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
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          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