Bill Text: CA AB1295 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Public utilities: renewable energy: community renewables option.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2013-07-02 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB1295 Detail]

Download: California-2013-AB1295-Amended.html

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BILL NUMBER: AB 1295	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Member Roger Hernández

                        FEBRUARY 22, 2013

   An act to  amend Section 399.20 of   add and
repeal Chapter 7.6 (commencing with Section 2831) of Part 2 of
Division 1   of, and to repeal Sections 2832 and 3832.5 of,
 the Public Utilities Code, relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1295, as amended, Roger Hernández. Public utilities: renewable
 energy.  energy: community renewables option.
 
   Under existing law, the Public Utilities Commission has regulatory
jurisdiction over public utilities, including electrical
corporations, as defined, while local publicly owned electric
utilities, as defined, are under the direction of their governing
boards. Existing law authorizes the commission to fix the rates and
charges for every public utility, and requires that those rates and
charges be just and reasonable. Under existing law, the local
government renewable energy self-generation program authorizes a
local government, as defined, to receive a bill credit, as defined,
to be applied to a designated benefiting account for electricity
exported to the electrical grid by an eligible renewable generating
facility, as defined, and requires the commission to adopt a rate
tariff for the benefiting account.  
   The California Renewables Portfolio Standard Program, referred to
as the RPS program, requires a retail seller of electricity, as
defined, and local publicly owned electric utilities to purchase
specified minimum quantities of electricity products from eligible
renewable energy resources, as defined, for specified compliance
periods, sufficient to ensure that the procurement of electricity
products from eligible renewable energy resources achieves 20% of
retail sales for the period January 1, 2011, to December 31, 2013,
inclusive, 25% of retail sales by December 31, 2016, and 33% of
retail sales by December 31, 2020, and in all subsequent years. The
RPS program, consistent with the goals of procuring the least-cost
and best-fit eligible renewable energy resources that meet project
viability principles, requires that all retail sellers procure a
balanced portfolio of electricity products from eligible renewable
energy resources, as specified.  
   This bill would require an electrical corporation and a local
publicly owned electric utility to include provisions in its tariff
and addenda to a standard contract or allow an electrical generation
facility, as defined, to participate in the community renewables
option that would allow the facility to assign the payment by the
electrical corporation or a local publicly owned electric utility due
to that facility to a subscribing customer, as defined, in the form
of a bill credit. The bill would, on and after January 1, 2016,
require the commission and the governing board of the local publicly
owned electric utility to evaluate the demand for the community
renewables option. If the commission or the governing board of a
local publicly owned electric utility finds that the community
renewables option should be discontinued, the bill would make the
provisions applicable to an electrical corporation or that local
publicly owned electric utility, respective, be inoperative. This
bill would repeal the provision of the community renewables option on
January 1, 2020, unless the commission or the governing board of a
local publicly owned electric utility finds that there is an adequate
demand for the community renewables option, in which case, the
provision of the community renewables option would remain in effect
for the electrical corporation or that local publicly owned utility,
respectively.  
   Existing law requires an electrical corporation to file with the
Public Utilities Commission a standard tariff for electricity
purchased from an electric generation facility and makes that tariff
available to the owner or operator of an electric generation facility
within the service territory of the electrical corporation.
 
   This bill would make technical, nonsubstantive changes to the
above provisions and would correct erroneous cross-references.

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Chapter 7.6 (commencing with Section
2831) is added to Part 2 of Division 1 of the   Public
Utilities Code   , to read: 
      CHAPTER 7.6.  COMMUNITY RENEWABLES FACILITY


   2831.  As used in this article, the following terms mean the
following:
   (a) "Community renewables facility" means an electric generation
facility that has elected to participate in the community renewables
option.
   (b) "Community renewables option" means the right of an electrical
generation facility to assign the payment by the electrical
corporation or a publicly owned electric utility due to that facility
in accordance with this article to subscribing customers of the
electrical corporation in the form of a bill credit.
   (c) "Electrical generation facility" means an electrical
generation facility located within the service territory of, and
developed to sell electricity to, an electrical corporation or a
local publicly owned electric utility that meets all of the following
criteria:
   (1) Has an effective capacity of not more than three megawatts.
   (2) Is interconnected and operates in parallel with the electrical
transmission and distribution grid.
   (3) Is strategically located and interconnected to the electrical
transmission and distribution grid in a manner that optimizes the
deliverability of electricity generated at the facility to load
centers.
   (4) Is an eligible renewable energy resource, as defined in
Section 399.12.
   (d) "Subscribing customer" means a customer of an electrical
corporation or publicly owned utility who has subscribed to the
output of a community renewables facility.
   (e) "Subscription amount" means the percentage of kilowatthours
delivered to an electrical corporation or a local publicly owned
electric utility from a community renewables facility to which a
subscribing customer has subscribed.
   2831.5.  A community renewables facility is not an electrical
corporation, as defined in Section 218 or an electric service
provider, as defined in Section 218.3.
   2832.  (a) An electrical corporation shall include provisions in
its tariff and an addendum to a standard contract developed pursuant
to Section 399.20 to provide for a community renewables option
allowing a community renewables facility to assign the payment of
electricity by the electrical corporation due to that facility to a
subscribing customer in the form of a bill credit.
   (b) In approving the tariff, the commission shall ensure all of
the following:
   (1) Customers that do not participate in the community renewables
option are indifferent to whether other customers participate in the
community renewables option, and no costs are shifted from
subscribing customers to nonsubscribing customers.
   (2) An electric generation facility that has executed a standard
contract with an electrical corporation and has begun deliveries
pursuant to the contract may, in its sole discretion, elect to become
a community renewables facility.
   (3) (A) The community renewables facility is solely responsible
for any and all arrangements, agreements, or disputes with its
subscribing customers concerning the community renewables option. The
community renewables facility shall communicate, in writing, to the
electrical corporation, in a timely manner, to be specified in the
electrical corporation's tariff and contract addendum described in
subdivision (c), but not less than once per year, information
necessary for the electrical corporation to make payment under the
standard contract and addendum to the standard contract that,
include, but is not limited to, all of the following:
   (i) The name of each subscribing customer.
   (ii) The service address and service account number of each
subscribing customer to which a bill credit should be applied.
   (iii) Each subscribing customer's subscription amount.
   (iv) The percentage of delivered kilowatthours of electricity that
remains unsubscribed, if any, for which payment should be made
directly to the community renewables facility.
   (B) The electrical corporation shall not be a party to an
arrangement or agreement between the community renewables facility
and the subscribing customer.
   (4) The electrical corporation shall continue to bill subscribing
customers for all electricity consumed pursuant to each subscribing
customer's otherwise applicable tariff. The payments made to a
subscribing customer in the form of a bill credit shall be applied to
the subscribing customer's monthly bill calculated pursuant to the
customer's otherwise applicable tariff.
   (5) All electricity purchases by an electrical corporation
pursuant this section shall be credited towards the electrical
corporation's procurement requirements pursuant to Section 399.15 and
shall count toward the electrical corporation's proportionate share
of the statewide cap specified in Section 399.20.
   (c) The commission shall not authorize the community renewables
option until it has adopted the tariff consistent with this section.
   (d) Notwithstanding paragraph (1) of subdivision (c) of Section
2831, the commission may allow other renewable programs adopted by
the commission, including those programs adopted in commission
decisions 10-12-048 and 09-06-049, as those decisions and programs
may be modified from time to time, that meet the requirements of
subdivisions (a) and (b) to include an equivalent community
renewables option.
   (e) An electrical corporation shall recover from the community
renewables facility any costs of implementing the community
renewables option reasonably attributable to the community facility.
Any implementation costs not reasonably attributable to the community
renewables facility shall not be recovered from the ratepayers, as
determined by the commission.
   (f) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 or Section 365.1, the
electrical corporation that provides distribution service for the
customer is not obligated to allow that customer to participate in a
community renewables option.
   (g) On or before July 1, 2015, an energy service provider or
community choice aggregator shall offer a comparable community
renewables option in accordance with the procurement practices of
that load serving entity. The commission shall review and approve the
community renewables option proposed by the load serving entity to
ensure that it is comparable to the requirements specified in
subdivision (b).
   (h) (1) On and after January 1, 2016, the commission shall
evaluate the demand for the community renewables option and consider
whether to continue offering a community renewables option.
   (2) If the commission determines that the community renewables
option should terminate, the commission shall issue an order to that
effect and deliver a copy of the order to the Secretary of State. The
section shall become inoperative on the effective date of the order.

   (i) (1) Except as provided in paragraph (2), this section shall
remain in effect only until January 1, 2020, and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2020, deletes or extends that date.
   (2) Notwithstanding paragraph (1), if, before January 1, 2020, the
commission finds that there is adequate demand to continue offering
a community renewables option, this section shall remain in effect.
The commission shall issue an order finding an adequate demand to
continue offering a community renewables option and deliver a copy of
the order to the Secretary of State.
   2832.5.  (a) A local publicly owned electric utility shall include
provisions in its tariff and an addendum to a standard contract
developed pursuant to Section 399.32 to provide for a community
renewables option allowing a community renewables facility to assign
the payment of electricity by the local publicly owned electric
utility due to that facility to a subscribing customer in the form of
a bill credit.
   (b) The governing board of the local publicly owned electric
utility shall ensure all of the following:
   (1) Customers that do not participate in the community renewables
option are indifferent to whether other customers participate in the
community renewables option, and no costs are shifted from
subscribing customers to nonsubscribing customers.
   (2) An electric generation facility that has executed a standard
contract with a local publicly owned electric utility and has begun
deliveries pursuant to the contract may, in its sole discretion,
elect to become a community renewables facility.
   (3) (A) The community renewables facility is solely responsible
for any and all arrangements, agreements, or disputes with its
subscribing customers concerning the community renewables option. The
community renewables facility shall communicate, in writing, to the
local publicly owned electric utility, information necessary for the
local publicly owned electric utility to make payment under the
standard contract and addendum to the standard contact that, include,
but is not limited to, all of the following:
   (i) The name of each subscribing customer.
   (ii) The service address and service account number of each
subscribing customer to which a bill credit should be applied.
   (iii) Each subscribing customer's subscription amount.
   (iv) The percentage of delivered kilowatthours of electricity that
remain unsubscribed, if any, for which payment should be made
directly to the community renewables facility.
   (B) The local publicly owned electric utility shall not be a party
to an arrangement or agreement between the community renewables
facility and the subscribing customer.
   (4) The electrical corporation shall continue to bill subscribing
customers for all electricity consumed pursuant to each subscribing
customer's otherwise applicable tariff. The payments made to a
subscribing customer in the form of a bill credit shall be applied to
the subscribing customer's monthly bill calculated pursuant to the
customer's otherwise applicable tariff.
   (5) All electricity purchases by a local publicly owned electric
utility pursuant this section shall be credited towards the local
publicly owned electric utility's procurement requirements pursuant
to Section 399.30.
   (c) The local publicly owned electric utility may allow other
renewable programs it has adopted that meet the requirements of
subdivisions (a) and (b) to include an equivalent community
renewables option.
   (d) (1) On and after January 1, 2016, the governing board of a
local publicly owned electric utility shall evaluate the demand for
the community renewables option and consider whether to continue
offering a community renewables option.
   (2) If the governing board of a local publicly owned electric
utility determines the offering of a community renewables option
should terminate, the governing board shall adopt a resolution to
that effect and deliver a copy of the resolution to the Secretary of
State. This section shall not apply to that local publicly owned
electric utility on the effective date of the resolution.
   (e) (1) Except as provided in paragraph (1), this section shall
remain in effect only until January 1, 2020, and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2020, deletes or extends that date.
   (2) Notwithstanding paragraph (1), if, before January 1, 2020, the
governing board of a local publicly owned electric utility finds
that there is adequate demand to continue offering a community
renewables option, this section shall remain in effect for that local
publicly owned electric utility. The governing board shall adopt a
resolution finding and adequate demand to continue offering a
community renewables option and deliver a copy of the resolution to
the Secretary of State.
   2833.  Except as provided in paragraph (2) of subdivision (i) of
Section 2832 or paragraph (2) of subdivision (e) of Section 2832.5,
this chapter shall remain in effect only until January 1, 2020, and
as of that date is repealed, unless a later enacted statute, that is
enacted before January 1, 2020, deletes or extends that date. 

  SECTION 1.    Section 399.20 of the Public
Utilities Code is amended to read:
   399.20.  (a) It is the policy of this state and the intent of the
Legislature to encourage electrical generation from eligible
renewable energy resources.
   (b) As used in this section, "electric generation facility" means
an electric generation facility located within the service territory
of, and developed to sell electricity to, an electrical corporation
that meets all of the following criteria:
   (1) Has an effective capacity of not more than three megawatts.
   (2) Is interconnected and operates in parallel with the electrical
transmission and distribution grid.
   (3) Is strategically located and interconnected to the electrical
transmission and distribution grid in a manner that optimizes the
deliverability of electricity generated at the facility to load
centers.
   (4) Is an eligible renewable energy resource.
   (c) An electrical corporation shall file with the commission a
standard tariff for electricity purchased from an electric generation
facility. The commission may modify or adjust the requirements of
this section for an electrical corporation with less than 100,000
service connections, as individual circumstances merit.
   (d) (1) The tariff shall provide for payment for every
kilowatthour of electricity purchased from an electric generation
facility for a period of 10, 15, or 20 years, as authorized by the
commission. The payment shall be the market price determined by the
commission pursuant to paragraph (2) and shall include all current
and anticipated environmental compliance costs, including, but not
limited to, mitigation of emissions of greenhouse gases and air
pollution offsets associated with the operation of new generating
facilities in the local air pollution control or air quality
management district where the electric generation facility is
located.
   (2) The commission shall establish a methodology to determine the
market price of electricity for terms corresponding to the length of
contracts with an electric generation facility, in consideration of
the following:
   (A) The long-term market price of electricity for fixed price
contracts, determined pursuant to an electrical corporation's general
procurement activities as authorized by the commission.
   (B) The long-term ownership, operating, and fixed-price fuel costs
associated with fixed-price electricity from new generating
facilities.
   (C) The value of different electricity products including
baseload, peaking, and as-available electricity.
   (3) The commission may adjust the payment rate to reflect the
value of every kilowatthour of electricity generated on a
time-of-delivery basis.
   (4) The commission shall ensure, with respect to rates and
charges, that ratepayers that do not receive service pursuant to the
tariff are indifferent to whether a ratepayer with an electric
generation facility receives service pursuant to the tariff.
   (e) An electrical corporation shall provide expedited
interconnection procedures to an electric generation facility located
on a distribution circuit that generates electricity at a time and
in a manner so as to offset the peak demand on the distribution
circuit, if the electrical corporation determines that the electric
generation facility will not adversely affect the distribution grid.
The commission shall consider and may establish a value for an
electric generation facility located on a distribution circuit that
generates electricity at a time and in a manner so as to offset the
peak demand on the distribution circuit.
   (f) (1) An electrical corporation shall make the tariff available
to the owner or operator of an electric generation facility within
the service territory of the electrical corporation, upon request, on
a first-come-first-served basis, until the electrical corporation
meets its proportionate share of a statewide cap of 750 megawatts
cumulative rated generation capacity served under this section and
Section 399.32. The proportionate share shall be calculated based on
the ratio of the electrical corporation's peak demand compared to the
total statewide peak demand.
   (2) By June 1, 2013, the commission shall, in addition to the 750
megawatts identified in paragraph (1), direct the electrical
corporations to collectively procure at least 250 megawatts of
cumulative rated generating capacity from developers of bioenergy
projects that commence operation on or after June 1, 2013. The
commission shall, for each electrical corporation, allocate shares of
the additional 250 megawatts based on the ratio of each electrical
corporation's peak demand compared to the total statewide peak
demand. In implementing this paragraph, the commission shall do all
of the following:
   (A) Allocate the 250 megawatts identified in this paragraph among
the electrical corporations based on the following categories:
   (i) For biogas from wastewater treatment, municipal organic waste
diversion, food processing, and codigestion, 110 megawatts.
   (ii) For dairy and other agricultural bioenergy, 90 megawatts.
   (iii) For bioenergy using byproducts of sustainable forest
management, 50 megawatts. Allocations under this category shall be
determined based on the proportion of bioenergy that sustainable
forest management providers derive from sustainable forest management
in fire threat treatment areas, as designated by the Department of
Forestry and Fire Protection.
   (B) Direct the electrical corporations to develop standard
contract terms and conditions that reflect the operational
characteristics of the projects, and to provide a streamlined
contracting process.
   (C) Coordinate, to the maximum extent feasible, any incentive or
subsidy programs for bioenergy with the agencies listed in
subparagraph (A) of paragraph (3) in order to provide maximum
benefits to ratepayers and to ensure that incentives are used to
reduce contract prices.
   (D) The commission shall encourage gas and electrical corporations
to develop and offer programs and services to facilitate development
of in-state biogas for a broad range of purposes.
   (3) (A) The commission, in consultation with the State Energy
Resources Conservation and Development Commission, the State Air
Resources Board, the Department of Forestry and Fire Protection, the
Department of Food and Agriculture, and the Department of Resources
Recycling and Recovery, may review the allocations of the 250
additional megawatts identified in paragraph (2) to determine if
those allocations are appropriate.
   (B) If the commission finds that the allocations of the 250
additional megawatts identified in paragraph (2) are not appropriate,
the commission may reallocate the 250 megawatts among the categories
established in subparagraph (A) of paragraph (2).
   (4) For the purposes of this subdivision, "bioenergy" means biogas
and biomass.
   (g) The electrical corporation may make the terms of the tariff
available to owners and operators of an electric generation facility
in the form of a standard contract subject to commission approval.
   (h) Every kilowatthour of electricity purchased from an electric
generation facility shall count toward meeting the electrical
corporation's renewables portfolio standard annual procurement
targets for purposes of paragraph (1) of subdivision (b) of Section
399.15.
   (i) The physical generating capacity of an electric generation
facility shall count toward the electrical corporation's resource
adequacy requirement for purposes of Section 380.
   (j) (1) The commission shall establish performance standards for
any electric generation facility that has a capacity greater than one
megawatt to ensure that those facilities are constructed, operated,
and maintained to generate the expected annual net production of
electricity and do not impact system reliability.
   (2) The commission may reduce the three megawatt capacity
limitation of paragraph (1) of subdivision (b) if the commission
finds that a reduced capacity limitation is necessary to maintain
system reliability within that electrical corporation's service
territory.
   (k) (1) An owner or operator of an electric generation facility
that received ratepayer-funded incentives in accordance with Section
379.6 of this code, or with Section 25782 of the Public Resources
Code, and participated in a net metering program pursuant to Sections
2827 and 2827.10 of, and former Section 2827.9 of, this code prior
to January 1, 2010, shall be eligible for a tariff or standard
contract filed by an electrical corporation pursuant to this section.

   (2) In establishing the tariffs or standard contracts pursuant to
this section, the commission shall consider ratepayer-funded
incentive payments previously received by the generation facility
pursuant to Section 379.6 of this code or Section 25782 of the Public
Resources Code. The commission shall require reimbursement of any
funds received from these incentive programs to an electric
generation facility, in order for that facility to be eligible for a
tariff or standard contract filed by an electrical corporation
pursuant to this section, unless the commission determines ratepayers
have received sufficient value from the incentives provided to the
facility based on how long the project has been in operation and the
amount of renewable electricity previously generated by the facility.

   (3) A customer that receives service under a tariff or contract
approved by the commission pursuant to this section is not eligible
to participate in any net metering program.
   (l) An owner or operator of an electric generation facility
electing to receive service under a tariff or contract approved by
the commission shall continue to receive service under the tariff or
contract until either of the following occurs:
   (1) The owner or operator of an electric generation facility no
longer meets the eligibility requirements for receiving service
pursuant to the tariff or contract.
   (2) The period of service established by the commission pursuant
to subdivision (d) is completed.
   (m) Within 10 days of receipt of a request for a tariff pursuant
to this section from an owner or operator of an electric generation
facility, the electrical corporation that receives the request shall
post a copy of the request on its Internet Web site. The information
posted on the Internet Web site shall include the name of the city in
which the facility is located, but information that is proprietary
and confidential, including, but not limited to, address information
beyond the name of the city in which the facility is located, shall
be redacted.
   (n) An electrical corporation may deny a tariff request pursuant
to this section if the electrical corporation makes any of the
following findings:
   (1) The electric generation facility does not meet the
requirements of this section.
   (2) The transmission or distribution grid that would serve as the
point of interconnection is inadequate.
   (3) The electric generation facility does not meet all applicable
state and local laws and building standards and utility
interconnection requirements.
                   (4) The aggregate of all electric generating
facilities on a distribution circuit would adversely impact utility
operation and load restoration efforts of the distribution system.
   (o) Upon receiving a notice of denial from an electrical
corporation, the owner or operator of the electric generation
facility denied a tariff pursuant to this section shall have the
right to appeal that decision to the commission.
   (p) To ensure the safety and reliability of electric generation
facilities, the owner of an electric generation facility receiving a
tariff pursuant to this section shall provide an inspection and
maintenance report to the electrical corporation at least once every
other year. The inspection and maintenance report shall be prepared
at the owner's or operator's expense by a California-licensed
contractor who is not the owner or operator of the electric
generation facility. A California-licensed electrician shall perform
the inspection of the electrical portion of the generation facility.
   (q) The contract between the electric generation facility
receiving the tariff and the electrical corporation shall contain
provisions that ensure that construction of the electric generating
facility complies with all applicable state and local laws and
building standards, and utility interconnection requirements.
   (r) (1) All construction and installation of facilities of the
electrical corporation, including at the point of the output meter or
at the transmission or distribution grid, shall be performed only by
that electrical corporation.
   (2) All interconnection facilities installed on the electrical
corporation's side of the transfer point for electricity between the
electrical corporation and the electrical conductors of the electric
generation facility shall be owned, operated, and maintained only by
the electrical corporation. The ownership, installation, operation,
reading, and testing of revenue metering equipment for electric
generating facilities shall only be performed by the electrical
corporation.