Amended IN Assembly April 11, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1195Introduced by Assembly Member ODonnellFebruary 21, 2019 An act to add Section 38567 38567.5 to the Health and Safety Code, relating to greenhouse gases. LEGISLATIVE COUNSEL'S DIGESTAB 1195, as amended, ODonnell. California Global Warming Solutions Act of 2006: Low-Carbon Fuel Standard regulations.The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. Pursuant to the act, the state board has adopted the Low-Carbon Fuel Standard regulations.This bill would require the state board to recognize as generating an innovative crude production method credit under the Low-Carbon Fuel Standard regulations the use of renewable natural gas to displace the existing use of natural gas by oil and natural gas companies that are otherwise eligible to opt in to the innovative crude provisions of the regulations, as specified.This bill would authorize a credit generated as part of the Low-Carbon Fuel Standard regulations to be generated for crude oil that has been produced or transported using innovative methods, as defined, and delivered for processing to refineries located in the state.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 38567.5 is added to the Health and Safety Code, to read:38567.5. (a) For purposes of this section, the following apply:(1) Innovative method means crude oil production or transport using one or more of the following technologies:(A) Solar steam generation or generated steam of 45 percent quality or greater. Steam shall be used onsite at the crude oil production or transport facility.(B) Carbon capture and sequestration. Carbon capture shall take place onsite at the crude oil production or transport facility. (C) Solar or wind electricity generation. To qualify, electricity shall be produced and consumed onsite or be provided directly to the crude oil production or transport facility from a third-party generator and not through a utility-owned transmission or distribution network. Energy storage may be used to increase the quantity of electricity supplied to a crude oil production or transport facility from intermittent solar and wind electricity generation sources.(D) Solar heat generation, including, but not limited to, boiler water preheating and solar steam generation with a steam quality of less than 45 percent. Heat shall be used onsite at the crude oil production or transport facility.(E) Renewable natural gas or biogas energy. Renewable natural gas or biogas shall be physically supplied directly or delivered via common carrier pipeline to the crude oil production or transport facility from a source that the state board determines directly reduces emissions of methane in the state.(2) Low-Carbon Fuel Standard means the Low-Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations).(3) Steam quality means the ratio of the mass of vapor to the total mass of a vapor-liquid mixture of water at its saturation temperature.(b) A Low-Carbon Fuel Standard credit may be generated for crude oil that has been produced or transported using innovative methods and delivered for processing to refineries located in the state.SECTION 1.Section 38567 is added to the Health and Safety Code, to read:38567.(a)For purposes of this section, Low-Carbon Fuel Standard means the Low-Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations).(b)The state board shall recognize as generating an innovative production method credit under the Low-Carbon Fuel Standard renewable natural gas used to displace the existing use of natural gas by oil and natural gas companies that are otherwise eligible to opt in to the innovative crude provisions of the Low-Carbon Fuel Standard.(c)Oil and natural gas companies that are reporting entities as part of the Low-Carbon Fuel Standard may use renewable natural gas delivered from a common carrier pipeline to generate an innovative production method credit.
Amended IN Assembly April 11, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1195Introduced by Assembly Member ODonnellFebruary 21, 2019 An act to add Section 38567 38567.5 to the Health and Safety Code, relating to greenhouse gases. LEGISLATIVE COUNSEL'S DIGESTAB 1195, as amended, ODonnell. California Global Warming Solutions Act of 2006: Low-Carbon Fuel Standard regulations.The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. Pursuant to the act, the state board has adopted the Low-Carbon Fuel Standard regulations.This bill would require the state board to recognize as generating an innovative crude production method credit under the Low-Carbon Fuel Standard regulations the use of renewable natural gas to displace the existing use of natural gas by oil and natural gas companies that are otherwise eligible to opt in to the innovative crude provisions of the regulations, as specified.This bill would authorize a credit generated as part of the Low-Carbon Fuel Standard regulations to be generated for crude oil that has been produced or transported using innovative methods, as defined, and delivered for processing to refineries located in the state.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Assembly April 11, 2019
Amended IN Assembly April 11, 2019
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Assembly Bill No. 1195
Introduced by Assembly Member ODonnellFebruary 21, 2019
Introduced by Assembly Member ODonnell
February 21, 2019
An act to add Section 38567 38567.5 to the Health and Safety Code, relating to greenhouse gases.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1195, as amended, ODonnell. California Global Warming Solutions Act of 2006: Low-Carbon Fuel Standard regulations.
The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. Pursuant to the act, the state board has adopted the Low-Carbon Fuel Standard regulations.This bill would require the state board to recognize as generating an innovative crude production method credit under the Low-Carbon Fuel Standard regulations the use of renewable natural gas to displace the existing use of natural gas by oil and natural gas companies that are otherwise eligible to opt in to the innovative crude provisions of the regulations, as specified.This bill would authorize a credit generated as part of the Low-Carbon Fuel Standard regulations to be generated for crude oil that has been produced or transported using innovative methods, as defined, and delivered for processing to refineries located in the state.
The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. Pursuant to the act, the state board has adopted the Low-Carbon Fuel Standard regulations.
This bill would require the state board to recognize as generating an innovative crude production method credit under the Low-Carbon Fuel Standard regulations the use of renewable natural gas to displace the existing use of natural gas by oil and natural gas companies that are otherwise eligible to opt in to the innovative crude provisions of the regulations, as specified.
This bill would authorize a credit generated as part of the Low-Carbon Fuel Standard regulations to be generated for crude oil that has been produced or transported using innovative methods, as defined, and delivered for processing to refineries located in the state.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 38567.5 is added to the Health and Safety Code, to read:38567.5. (a) For purposes of this section, the following apply:(1) Innovative method means crude oil production or transport using one or more of the following technologies:(A) Solar steam generation or generated steam of 45 percent quality or greater. Steam shall be used onsite at the crude oil production or transport facility.(B) Carbon capture and sequestration. Carbon capture shall take place onsite at the crude oil production or transport facility. (C) Solar or wind electricity generation. To qualify, electricity shall be produced and consumed onsite or be provided directly to the crude oil production or transport facility from a third-party generator and not through a utility-owned transmission or distribution network. Energy storage may be used to increase the quantity of electricity supplied to a crude oil production or transport facility from intermittent solar and wind electricity generation sources.(D) Solar heat generation, including, but not limited to, boiler water preheating and solar steam generation with a steam quality of less than 45 percent. Heat shall be used onsite at the crude oil production or transport facility.(E) Renewable natural gas or biogas energy. Renewable natural gas or biogas shall be physically supplied directly or delivered via common carrier pipeline to the crude oil production or transport facility from a source that the state board determines directly reduces emissions of methane in the state.(2) Low-Carbon Fuel Standard means the Low-Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations).(3) Steam quality means the ratio of the mass of vapor to the total mass of a vapor-liquid mixture of water at its saturation temperature.(b) A Low-Carbon Fuel Standard credit may be generated for crude oil that has been produced or transported using innovative methods and delivered for processing to refineries located in the state.SECTION 1.Section 38567 is added to the Health and Safety Code, to read:38567.(a)For purposes of this section, Low-Carbon Fuel Standard means the Low-Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations).(b)The state board shall recognize as generating an innovative production method credit under the Low-Carbon Fuel Standard renewable natural gas used to displace the existing use of natural gas by oil and natural gas companies that are otherwise eligible to opt in to the innovative crude provisions of the Low-Carbon Fuel Standard.(c)Oil and natural gas companies that are reporting entities as part of the Low-Carbon Fuel Standard may use renewable natural gas delivered from a common carrier pipeline to generate an innovative production method credit.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 38567.5 is added to the Health and Safety Code, to read:38567.5. (a) For purposes of this section, the following apply:(1) Innovative method means crude oil production or transport using one or more of the following technologies:(A) Solar steam generation or generated steam of 45 percent quality or greater. Steam shall be used onsite at the crude oil production or transport facility.(B) Carbon capture and sequestration. Carbon capture shall take place onsite at the crude oil production or transport facility. (C) Solar or wind electricity generation. To qualify, electricity shall be produced and consumed onsite or be provided directly to the crude oil production or transport facility from a third-party generator and not through a utility-owned transmission or distribution network. Energy storage may be used to increase the quantity of electricity supplied to a crude oil production or transport facility from intermittent solar and wind electricity generation sources.(D) Solar heat generation, including, but not limited to, boiler water preheating and solar steam generation with a steam quality of less than 45 percent. Heat shall be used onsite at the crude oil production or transport facility.(E) Renewable natural gas or biogas energy. Renewable natural gas or biogas shall be physically supplied directly or delivered via common carrier pipeline to the crude oil production or transport facility from a source that the state board determines directly reduces emissions of methane in the state.(2) Low-Carbon Fuel Standard means the Low-Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations).(3) Steam quality means the ratio of the mass of vapor to the total mass of a vapor-liquid mixture of water at its saturation temperature.(b) A Low-Carbon Fuel Standard credit may be generated for crude oil that has been produced or transported using innovative methods and delivered for processing to refineries located in the state.
SECTION 1. Section 38567.5 is added to the Health and Safety Code, to read:
### SECTION 1.
38567.5. (a) For purposes of this section, the following apply:(1) Innovative method means crude oil production or transport using one or more of the following technologies:(A) Solar steam generation or generated steam of 45 percent quality or greater. Steam shall be used onsite at the crude oil production or transport facility.(B) Carbon capture and sequestration. Carbon capture shall take place onsite at the crude oil production or transport facility. (C) Solar or wind electricity generation. To qualify, electricity shall be produced and consumed onsite or be provided directly to the crude oil production or transport facility from a third-party generator and not through a utility-owned transmission or distribution network. Energy storage may be used to increase the quantity of electricity supplied to a crude oil production or transport facility from intermittent solar and wind electricity generation sources.(D) Solar heat generation, including, but not limited to, boiler water preheating and solar steam generation with a steam quality of less than 45 percent. Heat shall be used onsite at the crude oil production or transport facility.(E) Renewable natural gas or biogas energy. Renewable natural gas or biogas shall be physically supplied directly or delivered via common carrier pipeline to the crude oil production or transport facility from a source that the state board determines directly reduces emissions of methane in the state.(2) Low-Carbon Fuel Standard means the Low-Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations).(3) Steam quality means the ratio of the mass of vapor to the total mass of a vapor-liquid mixture of water at its saturation temperature.(b) A Low-Carbon Fuel Standard credit may be generated for crude oil that has been produced or transported using innovative methods and delivered for processing to refineries located in the state.
38567.5. (a) For purposes of this section, the following apply:(1) Innovative method means crude oil production or transport using one or more of the following technologies:(A) Solar steam generation or generated steam of 45 percent quality or greater. Steam shall be used onsite at the crude oil production or transport facility.(B) Carbon capture and sequestration. Carbon capture shall take place onsite at the crude oil production or transport facility. (C) Solar or wind electricity generation. To qualify, electricity shall be produced and consumed onsite or be provided directly to the crude oil production or transport facility from a third-party generator and not through a utility-owned transmission or distribution network. Energy storage may be used to increase the quantity of electricity supplied to a crude oil production or transport facility from intermittent solar and wind electricity generation sources.(D) Solar heat generation, including, but not limited to, boiler water preheating and solar steam generation with a steam quality of less than 45 percent. Heat shall be used onsite at the crude oil production or transport facility.(E) Renewable natural gas or biogas energy. Renewable natural gas or biogas shall be physically supplied directly or delivered via common carrier pipeline to the crude oil production or transport facility from a source that the state board determines directly reduces emissions of methane in the state.(2) Low-Carbon Fuel Standard means the Low-Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations).(3) Steam quality means the ratio of the mass of vapor to the total mass of a vapor-liquid mixture of water at its saturation temperature.(b) A Low-Carbon Fuel Standard credit may be generated for crude oil that has been produced or transported using innovative methods and delivered for processing to refineries located in the state.
38567.5. (a) For purposes of this section, the following apply:(1) Innovative method means crude oil production or transport using one or more of the following technologies:(A) Solar steam generation or generated steam of 45 percent quality or greater. Steam shall be used onsite at the crude oil production or transport facility.(B) Carbon capture and sequestration. Carbon capture shall take place onsite at the crude oil production or transport facility. (C) Solar or wind electricity generation. To qualify, electricity shall be produced and consumed onsite or be provided directly to the crude oil production or transport facility from a third-party generator and not through a utility-owned transmission or distribution network. Energy storage may be used to increase the quantity of electricity supplied to a crude oil production or transport facility from intermittent solar and wind electricity generation sources.(D) Solar heat generation, including, but not limited to, boiler water preheating and solar steam generation with a steam quality of less than 45 percent. Heat shall be used onsite at the crude oil production or transport facility.(E) Renewable natural gas or biogas energy. Renewable natural gas or biogas shall be physically supplied directly or delivered via common carrier pipeline to the crude oil production or transport facility from a source that the state board determines directly reduces emissions of methane in the state.(2) Low-Carbon Fuel Standard means the Low-Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations).(3) Steam quality means the ratio of the mass of vapor to the total mass of a vapor-liquid mixture of water at its saturation temperature.(b) A Low-Carbon Fuel Standard credit may be generated for crude oil that has been produced or transported using innovative methods and delivered for processing to refineries located in the state.
38567.5. (a) For purposes of this section, the following apply:
(1) Innovative method means crude oil production or transport using one or more of the following technologies:
(A) Solar steam generation or generated steam of 45 percent quality or greater. Steam shall be used onsite at the crude oil production or transport facility.
(B) Carbon capture and sequestration. Carbon capture shall take place onsite at the crude oil production or transport facility.
(C) Solar or wind electricity generation. To qualify, electricity shall be produced and consumed onsite or be provided directly to the crude oil production or transport facility from a third-party generator and not through a utility-owned transmission or distribution network. Energy storage may be used to increase the quantity of electricity supplied to a crude oil production or transport facility from intermittent solar and wind electricity generation sources.
(D) Solar heat generation, including, but not limited to, boiler water preheating and solar steam generation with a steam quality of less than 45 percent. Heat shall be used onsite at the crude oil production or transport facility.
(E) Renewable natural gas or biogas energy. Renewable natural gas or biogas shall be physically supplied directly or delivered via common carrier pipeline to the crude oil production or transport facility from a source that the state board determines directly reduces emissions of methane in the state.
(2) Low-Carbon Fuel Standard means the Low-Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations).
(3) Steam quality means the ratio of the mass of vapor to the total mass of a vapor-liquid mixture of water at its saturation temperature.
(b) A Low-Carbon Fuel Standard credit may be generated for crude oil that has been produced or transported using innovative methods and delivered for processing to refineries located in the state.
(a)For purposes of this section, Low-Carbon Fuel Standard means the Low-Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Title 17 of the California Code of Regulations).
(b)The state board shall recognize as generating an innovative production method credit under the Low-Carbon Fuel Standard renewable natural gas used to displace the existing use of natural gas by oil and natural gas companies that are otherwise eligible to opt in to the innovative crude provisions of the Low-Carbon Fuel Standard.
(c)Oil and natural gas companies that are reporting entities as part of the Low-Carbon Fuel Standard may use renewable natural gas delivered from a common carrier pipeline to generate an innovative production method credit.