SB 154 — Requires the adoption of regulations authorizing certain renewable natural gas activities. (BDR 58-108)

(ReprintedSenate withBill amendmentsNo. adopted on April 17, 2019) FIRST REPRINT S.B.

154154–Senator SENATECancela BCHAPTER.......... ILLN O.

154–SENATOR CANCELA FEBRUARY 13, 2019 ____________ Referred to Committee on Growth and Infrastructure SUMMARY—Requires the adoption of regulations authorizing certain renewable natural gas activities.

(BDR 58-108) FISCAL NOTE:

Effect on Local Government:

May have Fiscal Impact.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

LegThisLegislative billCounsel’s requiresDigest: the Public Utilities Commission of Nevada to adopt regulations authorizing a public utility which purchases natural gas for resale to engage in renewable energy activities and to recover all reasonable and prudent costs associated with the public utility’s participation in a renewable natural gas activity which provides certain environmental benefits and has been approved by for resale to attempt to meet certain goals for incorporating renewable natural gass into its gas supply portfolio.

-regulations *SB154_R1*authorizing –a 2public –utility THEwhich PEOPLEpurchases OFnatural THEgas STATEfor OFresale NEVADA,to REPRESENTEDengage INin SENATErenewable ANDenergy ASSEMBLY,activities DOand ENACTto ASrecover FOLLOWS:all reasonable and prudent costs associated with the public utility’s participation in a renewable natural gas activity which provides certain environmental benefits and has been approved by the Commission.

This bill also requires a public utility which purchases natural gas into its gas supply portfolio.certain goals for incorporating renewable natural gas EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

“Renewable energy” has the meaning ascribed to it in NRSNRSSec. 704.7811.

Sec.

- 80th Session (2019) – 2 – 1.

and 2.pipeline into which the gas will be injected.e to the natural gas Sec.

Meets the quality standards applicable to the natural gas pipeline into which the gas will be injected.

Sec.

“Renewable natural gas facility” means a facility or any part of the equipment located at a facility that is used to create biogas, create hydrogen for methanation, gather biogas, gather hydrogen, process biogas into renewable natural gas, inject renewable natural gas into a natural gas pipeline or determine the constituents of renewable natural gas before the injection of the renewable natural gas into a natural gas pipeline.

and - *SB154_R1* – 3 – (b) Procedures for a public utility which purchases natural gas for resale to apply to the Commission for the recovery of all reasonable and prudent costs associated with a renewable natural gas activity approved by the Commission pursuant to the regulations adopted pursuant to this subsection.

2.activity pursuant to subsection 1 if the renewable natural gas activity is demonstrated to provide one or more of the following environmental benefits to this State:

The Commission may approve a renewable natural gas activity pursuant to subsection 1 if the renewable natural gas activity is demonstrated to provide one or more of the following environmental benefits to this State:

(b)- Contracting80th withSession a(2019) producer– of3 – build and operate a renewable natural gas facility;ural gas to build(c) andExtending operatethe transmission or distribution system of the public utility which purchases natural gas for resale to interconnect with a renewable natural gas facility;

(c) Extending the transmission or distribution system of the public utility which purchases natural gas for resale to interconnect with a renewable natural gas facility;

(1) Consists of the purchase or sale of gas produced by a renewable natural gas facility or environmental attributes by the public(2) Results in a reduction of the cost of gas produced from a renewable natural gas facility to the customers of the public utility;

and (2) Results in a reduction of the cost of gas produced from a renewable natural gas facility to the customers of the public utility;

or - *SB154_R1* – 4 – (g) Any other activity which develops sources of renewable natural gas in this State for the purpose of reducing emissions of greenhouse gases, creating jobs through the construction and operation of renewable natural gas facilities in this State and div4.siAdiversifying publicthe utility which purchases natural gas for resale shall attempt to incorporate renewable natural gas into its gas supply portfolioof energy in thethis followingState. amounts:

(a)4. By January 1, 2025, not less than 1 percent of the total amount of gas sold to by public utility to its retail customers;

A public utility which purchases natural gas for resale shall attempt to incorporate renewable natural gas into its gas supply portfolio in the following amounts:

amount of gas sold to by public utility to its retail customers;

and - 80th Session (2019) – 4 – 2.

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