Energy: hydrogen.

Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including gas corporations. Existing law authorizes the PUC to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. The California Renewables Portfolio Standard Program requires the PUC to adopt policies and programs that promote the in-state production and distribution of biomethane. Existing law requires the PUC to adopt, by rule or order, standards for biomethane that specify the concentrations of constituents of concern that are reasonably necessary to protect public health and ensure pipeline integrity and safety, and that specify requirements for monitoring, testing, reporting, and recordkeeping. Existing law requires a gas corporation to comply with those standards and requirements and requires that gas corporation tariffs condition access to common carrier pipelines on the applicable customer meeting those standards and requirements. Existing law requests the California Council on Science and Technology to undertake and complete a study analyzing the regional and gas-corporation-specific issues relating to minimum heating value and maximum siloxane specifications adopted by the PUC for biomethane before it can be injected into common carrier gas pipelines. If the California Council on Science and Technology agrees to undertake and complete the study, existing law requires the PUC, within 6 months of its completion, to reevaluate requirements and standards adopted for injection of biomethane into common carrier pipelines and, if appropriate, change those requirements and standards or adopt new requirements and standards, giving due deference to the conclusions and recommendations made in the study. This bill would request the California Council on Science and Technology, in consultation with the PUC, the State Air Resources Board (state board) , and the State Energy Resources Conservation and Development Commission (Energy Commission) , to undertake and, within 12 months of entering into the contract, to complete a study analyzing the potential impacts of increased hydrogen concentration in the natural gas supply on the California natural gas system, to include specified information. If the California Council on Science and Technology agrees to undertake and complete the study, the bill would require the council, upon completion of the study, to transmit it to the PUC, the state board, and the Energy Commission for their consideration. The bill would require each gas corporation operating common carrier pipelines to proportionately contribute to the expenses to undertake the study, with the cost recoverable in rates. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, this bill would impose a state-mandated local program by creating a new crime. 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.