AB 590, as amended, 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 provide that moneys in the Greenhouse Gas Reduction Fund, upon appropriation, may be made available for expenditure by the State Energy Resources Conservation and Development Commission for the purposes of maintaining the current level of biomass power generationbegin insert or geothermal energy generationend insert in the state and revitalizing currently idle facilities in strategically located regions. The bill would establish requirements for an applicant to receive available funding for a facility’s eligible electrical generation.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
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 generationbegin delete providesend deletebegin insert and geothermal energy
7generation provideend insert electric ratepayers with clean, renewable energy
8that supplies the grid 24 hours a day, seven days a week regardless
9of
atmospheric conditions. These benefits are paid for through
10contracts with the state’s electric utilities.
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) Numerous studies have shown a link between particulate
24matter (PM) exposure and asthma morbidity outcomes in children,
25and between exposure to ambient PM and increased heart and lung
26disease and death and health effects on the central nervous system.
27The latest study was provided by scientists at the California
28Environmental Protection Agency’s Office of Environmental
29Health Hazard Assessment. Diverting wood material from open
P3 1burning to biomass power production is an essential PM reduction
2strategy for many air districts around the state.
3(e) The environmental services provided by biomass power
4production are clearly valuable to society and therefore provide
5the rationale for a state policy to pay for biomass power generation
6commensurate with its provision of waste
disposal services.
7(f) Biomass power generation fits in the Cap and Trade Auction
8Proceeds Investment Plan in the categories of forest and ecosystem
9management, agricultural management, and waste diversion, and
10is identified as a recommended investment.
Section 16428.81 is added to the Government Code,
12to read:
(a) Moneys from the Greenhouse Gas Reduction
14Fund, upon appropriation by the Legislature, may be made
15available to the State Energy Resources Conservation and
16
Development Commission for expenditure for the purposes of
17maintaining the current level of biomass power generationbegin insert and
18geothermal energy generationend insert in the state and revitalizing currently
19idle facilities in strategically located regions. Protecting these
20existing resources will help the state meet its goals to reduce
21greenhouse gas emissions, protect existing jobs, and provide waste
22disposal benefits.
23(b) To be eligible for funding, abegin delete facility’s solid fuel biomass begin insert generation facilityend insert shall satisfy all of the
24electrical generationend delete
25following requirements:
26(1) The energy is generated on and after January 1, 2016.
27(2) The energy is generated using biomass wood wastes and
28begin deleteresidues,end deletebegin insert residues or geothermal resources,end insert and is sold to a
29load-serving entity.
30(3) The energy is generated at a facility with a generation
31capacity of over three megawatts.
32(4) The energy is generated within the state and sold to
33customers within the state.
34(c) In prioritizing projects eligible for grants pursuant to this
35section, the State Energy Resources Conservation and Development
36Commission shall maximize the reduction of greenhouse gas
37emissions achieved by a project for each dollar awarded.
38(d) The State Energy Resources Conservation and Development
39Commission, working in consultation with the State Air Resources
P4 1Board, shall ensure that projects receiving funding pursuant to
2this section achieve net reduction in greenhouse gas emissions.
3(c)
end delete
4begin insert(e)end insert A facility seeking available funding shall submit an
5application to the commission that demonstrates that it is a solid
6fuel biomass facilitybegin insert or a geothermal energy facilityend insert and is
7California Renewables Portfolio Standard (RPS) Program certified.
8An applicant shall submit monthly invoices to the commission to
9document eligible generation. The commission shall review the
10submitted invoices and make monthly incentive payments to each
11applicant based on the eligible generation and the applicable
12production incentive rate.
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