AB 1550: Renewable hydrogen.

Existing law requires the State Air Resources Board to develop and adopt hydrogen fuel regulations to ensure that state funding for the production and use of hydrogen fuel contributes to the reduction of greenhouse gas emissions, criteria air pollutant emissions, and toxic air contaminant emissions, including by requiring that, on a statewide basis, no less than 33.3% of the hydrogen produced for, or dispensed by, fueling stations that receive state funds be made from eligible renewable energy resources, as specified. Under existing law, a violation of those regulations, and other provisions pertaining to motor vehicle fuels, is a crime.

This bill would require, on and after January 1, 2045, that all hydrogen produced and or used in California for the generation of electricity or fueling of vehicles be green hydrogen, renewable hydrogen of nonbiological origin, as defined, or renewable hydrogen of biological origin, as defined, in furtherance of the states policy to achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045. The bill would require the state board, in consultation with the Public Utilities Commission (PUC) and the State Energy Resources Conservation and Development Commission, Commission (Energy Commission), to develop interim targets to ensure the state achieves that requirement. Because a violation of a state board regulation implementing this requirement would be a crime, the bill would impose a state-mandated local program.

The California Renewables Portfolio Standard Program requires the Public Utilities Commission (PUC) PUC to establish a renewables portfolio standard requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, so that the total kilowatthours of those products sold to their retail end-use customers achieves 25% of retail sales by December 31, 2016, 33% by December 31, 2020, 44% by December 31, 2024, 52% by December 31, 2027, and 60% by December 31, 2030.

This bill would prohibit green hydrogen renewable hydrogen of nonbiological origin or renewable hydrogen of biological origin used by a generating facility from qualifying as an eligible renewable energy resource for purposes of that requirement unless it satisfies all applicable requirements established by the State Energy Resources Conservation and Development Commission (Energy Commission) Energy Commission and meets specified requirements. For all electricity generated using green hydrogen renewable hydrogen of nonbiological origin or renewable hydrogen of biological origin that is credited toward the renewables portfolio standard procurement obligations, the bill would require that sufficient renewable and environmental green attributes, as defined, of green hydrogen renewable hydrogen of nonbiological origin or renewable hydrogen of biological origin production and capture be transferred to the retail seller or local publicly owned electric utility that uses that green hydrogen renewable hydrogen of nonbiological origin or renewable hydrogen of biological origin to ensure that there are zero net emissions associated with the production of electricity from the generating facility using the green hydrogen. renewable hydrogen of nonbiological origin or renewable hydrogen of biological origin. The bill would require all sellers and purchasers of green hydrogen renewable hydrogen of nonbiological origin or renewable hydrogen of biological origin to comply with a system for tracking and verifying the use of green hydrogen renewable hydrogen of nonbiological origin or renewable hydrogen of biological origin established by the Energy Commission, as specified.

Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.

Because certain of the above provisions would be part of the act and a violation of a PUC action implementing this bills 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.