AB 998: Biomass energy facilities: State Energy Resources Conservation and Development Commission: report.

Existing law vests the State Energy Resources Conservation and Development Commission with the exclusive power to certify sites and related facilities for thermal powerplants. Existing law requires an electrical corporation, local publicly owned electric utility, or community choice aggregator with a contract to procure electricity generated from biomass that expires or expired on or before December 31, 2028, to seek to amend the contract to include, or seek approval for a new contract that includes, an expiration date 5 years later than the expiration date in the contract that was operative in 2022, except as specified.

This bill would require the commission, on or before December 31, 2024, 2025, to issue a report on the utility-scale biomass combustion facilities still in operation as of January 1, 2024. The bill would require the report to include various assessments of biomass combustion facilities still in operation as of January 1, 2024, and options to maximize the environmental benefits of these facilities. The bill would also require the report to include a recommended strategy to upgrade biomass combustion facilities, where appropriate, that considers impacts on disadvantaged, rural, forested, and agricultural communities, impacts on the ability to maintain existing capacity for managing forest or other excess biomass, the cost of upgrading facilities and financing opportunities, impacts of upgrading biomass combustion facilities on the procurement costs of the energy produced and the associated impacts to ratepayer costs, and job creation or job loss that may result from the strategy. The bill would require the report to include recommendations related to baseload energy generation and managing excess biomass if biomass combustion facilities cease operation and strategies related to processing waste and job training in areas where biomass combustion facilities cease operation. The bill would require the commission to include in the report an evaluation of the practicality and cost-effectiveness of upgrading utility-scale biomass combustion facilities that ceased operation before January 1, 2024, to determine whether such facilities could help California increase its capacity to manage forest and other excess biomass.

The bill would require the commission, in preparing the report, to coordinate with the State Air Resources Board and local air districts on assessments of environmental benefits and available technologies to maximize those benefits. By imposing new duties on local air districts, the bill would impose a state-mandated local program. The bill would also require the commission, in preparing the report, to coordinate with specified state entities for feedstock assessments for forest, agricultural, urban, and postfire waste, engage with and solicit feedback from the communities in which biomass combustion facilities are located and the applicable local governments, and provide opportunities for stakeholder and public input.

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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.