BILL ANALYSIS
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UNFINISHED BUSINESS
Bill No: SB 1298
Author: Bowen (D) and Peace (D)
Amended: 8/25/00
Vote: 21
SENATE VOTES NOT RELEVANT
ASSEMBLY FLOOR : 77-0, 8/29/00 - See last page for vote
SUBJECT : Air emissions: distributed generation
SOURCE : Author
DIGEST : This bill requires the State Air Resource Board
(ARB) to adopt emissions standards for distributed
generation technologies exhibiting growth potential in the
California energy marketplace.
Assembly Amendments delete the prior version. As it left
the Senate, the bill was authored by the Senate Energy
Committee and provided $14 million from the Petroleum
Violation Escrow Account for energy conservation projects.
ANALYSIS : Existing law:
1. Requires the ARB to establish emissions standards for
stationary sources of air pollution, including
refineries and power plants.
2. Requires the ARB to establish the best available control
technology (BACT) as a means by which sources of air
CONTINUED
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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 requires 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
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
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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 power plants in California. The guidance shall
also address permit streamlining and the potential for
precertification of one or more types of electrical
generation technologies.
Comments
"Distributed generation" is defined in this bill as
"electrical generation located near the place of use."
Examples of distributed generation include large
co-generation 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
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.)
ASSEMBLY FLOOR :
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AYES: Aanestad, Ackerman, Alquist, Aroner, Ashburn,
Baldwin, Bates, Battin, Baugh, Bock, Brewer, Briggs,
Calderon, Campbell, Cardenas, Cardoza, Cedillo, Corbett,
Correa, Cox, Cunneen, Davis, Dickerson, Ducheny, Dutra,
Firebaugh, Florez, Gallegos, Granlund, Havice, Honda,
House, Jackson, Kaloogian, Keeley, Knox, Kuehl, Leach,
Lempert, Leonard, Longville, Lowenthal, Machado, Maddox,
Maldonado, Margett, Mazzoni, McClintock, Migden, Nakano,
Olberg, Oller, Robert Pacheco, Rod Pacheco, Papan,
Pescetti, Reyes, Romero, Runner, Scott, Shelley,
Steinberg, Strickland, Strom-Martin, Thompson,
Thomson, Torlakson, Villaraigosa, Vincent, Washington,
Wayne, Wesson, Wiggins, Wildman, Wright, Zettel,
Hertzberg
NC:sl 8/30/00 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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