Sacramento, CA—Today the Senate approved and sent to the Assembly SB 1018, authored by Senator Josh Becker (D-Menlo Park), a bill that will foster a green hydrogen industry in California and reduce greenhouse gas (GHG) emissions in the industrial sector while avoiding further stresses to the electricity grid.
SB 1018 allows hydrogen producers or industrial customers to be supplied with clean electricity directly from large solar or wind farms rather than using power from the grid. This is similar to installing rooftop solar, except that the amount of power needed for hydrogen production or a factory requires acres of land for the solar or wind generation, something that is not currently allowed by current regulations that limit “behind-the-meter” generation to a single property or an adjacent property. This bill creates a narrow, new exception that would allow a large solar or wind generator to sell their output directly to a single customer for the purpose of producing hydrogen or providing industrial heat.
“Hydrogen is an important and versatile tool for achieving our climate goals, and we must utilize every option if we are to remain on track to achieve those goals,” said Becker. “SB 1018 furthers our climate goals by aligning our power sector policies with other state and federal policies to support the development of low-carbon hydrogen and incentivize industry to move away from burning fossil fuels.”
SB 1018 is supported by 350 Sacramento, Advanced Energy Economy, CA Hydrogen Coalition, CA State Association of Electrical Workers, CA State Pipe Trades Council, Climate Action California, Climate Reality Project, Silicon Valley, Coalition of CA Utility Employees, Green Hydrogen Coalition, Industrious Labs, Intersect Power, NRDC, Project 2030, Rondo Energy, and Sierra Club. It now head to the Assembly for consideration.