source of biomethane, the dilution of biomethane after it is injected into the pipeline, the equipment and technology upgrades required to meet the minimum heating value specifications, including the impacts of those specifications on the cost, volume of biomethane sold, equipment operation, and safety. The study shall also consider whether different sources of biogas should have different standards or if all sources should adhere to one standard for the minimum heating value and maximum permissible level of siloxanes. The study shall develop the best science reasonably available and not merely be a literature review. In order to meet the state’s goals for reducing emissions of greenhouse gases and short-lived climate pollutants and the state’s goals for promoting the use of renewable energy resources in place of burning fossil fuels, the [CCST], if it agrees to undertake and complete the study, shall complete the study within nine months of entering into a contract to undertake and complete the study. (1) If the [CCST] agrees to undertake and complete the study pursuant to subdivision (a), the commission shall require each gas corporation operating common carrier pipelines in California to proportionately contribute to the expenses to undertake the study pursuant to Sections 740 and 740.1. The commission may modify the monetary incentives made available pursuant to commission Decision 15-06-029 (June 11, 2015), Decision Regarding the Costs of Compliance with Decision 14-01-034 and Adoption of Biomethane Promotion Policies and Program, to allocate some of the moneys that would be made available for incentives to instead be made available to pay for the costs of the study so as to not further burden ratepayers with additional expense. The commission’s authority pursuant to paragraph (1) shall apply notwithstanding whether the gas corporation has proposed the program pursuant to Section 740.1.
Practice and Procedure. Opening comments were filed by PG&E, and by SoCalGas and SDG&E. Those comments have been considered and appropriate changes have been made. Assignment of Proceeding Carla J. Peterman is the assigned Commissioner, and John S. Wong is the assigned Administrative Law Judge in this proceeding. Findings of Fact In D.14-01-034, the Commission, among other things, adopted standards that specify the concentration of allowable constituents of concern in biomethane that can be injected into the natural gas utility’s pipeline. In D.15-06-029, the Commission addressed the cost issues associated with meeting the biomethane standards and requirements adopted in D.14-01-034, and implemented the biomethane monetary incentive program. On December 1, 2015, CRNG filed a petition for modification of D.15-06-029 requesting that modifications be made in three areas. Among other things, SB 840 added Public Utilities Code Section 784.1 in which the Legislature requests that the CCST undertake and complete a study relating to minimum heating value and the maximum siloxane specification for biomethane, and for the Commission to reevaluate the requirements and standards adopted in D.14-01-034 while giving due deference to the CCST study. Effective January 1, 2017, and as a result of AB 2313, Public Utilities Code Section 399.19 modifies the monetary incentive program adopted in D.15-06-029.