BILL NUMBER: SB 1298	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   AUGUST 7, 2000
	AMENDED IN ASSEMBLY   JUNE 26, 2000
	AMENDED IN SENATE   MAY 28, 1999
	AMENDED IN SENATE   APRIL 5, 1999

INTRODUCED BY   Senators Bowen and Peace

                        MARCH 1, 1999

   An act to add Section 41514.9 to the Health and Safety Code,
relating to air pollution.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1298, as amended, Bowen.  Air emissions:  distributed
generation.
   (1) Existing law requires the State Air Resources Board to
consider and adopt specified findings before adopting rules or
regulations that would affect the operation of existing powerplants.
Under existing law, except as specified, any person who violates any
statute, rule, regulation, permit, or order of the state board or of
an air pollution control strict or an air quality management
district relating to air quality, as provided, is guilty of a
misdemeanor and is subject to a fine, imprisonment, or both.
   This bill would require the state board to determine
  adopt emission performance standards reflecting 
the best available control technology  and adopt emission
standards  for distributed generation technologies, as
defined, for which the state board, in cooperation with the State
Energy Resources Conservation and Development Commission, makes a
specified determination.
   The bill would require the state board to develop a certification
program for  verifying that distributed generators meet the
applicable emission performance standards established by the state
board, and would require the program, at minimum, to apply to 
distributed generators that are exempt from district permitting
requirements  and would authorize the state board to
establish a certification program for larger distributed generators
that are not exempt from those permitting requirements  .
 The bill would authorize the state board to establish lower
emission standards for a distributed generation technology, if the
state board makes specified determinations.  The bill would
authorize the  state board to establish fees, to be assessed
on persons seeking certification as a distributed generator, for
purposes of administering the bill's provisions.
   Since a violation of the regulations adopted pursuant to the bill
would be a crime, the bill would impose a state-mandated local
program.
  (2) 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.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Distributed generation can contribute to helping California
meet the energy requirements of its citizens and businesses.
   (b) Certain distributed generation technologies can create
significant air emissions.
   (c) A clear set of rules and regulations regarding the air quality
impacts of distributed generation will facilitate the deployment of
distributed generation.
   (d) The absence of clear rules and regulations creates uncertainty
that may hinder the deployment of distributed generation.
   (e) It is in the public interest to encourage the deployment of
distributed generation technology in a way that has a positive effect
on air quality.
  SEC. 2.  Section 41514.9 is added to the Health and Safety Code, to
read:
   41514.9.  (a) (1) On or before January 1, 2003, the state board
shall  determine   adopt emission control
performance standards reflecting  the best available control
technology  and adopt emission standards  for
distributed generation technologies that the state board, in
cooperation with the State Energy Resources Conservation and
Development Commission, determines  to   will
 have a significant potential for market penetration in the
state.
   (2) The state board  shall   may  update
the emission standards adopted pursuant to paragraph (1) as needed
to reflect evolving  distributed generation technologies
  emission control technologies and may establish
emission standards for additional distributed generation technologies
as the state board deems appropriate  .  
   (3) The state board shall consider, in adopting  
   (3) In adopting  emission standards pursuant to this
subdivision,  whether the best available control technology
should result in emission levels at least equal to those of the most
recently constructed central station powerplants in the state.
  the state board shall, to the extent practicable,
adopt standards for distributed generation technologies at the level
determined by the state board to be the best available control
technology for permitted central station power plants in the state.
In adopting these standards, the state board shall compare the
expected actual emissions per unit of electricity provided to the
consumer from each permitted central power plant to those from each
distributed generation technology.
   (4) The state board may establish emission standards lower than
the standard required by paragraph (3) for a distributed generation
technology if the state board determines all of the following are
true:
   (A) An alternative emission standard is the highest standard
feasible for that distributed generation technology.
   (B) Compelling reasons exist related to electric system peak load
reliability for allowing the distributed generation technology.
   (C) The air quality impacts of increased emissions associated with
the distributed generation technology are minor.
   (5) No district shall authorize the siting or operation of any
distributed generation technology for which emission performance
standards exist unless that distributed generation technology
complies with those standards.
   (6) This section does not preclude districts from establishing
higher emission standards than those established by the state board
pursuant to this section. 
   (b) The state board shall develop a certification  program
for distributed generators that are exempt from district permitting
requirements.  If the state board finds that it is in the public
interest, the state board may establish a certification program for
larger distributed generators, as determined by the state board, that
are not exempt from district permitting requirements.  
program for verifying that each distributed generator meets the
applicable emission performance standards established by the state
board.  The program shall, at a minimum, apply to distributed
generators that are exempt from district permitting requirements.

   (c)  All distributed generation technologies shall be
certified by the state board or permitted by a district prior to use
or operation in the state.
   (d)  The state board may establish a schedule of fees for
purposes of this section to be assessed on persons seeking
certification as a distributed generator.  The fees charged, in the
aggregate, shall not exceed the reasonable cost to the state board of
administering the certification program and adopting the regulations
required by this section.  
   (d) In establishing the best available control technology pursuant
to subdivision (a) and a certification program pursuant to
subdivision (b), the state board shall balance the public interest in
obtaining a reliable electric system with the need to ensure that
emissions from distributed generation plants are as clean as
possible. 
   (e) As used in this section, the following definitions shall
apply:
   (1) "Best available control technology" has the same meaning as
defined in Section 40405.
   (2) "Distributed generation" means electric generation located
near the place of use.
  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.