BILL ANALYSIS SB 1298 Page 1 Date of Hearing: August 7, 2000 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Howard Wayne, Chair SB 1298 (Bowen) - As Amended: August 7, 2000 SENATE VOTE : Not relevant. SUBJECT : Air pollution. SUMMARY : This bill requires the State Air Resource Board (ARB) to adopt emissions standards for distributed generation technologies determined to have significant potential for market penetration in the state. EXISTING LAW : 1)Requires the ARB to establish emissions standards for stationary sources of air pollution, including refineries and power plants. 1)Requires the ARB to establish the best available control technology (BACT) as a means by which sources of air pollution can comply with air emissions standards. The BACT standard is not a recommendation for a particular pollution control device. Rather, it is a recognition of limits achievable by currently available and economically viable pollution control devices. THIS BILL : 1)Requires the ARB, on or before January 1, 2003, to adopt emissions standards for distributed generation technologies that reflect the BACT and that the ARB, in cooperation with the State Energy Resources Conservation and Development Commission (Commission), determines to have a significant potential for market penetration in the state. The emissions standards shall be updated as needed. 1)Requires the ARB, to the extent practicable, to establish standards for distributed generation that control emissions to the level determined to be the BACT for permitted central power stations in California. 1)Authorizes the ARB to establish less stringent emission SB 1298 Page 2 standards for a distributed generation technology if the ARB determines that: a) An alternative emission level is the most stringent feasible level for the specified distributed generation technology; b) There are compelling reasons related to electrical system peak load reliability to allow such a distributed generation technology; and c) The air quality impacts of increased emissions associated with the deployment of that distributed generation technology are minor. 1)Prohibits an air district from authorizing the siting or operation of any distributed generation technology for which state standards exist unless that technology complies with the emissions performance standards adopted by the ARB. 1)Authorizes an air district to establish emissions standards regarding distributed generation technology more stringent than those established by the ARB 1)Requires the ARB to develop a certification program for distributed generators for verifying that applicable distributed generation units meet the emission performance standards established by the board. The program shall, at a minimum, apply to distributed generation units that are exempt from district permitting requirements. 1)Authorizes the ARB to establish a fee schedule to be assessed against persons seeking certification as a distributed generator. FISCAL EFFECT : Unknown. COMMENTS : Background "Distributed generation" is defined in this bill as "electrical generation located near the place of use." Examples of distributed generation include large cogeneration facilities, located adjacent to a hospital, providing all electricity SB 1298 Page 3 demands or those required during a power failure, as well as a simple solar array atop a residential home, used for various home electrical demands. The author's office states that while distributed generation technologies are likely to play an important role in supplying power to the state in the future, the application of existing air quality standards to them is either unclear or insufficient. This bill would charge the appropriate enforcement agency with establishing these standards in as proactive a manner as possible. REGISTERED SUPPORT / OPPOSITION : Support None on file Opposition None on file Analysis Prepared by : Scott H. Valor / NAT. RES. / (916) 319-2092