BILL ANALYSIS SB 1298 Page 1 SENATE THIRD READING SB 1298 (Bowen) As Amended August 25, 2000 Majority vote SENATE VOTE :Vote not relevant NATURAL RESOURCES 11-0 UTILITIES AND COMMERCE 7-0 ----------------------------------------------------------------- |Ayes:|Wayne, Aanestad, |Ayes:|Wright, Pescetti, | | |Dickerson, Jackson, | |Calderon, Briggs, Cox, | | |Keeley, Lowenthal, | |Maddox, Mazzoni | | |Machado, Migden, Oller, | | | | |Robert Pacheco, Steinberg | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- APPROPRIATIONS 21-0 ----------------------------------------------------------------- |Ayes:|Migden, Campbell, | | | | |Ackerman, Alquist, | | | | |Aroner, Ashburn, Brewer, | | | | |Cedillo, Corbett, Davis, | | | | |Kuehl, Maldonado, Papan, | | | | |Romero, Runner, Shelley, | | | | |Thomson, Wesson, Wiggins, | | | | |Wright, Zettel | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : 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. Specifically, this bill: 1)Requires ARB, on or before January 1, 2003, to adopt a certification program and uniform emissions standards for electrical generation technologies that are exempt from district permitting requirements. 2)Requires the emissions standards for the above-exempted electrical generation technologies to reflect the best performance achieved in practice by existing electrical SB 1298 Page 2 generation technologies. 3)Requires, commencing on January 1, 2003, all electrical generation technologies to be certified by the state board or permitted by an air district prior to use or operation in the state. 4)Prohibits an air 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. 5)Authorizes an air district to establish emissions standards regarding distributed generation technology more stringent than those established by ARB. 6)Authorizes ARB to establish a fee schedule to be assessed against persons seeking certification as a distributed generator. 7)Requires ARB, on or before January 1, 2003, to issue guidance to air districts on the permitting or certification of electrical generation technologies under the air districts' regulatory jurisdiction. The guidance shall address best available control technology determinations for electrical generation technologies and, by the earliest practicable date, make those equivalent to the level determined by ARB to be the best available control technology for permitted central station powerplants in California. The guidance shall also address permit streamlining and the potential for precertification of one or more types of electrical generation technologies. FISCAL EFFECT : According to the Appropriations Committee analysis, there will be moderate costs, about $300,000 primarily in fiscal year (FY) 2001-2002, to ARB to adopt regulations for the emission standards and the certification program. These costs would eventually be reimbursed by revenue generated from fees ARB is authorized to impose on distributed generators certification once the program is put in place. There will also be moderate costs, about $500,000 annually starting in FY 2002-2003, to ARB to administer the certification program. These costs are also potentially covered by fee revenue. (Air Pollution Control Fund.) SB 1298 Page 3 COMMENTS : "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 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. Analysis Prepared by : Scott H. Valor / NAT. RES. / (916) 319-2092 FN: 0006380