Bill Text: CA AB1536 | 2009-2010 | Regular Session | Introduced

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

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Bill Title: Electricity: resource adequacy distributed generation

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2010-06-03 - From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on E., U., & C. [AB1536 Detail]

Download: California-2009-AB1536-Introduced.html

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BILL NUMBER: AB 1536	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Blakeslee

                        FEBRUARY 27, 2009

   An act to amend Section 379.6 of the Public Utilities Code,
relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1536, as introduced, Blakeslee. Self-generation incentive
program.
   Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations, as defined. Existing law requires the PUC, in
consultation with the State Energy Resources Conservation and
Development Commission, to administer, until January 1, 2012, a
self-generation incentive program for distributed generation
resources.
   This bill would make nonsubstantive changes to the statute
requiring the PUC to administer a self-generation incentive program
for distributed generation resources.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 379.6 of the Public Utilities Code is amended
to read:
   379.6.  (a) (1) The commission, in consultation with the 
State Energy Resources Conservation and Development  
Energy  Commission, shall administer, until January 1, 2012, the
self-generation incentive program for distributed generation
resources originally established pursuant to Chapter 329 of the
Statutes of 2000.
   (2) Except as provided in paragraph (3), the extension of the
program pursuant to Chapter 894 of the Statutes of 2003, as amended
by Chapter 675 of the Statutes of 2004 and Chapter 22 of the Statutes
of 2005, shall apply to all eligible technologies, as determined by
the commission, until January 1, 2008.
   (3) The commission shall administer solar technologies separately,
after January 1, 2007, pursuant to the California Solar Initiative
adopted by the commission in Decision 06-01-024.
   (b) Commencing January 1, 2008, until January 1, 2012, eligibility
for the program pursuant to paragraphs (1) and (2) of subdivision
(a) shall be limited to fuel cells and wind distributed generation
technologies that meet or exceed the emissions standards required
under the distributed generation certification program requirements
of Article 3 (commencing with Section 94200) of Subchapter 8 of
Chapter 1 of Division 3 of Title 17 of the California Code of
Regulations.
   (c) Eligibility for the self-generation incentive program's level
3 incentive category shall be subject to the following conditions:
   (1) Commencing January 1, 2007, all combustion-operated
distributed generation projects using fossil fuel shall meet an
oxides of nitrogen (NOx) emissions rate standard of 0.07 pounds per
megawatthour and a minimum efficiency of 60 percent. A minimum
efficiency of 60 percent shall be measured as useful energy output
divided by fuel input. The efficiency determination shall be based on
100 percent load.
   (2) Combined heat and power units that meet the 60-percent
efficiency standard may take a credit to meet the applicable NOx
emissions standard of 0.07 pounds per megawatthour. Credit shall be
at the rate of one megawatthour for each 3.4 million British thermal
units (Btus) of heat recovered.
   (3) Notwithstanding paragraph (1), a project that does not meet
the applicable NOx emissions standard is eligible if it meets both of
the following requirements:
   (A) The project operates solely on waste gas. The commission shall
require a customer that applies for an incentive pursuant to this
paragraph to provide an affidavit or other form of proof, that
specifies that the project shall be operated solely on waste gas.
Incentives awarded pursuant to this paragraph shall be subject to
refund and shall be refunded by the recipient to the extent the
project does not operate on waste gas. As used in this paragraph,
"waste gas" means natural gas that is generated as a byproduct of
petroleum production operations and is not eligible for delivery to
the utility pipeline system.
   (B) The air quality management district or air pollution control
district, in issuing a permit to operate the project, determines that
operation of the project will produce an onsite net air emissions
benefit, compared to permitted onsite emissions if the project does
not operate. The commission shall require the customer to secure the
permit prior to receiving incentives.
   (d) In determining the eligibility for the self-generation
incentive program, minimum system efficiency shall be determined
either by calculating electrical and process heat efficiency as set
forth in Section 218.5, or by calculating overall electrical
efficiency.
   (e) In administering the self-generation incentive program, the
commission may adjust the amount of rebates, include other ultraclean
and low-emission distributed generation technologies, as defined in
Section 353.2, and evaluate other public policy interests, including,
but not limited to, ratepayers, and energy efficiency and
environmental interests.
   (f) On or before November 1, 2008, the  State Energy
Resources Conservation and Development   Energy 
Commission, in consultation with the commission and the State Air
Resources Board, shall evaluate the costs and benefits, including air
pollution, efficiency, and transmission and distribution system
improvements, of providing ratepayer subsidies for renewable and
fossil fuel "ultraclean and low-emission distributed generation," as
defined in Section 353.2, as part of the integrated energy policy
report adopted pursuant to Chapter 4 (commencing with Section 25300)
of Division 15 of the Public Resources Code. The  State
Energy Resources Conservation and Development  Energy
 Commission shall include recommendations for changes in the
eligibility of technologies and fuels under the program, and whether
the level of subsidy should be adjusted, after considering its
conclusions on costs and benefits pursuant to this subdivision.
   (g) (1) In administering the self-generation incentive program,
the commission shall provide an additional incentive of 20 percent
from existing program funds for the installation of eligible
distributed generation resources from a California supplier.
   (2) "California supplier" as used in this subdivision means any
sole proprietorship, partnership, joint venture, corporation, or
other business entity that manufactures eligible distributed
generation resources in California and that meets either of the
following criteria:
   (A) The owners or policymaking officers are domiciled in
California and the permanent principal office, or place of business
from which the supplier's trade is directed or managed, is located in
California.
   (B) A business or corporation, including those owned by, or under
common control of, a corporation, that meets all of the following
criteria continuously during the five years prior to providing
eligible distributed generation resources to a self-generation
incentive program recipient:
   (i) Owns and operates a manufacturing facility located in
California that builds or manufactures eligible distributed
generation resources.
   (ii) Is licensed by the state to conduct business within the
state.
   (iii) Employs California residents for work within the state.
   (3) For purposes of qualifying as a California supplier, a
distribution or sales management office or facility does not qualify
as a manufacturing facility.