Energy: Renewable Gas Building Program.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms in regulating those emissions. The implementing regulations adopted by the state board provide for the direct allocation of greenhouse gas allowances to electrical corporations and gas corporations pursuant to a market-based compliance mechanism. Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law requires the commission to develop and supervise the administration of the Building Initiative for Low-Emissions Development Program to require gas corporations to provide incentives to eligible applicants, as defined, for the deployment of near-zero-emission building technologies to significantly reduce the emissions of greenhouse gases from buildings, as specified. This bill would require the commission to develop and supervise the administration of the Renewable Gas Building Program to require gas corporations to provide incentives to residential customers or developers who choose, or are required, to purchase renewable gas to significantly reduce the emissions of greenhouse gases from the buildings sector. The bill would, for 4 fiscal years beginning July 1, 2020, require the commission to annually allocate $50,000,000 of the revenues received by a gas corporation as a result of the direct allocation of greenhouse gas emissions allowances as part of a market-based compliance mechanism to fund the Renewable Gas Building Program. The bill would provide that the amounts of the incentives provided by the program is to be determined by the commission and would reserve not less that 30% of the moneys allocated for low-income residential housing. Existing law makes any public utility and any corporation or person other than a public utility that violates any part of any order, decision, rule, direction, demand, or requirement of the commission guilty of a crime. Because a violation of commission-ordered requirements under this bill 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.