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| 1 | + | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2302Introduced by Assembly Member QuirkFebruary 16, 2022 An act to add Section 400.4 to the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 2302, as introduced, Quirk. Hydrogen underground storage: study.Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including gas corporations. Existing law authorizes the PUC to establish rules and to fix the rates and charges for all public utilities, subject to control by the Legislature, and requires that the rates and charges of a public utility be just and reasonable. Existing law also requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to take specified actions in furtherance of meeting the states clean energy and pollution reduction objectives.Existing law requests the California Council on Science and Technology (council) to undertake and complete various studies, including studies relating to energy and energy storage resources.This bill would request the council, in consultation with the PUC and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The bill would require the study to include certain assessments and guidance, including an assessment of suitable geologic conditions for hydrogen storage and guidance on regulations required for hydrogen storage codes and standards. If the council agrees to undertake and complete the study, the bill would require the council to transmit the study, upon completion, to the PUC for its consideration.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 400.4 is added to the Public Utilities Code, to read:400.4. (a) The Legislature requests the California Council on Science and Technology (council), in consultation with the commission and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The study shall also consider the suitability of California for underground hard rock storage of hydrogen and ammonia. The study shall include, but shall not be limited to, all of the following:(1) An assessment of suitable geologic conditions for hydrogen storage.(2) An assessment of regional future need for hydrogen storage.(3) Guidance on regulations required for hydrogen storage codes and standards.(4) An assessment of the potential of idle fields owned by the State Lands Commission for hydrogen storage or carbon capture usage and sequestration.(b) If the council agrees to undertake and complete the study pursuant to subdivision (a), the council shall, upon completion of the study, transmit it to the commission for its consideration. | |
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| 3 | + | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2302Introduced by Assembly Member QuirkFebruary 16, 2022 An act to add Section 400.4 to the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 2302, as introduced, Quirk. Hydrogen underground storage: study.Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including gas corporations. Existing law authorizes the PUC to establish rules and to fix the rates and charges for all public utilities, subject to control by the Legislature, and requires that the rates and charges of a public utility be just and reasonable. Existing law also requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to take specified actions in furtherance of meeting the states clean energy and pollution reduction objectives.Existing law requests the California Council on Science and Technology (council) to undertake and complete various studies, including studies relating to energy and energy storage resources.This bill would request the council, in consultation with the PUC and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The bill would require the study to include certain assessments and guidance, including an assessment of suitable geologic conditions for hydrogen storage and guidance on regulations required for hydrogen storage codes and standards. If the council agrees to undertake and complete the study, the bill would require the council to transmit the study, upon completion, to the PUC for its consideration.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
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| 5 | - | Amended IN Assembly April 04, 2022 | |
| 6 | 5 | ||
| 7 | - | Amended IN Assembly April 04, 2022 | |
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| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION | |
| 10 | 10 | ||
| 11 | 11 | Assembly Bill | |
| 12 | 12 | ||
| 13 | 13 | No. 2302 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Assembly Member QuirkFebruary 16, 2022 | |
| 16 | 16 | ||
| 17 | 17 | Introduced by Assembly Member Quirk | |
| 18 | 18 | February 16, 2022 | |
| 19 | 19 | ||
| 20 | 20 | An act to add Section 400.4 to the Public Utilities Code, relating to energy. | |
| 21 | 21 | ||
| 22 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 25 | ||
| 26 | - | AB 2302, as | |
| 26 | + | AB 2302, as introduced, Quirk. Hydrogen underground storage: study. | |
| 27 | 27 | ||
| 28 | - | Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including gas corporations. Existing law authorizes the PUC to establish rules and to fix the rates and charges for all public utilities, subject to control by the Legislature, and requires that the rates and charges of a public utility be just and reasonable. Existing law also requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to take specified actions in furtherance of meeting the states clean energy and pollution reduction objectives.Existing law requests the California Council on Science and Technology (council) to undertake and complete various studies, including studies relating to energy and energy storage resources.This bill would request the council, in consultation with the PUC and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The bill would require the study to include certain assessments and guidance, including an assessment of suitable geologic conditions for hydrogen storage and guidance on regulations required for hydrogen storage codes and standards. | |
| 28 | + | Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including gas corporations. Existing law authorizes the PUC to establish rules and to fix the rates and charges for all public utilities, subject to control by the Legislature, and requires that the rates and charges of a public utility be just and reasonable. Existing law also requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to take specified actions in furtherance of meeting the states clean energy and pollution reduction objectives.Existing law requests the California Council on Science and Technology (council) to undertake and complete various studies, including studies relating to energy and energy storage resources.This bill would request the council, in consultation with the PUC and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The bill would require the study to include certain assessments and guidance, including an assessment of suitable geologic conditions for hydrogen storage and guidance on regulations required for hydrogen storage codes and standards. If the council agrees to undertake and complete the study, the bill would require the council to transmit the study, upon completion, to the PUC for its consideration. | |
| 29 | 29 | ||
| 30 | 30 | Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including gas corporations. Existing law authorizes the PUC to establish rules and to fix the rates and charges for all public utilities, subject to control by the Legislature, and requires that the rates and charges of a public utility be just and reasonable. Existing law also requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to take specified actions in furtherance of meeting the states clean energy and pollution reduction objectives. | |
| 31 | 31 | ||
| 32 | 32 | Existing law requests the California Council on Science and Technology (council) to undertake and complete various studies, including studies relating to energy and energy storage resources. | |
| 33 | 33 | ||
| 34 | - | This bill would request the council, in consultation with the PUC and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The bill would require the study to include certain assessments and guidance, including an assessment of suitable geologic conditions for hydrogen storage and guidance on regulations required for hydrogen storage codes and standards. | |
| 34 | + | This bill would request the council, in consultation with the PUC and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The bill would require the study to include certain assessments and guidance, including an assessment of suitable geologic conditions for hydrogen storage and guidance on regulations required for hydrogen storage codes and standards. If the council agrees to undertake and complete the study, the bill would require the council to transmit the study, upon completion, to the PUC for its consideration. | |
| 35 | 35 | ||
| 36 | 36 | ## Digest Key | |
| 37 | 37 | ||
| 38 | 38 | ## Bill Text | |
| 39 | 39 | ||
| 40 | - | The people of the State of California do enact as follows:SECTION 1. Section 400.4 is added to the Public Utilities Code, to read:400.4. (a) The Legislature requests the California Council on Science and Technology (council), in consultation with the commission and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The study shall also consider the suitability of California for underground hard rock storage of hydrogen and ammonia. the | |
| 40 | + | The people of the State of California do enact as follows:SECTION 1. Section 400.4 is added to the Public Utilities Code, to read:400.4. (a) The Legislature requests the California Council on Science and Technology (council), in consultation with the commission and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The study shall also consider the suitability of California for underground hard rock storage of hydrogen and ammonia. The study shall include, but shall not be limited to, all of the following:(1) An assessment of suitable geologic conditions for hydrogen storage.(2) An assessment of regional future need for hydrogen storage.(3) Guidance on regulations required for hydrogen storage codes and standards.(4) An assessment of the potential of idle fields owned by the State Lands Commission for hydrogen storage or carbon capture usage and sequestration.(b) If the council agrees to undertake and complete the study pursuant to subdivision (a), the council shall, upon completion of the study, transmit it to the commission for its consideration. | |
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| 42 | 42 | The people of the State of California do enact as follows: | |
| 43 | 43 | ||
| 44 | 44 | ## The people of the State of California do enact as follows: | |
| 45 | 45 | ||
| 46 | - | SECTION 1. Section 400.4 is added to the Public Utilities Code, to read:400.4. (a) The Legislature requests the California Council on Science and Technology (council), in consultation with the commission and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The study shall also consider the suitability of California for underground hard rock storage of hydrogen and ammonia. the | |
| 46 | + | SECTION 1. Section 400.4 is added to the Public Utilities Code, to read:400.4. (a) The Legislature requests the California Council on Science and Technology (council), in consultation with the commission and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The study shall also consider the suitability of California for underground hard rock storage of hydrogen and ammonia. The study shall include, but shall not be limited to, all of the following:(1) An assessment of suitable geologic conditions for hydrogen storage.(2) An assessment of regional future need for hydrogen storage.(3) Guidance on regulations required for hydrogen storage codes and standards.(4) An assessment of the potential of idle fields owned by the State Lands Commission for hydrogen storage or carbon capture usage and sequestration.(b) If the council agrees to undertake and complete the study pursuant to subdivision (a), the council shall, upon completion of the study, transmit it to the commission for its consideration. | |
| 47 | 47 | ||
| 48 | 48 | SECTION 1. Section 400.4 is added to the Public Utilities Code, to read: | |
| 49 | 49 | ||
| 50 | 50 | ### SECTION 1. | |
| 51 | 51 | ||
| 52 | - | 400.4. (a) The Legislature requests the California Council on Science and Technology (council), in consultation with the commission and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The study shall also consider the suitability of California for underground hard rock storage of hydrogen and ammonia. the | |
| 52 | + | 400.4. (a) The Legislature requests the California Council on Science and Technology (council), in consultation with the commission and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The study shall also consider the suitability of California for underground hard rock storage of hydrogen and ammonia. The study shall include, but shall not be limited to, all of the following:(1) An assessment of suitable geologic conditions for hydrogen storage.(2) An assessment of regional future need for hydrogen storage.(3) Guidance on regulations required for hydrogen storage codes and standards.(4) An assessment of the potential of idle fields owned by the State Lands Commission for hydrogen storage or carbon capture usage and sequestration.(b) If the council agrees to undertake and complete the study pursuant to subdivision (a), the council shall, upon completion of the study, transmit it to the commission for its consideration. | |
| 53 | 53 | ||
| 54 | - | 400.4. (a) The Legislature requests the California Council on Science and Technology (council), in consultation with the commission and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The study shall also consider the suitability of California for underground hard rock storage of hydrogen and ammonia. the | |
| 54 | + | 400.4. (a) The Legislature requests the California Council on Science and Technology (council), in consultation with the commission and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The study shall also consider the suitability of California for underground hard rock storage of hydrogen and ammonia. The study shall include, but shall not be limited to, all of the following:(1) An assessment of suitable geologic conditions for hydrogen storage.(2) An assessment of regional future need for hydrogen storage.(3) Guidance on regulations required for hydrogen storage codes and standards.(4) An assessment of the potential of idle fields owned by the State Lands Commission for hydrogen storage or carbon capture usage and sequestration.(b) If the council agrees to undertake and complete the study pursuant to subdivision (a), the council shall, upon completion of the study, transmit it to the commission for its consideration. | |
| 55 | 55 | ||
| 56 | - | 400.4. (a) The Legislature requests the California Council on Science and Technology (council), in consultation with the commission and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The study shall also consider the suitability of California for underground hard rock storage of hydrogen and ammonia. the | |
| 56 | + | 400.4. (a) The Legislature requests the California Council on Science and Technology (council), in consultation with the commission and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The study shall also consider the suitability of California for underground hard rock storage of hydrogen and ammonia. The study shall include, but shall not be limited to, all of the following:(1) An assessment of suitable geologic conditions for hydrogen storage.(2) An assessment of regional future need for hydrogen storage.(3) Guidance on regulations required for hydrogen storage codes and standards.(4) An assessment of the potential of idle fields owned by the State Lands Commission for hydrogen storage or carbon capture usage and sequestration.(b) If the council agrees to undertake and complete the study pursuant to subdivision (a), the council shall, upon completion of the study, transmit it to the commission for its consideration. | |
| 57 | 57 | ||
| 58 | 58 | ||
| 59 | 59 | ||
| 60 | - | 400.4. (a) The Legislature requests the California Council on Science and Technology (council), in consultation with the commission and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The study shall also consider the suitability of California for underground hard rock storage of hydrogen and ammonia. the | |
| 60 | + | 400.4. (a) The Legislature requests the California Council on Science and Technology (council), in consultation with the commission and the Energy Commission, to undertake and, within 12 months of entering into the contract, complete a study analyzing the existing oil and gas fields and existing natural gas storage facilities in California that are most suitable for hydrogen underground storage. The study shall also consider the suitability of California for underground hard rock storage of hydrogen and ammonia. The study shall include, but shall not be limited to, all of the following: | |
| 61 | 61 | ||
| 62 | 62 | (1) An assessment of suitable geologic conditions for hydrogen storage. | |
| 63 | 63 | ||
| 64 | - | ||
| 65 | - | ||
| 66 | 64 | (2) An assessment of regional future need for hydrogen storage. | |
| 67 | - | ||
| 68 | - | ||
| 69 | 65 | ||
| 70 | 66 | (3) Guidance on regulations required for hydrogen storage codes and standards. | |
| 71 | 67 | ||
| 72 | - | ||
| 73 | - | ||
| 74 | 68 | (4) An assessment of the potential of idle fields owned by the State Lands Commission for hydrogen storage or carbon capture usage and sequestration. | |
| 75 | 69 | ||
| 76 | - | ||
| 77 | - | ||
| 78 | - | (1) A review of ongoing and nascent efforts to quantify demand for hydrogen resulting from the inclusion of hydrogen as a fuel in electrical grid use cases, the transportation sector, fuel switching in existing natural gas use cases, and all other relevant applications in order to reach the states long-term greenhouse gas reduction goals. | |
| 79 | - | ||
| 80 | - | (2) An analysis of the financial viability and cost effectiveness of using pipeline injection, onsite electrical generation, hydrogen underground storage, and other relevant hydrogen technologies that can be leveraged to meet the forecasted demand, and the impact of using existing infrastructure when possible. | |
| 81 | - | ||
| 82 | - | (3) Identification of suitable locations for financially viable and cost-effective hydrogen technologies considering proximity to electrical grid infrastructure, environmental quality, and public health. | |
| 83 | - | ||
| 84 | - | (4) An analysis of existing regulations, codes, and standards that govern hydrogen underground storage. | |
| 85 | - | ||
| 86 | - | (5) An analysis of the costs and risks associated with repurposing existing facilities into sites suitable for hydrogen underground storage. | |
| 87 | - | ||
| 88 | - | (6) An analysis of costs and risks associated with geologic hydrogen underground storage, including underground hard rock storage. | |
| 89 | - | ||
| 90 | - | (7) Identification of suitable locations for hydrogen underground storage in the state considering proximity to electrical grid infrastructure, environmental quality, and public health, and including, if appropriate, geologic storage, idle fields owned by the State Lands Commission, and repurposed oil fields, gas fields, and natural gas storage facilities. | |
| 91 | - | ||
| 92 | - | (8) Policy recommendations for how to safely, affordably, and effectively create hydrogen underground storage that meets forecasted demand. | |
| 93 | - | ||
| 94 | - | (b) If the council agrees to undertake and complete the study pursuant to subdivision (a), the council shall, upon completion of the study, transmit it to the commission for its and to the appropriate policy and fiscal committees of the Legislature for their consideration. | |
| 70 | + | (b) If the council agrees to undertake and complete the study pursuant to subdivision (a), the council shall, upon completion of the study, transmit it to the commission for its consideration. |