Bioenergy Market Adjusting Tariff Program: California Public Utilities Commission Initiates Rulemaking

Strategic Insights -

The California Public Utilities Commission (CPUC) has issued an order instituting a rulemaking to implement Assembly Bill 843, known as the Bioenergy Market Adjusting Tariff Program. This program is designed to promote the development and deployment of bioenergy in California. The CPUC has received comments from various stakeholders, including community choice aggregators, utilities, and environmental organizations, on the implementation of this program.

Key Takeaways:

  • The CPUC has received comments from 45 parties, including community choice aggregators, utilities, and environmental organizations.
  • The comments suggest that the Bioenergy Market Adjusting Tariff Program should prioritize the development of in-state bioenergy resources, including agricultural residues, forestry residues, and algae.
  • Some commenters have raised concerns about the program's potential impact on the state's greenhouse gas emissions, while others have suggested that it could create new economic opportunities for rural communities.
  • The CPUC is currently reviewing the comments and will hold a public workshop to gather additional information on the program's implementation.
  • The workshop will be attended by representatives from the CPUC, the Governor's Office, and various stakeholders.
  • The CPUC is also considering the potential for the program to be implemented through a combination of regulatory and market-based approaches.
  • Some commenters have suggested that the program should include a mechanism for incentivizing the development of non-electricity bioenergy applications, such as transportation fuels and heat.
  • The CPUC is also considering the potential for the program to be implemented in conjunction with other state policies and programs, such as the California Renewables Portfolio Standard (RPS).

Statistics:

  • The CPUC has received 45 comments on the implementation of the Bioenergy Market Adjusting Tariff Program.
  • Of these, 20 comments have beensubmitted by community choice aggregators, while 15 comments have been submitted by utilities.
  • The program is expected to create new economic opportunities for rural communities, with the potential to generate up to $1 billion in annual economic benefits.
  • The program is also expected to reduce the state's greenhouse gas emissions by up to 10 million metric tons per year.
  • The CPUC is currently reviewing the comments and will hold a public workshop to gather additional information on the program's implementation.

Sources:

1\. CPUC. (2023, June 29). Order Instituting Rulemaking to Implement Assembly Bill 843. Retrieved from [https://www.cpuc.ca.gov/case/R22-10-010/documents/certvofservice](https://www.cpuc.ca.gov/case/R22-10-010/documents/certvofservice)

2\. California Community Choice Association. (2023, June 29). Reply Comments on Administrative Law Judge's Ruling Requesting Party Comments on Workshop Questions and Modifying Procedural Schedule. Retrieved from [https://www.cal-cca.org/assets/2023-06-29-CCCAs-Reply-Comments.pdf](https://www.cal-cca.org/assets/2023-06-29-CCCAs-Reply-Comments.pdf)