California Legislature—2015–16 Regular Session

Assembly BillNo. 590


Introduced by Assembly Member Dahle

February 24, 2015


An act to add Section 16428.81 to the Government Code, relating to greenhouse gases.

LEGISLATIVE COUNSEL’S DIGEST

AB 590, as introduced, Dahle. Greenhouse Gas Reduction Fund.

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 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.

This bill would create the Biomass State Cost Share Account within the Greenhouse Gas Reduction Fund. The bill would require an unspecified amount of moneys to be transferred from the Greenhouse Gas Reduction Fund to the Biomass State Cost Share Account. Moneys in the account, upon appropriation, would be available for expenditure by the State Energy Resources Conservation and Development Commission for the purposes of maintaining the current level of biomass power generation in the state and revitalizing currently idle facilities in strategically located regions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) California leads the nation in bioenergy production, with
4one-half of the industry located in this state, which has an abundant
5supply of bioenergy resources.

6(b) Biomass power generation provides electric ratepayers with
7clean, renewable energy that supplies the grid 24 hours a day,
8seven days a week regardless of atmospheric conditions. These
9benefits are paid for through contracts with the state’s electric
10utilities.

11(c) Biomass power generation also provides valuable,
12environmentally preferred wood waste disposal service for the
13disposal of 7.5 to 8 million tons of California’s annual solid waste
14stream and the avoidance of 1.5 to 3.5 million tons annually of
15biogenic CO2 emissions. By diverting biomass residues away from
16open burning, landfill burial, and accumulation in forests, the state
17benefits from reduced criteria air pollutants and greenhouse gas
18emissions, landfill capacity use, forest and watershed improvement,
19rural employment and economic development, and energy diversity
20and security. These services have been provided without
21compensation in the past, as the electricity market was able to fully
22underwrite the cost.

23(d) The environmental services provided by biomass power
24production are clearly valuable to society and therefore provide
25the rationale for a state policy to pay for biomass power generation
26commensurate with its provision of waste disposal services.

27(e) Protecting these existing resources will help the state meet
28its goals to reduce greenhouse gas emissions, protect existing jobs,
29and provide waste disposal benefits.

30

SEC. 2.  

Section 16428.81 is added to the Government Code,
31to read:

32

16428.81.  

There is hereby created the Biomass State Cost Share
33Account within the Greenhouse Gas Reduction Fund established
34pursuant to Section 16428.8. Moneys in the amount of ____ dollars
35($____) shall be transferred annually from the fund to the account.
36Moneys in the account, upon appropriation, shall be available for
37expenditure by the State Energy Resources Conservation and
38Development Commission for the purposes of maintaining the
P3    1current level of biomass power generation in the state and
2revitalizing currently idle facilities in strategically located regions.



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