BAC Comments on the CPUC’s Biomethane Procurement Proposal

BAC submitted comments on the CPUC’s Staff Proposal on Biomethane Procurement.  The Staff Proposal recommends requiring California’s gas utilities to procure 75 billion cubic feet of biomethane annually by 2030.  That only represents 4 percent of California’s total gas use.  By comparison, state law requires that 60 percent of California’s electricity come from renewable resources by 2030.  In comments on the Staff Proposal, BAC urges the Commission to:

  • Increase the biomethane procurement target to 150 BCF to help meet the state’s climate, clean energy, waste and wildfire reduction goals.
  • Include all eligible organic waste feedstocks.
  • Base program prices on the carbon intensity of the biomethane to prioritize the lowest carbon sources that help reduce climate super pollutants (Short-Lived Climate Pollutants).
  • Offer additional incentives to maximize the carbon reductions and other benefits of the program

To read BAC’s detailed comments, see R.13-02-008 BAC Comments on Phase 4A Staff Proposal

CPUC Proposes Biomethane Procurement Program

In June, the CPUC released a draft Staff Proposal on biomethane procurement.  The proposal recommends requiring the gas utilities to procure 75 billion cubic feet of biomethane annually by 2030, primarily from organic waste that is diverted from landfills and from landfill gas.  The Staff Proposal also recommends the inclusion of two pilot projects that convert forest waste to biomethane, which will help the state to meet its wildfire and black carbon reduction goals.  Unfortunately, the Staff Proposal excludes biomethane from dairy waste and does not address agricultural waste or urban wood waste at all.

See, CPUC’s Biomethane Procurement Staff Proposal

 

Air Board Adopts Plan to Phase Out Open Burning of Agricultural Waste in San Joaquin Valley

In late February, the California Air Resources Board approved a plan to phase out the open burning of agricultural waste in the San Joaquin Valley, California’s largest agricultural region.  Open burning, which has increased nearly 500% in the past several years, is a major source of air and climate pollution in the Valley.  In fact, open burning of agricultural and forest waste is one of the largest sources of black carbon emissions – a powerful Short-Lived Climate Pollutant that is 3200 times more damaging to the climate than carbon dioxide and is also very harmful to public health, crops, forests, and more.

The Air Board’s plan calls specifically for:

  • A Clean Biomass/Bioenergy Collaborative across state agencies
  • Increased funding for bioenergy and other alternatives to open burning
  • Increased production of liquid and gaseous fuels from agricultural waste

See:  CARB Approved Plan to Phase Out Ag Burning (Feb2021)

California Finalizes Organic Waste Diversion Regulations

In 2016, California enacted Senate Bill 1383 to reduce the most damaging climate pollutants, known as Short-Lived Climate Pollutants.  The bill requires a 40 percent reduction in methane emissions and a 50 percent reduction in anthropogenic black carbon by 2030.  As part of the methane reduction requirement, the legislation requires a 75 percent reduction in organic landfill waste by 2025.  That means diverting more than 15 million tons of organic waste currently going to landfills and converting it to energy and compost instead.

CalRecycle’s regulations to implement the organic waste diversion requirements were just finalized by the state’s Office of Administrative Law.  The key provisions related to bioenergy are contained in Article 12 (beginning on page 92), which sets out requirements for local jurisdictions to procure bioenergy and/or compost generated from the diverted organic waste.

See:  CalRecycle SB 1383 regulations (final)

Governor Proposes California’s 2021-22 Budget

Governor Newsom has released his budget proposal for the remainder of FY 2021 and the next fiscal year, which begins July 1.  The Governor has proposed increased funding for wildfire mitigation, including funding for the use of forest waste, and for heavy duty vehicles.  The proposed budget also includes funding for Healthy Soils, agricultural engine replacement, restoration of natural lands, and a Climate Catalyst Fund to provide low cost financing for clean energy development and other purposes.  Unfortunately, the proposed budget does not include funding for organic waste diversion or dairy digesters.

The Governor’s January budget proposal is available here.

CPUC Issues Proposed Decision on Voluntary RNG Tariff

The CPUC has issued a Proposed Decision that would adopt a voluntary tariff for customers of SoCalGas and SDG&E to choose to purchase biomethane.  The tariff requires that at least half of the biomethane purchased by the utilities is generated in California and half of that portion must come from sources other than landfill gas to help California meet is Short-Lived Climate Pollutant and waste reduction goals.  The tariff will include biomethane generate from biomass conversion (gasification and pyrolysis) as well as the biomethane from anaerobic digestion of organic waste.  The Proposed Decision would approve the voluntary tariff as a three-year pilot program and will then assess whether to make it permanent or replace with a biomethane procurement program.

See:  Proposed Decision on voluntary RNG tariff

CA Board of Forestry Adopts Biomass Utilization Plan

On November 4, the California Board of Forestry adopted a forest biomass utilization plan that recommends many actions to put California’s extensive forest waste to beneficial re-use, including numerous bioenergy recommendations.  Some of the most important recommendations related to bioenergy are:

  • Consolidated permitting
  • State procurement of bioenergy
  • Inclusion of forest biomass in microgrid tariffs
  • Allocating 20% of electricity and gas R&D funding (EPIC and PIER) to forest biomass, including biomass to hydrogen projects
  • Adopting pipeline standards for biomass and hydrogen
  • Incentivizing both electricity and pipeline interconnection for forest biomass projects
  • Incentivizing use of forest biomass under the Low Carbon Fuel Standard
  • Increasing BioMAT category 3 (forest waste) to 250 MW and allowing Community Choice Aggregators (CCA’s) and publicly owned utilities to participate in the program
  • Requiring a portion of new RPS power to be baseload and flexible generation

Read:  Joint Institute Wood and Biomass Utilization Recommendations

BAC Comments on CPUC Microgrid Proposal

The CPUC’s Staff Proposal on Track 2 of the microgrid proceeding was very disappointing.  The Commission failed to propose requirements for microgrids to include a diverse portfolio of energy and storage sources, to transition to renewable fuels and cleaner technologies, to require long-duration energy storage, or to move beyond pilot scale programs.  BAC’s comments on the Staff Proposal urge the Commission to include bioenergy and other forms of baseload and flexible generation power and to add requirements for long-duration storage (which biogas and biomethane can provide), to move away from fossil fuels, and to expand the program beyond pilot projects.

See BAC Comments on Microgrid Track 2 Staff Proposal

CPUC Launches Microgrid Track 2

The CPUC is required by state law  to adopt a microgrid tariff and other policies to support microgrid development.  The CPUC recently adopted a decision implementing several short-term actions that are intended to expand the use of microgrids during the 2020 wildfire season.  The Commission also just issued a Staff Proposal on Track 2 of the proceeding, which addresses the need for a statewide microgrid tariff, expanded use of micrgrids to maintain power for essential services and other issues.

See CPUC’s Track 2 Microgrid Proposal

BAC’s Comments on Proposed BioMAT Decision

BAC submitted comments in support of the Proposed Decision on BioMAT, which is a 250 megawatt program required by state law (SB 1122, Rubio, 2012).  Most importantly, the Proposed Decision will extend the program end date to the end of 2025.  BAC also supports the Proposed Decision to increase flexibility for developers, set deadlines for utility’s, and to convert to a statewide program in recognition of the statewide benefits that BioMAT projects provide.

See BAC Comments on Proposed BioMAT Decision