Biomethane procurement targets.

Plain English Breakdown

The bill does not explicitly state that violating its provisions would be a criminal offense, though it implies such actions could lead to penalties under existing law.

Biomethane Procurement Targets

The bill changes the requirements for biomethane delivered to California through common carrier pipelines and adds reducing greenhouse gas emissions from conventional natural gas as an environmental benefit.

What This Bill Does

• Changes the rules so that biomethane can meet just one of two specified requirements when it is brought into California via a common carrier pipeline instead of both.
• Adds reducing greenhouse gas emissions from conventional natural gas as an environmental benefit for biomethane delivery.
• Requires the Public Utilities Commission to allow utilities to charge customers for costs related to building infrastructure that connects natural gas pipelines with facilities that produce biomethane by June 1, 2026.

Who It Names or Affects

• Public utilities and gas corporations in California
• The Public Utilities Commission

Terms To Know

Biomethane

A type of renewable natural gas made from organic waste.

Common carrier pipeline

A pipeline that transports various types of materials for multiple customers, not just one company's products.

Limits and Unknowns

• The bill does not specify how much biomethane must be procured.
• It is unclear what specific costs utilities will recover from ratepayers.
• The exact environmental benefits and requirements are not detailed in the summary.

Official Summary Text

SB 377, as amended, Grayson.
Biomethane procurement targets.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including gas corporations. Existing law requires the commission, in consultation with the State Air Resources Board, to consider adopting specific biomethane procurement targets or goals for each gas corporation and core transport agent, as specified. Existing law requires, if the commission adopts specific biomethane procurement targets or goals for each gas corporation and core transport agent, the commission to, among other things, ensure that the biomethane available for any procurement program is either delivered to California through a dedicated pipeline, or through a common carrier pipeline and meets 2 specified requirements related to the injection of the biomethane and specified environmental benefits, as prescribed.
This bill would
instead require that biomethane delivered to California through a common carrier pipeline meet either of the specified requirements, rather than both. The bill would also
additionally
add the displacement of conventional natural gas that results in a reduction in greenhouse gas emissions as one of the specified environmental
benefits.
benefits, as specified.
Existing law requires the commission to consider options to promote the in-state production and distribution of biomethane, including whether to allow recovery in rates of the costs of investments to (1) facilitate direct investment in the procurement and installation of utility infrastructure necessary to achieve interconnection between the
natural gas transmission and distribution pipeline network and biomethane generation and collection equipment and of gathering lines for a dairy cluster biomethane project, (2) provide for the installation of utility infrastructure to achieve interconnection with facilities that generate biomethane, and (3) ensure that these investments for infrastructure are prudent and reasonable and provide a direct benefit to, and are in the interests of, all classes of ratepayers.
This bill would require, on or before June 1, 2026, the commission to allow recovery in rates of the costs of those investments.
Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the provisions of this bill would be part of the act and because a violation of a commission action implementing its requirements
would be a crime, the bill would impose a state-mandated local program.
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.

Current Bill Text

Download Bill PDF