Bill Text: CA SB1062 | 2023-2024 | Regular Session | Amended
Bill Title: Energy: conversion of biomass energy generation facilities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed) 2024-05-23 - In Assembly. Read first time. Held at Desk. [SB1062 Detail]
Download: California-2023-SB1062-Amended.html
Amended
IN
Senate
April 29, 2024 |
Amended
IN
Senate
April 03, 2024 |
Amended
IN
Senate
March 20, 2024 |
Introduced by Senator Dahle |
February 08, 2024 |
LEGISLATIVE COUNSEL'S DIGEST
Existing law requires the Public Utilities Commission to direct electrical corporations to collectively procure at least 250 megawatts of cumulative rated generation capacity from developers of bioenergy projects that commence operation on or after June 1, 2013, as provided.
The bill would require electrical corporations with 100,000 or more connections and local publicly owned electric utilities with 100,000 or more connections to collectively procure, through financial commitments of 15 years, 125 megawatts of cumulative rated generation
capacity from those facilities identified by the department that receive applicable air permits from the relevant air district, develop business plans, and commit to the conversion of the generation facilities to advanced bioenergy technology facilities, as provided. By imposing additional requirements on local publicly owned electric utilities, this bill would impose a state-mandated local program. The bill would prohibit the financial commitments
from extending beyond January 1, 2041, and authorize a financial commitment to be terminated early if the facility has converted to an advanced bioenergy technology facility that does not produce electricity, as provided.
Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because certain provisions of the bill would be a part of the act and a violation of a commission action
implementing requirements of the bill would be a crime, this bill would impose a state-mandated local program.
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 specified reasons.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Chapter 17 (commencing with Section 25994) is added to Division 15 of the Public Resources Code, to read:CHAPTER 17. Biomass Technology Transition Program
Article 1. General Provisions
25993.25994.
Unless the context requires otherwise, for purposes of this chapter, the following definitions apply:(c)
(d)
Article 2. Biomass Technology Transition Program
25993.10.25994.10.
(a) The department, in consultation with the commission, the Public Utilities Commission, the State Air Resources Board, the Governor’s Office of Business and Economic Development, the California Infrastructure and Economic Development Bank, and districts, shall establish and administer the Biomass Technology Transition Program with relevant program terms to support the conversion of
biomass generation facilities using traditional combustion technologies to newer advanced bioenergy technology facilities that result in reductions in the emissions of criteria pollutants, toxic air contaminants, and greenhouse gases.25993.11.25994.11.
(a) On or before December 1, 2025, the department shall identify generation facilities with a generation capacity of 10 megawatts or greater that use, or are in the process of recommissioning or the redevelopment of those facilities to use,A generation facility identified pursuant to Section 25993.11 is an eligible facility for purposes of Section 399.20.4 of the Public Utilities Code if the operator of the facility does both of the following:
(a)Receives any applicable air permit from the
relevant district.
(b)Develops business plans and commits to the conversion of the generation facility to an advanced bioenergy technology facility as provided in Section 25993.13.
25993.13.25994.12.
(a) To receive a grant pursuant to Section(b)Notwithstanding Section 399.20.4 of the Public Utilities Code, financial commitments made to the generation facility pursuant to that section shall terminate upon the occurrence of any of the following:
(1)The completion of the conversion by the generation facility to an advanced bioenergy technology facility that does not produce electricity.
(2)The operator of the generation facility fails to prepare a business plan required by paragraph (1) or (2) of subdivision (a).
(3)The operator of the generation facility fails to convert the generation facility as required by paragraph (1) or (2) of subdivision (a).
25993.14.25994.13.
On or before January 1, 2032, the department shall establish a grant program to support the distribution of advanced bioenergy technologies, including, but not limited to, sustainable aviation fuel or other biofuels, linear generators, renewable natural gas or biomass conversion to hydrogen, as determined appropriate by the department, from generation facilities identified pursuant to Section(a)In addition to subdivision (f) of Section 399.20 and subdivision (b) of Section 399.30, on or before December 1, 2026, electrical corporations with 100,000 or more connections and local publicly owned electric utilities with 100,000 or more connections shall collectively procure, through financial commitments of 15 years, 125 megawatts of cumulative rated generation capacity from generation facilities that comply with Section 25993.12 of the Public Resources Code. The commission shall allocate the proportionate share, as determined pursuant to subdivision (c), of the 125 megawatts to each electrical corporation and local publicly owned electric utility.
(b)A community choice aggregator may participate in the procurement pursuant to subdivision (a) if the commission, in consultation with the Department of Conservation, on or before December 1, 2025, determines that a process described in paragraph (5) of subdivision (f) of Section 399.20 is appropriate for purposes of this section and Chapter 16 (commencing with Section 25993) of Division 15 of the Public Resources Code.
(c)On or before December 1, 2025, the commission, in consultation with the Department of Conservation, shall determine the proportionate share for purposes of subdivision (a).
(d)An early termination of the financial commitment described in subdivision
(a) shall occur if the facility has converted to an advanced bioenergy technology facility that does not produce electricity. The commission shall establish and require standard contractual language to reflect the potential early termination without penalty to either party for contracts made to effectuate the financial commitment described in subdivision (a). The commission shall also provide the standard contractual language to the local publicly owned electric utilities for inclusion in contracts made by the local publicly owned electric utilities for the financial commitments made pursuant to subdivision (a).
(e)(1)For electrical corporations, before approving a financial commitment made pursuant to this section, the commission shall ensure that any
applicable air permits, as required by Section 25993.12 of the Public Resources Code, are obtained for the generation facility.
(2)Before entering into a financial commitment, a local publicly owned electric utility shall ensure that any applicable air permits, as required by Section 25993.12 of the Public Resources Code, are
obtained for the generation facility.
(f)(1)Financial commitments made pursuant to this section shall not extend beyond January 1, 2041.
(2)This section shall remain in effect only until January 1, 2041, and as of that date is repealed.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.