Amended IN Assembly March 27, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 324Introduced by Assembly Member Pacheco(Coauthor: Senator Newman)January 30, 2023An act to amend the heading of Article 10 (commencing with Section 650) of Chapter 3 of Part 1 of Division 1 of, and to add Section 652 to, the Public Utilities Code, relating to energy.LEGISLATIVE COUNSEL'S DIGESTAB 324, as amended, Pacheco. Gas corporations: renewable gas procurement.Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including gas corporations. Existing law requires the commission, in consultation with the State Air Resources Board, to consider adopting specific biomethane procurement targets or goals for each gas corporation, as specified. Existing law requires that the commission, before establishing biomethane procurement targets or goals, find that the targets or goals are cost-effective means of achieving the reductions in emissions of short-lived climate pollutants and other greenhouse gases forecast pursuant to specified laws and that the targets or goals comply with all applicable state and federal laws.Existing law authorizes the commission 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 requires the commission and the State Energy Resources Conservation and Development Commission to undertake specified actions to advance the states clean energy and pollution reduction objectives, including, where feasible, cost effective, and consistent with other state policy objectives, increasing the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, as defined.This bill would require the commission to open a new proceeding, or a new phase of an existing proceeding, to consider establishing procurement goals for renewable hydrogen, as defined, and consider requiring each gas corporation and core transport agent to annually procure a proportionate share of renewable hydrogen to meet those goals. The bill would require the commission to make specified findings before establishing renewable hydrogen procurement targets or goals.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 provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. The heading of Article 10 (commencing with Section 650) of Chapter 3 of Part 1 of Division 1 of the Public Utilities Code is amended to read: Article 10. Renewable Gas ProcurementSEC. 2. Section 652 is added to the Public Utilities Code, to read:652. (a) For purposes of this article, renewable hydrogen means any of the following:(1) The production process uses either of the following energy inputs:(A) Electricity that is consistent with the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3).(B)Energy, other than electricity, that is produced from biomass, solar thermal, photovoltaic, wind, geothermal, fuel cells 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.(2)The production process uses material(B) Material feedstock that is either water or a material described in subparagraph (B) of paragraph (1). water, biomass, digester gas, diverted organic waste, or landfill gas.(3)(2) (A) For a production process that uses landfill gas or digester gas to generate an energy input described in subparagraph (B) of paragraph (1) or to provide as feedstock, that the procurement of that gas is consistent with Section 399.12.6.(B) For a production process that uses biomass to generate an energy input described in subparagraph (B) of paragraph (1) electricity or to provide feedstock, that the production of the energy electricity or feedstock is by biomass conversion, as defined in Section 40106 of the Public Resources Code, and and, for forest waste biomass, is consistent with the guidelines adopted by the commission to define the byproducts of sustainable forestry pursuant to clause (iii) of subparagraph (A) of paragraph (2) of subdivision (f) of Section 399.20.(4)Any other process yielding hydrogen from only renewable inputs, as determined by the commission.(b) The commission shall open a new proceeding, or a new phase of an existing proceeding, to do all of the following:(1) Consider establishing renewable hydrogen procurement goals for each gas corporation and core transport agent.(2) Consider requiring each gas corporation and core transport agent to annually procure a proportionate share of renewable hydrogen to meet the procurement goals established pursuant to paragraph (1).(3) Before establishing renewable hydrogen procurement targets or goals, the commission shall make the following findings:(A) The targets or goals are a cost-effective means of achieving the forecasted reduction in the emissions of short-lived climate pollutants pursuant to Section 39730.5 of the Health and Safety Code and other greenhouse gases pursuant to Division 25.5 (commencing with Section 38500) of the Health and Safety Code.(B) The targets or goals comply with all applicable state and federal laws.(C) The safety risk of using renewable hydrogen in pipelines will be appropriately regulated, mitigated, and monitored. Hydrogen shall not be transported in pipelines until the commission acts to set safety standards and the pipelines meet those standards.(D) Combustion end uses that may be affected by the addition of hydrogen to pipelines are appropriately regulated and controlled to avoid increased emissions of oxides of nitrogen or any other air pollutant.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
Amended IN Assembly March 27, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 324Introduced by Assembly Member Pacheco(Coauthor: Senator Newman)January 30, 2023An act to amend the heading of Article 10 (commencing with Section 650) of Chapter 3 of Part 1 of Division 1 of, and to add Section 652 to, the Public Utilities Code, relating to energy.LEGISLATIVE COUNSEL'S DIGESTAB 324, as amended, Pacheco. Gas corporations: renewable gas procurement.Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including gas corporations. Existing law requires the commission, in consultation with the State Air Resources Board, to consider adopting specific biomethane procurement targets or goals for each gas corporation, as specified. Existing law requires that the commission, before establishing biomethane procurement targets or goals, find that the targets or goals are cost-effective means of achieving the reductions in emissions of short-lived climate pollutants and other greenhouse gases forecast pursuant to specified laws and that the targets or goals comply with all applicable state and federal laws.Existing law authorizes the commission 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 requires the commission and the State Energy Resources Conservation and Development Commission to undertake specified actions to advance the states clean energy and pollution reduction objectives, including, where feasible, cost effective, and consistent with other state policy objectives, increasing the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, as defined.This bill would require the commission to open a new proceeding, or a new phase of an existing proceeding, to consider establishing procurement goals for renewable hydrogen, as defined, and consider requiring each gas corporation and core transport agent to annually procure a proportionate share of renewable hydrogen to meet those goals. The bill would require the commission to make specified findings before establishing renewable hydrogen procurement targets or goals.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 provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Amended IN Assembly March 27, 2023
Amended IN Assembly March 27, 2023
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 324
Introduced by Assembly Member Pacheco(Coauthor: Senator Newman)January 30, 2023
Introduced by Assembly Member Pacheco(Coauthor: Senator Newman)
January 30, 2023
An act to amend the heading of Article 10 (commencing with Section 650) of Chapter 3 of Part 1 of Division 1 of, and to add Section 652 to, the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 324, as amended, Pacheco. Gas corporations: renewable gas procurement.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including gas corporations. Existing law requires the commission, in consultation with the State Air Resources Board, to consider adopting specific biomethane procurement targets or goals for each gas corporation, as specified. Existing law requires that the commission, before establishing biomethane procurement targets or goals, find that the targets or goals are cost-effective means of achieving the reductions in emissions of short-lived climate pollutants and other greenhouse gases forecast pursuant to specified laws and that the targets or goals comply with all applicable state and federal laws.Existing law authorizes the commission 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 requires the commission and the State Energy Resources Conservation and Development Commission to undertake specified actions to advance the states clean energy and pollution reduction objectives, including, where feasible, cost effective, and consistent with other state policy objectives, increasing the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, as defined.This bill would require the commission to open a new proceeding, or a new phase of an existing proceeding, to consider establishing procurement goals for renewable hydrogen, as defined, and consider requiring each gas corporation and core transport agent to annually procure a proportionate share of renewable hydrogen to meet those goals. The bill would require the commission to make specified findings before establishing renewable hydrogen procurement targets or goals.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 provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements 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.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including gas corporations. Existing law requires the commission, in consultation with the State Air Resources Board, to consider adopting specific biomethane procurement targets or goals for each gas corporation, as specified. Existing law requires that the commission, before establishing biomethane procurement targets or goals, find that the targets or goals are cost-effective means of achieving the reductions in emissions of short-lived climate pollutants and other greenhouse gases forecast pursuant to specified laws and that the targets or goals comply with all applicable state and federal laws.
Existing law authorizes the commission 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 requires the commission and the State Energy Resources Conservation and Development Commission to undertake specified actions to advance the states clean energy and pollution reduction objectives, including, where feasible, cost effective, and consistent with other state policy objectives, increasing the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, as defined.
This bill would require the commission to open a new proceeding, or a new phase of an existing proceeding, to consider establishing procurement goals for renewable hydrogen, as defined, and consider requiring each gas corporation and core transport agent to annually procure a proportionate share of renewable hydrogen to meet those goals. The bill would require the commission to make specified findings before establishing renewable hydrogen procurement targets or goals.
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 provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements 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.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The heading of Article 10 (commencing with Section 650) of Chapter 3 of Part 1 of Division 1 of the Public Utilities Code is amended to read: Article 10. Renewable Gas ProcurementSEC. 2. Section 652 is added to the Public Utilities Code, to read:652. (a) For purposes of this article, renewable hydrogen means any of the following:(1) The production process uses either of the following energy inputs:(A) Electricity that is consistent with the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3).(B)Energy, other than electricity, that is produced from biomass, solar thermal, photovoltaic, wind, geothermal, fuel cells 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.(2)The production process uses material(B) Material feedstock that is either water or a material described in subparagraph (B) of paragraph (1). water, biomass, digester gas, diverted organic waste, or landfill gas.(3)(2) (A) For a production process that uses landfill gas or digester gas to generate an energy input described in subparagraph (B) of paragraph (1) or to provide as feedstock, that the procurement of that gas is consistent with Section 399.12.6.(B) For a production process that uses biomass to generate an energy input described in subparagraph (B) of paragraph (1) electricity or to provide feedstock, that the production of the energy electricity or feedstock is by biomass conversion, as defined in Section 40106 of the Public Resources Code, and and, for forest waste biomass, is consistent with the guidelines adopted by the commission to define the byproducts of sustainable forestry pursuant to clause (iii) of subparagraph (A) of paragraph (2) of subdivision (f) of Section 399.20.(4)Any other process yielding hydrogen from only renewable inputs, as determined by the commission.(b) The commission shall open a new proceeding, or a new phase of an existing proceeding, to do all of the following:(1) Consider establishing renewable hydrogen procurement goals for each gas corporation and core transport agent.(2) Consider requiring each gas corporation and core transport agent to annually procure a proportionate share of renewable hydrogen to meet the procurement goals established pursuant to paragraph (1).(3) Before establishing renewable hydrogen procurement targets or goals, the commission shall make the following findings:(A) The targets or goals are a cost-effective means of achieving the forecasted reduction in the emissions of short-lived climate pollutants pursuant to Section 39730.5 of the Health and Safety Code and other greenhouse gases pursuant to Division 25.5 (commencing with Section 38500) of the Health and Safety Code.(B) The targets or goals comply with all applicable state and federal laws.(C) The safety risk of using renewable hydrogen in pipelines will be appropriately regulated, mitigated, and monitored. Hydrogen shall not be transported in pipelines until the commission acts to set safety standards and the pipelines meet those standards.(D) Combustion end uses that may be affected by the addition of hydrogen to pipelines are appropriately regulated and controlled to avoid increased emissions of oxides of nitrogen or any other air pollutant.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The heading of Article 10 (commencing with Section 650) of Chapter 3 of Part 1 of Division 1 of the Public Utilities Code is amended to read: Article 10. Renewable Gas Procurement
SECTION 1. The heading of Article 10 (commencing with Section 650) of Chapter 3 of Part 1 of Division 1 of the Public Utilities Code is amended to read:
### SECTION 1.
Article 10. Renewable Gas Procurement
Article 10. Renewable Gas Procurement
Article 10. Renewable Gas Procurement
Article 10. Renewable Gas Procurement
SEC. 2. Section 652 is added to the Public Utilities Code, to read:652. (a) For purposes of this article, renewable hydrogen means any of the following:(1) The production process uses either of the following energy inputs:(A) Electricity that is consistent with the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3).(B)Energy, other than electricity, that is produced from biomass, solar thermal, photovoltaic, wind, geothermal, fuel cells 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.(2)The production process uses material(B) Material feedstock that is either water or a material described in subparagraph (B) of paragraph (1). water, biomass, digester gas, diverted organic waste, or landfill gas.(3)(2) (A) For a production process that uses landfill gas or digester gas to generate an energy input described in subparagraph (B) of paragraph (1) or to provide as feedstock, that the procurement of that gas is consistent with Section 399.12.6.(B) For a production process that uses biomass to generate an energy input described in subparagraph (B) of paragraph (1) electricity or to provide feedstock, that the production of the energy electricity or feedstock is by biomass conversion, as defined in Section 40106 of the Public Resources Code, and and, for forest waste biomass, is consistent with the guidelines adopted by the commission to define the byproducts of sustainable forestry pursuant to clause (iii) of subparagraph (A) of paragraph (2) of subdivision (f) of Section 399.20.(4)Any other process yielding hydrogen from only renewable inputs, as determined by the commission.(b) The commission shall open a new proceeding, or a new phase of an existing proceeding, to do all of the following:(1) Consider establishing renewable hydrogen procurement goals for each gas corporation and core transport agent.(2) Consider requiring each gas corporation and core transport agent to annually procure a proportionate share of renewable hydrogen to meet the procurement goals established pursuant to paragraph (1).(3) Before establishing renewable hydrogen procurement targets or goals, the commission shall make the following findings:(A) The targets or goals are a cost-effective means of achieving the forecasted reduction in the emissions of short-lived climate pollutants pursuant to Section 39730.5 of the Health and Safety Code and other greenhouse gases pursuant to Division 25.5 (commencing with Section 38500) of the Health and Safety Code.(B) The targets or goals comply with all applicable state and federal laws.(C) The safety risk of using renewable hydrogen in pipelines will be appropriately regulated, mitigated, and monitored. Hydrogen shall not be transported in pipelines until the commission acts to set safety standards and the pipelines meet those standards.(D) Combustion end uses that may be affected by the addition of hydrogen to pipelines are appropriately regulated and controlled to avoid increased emissions of oxides of nitrogen or any other air pollutant.
SEC. 2. Section 652 is added to the Public Utilities Code, to read:
### SEC. 2.
652. (a) For purposes of this article, renewable hydrogen means any of the following:(1) The production process uses either of the following energy inputs:(A) Electricity that is consistent with the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3).(B)Energy, other than electricity, that is produced from biomass, solar thermal, photovoltaic, wind, geothermal, fuel cells 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.(2)The production process uses material(B) Material feedstock that is either water or a material described in subparagraph (B) of paragraph (1). water, biomass, digester gas, diverted organic waste, or landfill gas.(3)(2) (A) For a production process that uses landfill gas or digester gas to generate an energy input described in subparagraph (B) of paragraph (1) or to provide as feedstock, that the procurement of that gas is consistent with Section 399.12.6.(B) For a production process that uses biomass to generate an energy input described in subparagraph (B) of paragraph (1) electricity or to provide feedstock, that the production of the energy electricity or feedstock is by biomass conversion, as defined in Section 40106 of the Public Resources Code, and and, for forest waste biomass, is consistent with the guidelines adopted by the commission to define the byproducts of sustainable forestry pursuant to clause (iii) of subparagraph (A) of paragraph (2) of subdivision (f) of Section 399.20.(4)Any other process yielding hydrogen from only renewable inputs, as determined by the commission.(b) The commission shall open a new proceeding, or a new phase of an existing proceeding, to do all of the following:(1) Consider establishing renewable hydrogen procurement goals for each gas corporation and core transport agent.(2) Consider requiring each gas corporation and core transport agent to annually procure a proportionate share of renewable hydrogen to meet the procurement goals established pursuant to paragraph (1).(3) Before establishing renewable hydrogen procurement targets or goals, the commission shall make the following findings:(A) The targets or goals are a cost-effective means of achieving the forecasted reduction in the emissions of short-lived climate pollutants pursuant to Section 39730.5 of the Health and Safety Code and other greenhouse gases pursuant to Division 25.5 (commencing with Section 38500) of the Health and Safety Code.(B) The targets or goals comply with all applicable state and federal laws.(C) The safety risk of using renewable hydrogen in pipelines will be appropriately regulated, mitigated, and monitored. Hydrogen shall not be transported in pipelines until the commission acts to set safety standards and the pipelines meet those standards.(D) Combustion end uses that may be affected by the addition of hydrogen to pipelines are appropriately regulated and controlled to avoid increased emissions of oxides of nitrogen or any other air pollutant.
652. (a) For purposes of this article, renewable hydrogen means any of the following:(1) The production process uses either of the following energy inputs:(A) Electricity that is consistent with the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3).(B)Energy, other than electricity, that is produced from biomass, solar thermal, photovoltaic, wind, geothermal, fuel cells 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.(2)The production process uses material(B) Material feedstock that is either water or a material described in subparagraph (B) of paragraph (1). water, biomass, digester gas, diverted organic waste, or landfill gas.(3)(2) (A) For a production process that uses landfill gas or digester gas to generate an energy input described in subparagraph (B) of paragraph (1) or to provide as feedstock, that the procurement of that gas is consistent with Section 399.12.6.(B) For a production process that uses biomass to generate an energy input described in subparagraph (B) of paragraph (1) electricity or to provide feedstock, that the production of the energy electricity or feedstock is by biomass conversion, as defined in Section 40106 of the Public Resources Code, and and, for forest waste biomass, is consistent with the guidelines adopted by the commission to define the byproducts of sustainable forestry pursuant to clause (iii) of subparagraph (A) of paragraph (2) of subdivision (f) of Section 399.20.(4)Any other process yielding hydrogen from only renewable inputs, as determined by the commission.(b) The commission shall open a new proceeding, or a new phase of an existing proceeding, to do all of the following:(1) Consider establishing renewable hydrogen procurement goals for each gas corporation and core transport agent.(2) Consider requiring each gas corporation and core transport agent to annually procure a proportionate share of renewable hydrogen to meet the procurement goals established pursuant to paragraph (1).(3) Before establishing renewable hydrogen procurement targets or goals, the commission shall make the following findings:(A) The targets or goals are a cost-effective means of achieving the forecasted reduction in the emissions of short-lived climate pollutants pursuant to Section 39730.5 of the Health and Safety Code and other greenhouse gases pursuant to Division 25.5 (commencing with Section 38500) of the Health and Safety Code.(B) The targets or goals comply with all applicable state and federal laws.(C) The safety risk of using renewable hydrogen in pipelines will be appropriately regulated, mitigated, and monitored. Hydrogen shall not be transported in pipelines until the commission acts to set safety standards and the pipelines meet those standards.(D) Combustion end uses that may be affected by the addition of hydrogen to pipelines are appropriately regulated and controlled to avoid increased emissions of oxides of nitrogen or any other air pollutant.
652. (a) For purposes of this article, renewable hydrogen means any of the following:(1) The production process uses either of the following energy inputs:(A) Electricity that is consistent with the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3).(B)Energy, other than electricity, that is produced from biomass, solar thermal, photovoltaic, wind, geothermal, fuel cells 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.(2)The production process uses material(B) Material feedstock that is either water or a material described in subparagraph (B) of paragraph (1). water, biomass, digester gas, diverted organic waste, or landfill gas.(3)(2) (A) For a production process that uses landfill gas or digester gas to generate an energy input described in subparagraph (B) of paragraph (1) or to provide as feedstock, that the procurement of that gas is consistent with Section 399.12.6.(B) For a production process that uses biomass to generate an energy input described in subparagraph (B) of paragraph (1) electricity or to provide feedstock, that the production of the energy electricity or feedstock is by biomass conversion, as defined in Section 40106 of the Public Resources Code, and and, for forest waste biomass, is consistent with the guidelines adopted by the commission to define the byproducts of sustainable forestry pursuant to clause (iii) of subparagraph (A) of paragraph (2) of subdivision (f) of Section 399.20.(4)Any other process yielding hydrogen from only renewable inputs, as determined by the commission.(b) The commission shall open a new proceeding, or a new phase of an existing proceeding, to do all of the following:(1) Consider establishing renewable hydrogen procurement goals for each gas corporation and core transport agent.(2) Consider requiring each gas corporation and core transport agent to annually procure a proportionate share of renewable hydrogen to meet the procurement goals established pursuant to paragraph (1).(3) Before establishing renewable hydrogen procurement targets or goals, the commission shall make the following findings:(A) The targets or goals are a cost-effective means of achieving the forecasted reduction in the emissions of short-lived climate pollutants pursuant to Section 39730.5 of the Health and Safety Code and other greenhouse gases pursuant to Division 25.5 (commencing with Section 38500) of the Health and Safety Code.(B) The targets or goals comply with all applicable state and federal laws.(C) The safety risk of using renewable hydrogen in pipelines will be appropriately regulated, mitigated, and monitored. Hydrogen shall not be transported in pipelines until the commission acts to set safety standards and the pipelines meet those standards.(D) Combustion end uses that may be affected by the addition of hydrogen to pipelines are appropriately regulated and controlled to avoid increased emissions of oxides of nitrogen or any other air pollutant.
652. (a) For purposes of this article, renewable hydrogen means any of the following:
(1) The production process uses either of the following energy inputs:
(A) Electricity that is consistent with the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3).
(B)Energy, other than electricity, that is produced from biomass, solar thermal, photovoltaic, wind, geothermal, fuel cells 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.
(2)The production process uses material
(B) Material feedstock that is either water or a material described in subparagraph (B) of paragraph (1). water, biomass, digester gas, diverted organic waste, or landfill gas.
(3)
(2) (A) For a production process that uses landfill gas or digester gas to generate an energy input described in subparagraph (B) of paragraph (1) or to provide as feedstock, that the procurement of that gas is consistent with Section 399.12.6.
(B) For a production process that uses biomass to generate an energy input described in subparagraph (B) of paragraph (1) electricity or to provide feedstock, that the production of the energy electricity or feedstock is by biomass conversion, as defined in Section 40106 of the Public Resources Code, and and, for forest waste biomass, is consistent with the guidelines adopted by the commission to define the byproducts of sustainable forestry pursuant to clause (iii) of subparagraph (A) of paragraph (2) of subdivision (f) of Section 399.20.
(4)Any other process yielding hydrogen from only renewable inputs, as determined by the commission.
(b) The commission shall open a new proceeding, or a new phase of an existing proceeding, to do all of the following:
(1) Consider establishing renewable hydrogen procurement goals for each gas corporation and core transport agent.
(2) Consider requiring each gas corporation and core transport agent to annually procure a proportionate share of renewable hydrogen to meet the procurement goals established pursuant to paragraph (1).
(3) Before establishing renewable hydrogen procurement targets or goals, the commission shall make the following findings:
(A) The targets or goals are a cost-effective means of achieving the forecasted reduction in the emissions of short-lived climate pollutants pursuant to Section 39730.5 of the Health and Safety Code and other greenhouse gases pursuant to Division 25.5 (commencing with Section 38500) of the Health and Safety Code.
(B) The targets or goals comply with all applicable state and federal laws.
(C) The safety risk of using renewable hydrogen in pipelines will be appropriately regulated, mitigated, and monitored. Hydrogen shall not be transported in pipelines until the commission acts to set safety standards and the pipelines meet those standards.
(D) Combustion end uses that may be affected by the addition of hydrogen to pipelines are appropriately regulated and controlled to avoid increased emissions of oxides of nitrogen or any other air pollutant.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
### SEC. 3.