BILL NUMBER: SB 1298	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   AUGUST 18, 2000
	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   Sections
41514.9 and 41514.10  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  , on or before
January 1, 2003,  to adopt  a certification program and
uniform  emission  performance standards reflecting
  standards for electrical generation that are exempt
from district permitting requirements, and would require that those
standards reflect  the best  available control
technology 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   performance achieved in practice by
existing electrical generation technologies.  The bill would prohibit
a district from authorizing the siting or operation of any
electrical generation technology for which state emission standards
exist unless that technology complies with the applicable standards
 .
   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.  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   , on
or before January 3, 2003, to issue guidance to districts on the
permitting or certification of electrical generation technologies
under their regulatory jurisdiction, as prescribed  .
   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.  
   (f) It is the intent of the Legislature to create a streamlined
and seamless regulatory program that promotes the development of a
clean and robust market for distributed generation technologies
deployed in this state, whereby each distributed generation unit is
either certified by the State Air Resources Board for use or subject
to the permitting authority of a district. 
  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 adopt emission control performance standards reflecting the
best available control technology for distributed generation
technologies that the state board, in cooperation with the State
Energy Resources Conservation and Development Commission, determines
will have a significant potential for market penetration in the
state.
   (2) The state board may update the emission standards adopted
pursuant to paragraph (1) as needed to reflect evolving emission
control technologies and may establish emission standards for
additional distributed generation technologies as the state board
deems appropriate.
   (3) In adopting emission standards pursuant to this subdivision,
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 powerplants 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 powerplant 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
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.  
   41514.9.  (a) On or before January 1, 2003, the state board shall
adopt a certification program and uniform emission standards for
electrical generation technologies that are exempt from district
permitting requirements.
   (b) The emission standards for electrical generation technologies
shall reflect the best performance achieved in practice by existing
electrical generation technologies for the electrical generation
technologies referenced in subdivision (a) and, by the earliest
practicable date, shall be made equivalent to the level determined by
the state board to be the best available control technology for
permitted central station powerplants in California. The emission
standards for state certified electrical generation technology shall
be expressed in pounds per megawatt hour to reflect the expected
actual emissions per unit of electricity and heat provided to the
consumer from each permitted central powerplant as compared to each
state certified electrical generation technology.
   (c) Commencing on January 1, 2003, all electrical generation
technologies shall be certified by the state board or permitted by a
district prior to use or operation in the state.  No district shall
authorize the siting or operation of any electrical generation
technology for which state emission standards exist unless that
technology complies with the applicable standards.  This section does
not preclude a district from establishing more stringent emission
standards for electrical generation technologies than those adopted
by the state board. 
   (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.
   (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.   Section 41514.10 is added to the Health and Safety
Code, to read:
   41514.10.  On or before January 1, 2003, the state board shall
issue guidance to districts on the permitting or certification of
electrical generation technologies under the districts regulatory
jurisdiction.  The guidance shall address best available control
technology determinations, as defined by Section 40405, for
electrical generation technologies and, by the earliest practicable
date, shall make those equivalent to the level determined by the
state board to be the best available control technology for permitted
central station powerplants in California.  The guidance shall also
address methods for streamlining the permitting and approval of
electrical generation units, including the potential for
precertification of one or more types of electrical generation
technologies.
  SEC. 4.   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.