(a) (1) Any procurement of biomethane delivered through a common carrier pipeline under a contract executed by a retail seller or local publicly owned electric utility and reported to the Energy Commission prior to March 29, 2012, and otherwise eligible under the rules in place as of the date of contract execution shall count toward the procurement requirements established in this article, under the rules in place at the time the contract was executed, including the Fourth Edition of the Energy Commissionâs Renewables Portfolio Standard Eligibility Guidebook, provided that those rules shall apply only to sources that are producing biomethane and injecting it into a common carrier pipeline on or before April 1, 2014. (2) The eligibility requirements of subdivision (b) shall apply beginning March 29, 2012, to any quantities of biomethane associated with any of the following: (A) An extension of the term of the original contract. (B) Any quantity of biomethane that exceeds the quantities of biomethane specified in the original contract. (C) Any optional quantities of biomethane that can be exercised at the discretion of the buyer. (D) Any change in the source or sources of biomethane identified in the original contract or the original application for certification submitted to the Energy Commission. (E) Any quantity of biomethane from a source not producing and capturing biomethane and injecting it into a common carrier pipeline on or before April 1, 2014. (F) The conditions of this paragraph shall apply beginning March 29, 2012. (b) For contracts initially executed on or after March 29, 2012, or for quantities of biomethane associated with contract amendments executed on or after March 29, 2012, the use of biomethane by a generating facility shall not qualify as an eligible renewable energy resource unless it satisfies all applicable requirements established by the Energy Commission and meets any of the following requirements: (1) The biomethane is used by an onsite generating facility. (2) The biomethane is used by an offsite generating facility and delivered to the generating facility through a dedicated pipeline. (3) The biomethane is delivered to a generating facility through a common carrier pipeline and meets all of the following requirements: (A) The source of biomethane injects the biomethane into a common carrier pipeline that physically flows within California or toward the generating facility for which the biomethane was procured under the original contract. (B) The source of biomethane did not inject biomethane into a common carrier pipeline prior to March 29, 2012, or the source commenced injection of sufficient incremental quantities of biomethane after March 29, 2012, to satisfy the contract requirements. (C) The seller or purchaser of the biomethane demonstrates that the capture and injection of biomethane into a common carrier pipeline directly results in at least one of the following environmental benefits to California: (i) The reduction or avoidance of the emission of any criteria air pollutant in California. (ii) The reduction or avoidance of pollutants that could have an adverse impact on waters of the state. (iii) The alleviation of a local nuisance within California that is associated with the emission of odors. (c) For all electricity products generated using biomethane that are credited toward the renewables portfolio standard procurement obligations established pursuant to this article, sufficient renewable and environmental attributes of biomethane production and capture shall be transferred to the retail seller or local publicly owned electric utility that uses that biomethane to ensure that there are zero net emissions associated with the production of electricity from the generating facility using the biomethane. The provisions of this subdivision shall be applied in a manner consistent with the definition of âgreen attributesâ as specified by the commission in Decision 08-08-028, Decision on
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