Bill Text: CA AB1530 | 2015-2016 | Regular Session | Amended
Bill Title: Electricity: distributed generation.
Spectrum: Moderate Partisan Bill (Democrat 8-1)
Status: (Failed) 2016-11-30 - From committee: Without further action pursuant to Joint Rule 62(a). [AB1530 Detail]
Download: California-2015-AB1530-Amended.html
BILL NUMBER: AB 1530 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 26, 2016
AMENDED IN SENATE SEPTEMBER 4, 2015
INTRODUCED BY Assembly Members Levine and Gordon
(Principal coauthors: Assembly Members Gatto, Irwin, and Low)
(Principal coauthor: Senator Hill)
(Coauthors: Assembly Members Bonilla, Obernolte, and Mullin)
MARCH 18, 2015
An act to add Section 354 to the Public Utilities Code, relating
to electricity.
LEGISLATIVE COUNSEL'S DIGEST
AB 1530, as amended, Levine. Electricity: distributed generation.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
as defined. Existing law authorizes the Public Utilities Commission
to fix the rates and charges for every public utility, and requires
that those rates and charges be just and reasonable. Existing law
requires the Public Utilities Commission to require each electrical
corporation under the operational control of the Independent System
Operator as of January 1, 2001, to modify tariffs so that all
customers that install new distributed energy resources, as defined,
in accordance with specified criteria are served under rates, rules,
and requirements identical to those of a customer within the same
rate schedule that does not use distributed energy resources, and to
withdraw any provisions in otherwise applicable tariffs that activate
other tariffs, rates, or rules if a customer uses distributed energy
resources. Existing law provides, notwithstanding these
requirements, that a customer that installs new distributed energy
resources not be exempted from (1) reasonable interconnection
charges, (2) charges imposed pursuant to the Reliable Electric
Service Investment Act, and (3) charges imposed to repay the
Department of Water Resources for electricity procurement expenses
incurred in response to the electricity crisis of 2000-01. Existing
law requires the Public Utilities Commission, in establishing the
rates applicable to customers that install new distributed energy
resources, to create a firewall that segregates distribution cost
recovery so that any net costs, taking into account the actual costs
and benefits of distributed energy resources, proportional to each
customer class, as determined by the Public Utilities Commission,
resulting from the tariff modifications granted to members of each
customer class may be recovered only from that class.
This bill would require the Public Utilities Commission,
in consultation with the State Energy Resources Conservation and
Development Commission and the State Air Resources Board, to promote
the deployment of clean distributed energy resources, as defined, in
order to provide a stable and reliable supply of electricity. The
bill would require the Public Utilities Commission to prioritize
deployment of smart grids, microgrids, and reliable energy resources
that reduce emissions of greenhouse gases to promote specified
benefits. The bill would, to the extent authorized by
federal law, require the Public Utilities Commission, by July 1,
2016, 2017, to do both of the following
for those electrical corporation customers
of the state's 3 largest electrical corporations that install
clean distributed energy resources resources,
as defined, after January 1, 2016: (1) require each
electrical corporation those electrical corporations
to collect all applicable nonbypassable charges fixed,
implemented, administered, or imposed by the Public Utilities
Commission based only on the actual metered consumption of
electricity delivered to the customer through the electrical
corporation's transmission or distribution system, which charges are
to be at the same rate per kilowatthour as paid by other customers
that do not employ a clean distributed energy resource, and (2)
calculate a reserve capacity for standby service, if applicable,
based on the capacity needed by an the
electrical corporation to serve a customer's electrical demand during
an outage of the clean distributed energy resource providing
electric service for that customer. The bill would require
each electrical corporation the state's 3 largest
electrical corporations to identify the total amount of
nonbypassable charges that would be collected each year from
customers served by clean distributed energy resources installed
after January 1, 2016, based on gross consumption without any
adjustment for the generation of the clean distributed energy
resources. The bill would require that this total amount be fully
recovered from customers in the same customer class as those
customers served by clean distributed energy resources installed
after January 1, 2016, and would prohibit any amount from being
shifted to any other customer class. The bill would require a
customer served by a clean distributed energy resource to provide
relevant data to the Public Utilities Commission and the State Air
Resources Board annually. The bill would provide that the facility is
subject to onsite inspection to verify equipment operation and
performance, including capacity, thermal output, and usage, to verify
applicable criteria air pollutant and greenhouse gases emissions
performance. The bill would require the Public Utilities Commission
to suspend the eligibility of new customers to receive service
pursuant to the rate program established pursuant to the bill on
December 31, 2020.
Existing law requires the State Air Resources Board to adopt
greenhouse gas emissions limits and emissions reduction measures by
regulation to achieve the maximum technologically feasible and
cost-effective reductions in greenhouse gas emissions in furtherance
of achieving the statewide greenhouse gas emissions limit.
The bill would require the State Air Resources Board, in
consultation with the State Energy Resources Conservation and
Development Commission, to establish a schedule of annual greenhouse
gas emissions reduction standards that certain facilities must meet,
in addition to other criteria, to be included as a clean distributed
energy resource for the purposes of the bill, not later than March
31, 2016. The bill would require the schedule to be updated every
three years, with applicable standards for each intervening year.
Existing law requires the State Energy Resources Conservation and
Development Commission, beginning November 1, 2003, and every 2 years
thereafter, to adopt an integrated energy policy report which
includes an overview of major energy trends and issues facing the
state, including supply, demand, pricing, reliability, efficiency,
and impacts on public health and safety, the economy, resources, and
the environment.
The bill would require the State Energy Resources Conservation and
Development Commission, in consultation with the Public Utilities
Commission, to report on the impacts of the rate program established
pursuant to the bill in the integrated energy policy report to be
filed on or before November 1, 2017, and November 1, 2019.
Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime.
Because the provisions of this bill would be a part of the act and
because a violation of an order or decision of the commission
implementing its requirements would be a crime, the bill would impose
a state-mandated local program by creating a new crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 354 is added to the Public Utilities Code, to
read:
354. (a) As used in this section, "clean distributed energy
resource" means a facility that is located on the customer's premises
and generates electricity, or electricity and useful heat, where the
electricity generated is used for a purpose described in paragraph
(1) or (2) of subdivision (b) of Section 218, and that meets, as
determined for each year of eligibility based on the then current
criteria, either of the following requirements:
(1) It meets all of the following criteria:
(A) Meets or exceeds the greenhouse gas emissions reduction
standards established pursuant to subdivision (b).
(A) Has emissions of greenhouse gases that do not exceed 379
kilograms of carbon dioxide, or its equivalent, per megawatthour,
which is equal to the emissions rate eligibility threshold for the
self-generation incentive program in effect on January 1, 2016.
(B) Complies with the oxides of nitrogen (NOx)
emissions standards adopted by the State Air Resources Board pursuant
to the distributed generation certification program requirements (17
Cal. Code Regs. 94203).
(C) Has a nameplate rated generation capacity of 15 megawatts or
less.
(D) Is sized to meet the electrical demand of, or use the
available waste heat of, the customer that will be served by the
facility.
(2) It meets all of the following criteria:
(A) Is an eligible renewable energy resource, pursuant to the
California Renewables Portfolio Standard Program (Article 16
(commencing with Section 399.11)).
(B) Has a nameplate rated generation capacity of 15 megawatts or
less.
(C) Is sized to meet the electrical demand of the customer that
will be served by the facility.
(D) Will not otherwise be addressed in the commission's
implementation of Section 769 or 2827.1.
(b) (1) The State Air Resources Board, in consultation with the
Energy Commission, shall establish a schedule of annual greenhouse
gas emissions reduction standards for a clean distributed energy
resource, for the purpose of paragraph (1) of subdivision (a), not
later than March 31, 2016, and shall update the schedule every three
years, with applicable standards for each intervening year.
(2) The greenhouse gas emissions reduction standards shall ensure
that each eligible clean distributed energy resource, for the purpose
of paragraph (1) of subdivision (a), reduces greenhouse gas
emissions compared to the electrical grid resources, including
renewable resources, that the clean distributed energy resource
displaces, accounting for both procurement and operation of the
electrical grid.
(c) (1) In order to promote a modern electrical grid that provides
a stable and reliable supply of electricity, the commission, in
consultation with the Energy Commission and State Air Resources
Board, shall promote the deployment of clean distributed energy
resources.
(2) The commission shall prioritize deployment of smart grids,
microgrids, and reliable energy resources that reduce emissions of
greenhouse gases to promote the following cobenefits:
(A) Deployment of innovative technologies in California
communities, especially disadvantaged communities.
(B) Reduction of the use of water to generate electricity to
assist with the drought.
(C) Assistance to the state in reaching its State Implementation
Plan goals for clean air.
(d)
(b) To the extent authorized by federal law, by July 1,
2016, 2017, the commission shall
require each electrical corporation the state'
s three largest electrical corporations to do the following for
customers served by clean distributed energy resources installed
after January 1, 2016:
(1) Collect all applicable nonbypassable charges fixed,
implemented, administered, or imposed by the commission based only on
the actual metered consumption of electricity delivered to the
customer through the electrical corporation's transmission or
distribution system. All charges shall be at the same rate per
kilowatthour as paid by other customers that do not employ a clean
distributed energy resource under the electrical corporation's
applicable rate schedule.
(2) Identify the total amount of nonbypassable charges that would
be collected each year from customers served by clean distributed
energy resources installed after January 1, 2016, based on gross
consumption without any adjustment for the generation of the clean
distributed energy resources. This total amount shall be fully
recovered from customers in the same customer class as those
customers served by clean distributed energy resources installed
after January 1, 2016, and no amount may be shifted to any other
customer class.
(3) (A) Calculate a reserve capacity for standby service, if
applicable, based on the capacity needed by an electrical corporation
to serve a customer's electrical demand during an outage of the
clean distributed energy resource providing electric service for that
customer.
(B) Initial reserve capacity shall be established by the customer
for a minimum of 12 months based on the clean distributed energy
resource generation technology's historical operation, the number,
size, and outage diversity of the clean distributed energy resource,
and the annual average reduction of customer load that could occur
during an outage.
(C) If after the initial 12-month period, the electrical
corporation reasonably determines that the reserve capacity does not
reflect the customer's actual standby demand, averaged over the
previous 12 months, the electrical corporation shall modify the
reserve capacity once every 12 months to reflect the customer's
actual average annual reserve capacity based on the same criteria
used to establish the initial reserve capacity. Calculation of actual
average annual reserve capacity shall exclude the customer's
electrical demand served by the electrical corporation within 24
hours following an outage of the clean distributed energy resource
resulting from any event on the electrical corporation's transmission
or distribution grid that is outside of the customer's control that
requires the customer to reduce onsite generation.
(e)
(c) A customer served by a clean distributed energy
resource shall provide relevant data to the commission and the State
Air Resources Board annually. The facility shall be subject to onsite
inspection to verify equipment operation and performance, including
capacity, thermal output, and usage, to verify applicable criteria
for air pollutant and greenhouse gases emissions performance.
Requests for relevant data shall occur no more than once per year.
(f)
(d) (1) The Energy Commission, in consultation with the
commission, shall report on the impacts of this section in the
integrated energy policy report to be filed on or before November 1,
2017, and November 1, 2019.
(2) The report to be submitted pursuant to this subdivision shall
be submitted in compliance with Section 9795 of the Government Code.
(3) The requirement for submitting a report pursuant to this
subdivision is inoperative on November 1, 2021, pursuant to Section
10231.5 of the Government Code.
(g)
(e) The commission shall suspend the eligibility of new
customers to receive service pursuant to the rate program
established pursuant to subdivision (d) (b)
on December 31, 2020. Customers that installed clean
distributed energy resources after January 1, 2016, that became
operational prior to suspension of eligibility pursuant to this
subdivision and continue to generate electricity from their clean
distributed energy resources after suspension shall continue to
participate in the rate program established pursuant to subdivision
(d) (b) for the entire useful life of
their clean distributed energy resource.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
