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

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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
BILL NUMBER: AB 1295	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 29, 2013
	AMENDED IN ASSEMBLY  MAY 24, 2013
	AMENDED IN ASSEMBLY  APRIL 23, 2013
	AMENDED IN ASSEMBLY  APRIL 9, 2013
	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Member Roger Hernández

                        FEBRUARY 22, 2013

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



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1295, as amended, Roger Hernández. Public utilities: renewable
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 to provide a
community renewables option allowing a subscribing customer's bill be
adjusted to reflect the customer's subscription in the output of a
community renewables facility. The bill would require the commission
to authorize the tariff for community renewables option by July 1,
2014. The bill would, on and after January 1, 2016, require the
commission to evaluate the demand for the community renewables
option. If the commission finds that the community renewables option
should be discontinued, the bill would make the above provisions
inoperative. The bill would authorize a local publicly owned utility
to offer a  comparable  community renewables option.
This bill would repeal the provision of the community renewables
option on January 1, 2020.
   Vote: majority. Appropriation: no. Fiscal committee: 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 electric
generation facility to participate in a program that allows a
customer to subscribe to the output of an electric generation
facility.
   (c) "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, as defined in
Section 399.12.
   (5) Meets all the requirements established pursuant to Section
399.20 that are applicable to electric generation facilities.
   (d) "Feed-in tariff payment" means the payment that is due to the
electric generation facility in accordance with the tariff or
standard contract established pursuant to Section 399.20 as described
in a monthly total payment.
   (e) "Subscribing customer" means a customer of an electrical
corporation who has subscribed to the output of a community
renewables facility.
   (f) "Subscription amount" means the percentage of kilowatthours
delivered to an electrical corporation from a community renewables
facility to which a subscribing customer has subscribed.
   (g) "Unsubscribed output" means the percentage of kilowatthours
delivered to an electrical corporation from a community renewables
facility to which no 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 provide a community
renewables option that allows a subscribing customer's bill to be
adjusted to reflect the customer's subscription.
   (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, but not less than once
per year, information necessary for the electrical corporation to
administer the community renewables option that includes, 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 adjustment should be applied.
   (iii) Each subscribing customer's subscription amount.
   (iv) The unsubscribed output, 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 pay the community renewables
facility for any unsubscribed output by multiplying the unsubscribed
output by the feed-in tariff payment.
   (5) (A) Customer subscriptions shall not be credited towards the
electrical corporation's procurement requirements pursuant to Section
399.15 but shall continue to count toward the electrical corporation'
s proportionate share of the statewide cap specified in Section
399.20.
   (B) In calculating its procurement requirements pursuant to
Section 399.15, an electrical corporation may exclude from the total
retail sales the kilowatthours subscribed to by participating
customers pursuant to this section.
   (6) Any unsubscribed output from a community renewables 
generators  generator  shall continue to 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) No later than July 1, 2014, the commission shall authorize the
tariff for the community renewables option consistent with this
section, including setting a reasonable cap on total megawatts that
can be subscribed to under a community renewables program pursuant to
this section.
   (d) Notwithstanding paragraphs (1) and (5) of subdivision (c) of
Section 2831, the commission may allow the renewable programs adopted
by the commission in commission decisions 10-12-048 and 09-06-049 to
include a community renewables option if the community renewables
option meets the requirements of subdivision (c). All purchases
pursuant to this subdivision shall count toward the electrical
corporation's proportional share of the program's cap.
   (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 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) (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.

   2832.5.  A local publicly owned electric utility required to
comply with Section 399.32 may offer a  comparable 
community renewables option for an electric generation facility as
defined in Section 399.32.
   2833.  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.             
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