BILL NUMBER: AB 577 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 6, 2015
AMENDED IN SENATE JUNE 17, 2015
AMENDED IN ASSEMBLY MAY 28, 2015
AMENDED IN ASSEMBLY MAY 5, 2015
AMENDED IN ASSEMBLY APRIL 6, 2015
INTRODUCED BY Assembly Member Bonilla
FEBRUARY 24, 2015
An act to add Chapter 7.8 (commencing with Section 25680) to
Division 15 of the Public Resources Code, relating to biomethane.
LEGISLATIVE COUNSEL'S DIGEST
AB 577, as amended, Bonilla. Biomethane: grant program.
Existing law establishes the State Energy Resources Conservation
and Development Commission and requires the commission to administer
various programs to award grants and other financial assistance for
energy-related projects. The California Global Warming Solutions Act
of 2006 designates the State Air Resources Board as the state agency
charged with monitoring and regulating sources of emissions of
greenhouse gases. The state board is required to adopt a statewide
greenhouse gas emissions limit equivalent to the statewide greenhouse
gas emissions level in 1990 to be achieved by 2020. The act
authorizes the state board to include the use of market-based
compliance mechanisms. Existing law requires all moneys, except for
fines and penalties, collected by the state board from the auction or
sale of allowances as part of a market-based compliance mechanism to
be deposited in the Greenhouse Gas Reduction Fund and to be
available upon appropriation.
This bill would require the commission to develop and implement a
grant program to award grants for projects that produce biomethane,
that build or develop collection and purification technology or
infrastructure, or that upgrade or expand existing biomethane
facilities. The bill would, upon appropriation, authorize moneys in
the fund to be used to fund grants awarded pursuant to the program.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) California imports 91 percent of its natural gas, which is
responsible for 25 percent of all greenhouse gas (GHG) emissions.
This costs California billions of dollars in lost revenues and jobs.
(b) California made a commitment to address climate change with
the California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code). For
California to meet its GHG reductions goals, the GHG emissions from
the natural gas sector must be reduced.
(c) Biomethane is gas generated from organic waste through
anaerobic digestion, gasification, pyrolysis, or other conversion
technology that converts organic matter to gas. Biomethane may be
produced from sources such as agricultural waste, forest waste,
landfill gas, wastewater treatment byproducts, and diverted organic
waste.
(d) Biomethane provides a more sustainable and cleaner alternative
to natural gas. If 10 percent of California's natural gas use were
to be replaced with biomethane, GHG emissions would be reduced by
tens of millions of metric tons of carbon dioxide equivalent every
year.
(e) Almost 300 billion cubic feet of biomethane could be produced
in California each year. This biomethane could power 2 to 3 million
homes or generate 2.4 billion gallons of clean, ultralow carbon
transportation fuels.
(f) Investing in biomethane would create cobenefits, such as
renewable power available 24 hours a day, seven days a week,
reduction of fossil fuel use, reduction of air and water pollution,
and new jobs.
(g) Biomethane could be used for things such as transportation
fuel or injected into the natural gas pipeline for other uses. The
most appropriate use of biomethane varies depending on the source,
proximity to existing natural gas pipeline injection points or large
vehicle fleets, and the circumstances of existing facilities.
(h) The biomethane market has been slow to develop in California
because the collection and purification of biomethane can be costly.
Investing in biomethane purification equipment and infrastructure is
necessary for companies to meet existing biomethane safety and purity
standards. Alternative funding for compliance with standards
established pursuant to Section 25421 of the Health and Safety Code
must be found so that biomethane can be transmitted via California's
vast natural gas pipeline infrastructure.
(i) Biomethane is poised to play a key role in future natural gas
and hydrogen fuel markets as a blendstock that can significantly
reduce the carbon footprint of these two fossil-based alternative
fuels.
SEC. 2. Chapter 7.8 (commencing with Section 25680) is added to
Division 15 of the Public Resources Code, to read:
CHAPTER 7.8. BIOMETHANE PRODUCTION, COLLECTION, AND
PURIFICATION GRANT PROGRAM
25680. (a) (1) The commission shall develop and implement a grant
program to award moneys appropriated pursuant to Section 39718.5 of
the Health and Safety Code for projects that do any of the following:
(A) Produce biomethane.
(B) Upgrade or expand existing biomethane production facilities.
(C) Develop collection and purification technology or
infrastructure for biomethane.
(2) Biomethane produced from those projects shall meet the
requirements established pursuant to Section 25421 of the Health and
Safety Code.
(b) In granting an award, the commission shall consider both of
the following:
(1) Opportunities to colocate biomethane producers with vehicle
fleets to generate biomethane and convert it to transportation fuel
in the same location.
(1) The highest and best use of local biomethane projects.
(2) Location of biomethane sources and their proximity to natural
gas pipeline injection sites.
(c) In prioritizing projects eligible for grants pursuant to this
section, the commission shall maximize the reduction of greenhouse
gas emissions achieved by a project for each dollar awarded.
(d) Grants awarded pursuant to this section may be funded, upon
appropriation by the Legislature, from the Greenhouse Gas Reduction
Fund established pursuant to Section 16428.8 of the Government Code.