(a) The commission, in consultation with the State Air Resources Board, shall consider adopting specific biomethane procurement targets or goals for each gas corporation and core transport agent, as defined in Section 980, so that each gas corporation and core transport agent procures a proportionate share, as determined by the commission, of biomethane annually. Before establishing biomethane procurement targets or goals, the commission shall make both of the following findings:

(1) The targets or goals are cost-effective means of achieving the forecast reduction in the emissions of short-lived climate pollutants pursuant to § 39730.5 of the Health and Safety Code and other greenhouse gases pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code).

(2) The targets or goals comply with all applicable state and federal laws.

(b) If the commission adopts specific biomethane procurement targets or goals for each gas corporation and core transport agent pursuant to subdivision (a), the commission shall do all of the following:

(1) Consider the recommendations developed pursuant to § 39730.8 of the Health and Safety Code.

(2) Ensure the targets or goals are consistent with the organic waste disposal reduction targets specified in § 39730.6 of the Health and Safety Code and the regulations adopted pursuant to § 42652.5 of the Public Resources Code to achieve those targets.

(3) Ensure that biomethane eligible for any procurement program meets one of the following conditions:

(A) The biomethane is delivered to California through a dedicated pipeline.

(B) The biomethane is delivered to California through a common carrier pipeline and meets both of the following requirements:

(i) The source of biomethane injects the biomethane into a common carrier pipeline that physically flows within California, or toward the end user in California for which the biomethane was produced.

(ii) The seller or purchaser of the biomethane demonstrates that the capture or production of biomethane 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, toxic air contaminant, or greenhouse gas 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.

(4) Authorize a core transport agent to enter into an agreement with a gas corporation for the gas corporation to procure the core transport agent’s proportionate share of biomethane in order to satisfy the specific biomethane procurement targets or goals adopted by the commission, with all costs paid for by the core transport agent and any environmental attributes allocated by the commission in a fair and transparent manner.

(c)  The commission shall initially allocate each core transport agent their proportional share of the existing biomethane procurement targets established by commission Decision 22-02-025 (February 24, 2022) Decision Implementing Senate Bill 1440 Biomethane Procurement Program. This subdivision shall not prohibit the commission from establishing additional biomethane targets.

(Amended by Stats. 2023, Ch. 339, Sec. 1. (AB 678) Effective January 1, 2024.)