Bill Text: CA AB217 | 2013-2014 | Regular Session | Amended

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

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Bill Title: Electricity: solar electricity: low-income households.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2013-10-07 - Chaptered by Secretary of State - Chapter 609, Statutes of 2013. [AB217 Detail]

Download: California-2013-AB217-Amended.html

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BILL NUMBER: AB 217	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 16, 2013
	AMENDED IN ASSEMBLY  APRIL 1, 2013

INTRODUCED BY   Assembly Member Bradford
   (Principal coauthor: Senator De León)

                        JANUARY 31, 2013

   An act to amend Sections 2851 and 2852 of the Public Utilities
Code, relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 217, as amended, Bradford. Electricity: solar electricity:
low-income households.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations.
Decisions of the commission adopted the California Solar Initiative
administered by the state's 3 largest electrical corporations and
subject to the commission's supervision. Existing law requires the
commission to ensure that not less than 10% of the funds for the
California Solar Initiative are utilized for the installation of
solar energy systems, as defined, on low-income residential housing,
as defined. Pursuant to this requirement, the commission adopted
decisions that established the Single-Family Affordable Solar Homes
Program (SASH) and the Multifamily Affordable Solar Housing Program
(MASH), pursuant to which the electrical corporations provide
monetary incentives for the installation of solar energy systems on
low-income residential housing. The SASH and MASH programs will
operate until December 31, 2016, or until funds collected for the
above purposes are exhausted, whichever occurs sooner.
   This bill would, upon the exhaustion of those funds, authorize the
surcharge collected by the electrical corporations for the
California Solar Initiative to continue to provide funding for the
administration of the SASH and MASH programs. The bill would require
the commission to ensure the total amount resulting from the
continued collection of the charge does not exceed $108,000,000. The
bill would extend the operation of the SASH and MASH programs to
December 31, 2021, or until the exhaustion of that amount, whichever
occurs sooner. The bill would require the SASH and MASH programs to
meet specified requirements.  The bill would make legislative
findings and declarations that it is the goal   of the state
to install solar energy   systems that have a generating
capacity equivalent to 50 megawatts for low-income residential
housing.  Because a violation of any order, decision, rule,
direction, demand, or requirement of the commission is a crime, this
bill would impose a state-mandated local program.
   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 2851 of the Public Utilities Code is amended to
read:
   2851.  (a) In implementing the California Solar Initiative, the
commission shall do all of the following:
   (1) (A) The commission shall authorize the award of monetary
incentives for up to the first megawatt of alternating current
generated by solar energy systems that meet the eligibility criteria
established by the Energy Commission pursuant to Chapter 8.8
(commencing with Section 25780) of Division 15 of the Public
Resources Code. The commission shall determine the eligibility of a
solar energy system, as defined in Section 25781 of the Public
Resources Code, to receive monetary incentives until the time the
Energy Commission establishes eligibility criteria pursuant to
Section 25782. Monetary incentives shall not be awarded for solar
energy systems that do not meet the eligibility criteria. The
incentive level authorized by the commission shall decline each year
following implementation of the California Solar Initiative, at a
rate of no less than an average of 7 percent per year, and, except as
provided in subparagraph (B), shall be zero as of December 31, 2016.
The commission shall adopt and publish a schedule of declining
incentive levels no less than 30 days in advance of the first decline
in incentive levels. The commission may develop incentives based
upon the output of electricity from the system, provided those
incentives are consistent with the declining incentive levels of this
paragraph and the incentives apply to only the first megawatt of
electricity generated by the system.
   (B) The incentive level for the installation of a solar energy
system pursuant to Section 2852 shall be zero as of December 31,
2021.
   (2) The commission shall adopt a performance-based incentive
program so that by January 1, 2008, 100 percent of incentives for
solar energy systems of 100 kilowatts or greater and at least 50
percent of incentives for solar energy systems of 30 kilowatts or
greater are earned based on the actual electrical output of the solar
energy systems. The commission shall encourage, and may require,
performance-based incentives for solar energy systems of less than 30
kilowatts. Performance-based incentives shall decline at a rate of
no less than an average of 7 percent per year. In developing the
performance-based incentives, the commission may:
   (A) Apply performance-based incentives only to customer classes
designated by the commission.
   (B) Design the performance-based incentives so that customers may
receive a higher level of incentives than under incentives based on
installed electrical capacity.
   (C) Develop financing options that help offset the installation
costs of the solar energy system, provided that this financing is
ultimately repaid in full by the consumer or through the application
of the performance-based rebates.
   (3) By January 1, 2008, the commission, in consultation with the
Energy Commission, shall require reasonable and cost-effective energy
efficiency improvements in existing buildings as a condition of
providing incentives for eligible solar energy systems, with
appropriate exemptions or limitations to accommodate the limited
financial resources of low-income residential housing.
   (4) Notwithstanding subdivision (g) of Section 2827, the
commission may develop a time-variant tariff that creates the maximum
incentive for ratepayers to install solar energy systems so that the
system's peak electricity production coincides with California's
peak electricity demands and that ensures that ratepayers receive due
value for their contribution to the purchase of solar energy systems
and customers with solar energy systems continue to have an
incentive to use electricity efficiently. In developing the
time-variant tariff, the commission may exclude customers
participating in the tariff from the rate cap for residential
customers for existing baseline quantities or usage by those
customers of up to 130 percent of existing baseline quantities, as
required by Section 739.9. Nothing in this paragraph authorizes the
commission to require time-variant pricing for ratepayers without a
solar energy system.
   (b) Notwithstanding subdivision (a), in implementing the
California Solar Initiative, the commission may authorize the award
of monetary incentives for solar thermal and solar water heating
devices, in a total amount up to one hundred million eight hundred
thousand dollars ($100,800,000).
   (c) (1) In implementing the California Solar Initiative, the
commission shall not allocate more than fifty million dollars
($50,000,000) to research, development, and demonstration that
explores solar technologies and other distributed generation
technologies that employ or could employ solar energy for generation
or storage of electricity or to offset natural gas usage. Any program
that allocates additional moneys to research, development, and
demonstration shall be developed in collaboration with the Energy
Commission to ensure there is no duplication of efforts, and adopted
by the commission through a rulemaking or other appropriate public
proceeding. Any grant awarded by the commission for research,
development, and demonstration shall be approved by the full
commission at a public meeting. This subdivision does not prohibit
the commission from continuing to allocate moneys to research,
development, and demonstration pursuant to the self-generation
incentive program for distributed generation resources originally
established pursuant to Chapter 329 of the Statutes of 2000, as
modified pursuant to Section 379.6.
   (2) The Legislature finds and declares that a program that
provides a stable source of monetary incentives for eligible solar
energy systems will encourage private investment sufficient to make
solar technologies cost effective.
   (3) On or before June 30, 2009, and by June 30th of every year
thereafter, the commission shall submit to the Legislature an
assessment of the success of the California Solar Initiative program.
That assessment shall include the number of residential and
commercial sites that have installed solar thermal devices for which
an award was made pursuant to subdivision (b) and the dollar value of
the award, the number of residential and commercial sites that have
installed solar energy systems, the electrical generating capacity of
the installed solar energy systems, the cost of the program, total
electrical system benefits, including the effect on electrical
service rates, environmental benefits, how the program affects the
operation and reliability of the electrical grid, how the program has
affected peak demand for electricity, the progress made toward
reaching the goals of the program, whether the program is on schedule
to meet the program goals, and recommendations for improving the
program to meet its goals. If the commission allocates additional
moneys to research, development, and demonstration that explores
solar technologies and other distributed generation technologies
pursuant to paragraph (1), the commission shall include in the
assessment submitted to the Legislature, a description of the
program, a summary of each award made or project funded pursuant to
the program, including the intended purposes to be achieved by the
particular award or project, and the results of each award or
project.
   (d) (1) The commission shall not impose any charge upon the
consumption of natural gas, or upon natural gas ratepayers, to fund
the California Solar Initiative.
   (2) Notwithstanding any other provision of law, any charge imposed
to fund the program adopted and implemented pursuant to this section
shall be imposed upon all customers not participating in the
California Alternate Rates for Energy (CARE) or family electric rate
assistance (FERA) programs, including those residential customers
subject to the rate limitation specified in Section 739.9 for
existing baseline quantities or usage up to 130 percent of existing
baseline quantities of electricity.
   (3) The costs of the program adopted and implemented pursuant to
this section may not be recovered from customers participating in the
California Alternate Rates for Energy or CARE program established
pursuant to Section 739.1, except to the extent that program costs
are recovered out of the nonbypassable system benefits charge
authorized pursuant to Section 399.8.
   (e) In implementing the California Solar Initiative, the
commission shall, except as provided in subdivision (f), ensure that
the total cost over the duration of the program does not exceed three
billion five hundred fifty million eight hundred thousand dollars
($3,550,800,000). The financial components of the California Solar
Initiative shall consist of the following:
   (1) Programs under the supervision of the commission funded by
charges collected from customers of San Diego Gas and Electric
Company, Southern California Edison Company, and Pacific Gas and
Electric Company. Except as provided in subdivision (f), the total
cost over the duration of these programs shall not exceed two billion
three hundred sixty-six million eight hundred thousand dollars
($2,366,800,000) and includes moneys collected directly into a
tracking account for support of the California Solar Initiative.
   (2) Programs adopted, implemented, and financed in the amount of
seven hundred eighty-four million dollars ($784,000,000), by charges
collected by local publicly owned electric utilities pursuant to
Section 387.5. Nothing in this subdivision shall give the commission
power and jurisdiction with respect to a local publicly owned
electric utility or its customers.
   (3) Programs for the installation of solar energy systems on new
construction, administered by the State Energy Resources Conservation
and Development Commission, and funded by charges in the amount of
four hundred million dollars ($400,000,000), collected from customers
of San Diego Gas and Electric Company, Southern California Edison
Company, and Pacific Gas and Electric Company.
   (4) The changes made to this subdivision by the act adding this
paragraph do not authorize the levy of a charge or any increase in
the amount collected pursuant to any existing charge, nor do the
changes add to, or detract from, the commission's existing authority
to levy or increase charges.
   (f) Notwithstanding subdivision (e), upon exhaustion of the amount
specified in paragraph (1) of subdivision (e), the commission shall
authorize the continued collection of the charge for the purposes of
Section 2852. The commission shall ensure that the total amount
collected pursuant to this subdivision does not exceed one hundred
eight million dollars ($108,000,000).  Upon approval by the
commission, an electrical corporation may use amounts collected
pursuant to subdivision (e) for purposes of funding the general
market portion of the California Solar Initiative, that remain
unspent and unencumbered after December 31, 2016, to reduce that
electrical corporation's portion of the total amount collected
pursuant to this subdivision. 
  SEC. 2.  Section 2852 of the Public Utilities Code is amended to
read:
   2852.  (a)  The Legislature finds and declares that it is the
goal of the state to install solar energy systems that have a
generating capacity equivalent to 50 megawatts for low-income
residential housing. 
    (b)   As used in this section, the following
terms have the following meanings:
   (1) "Affordable housing cost," "affordable rent," and "lower
income households" have the same meanings as in those set forth in
Chapter 2 (commencing with Section 50050) of Part 1 of Division 31 of
the Health and Safety Code.
   (2) "California Solar Initiative" means the program providing
ratepayer funded incentives for eligible solar energy systems adopted
by the Public Utilities Commission in Decision 05-12-044 and
Decision 06-01-024.
   (3) "Low-income residential housing" means any of the following:
   (A) A multifamily residential complex financed with low-income
housing tax credits, tax-exempt mortgage revenue bonds, general
obligation bonds, or local, state, or federal loans or grants, and
for which either of the following applies:
   (i) The rents of the occupants who are lower income households do
not exceed those prescribed by deed restrictions or regulatory
agreements pursuant to the terms of the financing or financial
assistance.
   (ii) The affordable units have been or will be initially sold at
an affordable housing cost to a lower income household and those
units are subject to a resale restriction or equity sharing agreement
pursuant to the terms of the financing or financial assistance.
   (B) A multifamily residential complex in which at least 20 percent
of the total housing units are sold or rented to lower income
households and either of the following applies:
   (i) The rental housing units targeted for lower income households
are subject to a deed restriction or affordability covenant with a
public entity or nonprofit housing provider organized under Section
501(c)(3) of the Internal Revenue Code that has as its stated purpose
in its articles of incorporation on file with the office of the
Secretary of State to provide affordable housing to lower income
households that ensures that the units will be available at an
affordable rent for a period of at least 30 years.
   (ii) The housing units have been or will be initially sold at an
affordable cost to a lower income household and those units are
subject to a resale restriction or equity sharing agreement, for
which the homeowner does not receive a greater share of equity than
described in paragraph (2) of subdivision (c) of Section 65915 of the
Government Code, with a public entity or nonprofit housing provider
organized under Section 501(c)(3) of the Internal Revenue Code that
has as its stated purpose in its articles of incorporation on file
with the office of the Secretary of State to provide affordable
housing to lower income households.
   (C) An individual residence sold at an affordable housing cost to
a lower income household that is subject to a resale restriction or
equity sharing agreement, for which the homeowner does not receive a
greater share of equity than described in paragraph (2) of
subdivision (c) of Section 65915 of the Government Code, with a
public entity or nonprofit housing provider organized under Section
501(c)(3) of the Internal Revenue Code that has as its stated purpose
in its articles of incorporation on file with the office of the
Secretary of State to provide affordable housing to lower income
households.
   (4) "Solar energy system" means a solar energy device that has the
primary purpose of providing for the collection and distribution of
solar energy for the generation of electricity, that produces at
least one kilowatt, and produces not more than five megawatts,
alternating current rated peak electricity, and that meets or exceeds
the eligibility criteria established by the commission or the Energy
Commission. 
   (b) 
    (c)  In establishing the California Solar Initiative, no
moneys shall be diverted from any existing programs for low-income
ratepayers, or from cost-effective energy efficiency or demand
response programs. 
   (c) 
    (d)  (1) The commission shall ensure that not less than
10 percent of the funds for the California Solar Initiative, as
specified in subdivision (e) of, or moneys collected pursuant to
subdivision (f) of, Section 2851, are utilized for the installation
of solar energy systems on low-income residential housing.
Notwithstanding any other law, the commission may modify the monetary
incentives made available pursuant to the California Solar
Initiative to accommodate the limited financial resources of
low-income residential housing.
   (2) The commission may incorporate a revolving loan or loan
guarantee program into the California Solar Initiative for low-income
residential housing. All loans outstanding as of January 1, 
2021   2022  , shall continue to be repaid
consistent with the terms and conditions of the program adopted and
implemented by the commission pursuant to this subdivision, until
repaid in full.
   (3) All moneys set aside for the purpose of funding the
installation of solar energy systems on low-income residential
housing that are unexpended and unencumbered on January 1, 
2021   2022  , and all moneys thereafter repaid
pursuant to paragraph (2), except to the extent those moneys are
encumbered pursuant to this section, shall be utilized to augment
existing cost-effective energy efficiency measures in low-income
residential housing that benefit ratepayers. 
   (d) 
    (e)  In supervising a program implementing the
California Solar Initiative pursuant to this section, the commission
shall ensure that the program does all of the following:
   (1) Is a cost-effective investment by ratepayers in peak
electricity generation capacity where ratepayers recoup the cost of
their investment through lower rates as a result of avoiding
purchases of electricity at peak rates, with additional system
reliability and pollution reduction benefits. 
   (2) Requires reasonable and cost-effective energy efficiency
improvements in existing buildings as a condition of providing
incentives for eligible solar energy systems, with appropriate
exemptions or limitations to accommodate the limited financial
resources of low-income residential housing.  
   (3) 
    (2)  Requires participants who receive monetary
incentives to enroll in the Energy Savings Assistance Program
established pursuant to Section 382, if eligible. 
   (4) 
    (3)  Provides job training and employment opportunities
in the solar energy and energy efficiency sectors of the economy.
  SEC. 3.  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.