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H.B. 192

             1     

RENEWABLE ENERGY - METHANE GAS

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Christine F. Watkins

             5     
Senate Sponsor: David P. Hinkins

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill addresses the treatment of electrical energy derived from certain methane gas
             10      as a renewable energy source under Title 10, Chapter 19, Municipal Electric Utility
             11      Carbon Emission Reduction Act, and Title 54, Chapter 17, Energy Resource
             12      Procurement Act.
             13      Highlighted Provisions:
             14          This bill:
             15          .    provides that electrical energy derived from methane gas from certain coal mine
             16      facilities is among the types of waste gases considered as a renewable energy source
             17      under Title 10, Chapter 19, Municipal Electric Utility Carbon Emission Reduction
             18      Act, and Title 54, Chapter 17, Energy Resource Procurement Act; and
             19          .    makes technical changes.
             20      Monies Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          10-19-102, as enacted by Laws of Utah 2008, Chapter 374
             27          54-17-601, as enacted by Laws of Utah 2008, Chapter 374


             28     
             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 10-19-102 is amended to read:
             31           10-19-102. Definitions.
             32          As used in this chapter:
             33          (1) "Adjusted retail electric sales" means the total kilowatt-hours of retail electric sales
             34      of a municipal electric utility to customers in this state in a calendar year, reduced by:
             35          (a) the amount of those kilowatt-hours attributable to electricity generated or purchased
             36      in that calendar year from qualifying zero carbon emissions generation and qualifying carbon
             37      sequestration generation;
             38          (b) the amount of those kilowatt-hours attributable to electricity generated or purchased
             39      in that calendar year from generation located within the geographic boundary of the Western
             40      Electricity Coordinating Council that derives its energy from one or more of the following but
             41      that does not satisfy the definition of a renewable energy source or that otherwise has not been
             42      used to satisfy Subsection 10-19-201 (1):
             43          (i) wind energy;
             44          (ii) solar photovoltaic and solar thermal energy;
             45          (iii) wave, tidal, and ocean thermal energy;
             46          (iv) except for combustion of wood that has been treated with chemical preservatives
             47      such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
             48      byproducts, including:
             49          (A) organic waste;
             50          (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
             51      forest or rangeland ecological health and to reduce wildfire risk;
             52          (C) agricultural residues;
             53          (D) dedicated energy crops; and
             54          (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
             55      digesters, or municipal solid waste;
             56          (v) geothermal energy;
             57          (vi) hydro-electric energy; or
             58          (vii) waste gas and waste heat capture or recovery; and


             59          (c) the number of kilowatt-hours attributable to reductions in retail sales in that
             60      calendar year from activities or programs promoting electric energy efficiency or conservation
             61      or more efficient management of electric energy load.
             62          (2) "Amount of kilowatt-hours attributable to electricity generated or purchased in that
             63      calendar year from qualifying carbon sequestration generation," for qualifying carbon
             64      sequestration generation, means the kilowatt-hours supplied by a facility during the calendar
             65      year multiplied by the ratio of the amount of carbon dioxide captured from the facility and
             66      sequestered to the sum of the amount of carbon dioxide captured from the facility and
             67      sequestered plus the amount of carbon dioxide emitted from the facility during the same
             68      calendar year.
             69          (3) "Banked renewable energy certificate" means a bundled or unbundled renewable
             70      energy certificate that is:
             71          (a) not used in a calendar year to comply with this part or with a renewable energy
             72      program in another state; and
             73          (b) carried forward into a subsequent year.
             74          (4) "Bundled renewable energy certificate" means a renewable energy certificate for
             75      qualifying electricity that is acquired:
             76          (a) by a municipal electric utility by a trade, purchase, or other transfer of electricity
             77      that includes the renewable energy attributes of, or certificate that is issued for, the electricity;
             78      or
             79          (b) by a municipal electric utility by generating the electricity for which the renewable
             80      energy certificate is issued.
             81          (5) "Commission" means the Public Service Commission.
             82          (6) "Municipal electric utility" means any municipality that owns, operates, controls, or
             83      manages a facility that provides electric power for a retail customer, whether domestic,
             84      commercial, industrial, or otherwise.
             85          (7) "Qualifying carbon sequestration generation" means a fossil-fueled generating
             86      facility located within the geographic boundary of the Western Electricity Coordinating
             87      Council that:
             88          (a) becomes operational or is retrofitted on or after January 1, 2008; and
             89          (b) reduces carbon dioxide emissions into the atmosphere through permanent


             90      geological sequestration or through other verifiably permanent reductions in carbon dioxide
             91      emissions through the use of technology.
             92          (8) "Qualifying electricity" means electricity generated on or after January 1, 1995
             93      from a renewable energy source if:
             94          (a) (i) the renewable energy source is located within the geographic boundary of the
             95      Western Electricity Coordinating Council; or
             96          (ii) the qualifying electricity is delivered to the transmission system of a municipal
             97      electric utility or a delivery point designated by the municipal electric utility for the purpose of
             98      subsequent delivery to the municipal electric utility; and
             99          (b) the renewable energy attributes of the electricity are not traded, sold, transferred, or
             100      otherwise used to satisfy another state's renewable energy program.
             101          (9) "Qualifying zero carbon emissions generation":
             102          (a) means a generation facility located within the geographic boundary of the Western
             103      Electricity Coordinating Council that:
             104          (i) becomes operational on or after January 1, 2008; and
             105          (ii) does not produce carbon as a byproduct of the generation process;
             106          (b) includes generation powered by nuclear fuel; and
             107          (c) does not include renewable energy sources used to satisfy a target established under
             108      Section 10-19-201 .
             109          (10) "Renewable energy certificate" means a certificate issued in accordance with the
             110      requirements of Sections 10-19-202 and 54-17-603 .
             111          (11) "Renewable energy source" means:
             112          (a) an electric generation facility or generation capability or upgrade that becomes
             113      operational on or after January 1, 1995 that derives its energy from one or more of the
             114      following:
             115          (i) wind energy;
             116          (ii) solar photovoltaic and solar thermal energy;
             117          (iii) wave, tidal, and ocean thermal energy;
             118          (iv) except for combustion of wood that has been treated with chemical preservatives
             119      such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
             120      byproducts, including:


             121          (A) organic waste;
             122          (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
             123      forest or rangeland ecological health and to reduce wildfire risk;
             124          (C) agricultural residues;
             125          (D) dedicated energy crops; and
             126          (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
             127      digesters, or municipal solid waste;
             128          (v) geothermal energy located outside the state;
             129          (vi) waste gas and waste heat capture or recovery[; or] whether or not it is renewable,
             130      including methane gas from:
             131          (A) an abandoned or working coal mine; or
             132          (B) a coal degassing operation associated with a state-approved mine permit; or
             133          (vii) efficiency upgrades to a hydroelectric facility, without regard to the date upon
             134      which the facility became operational, if the upgrades become operational on or after January
             135      1, 1995;
             136          (b) any of the following:
             137          (i) up to 50 average megawatts of electricity per year per municipal electric utility from
             138      a certified low-impact hydroelectric facility, without regard to the date upon which the facility
             139      becomes operational, if the facility is certified as a low-impact hydroelectric facility on or after
             140      January 1, 1995, by a national certification organization;
             141          (ii) geothermal energy if located within the state, without regard to the date upon which
             142      the facility becomes operational; and
             143          (iii) hydroelectric energy if located within the state, without regard to the date upon
             144      which the facility becomes operational;
             145          (c) hydrogen gas derived from any source of energy described in Subsection (11)(a) or
             146      (b);
             147          (d) if an electric generation facility employs multiple energy sources, that portion of the
             148      electricity generated that is attributable to energy sources described in Subsections (11)(a)
             149      through (c); and
             150          (e) any of the following located in the state and owned by a user of energy:
             151          (i) a demand side management measure, as defined by Subsection 54-7-12.8 (1) with


             152      the quantity of renewable energy certificates to which the user is entitled determined by the
             153      equivalent energy saved by the measure;
             154          (ii) a solar thermal system that reduces the consumption of fossil fuels, with the
             155      quantity of renewable energy certificates to which the user is entitled determined by the
             156      equivalent kilowatt-hours saved, except to the extent the commission determines otherwise
             157      with respect to net-metered energy;
             158          (iii) a solar photovoltaic system that reduces the consumption of fossil fuels with the
             159      quantity of renewable energy certificates to which the user is entitled determined by the total
             160      production of the system, except to the extent the commission determines otherwise with
             161      respect to net-metered energy;
             162          (iv) a hydroelectric or geothermal facility, with the quantity of renewable energy
             163      certificates to which the user is entitled determined by the total production of the facility,
             164      except to the extent the commission determines otherwise with respect to net-metered energy;
             165          (v) a waste gas or waste heat capture or recovery system other than from a combined
             166      cycle combustion turbine that does not use waste gas or waste heat, with the quantity of
             167      renewable energy certificates to which the user is entitled determined by the total production of
             168      the system, except to the extent the commission determines otherwise with respect to
             169      net-metered energy; and
             170          (vi) the station use of solar thermal energy, solar photovoltaic energy, hydroelectric
             171      energy, geothermal energy, waste gas, or waste heat capture and recovery.
             172          (12) "Unbundled renewable energy certificate" means a renewable energy certificate
             173      associated with:
             174          (a) qualifying electricity that is acquired by a municipal electric utility or other person
             175      by trade, purchase, or other transfer without acquiring the electricity for which the certificate
             176      was issued; or
             177          (b) activities listed in Subsection (11)(e).
             178          Section 2. Section 54-17-601 is amended to read:
             179           54-17-601. Definitions.
             180          As used in this part:
             181          (1) "Adjusted retail electric sales" means the total kilowatt-hours of retail electric sales
             182      of an electrical corporation to customers in this state in a calendar year, reduced by:


             183          (a) the amount of those kilowatt-hours attributable to electricity generated or purchased
             184      in that calendar year from qualifying zero carbon emissions generation and qualifying carbon
             185      sequestration generation;
             186          (b) the amount of those kilowatt-hours attributable to electricity generated or purchased
             187      in that calendar year from generation located within the geographic boundary of the Western
             188      Electricity Coordinating Council that derives its energy from one or more of the following but
             189      that does not satisfy the definition of a renewable energy source or that otherwise has not been
             190      used to satisfy Subsection 54-17-602 (1):
             191          (i) wind energy;
             192          (ii) solar photovoltaic and solar thermal energy;
             193          (iii) wave, tidal, and ocean thermal energy;
             194          (iv) except for combustion of wood that has been treated with chemical preservatives
             195      such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
             196      byproducts, including:
             197          (A) organic waste;
             198          (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
             199      forest or rangeland ecological health and to reduce wildfire risk;
             200          (C) agricultural residues;
             201          (D) dedicated energy crops; and
             202          (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
             203      digesters, or municipal solid waste;
             204          (v) geothermal energy;
             205          (vi) hydroelectric energy; or
             206          (vii) waste gas and waste heat capture or recovery; and
             207          (c) the number of kilowatt-hours attributable to reductions in retail sales in that
             208      calendar year from demand side management as defined in Section 54-7-12.8 , with the
             209      kilowatt-hours for an electrical corporation whose rates are regulated by the commission and
             210      adjusted by the commission to exclude kilowatt-hours for which a renewable energy certificate
             211      is issued under Subsection 54-17-603 (4)(b).
             212          (2) "Amount of kilowatt-hours attributable to electricity generated or purchased in that
             213      calendar year from qualifying carbon sequestration generation," for qualifying carbon


             214      sequestration generation, means the kilowatt-hours supplied by a facility during the calendar
             215      year multiplied by the ratio of the amount of carbon dioxide captured from the facility and
             216      sequestered to the sum of the amount of carbon dioxide captured from the facility and
             217      sequestered plus the amount of carbon dioxide emitted from the facility during the same
             218      calendar year.
             219          (3) "Banked renewable energy certificate" means a bundled or unbundled renewable
             220      energy certificate that is:
             221          (a) not used in a calendar year to comply with this part or with a renewable energy
             222      program in another state; and
             223          (b) carried forward into a subsequent year.
             224          (4) "Bundled renewable energy certificate" means a renewable energy certificate for
             225      qualifying electricity that is acquired:
             226          (a) by an electrical corporation by a trade, purchase, or other transfer of electricity that
             227      includes the renewable energy attributes of, or certificate that is issued for, the electricity; or
             228          (b) by an electrical corporation by generating the electricity for which the renewable
             229      energy certificate is issued.
             230          (5) "Electrical corporation":
             231          (a) is as defined in Section 54-2-1 ; and
             232          (b) does not include a person generating electricity that is not for sale to the public.
             233          (6) "Qualifying carbon sequestration generation" means a fossil-fueled generating
             234      facility located within the geographic boundary of the Western Electricity Coordinating
             235      Council that:
             236          (a) becomes operational or is retrofitted on or after January 1, 2008; and
             237          (b) reduces carbon dioxide emissions into the atmosphere through permanent
             238      geological sequestration or through another verifiably permanent reduction in carbon dioxide
             239      emissions through the use of technology.
             240          (7) "Qualifying electricity" means electricity generated on or after January 1, 1995
             241      from a renewable energy source if:
             242          (a) (i) the renewable energy source is located within the geographic boundary of the
             243      Western Electricity Coordinating Council; or
             244          (ii) the qualifying electricity is delivered to the transmission system of an electrical


             245      corporation or a delivery point designated by the electrical corporation for the purpose of
             246      subsequent delivery to the electrical corporation; and
             247          (b) the renewable energy attributes of the electricity are not traded, sold, transferred, or
             248      otherwise used to satisfy another state's renewable energy program.
             249          (8) "Qualifying zero carbon emissions generation":
             250          (a) means a generation facility located within the geographic boundary of the Western
             251      Electricity Coordinating Council that:
             252          (i) becomes operational on or after January 1, 2008; and
             253          (ii) does not produce carbon as a byproduct of the generation process;
             254          (b) includes generation powered by nuclear fuel; and
             255          (c) does not include renewable energy sources used to satisfy the requirement
             256      established under Subsection 54-17-602 (1).
             257          (9) "Renewable energy certificate" means a certificate issued under Section 54-17-603 .
             258          (10) "Renewable energy source" means:
             259          (a) an electric generation facility or generation capability or upgrade that becomes
             260      operational on or after January 1, 1995 that derives its energy from one or more of the
             261      following:
             262          (i) wind energy;
             263          (ii) solar photovoltaic and solar thermal energy;
             264          (iii) wave, tidal, and ocean thermal energy;
             265          (iv) except for combustion of wood that has been treated with chemical preservatives
             266      such as creosote, pentachlorophenol or chromated copper arsenate, biomass and biomass
             267      byproducts, including:
             268          (A) organic waste;
             269          (B) forest or rangeland woody debris from harvesting or thinning conducted to improve
             270      forest or rangeland ecological health and to reduce wildfire risk;
             271          (C) agricultural residues;
             272          (D) dedicated energy crops; and
             273          (E) landfill gas or biogas produced from organic matter, wastewater, anaerobic
             274      digesters, or municipal solid waste;
             275          (v) geothermal energy located outside the state;


             276          (vi) waste gas and waste heat capture or recovery[; or] whether or not it is renewable,
             277      including methane gas from:
             278          (A) an abandoned or working coal mine; or
             279          (B) a coal degassing operation associated with a state-approved mine permit; or
             280          (vii) efficiency upgrades to a hydroelectric facility, without regard to the date upon
             281      which the facility became operational, if the upgrades become operational on or after January
             282      1, 1995;
             283          (b) any of the following:
             284          (i) up to 50 average megawatts of electricity per year per electrical corporation from a
             285      certified low-impact hydroelectric facility, without regard to the date upon which the facility
             286      becomes operational, if the facility is certified as a low-impact hydroelectric facility on or after
             287      January 1, 1995, by a national certification organization;
             288          (ii) geothermal energy if located within the state, without regard to the date upon which
             289      the facility becomes operational; or
             290          (iii) hydroelectric energy if located within the state, without regard to the date upon
             291      which the facility becomes operational;
             292          (c) hydrogen gas derived from any source of energy described in Subsection (10)(a) or
             293      (b);
             294          (d) if an electric generation facility employs multiple energy sources, that portion of the
             295      electricity generated that is attributable to energy sources described in Subsections (10)(a)
             296      through (c); and
             297          (e) any of the following located in the state and owned by a user of energy:
             298          (i) a demand side management measure, as defined by Subsection 54-7-12.8 (1), with
             299      the quantity of renewable energy certificates to which the user is entitled determined by the
             300      equivalent energy saved by the measure;
             301          (ii) a solar thermal system that reduces the consumption of fossil fuels, with the
             302      quantity of renewable energy certificates to which the user is entitled determined by the
             303      equivalent kilowatt-hours saved, except to the extent the commission determines otherwise
             304      with respect to net-metered energy;
             305          (iii) a solar photovoltaic system that reduces the consumption of fossil fuels with the
             306      quantity of renewable energy certificates to which the user is entitled determined by the total


             307      production of the system, except to the extent the commission determines otherwise with
             308      respect to net-metered energy;
             309          (iv) a hydroelectric or geothermal facility with the quantity of renewable energy
             310      certificates to which the user is entitled determined by the total production of the facility,
             311      except to the extent the commission determines otherwise with respect to net-metered energy;
             312          (v) a waste gas or waste heat capture or recovery system, other than from a combined
             313      cycle combustion turbine that does not use waste gas or waste heat, with the quantity of
             314      renewable energy certificates to which the user is entitled determined by the total production of
             315      the system, except to the extent the commission determines otherwise with respect to
             316      net-metered energy; and
             317          (vi) the station use of solar thermal energy, solar photovoltaic energy, hydroelectric
             318      energy, geothermal energy, waste gas, or waste heat capture and recovery.
             319          (11) "Unbundled renewable energy certificate" means a renewable energy certificate
             320      associated with:
             321          (a) qualifying electricity that is acquired by an electrical corporation or other person by
             322      trade, purchase, or other transfer without acquiring the electricity for which the certificate was
             323      issued; or
             324          (b) activities listed in Subsection (10)(e).




Legislative Review Note
    as of 1-19-10 1:47 PM


Office of Legislative Research and General Counsel


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