable laws and standards, including those laws, rules, and regulations pertaining to safety, gas quality, and environmental protection. (b) This section shall remain in effect only until January 1, 2026, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2026, deletes or extends that date.   SEC. 3.   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.