Bill Text: CA AB2582 | 2019-2020 | Regular Session | Amended
Bill Title: Electricity: net energy metering.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-05-05 - Re-referred to Com. on U. & E. [AB2582 Detail]
Download: California-2019-AB2582-Amended.html
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Amended
IN
Assembly
May 04, 2020 |
CALIFORNIA LEGISLATURE—
2019–2020 REGULAR SESSION
Assembly Bill
No. 2582
| Introduced by Assembly Member Carrillo |
February 20, 2020 |
An act to amend Section 2811 of 2827.1 of, and to add Section 2827.2 to, the Public Utilities Code, relating to energy. electricity.
LEGISLATIVE COUNSEL'S DIGEST
AB 2582, as amended, Carrillo.
Private energy producers: interconnections. Electricity: net energy metering.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations and gas corporations. corporations, while local publicly owned electric utilities are under the direction of their governing boards. Existing law requires the commission to authorize an interconnection by a private energy producer upon application of the producer if the commission makes specified findings. Existing law requires the commission to render its decision upon an application for interconnection within 180 days of receipt of the application or at a later time that may be mutually agreed upon by the commission, the applicant, and the interconnecting public utility.
every electric utility, defined to include an electrical corporation, local publicly owned electric utility, and electrical cooperative, to develop a standard contract or tariff providing for net energy metering, as defined, and to make this contract or tariff available to eligible customer-generators, as defined, on a first-come-first-served basis until the time that the total rated generating capacity used by eligible customer-generators exceeds 5% of the electric utility’s aggregate customer peak demand, or, for large electrical corporations, which are electrical corporations with 100,000 or more service connections in California, until July 1, 2017, whichever is earlier. Existing law requires the entity that establishes rates for the electric utility to establish a net surplus electricity compensation valuation to compensate a net surplus customer-generator for the value of net surplus electricity generated by the customer-generator, provided that the rate does not result in a shifting of costs
between eligible customer-generators and other bundled service customers.
Existing law requires the commission, no later than December 31, 2015, to develop a standard contract or tariff for additional eligible customer-generators with renewable electrical generation facilities that are customers of a large electrical corporation. Existing law requires each large electrical corporation to offer this standard contract or tariff to new eligible customer-generators beginning July 1, 2017, or before that date if ordered to do so by the commission because it has reached the net energy metering program 5% limit described above. Under existing law, there is no limitation on the amount of generating capacity or number of new eligible customer-generators entitled to receive service pursuant to this standard contract or tariff.
This bill would make nonsubstantive and clarifying revisions to the above-described interconnection requirements. require the commission, by July 1, 2021, to develop a standard distributed generation compensation contract or tariff for an eligible customer-generator with a renewable electrical generation facility that is a customer of a large electrical corporation, as specified. The bill would require each large electrical corporation to offer the standard contract or tariff to eligible customer-generators beginning January 1, 2022. The bill would require, beginning January 1, 2022, that all new eligible customer-generators be subject to the standard contract or tariff and the applicable rules, terms, and rates developed by the commission. The bill would specify that an eligible customer-generator that has
received service under a net energy metering standard contract or tariff or successor contract or tariff, as described above, that is no longer eligible to receive service pursuant to that contract or tariff is eligible to receive service pursuant to the standard contract or tariff.
Under existing law, a violation of the act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because any violation of the commission’s implementation of these provisions would be 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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
(a) The Legislature finds and declares all of the following:(1) California’s residential solar market has significantly matured with the support of several decades of incentives and subsidization by the state and California ratepayers, including through the California Solar Initiative rebate program and the net energy metering tariff offered to owners of residential rooftop solar systems.
(2) Electrical corporations provide residential solar customers with
numerous services, such as supplying around-the-clock reliable electrical service, backup electricity when solar systems are not generating electricity, distribution infrastructure through which excess customer-generated electricity can be exported to the electrical grid, customer service, billing, and many other services that have costs.
(3) Net energy metering tariffs have allowed residential solar customers to bypass most of those electrical service costs, and costs to fund public purpose programs, at the expense of nonsolar customers. This creates a significant cost shift from residential customers who use the net energy metering tariff to residential customers who do not install rooftop solar systems.
(4) Statewide, the residential net energy metering cost shift is $2,000,000,000 and will continue to grow under the current net energy metering framework. The requirements under
Section 150.1(c)(14) of Title 24 of the California Code of Regulations will further increase the number of residential rooftop solar customers in the state.
(5) State agencies have applied a policy of not incentivizing or subsidizing compliance with state mandates, from energy efficiency programs administered by the State Energy Resources Conservation and Development Commission, to air pollution reduction programs like the Carl Moyer Memorial Air Quality Standards Attainment Program (Chapter 9 (commencing with Section 44275) of Part 5 of Division 26 of the Health and Safety Code) administered by the State Air Resources Board. The 2019 update to Title 24 of the California Code of Regulations created a rooftop solar mandate, and the state’s policy of not subsidizing compliance should apply to rooftop solar customers now as well.
(b) It is the intent of the Legislature to protect
nonparticipating customers and end the cost shift generated by net energy metering by directing the Public Utilities Commission to administratively determine and immediately implement an appropriate distributed generation compensation structure that accurately reflects the market value of electricity generated by solar customer-generators and exported to the electrical grid. This calibrated compensation structure will reflect the maturity of California’s residential solar electricity market as well as the rate pressures and other market dynamics that will affect California’s electricity sector going forward.
(c) It is the intent of the Legislature to preserve nonparticipant ratepayer indifference for the new program or tariff that the Public Utilities Commission develops.
SEC. 2.
Section 2827.1 of the Public Utilities Code is amended to read:2827.1.
(a) For purposes of this section, “eligible customer-generator,” “large electrical corporation,” and “renewable electrical generation facility” have the same meanings as defined in Section 2827.(b) Notwithstanding any other law, the commission shall develop a standard contract or tariff, which may include net energy metering, for eligible customer-generators with a renewable electrical generation facility that is a customer of a large electrical corporation no later than December 31, 2015. The commission may develop the standard contract or tariff prior to before December
31, 2015, and may require a large electrical corporation that has reached the net energy metering program limit of subparagraph (B) of paragraph (4) of subdivision (c) of Section 2827 to offer the standard contract or tariff to eligible customer-generators. A large electrical corporation shall offer the standard contract or tariff to an eligible customer-generator beginning July 1, 2017, or prior to before that date if ordered to do so by the commission because it has reached the net energy metering program limit of subparagraph (B) of paragraph (4) of subdivision (c) of Section 2827. The commission may revise the standard contract or tariff as appropriate to achieve the objectives of this section. In developing the standard contract or tariff, the commission shall do all of the following:
(1) Ensure that the standard contract or tariff made available to eligible customer-generators ensures that customer-sited renewable distributed generation continues to grow sustainably and include specific alternatives designed for growth among residential customers in disadvantaged communities.
(2) Establish terms of service and billing rules for eligible customer-generators.
(3) Ensure that the standard contract or tariff made available to eligible customer-generators is based on the costs and benefits of the renewable electrical generation facility.
(4) Ensure that the total benefits of the standard contract or tariff to all customers and the electrical system are approximately equal to the total costs.
(5) Allow projects greater than one megawatt that do not have significant impact on the distribution grid to be built to the size of the onsite load if the projects with a capacity of more than one megawatt are subject to reasonable interconnection charges established pursuant to the commission’s Electric Rule 21 and applicable state and federal requirements.
(6) Establish a transition period during which eligible customer-generators taking service under a net energy metering tariff or contract prior to before July 1, 2017, or until the electrical corporation reaches its net energy metering program limit pursuant to subparagraph (B) of paragraph (4) of subdivision (c) of Section 2827, whichever is
earlier, shall be eligible to continue service under the previously applicable net energy metering tariff for a length of time to be determined by the commission by March 31, 2014. Any rules adopted by the commission shall consider a reasonable expected payback period based on the year the customer initially took service under the tariff or contract authorized by Section 2827.
(7) The commission shall determine which rates and tariffs are applicable to customer generators customer-generators only during a rulemaking proceeding. Any fixed charges for residential customer generators
customer-generators that differ from the fixed charges allowed pursuant to subdivision (f) of Section 739.9 shall be authorized only in a rulemaking proceeding involving every large electrical corporation. The commission shall ensure customer generators customer-generators are provided electric service at rates that are just and reasonable.
(c) Beginning July 1, 2017, or when ordered to do so by the commission because the large electrical corporation has reached its capacity limitation of subparagraph (B) of paragraph (4) of subdivision (c) of Section 2827, all new eligible customer-generators shall be subject to the standard contract or tariff developed by the commission and any rules, terms, and rates developed pursuant to
subdivision (b). There shall be no limitation on the amount of generating capacity or number of new eligible customer-generators entitled to receive service pursuant to the standard contract or tariff after July 1, 2017. An eligible customer-generator that has received service under a net energy metering standard contract or tariff pursuant to Section 2827 that is no longer eligible to receive service shall be eligible to receive service pursuant to the standard contract or tariff developed by the commission pursuant to this section.
Upon the large electrical corporation offering a standard contract or tariff pursuant to Section 2827.2, an eligible customer-generator in the large electrical corporation’s service territory that is not receiving service pursuant to this section on that date shall not be eligible to receive service pursuant to this section.
SEC. 3.
Section 2827.2 is added to the Public Utilities Code, to read:2827.2.
(a) For purposes of this section, “eligible customer-generator,” “large electrical corporation,” and “renewable electrical generation facility” have the same meanings as those terms are defined in Section 2827.(b) (1) Notwithstanding any other law, by July 1, 2021, the commission shall develop a standard distributed generation compensation contract or tariff for an eligible customer-generator with a renewable electrical generation facility that is a customer of a large electrical corporation.
(2) In developing the standard contract or tariff, the commission shall do all of the following:
(A) Ensure that the standard contract or tariff achieves ratepayer indifference between eligible customer-generators and ratepayers without renewable electrical generation facilities.
(B) Require each eligible customer-generator to pay all nonbypassable charges, including, but not limited to, those related to public purpose programs and other rate adjustments designed to maintain ratepayer indifference, on the total electricity that the eligible customer-generator receives through the electrical grid, which shall not be netted against the electricity generated by the eligible customer-generator for this purpose.
(C) Establish terms of service and billing rules for the eligible customer-generators.
(D) Ensure that the standard contract or tariff is based on the large electrical corporation’s costs of
serving, and electrical grid service benefits to, the renewable electrical generation facility and the eligible customer-generator.
(E) Include specific alternatives designed for increased participation by residential customers in disadvantaged communities.
(3) The standard contract or tariff shall not compensate an eligible customer-generator at or above the retail rate for electricity that is exported to the grid by an eligible customer-generator.
(4) The commission shall determine which rates and tariffs are applicable to eligible customer-generators only during a rulemaking proceeding.
(5) The commission shall ensure eligible customer-generators and other ratepayers are provided electrical service at rates that are just and reasonable.
(6) The commission may revise the standard contract or tariff, as appropriate, to achieve the objectives of this section.
(c) Beginning January 1, 2022, each large electrical corporation shall offer the standard contract or tariff to eligible customer-generators.
(d) Beginning January 1, 2022, all new eligible customer-generators shall be subject to the standard contract or tariff and any rules, terms, and rates developed pursuant to subdivision (b). An eligible customer-generator that has received service pursuant to a standard contract or tariff pursuant to Section 2827 or 2827.1 and that is no longer eligible to receive service pursuant to that contract or tariff shall be eligible to receive service pursuant to the standard contract or tariff developed pursuant to this
section.
SEC. 4.
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.In order to promote the more efficient use and distribution of natural gas or electricity and eliminate the necessity for construction of transmission facilities for gas or electricity produced by a private energy producer separate from those which may already exist to serve the same area and are owned and operated by an electrical corporation or gas corporation, the commission shall authorize the construction of an interconnection by a private energy producer upon application of the producer if the commission makes the findings required by Sections 2812 and 2812.5. The commission shall render its decision on any application filed pursuant to this chapter within 180 days of receipt of the application or at a later
time that may be mutually agreed upon by the commission, the applicant, and the interconnecting
electrical corporation or gas corporation.
