BILL NUMBER: AB 2724 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 23, 2010
INTRODUCED BY Assembly Member Blumenfield
FEBRUARY 19, 2010
An act to amend Section 2863 of the Public Utilities
Code, relating to solar energy. An act to amend
Sections 2830 and 2851 of, to amend the heading of Chapter 7.5
(commencing with Section 2830) of Part 2 of Division 1 of,
and to add Section 2831 to, the Public Utilities Code, relating to
energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2724, as amended, Blumenfield. Solar water heating.
Governmental Renewable Energy Self-generation Program.
(1) Under existing law, the Public Utilities Commission (CPUC) has
regulatory authority over public utilities, including electrical
corporations, as defined. 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.
This bill would rename the program the Governmental Renewable
Energy Self-Generation Program. The bill would authorize a state
agency, as defined, to receive a bill credit to be applied to a
designated benefiting account for electricity exported to the
electrical grid by an eligible state renewable generating facility,
as defined, and would require the CPUC to adopt a rate tariff for the
benefiting account.
(2) Decisions of the CPUC adopted the California Solar Initiative.
Existing law requires the CPUC to undertake certain steps in
implementing the California Solar Initiative including the
requirement that the CPUC authorize the award of monetary incentives
for up to the first megawatt of alternating current generated by
solar energy systems, as defined, that meet the eligibility criteria
established by the State Energy Resources Conservation and
Development Commission (Energy Commission).
This bill would require the CPUC to authorize the award of
monetary incentives for up to 5 megawatts of alternating current
generated by an eligible state renewable generating facility that
meets the eligibility criteria established by the Energy Commission
for the California Solar Initiative.
(3) Under existing law, a violation of the Public Utilities Act or
any order, decision, rule, direction, demand, or requirement of the
CPUC is a crime.
Because certain of the provisions of this bill require action by
the CPUC to implement, a violation of these CPUC-imposed requirements
would impose a state-mandated local program by creating a new crime.
(4) 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.
The Solar Water Heating and Efficiency Act of 2007 requires the
Public Utilities Commission to evaluate the data available from a
specified pilot program, and, if it makes a specified determination,
to design and implement a program of incentives for the installation
of 200,000 solar water heating systems in homes and businesses
throughout the state by 2017. The act requires the commission to fund
the program through the use of a surcharge applied to gas customers
based upon the amount of natural gas consumed.
This bill would require the commission, in order to encourage the
installation of solar water heating systems in buildings owned and
occupied by public agencies, to consider additional incentives for
the installation of solar water heating systems by public entities,
including, but not limited to, exemptions or partial exemptions from
the surcharge. The bill would require the commission to give special
consideration to large users of hot water such as jails, prisons, and
public hospitals.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The heading of Chapter 7.5 (commencing
with Section 2830) of Part 2 of Division 1 of the Public
Utilities Code is amended to read:
CHAPTER 7.5. LOCAL GOVERNMENT
GOVERNMENTAL RENEWABLE ENERGY SELF-GENERATION PROGRAM
SEC. 2. Section 2830 of the Public
Utilities Code is amended to read:
2830. (a) As used in this section, the following terms have the
following meanings:
(1) "Benefiting account" means an electricity
electric service account, or more than one account,
located within a the geographical boundaries of a local
government or, for a campus, within the geographical boundary of the
city, county, or city and county in which the campus is located, that
is mutually agreed upon by the local government or campus and an
electrical corporation.
(2) "Bill credit" means an amount of money credited to a
benefiting account that is calculated based upon the time-of-use
electricity generation component of the electricity usage charge of
the generating account, multiplied by the quantities of electricity
generated by an eligible local government renewable
generating facility that are exported to the grid during the
corresponding time period. Electricity is exported to the grid if it
is generated by an eligible local government renewable
generating facility, is not utilized onsite by the local government,
and the electricity flows through the meter site and on to the
electrical corporation's distribution or transmission infrastructure.
(3) "Campus" means an individual community college campus,
individual California State University campus, or individual
University of California campus.
(4) "Eligible local government renewable generating
facility" means a generation facility that meets all of the following
requirements:
(A) Has a generating capacity of no more than one megawatt.
(B) Is an eligible renewable energy resource, as defined in
Article 16 (commencing with Section 399.11) of Chapter 2.3
of Part 1.
(C) Is located within the geographical boundary of the local
government or, for a campus, within the geographical boundary of the
city or city and county, if the campus is located in an incorporated
area, or county, if the campus is located in an unincorporated area.
(D) Is owned by, operated by, or on property under the control of,
the local government or campus. For these purposes, premises
that are leased by a local government or campus are under the control
of the local government or campus.
(E) Is sized to offset all or part of the electrical load of the
benefiting account. For these purposes, premises that are
leased by a local government or campus are under the control of the
local government or campus.
(5) "Generating account" means the time-of-use electric service
account of the local government or campus where the eligible
local government renewable generating facility is located.
(6) "Local government" means a city, county, whether general law
or chartered, city and county, special district, school district,
political subdivision, or other local public agency, but shall not
mean a joint powers authority, the state or any agency or department
of the state, other than an individual campus of the University of
California or the California State University.
(b) Subject to the limitation in subdivision (h), a local
government may elect to receive electric service pursuant to this
section, if all of the following conditions are met:
(1) The local government designates one or more benefiting
accounts to receive a bill credit.
(2) A benefiting account receives service under a time-of-use rate
schedule.
(3) The benefiting account is the responsibility of, and serves
property that is owned, operated, or on property under the control of
the same local government that owns, operates, or controls the
eligible local government renewable generating facility.
(4) The electrical output of the eligible local government
renewable generating facility is metered for time of use to
allow calculation of the bill credit based upon when the electricity
is exported to the grid.
(5) All costs associated with the metering requirements of
paragraphs (2) and (4) are the responsibility of the local
government.
(6) All costs associated with interconnection are the
responsibility of the local government. For purposes of this
paragraph, "interconnection" has the same meaning as defined in
Section 2803, except that it applies to the interconnection of an
eligible local government renewable generating facility
rather than the energy source of a private energy producer.
(7) The local government does not sell electricity exported to the
electrical grid to a third party.
(8) All electricity exported to the grid by the local government
that is generated by the eligible local government
renewable generating facility becomes the property of the electrical
corporation to which the facility is interconnected, but shall not be
counted toward the electrical corporation's total retail sales for
purposes of Article 16 (commencing with Section 399.11) of Chapter
2.3 of Part 1. Ownership of the renewable energy credits, as defined
in Section 399.12, shall be the same as the ownership of the
renewable energy credits associated with electricity that is net
metered pursuant to Section 2827.
(c) (1) A benefiting account shall be billed for all electricity
usage, and for each bill component, at the rate schedule applicable
to the benefiting account, including any cost-responsibility
surcharge or other cost recovery mechanism, as determined by the
commission, to reimburse the Department of Water Resources for
purchases of electricity, pursuant to Division 27 (commencing with
Section 80000) of the Water Code.
(2) The bill shall then subtract the bill credit applicable to the
benefiting account. The generation component credited to the
benefiting account may shall not
include the cost-responsibility surcharge or other cost recovery
mechanism, as determined by the commission, to reimburse the
Department of Water Resources for purchases of electricity, pursuant
to Division 27 (commencing with Section 80000) of the Water Code. The
electrical corporation shall ensure that the local government
receives the full bill credit.
(3) If, during the billing cycle, the generation component of the
electricity usage charges exceeds the bill credit, the benefiting
account shall be billed for the difference.
(4) If, during the billing cycle, the bill credit applied pursuant
to paragraph (2) exceeds the generation component of the electricity
usage charges, the difference shall be carried forward as a
financial credit to the next billing cycle.
(5) After the electricity usage charge pursuant to paragraph (1)
and the credit pursuant to paragraph (2) are determined for the last
billing cycle of a 12-month period, any remaining credit resulting
from the application of this section shall be reset to zero.
(d) The commission shall ensure that the transfer of a bill credit
to a benefiting account does not result in a shifting of costs to
bundled service subscribers. The costs associated with the transfer
of a bill credit shall include all billing-related expenses.
(e) Not more frequently than once per year, and upon providing the
electrical corporation with a minimum of 60 days' notice, the local
government may elect to change a benefiting account. Any credit
resulting from the application of this section earned prior to the
change in a benefiting account that has not been used as of the date
of the change in the benefiting account, shall be applied, and may
only be applied, to a benefiting account as changed.
(f) A local government shall provide the electrical corporation to
which the eligible local government renewable generating
facility will be interconnected with not less than 60 days' notice
prior to the eligible local government renewable
generating facility becoming operational. The electrical corporation
shall file an advice letter with the commission, that complies with
this section, not later than 30 days after receipt of the notice,
proposing a rate tariff for a benefiting account. The commission,
within 30 days of the date of filing, shall approve the proposed
tariff, or specify conforming changes to be made by the electrical
corporation to be filed in a new advice letter.
(g) The local government may terminate its election pursuant to
subdivision (b), upon providing the electrical corporation with a
minimum of 60 days' notice. Should the local government sell its
interest in the eligible local government renewable
generating facility, or sell the electricity generated by the
eligible local government renewable generating facility,
in a manner other than as required by this section, upon
the date of either event, and the earliest date if both events occur,
no further bill credit pursuant to paragraph (3) of
subdivision (b) (c) may be
earned. Only credit earned prior to that date shall be made to a
benefiting account.
(h) An electrical corporation is not obligated to provide a bill
credit to a benefiting account that is not designated by a local
government prior to the point in time that the combined statewide
cumulative rated generating capacity of all eligible local
government renewable generating facilities within the service
territories of the state's three largest electrical corporations
reaches 250 megawatts. Only those eligible local government
renewable generating facilities that are providing bill credits
to benefiting accounts pursuant to this section shall count toward
reaching this 250-megawatt limitation. Each electrical corporation
shall only be required to offer service or contracts under this
section until that electrical corporation reaches its proportionate
share of the 250-megawatt limitation based on the ratio of its peak
demand to the total statewide peak demand of all electrical
corporations.
SEC. 3. Section 2831 is added to the
Public Utilities Code , to read:
2831. (a) As used in this section, the following terms have the
following meanings:
(1) "Benefiting account" means an electric service account, or
more than one account, that is the responsibility of, or serves
property that is owned, operated, or under the control of any state
agency, that is located within the service territory of an electrical
corporation in which the eligible renewable state generating
facility is located, and which is designated by a state agency
pursuant to this section.
(2) "Bill credit" means an amount of money credited to a
benefiting account that is calculated based upon the time-of-use
electricity generation component of the electricity usage charge of
the generating account, multiplied by the quantities of electricity
generated by an eligible state renewable generating facility that are
exported to the grid during the corresponding time period.
Electricity is exported to the grid if it is generated by an eligible
state renewable generating facility, is not utilized onsite by the
local government, and the electricity flows through the meter site
and on to the electrical corporation's distribution or transmission
infrastructure.
(3) "Eligible state renewable generating facility" means a
generation facility that meets all of the following requirements:
(A) Is an eligible renewable energy resource pursuant to Article
16 (commencing with Section 399.11) of Chapter 2.3 of Part 1.
(B) Is located within the service territory of an electrical
corporation within the state.
(C) Is owned by, operated by, or on property under the control of
a state agency. For these purposes, premises that are leased by a
state agency are under the control of the state agency.
(D) Is sized to offset all or part of the electrical load of the
benefiting account.
(4) "Generating account" means the time-of-use electric service
account of the state agency where the eligible state renewable
generating facility is located.
(5) "State agency" means every state office, officer, agency,
department, division, bureau, board, and commission or other state
body, except those agencies provided for in Article IV (except
Section 20 thereof) or Article VI of the California Constitution.
(b) Subject to the limitation in subdivision (h), a state agency
may elect to receive electric service pursuant to this section, if
all of the following conditions are met:
(1) A state agency designates one or more benefiting accounts to
receive a bill credit.
(2) A benefiting account receives service under a time-of-use rate
schedule.
(3) The benefiting account is the responsibility of, and serves
property that is owned, operated, or on property under the control of
a state agency.
(4) The electrical output of the eligible state renewable
generating facility is metered for time of use to allow calculation
of the bill credit based upon when the electricity is exported to the
grid.
(5) All costs associated with the metering requirements of
paragraphs (2) and (4) are the responsibility of a state agency.
(6) All costs associated with interconnection are the
responsibility of a state agency. For purposes of this paragraph,
"interconnection" has the same meaning as defined in Section 2803,
except that it applies to the interconnection of an eligible state
renewable generating facility rather than the energy source of a
private energy producer.
(7) The state agency does not sell electricity exported to the
electrical grid to a third party.
(8) All electricity exported to the grid by the state agency that
is generated by the eligible state renewable generating facility
becomes the property of the electrical corporation to which the
facility is interconnected, but shall not be counted toward the
electrical corporation's total retail sales for purposes of Article
16 (commencing with Section 399.11) of Chapter 2.3 of Part 1.
Ownership of the renewable energy credits, as defined in Section
399.12, shall be the same as the ownership of the renewable energy
credits associated with electricity that is net metered pursuant to
Section 2827.
(c) (1) A benefiting account shall be billed for all electricity
usage, and for each bill component, at the rate schedule applicable
to the benefiting account, including any cost-responsibility
surcharge or other cost recovery mechanism, as determined by the
commission, to reimburse the Department of Water Resources for
purchases of electricity, pursuant to Division 27 (commencing with
Section 80000) of the Water Code.
(2) The bill shall then subtract the bill credit applicable to the
benefiting account. The generation component credited to the
benefiting account shall not include the cost-responsibility
surcharge or other cost recovery mechanism, as determined by the
commission, to reimburse the Department of Water Resources for
purchases of electricity, pursuant to Division 27 (commencing with
Section 80000) of the Water Code. The electrical corporation shall
ensure that the benefiting account receives the full bill credit.
(3) If, during the billing cycle, the generation component of the
electricity usage charges exceeds the bill credit, the benefiting
account shall be billed for the difference.
(4) If, during the billing cycle, the bill credit applied pursuant
to paragraph (2) exceeds the generation component of the electricity
usage charges, the difference shall be carried forward as a
financial credit to the next billing cycle.
(5) After the electricity usage charge pursuant to paragraph (1)
and the credit pursuant to paragraph (2) are determined for the last
billing cycle of a 12-month period, any remaining credit resulting
from the application of this section shall be reset to zero.
(d) The commission shall ensure that the transfer of a bill credit
to a benefiting account does not result in a shifting of costs to
bundled service subscribers. The costs associated with the transfer
of a bill credit shall include all billing-related expenses.
(e) Not more frequently than once per year, and upon providing the
electrical corporation with a minimum of 60 days' notice, the state
agency may elect to change a benefiting account. Any credit resulting
from the application of this section earned prior to the change in a
benefiting account that has not been used as of the date of the
change in the benefiting account, shall be applied, and may only be
applied, to a benefiting account as changed.
(f) A state agency shall provide the electrical corporation to
which the eligible state renewable generating facility will be
interconnected with not less than 60 days' notice prior to the
eligible state renewable generating facility becoming operational.
The electrical corporation shall file an advice letter with the
commission, that complies with this section, not later than 30 days
after receipt of the notice, proposing a rate tariff for a benefiting
account. The commission, within 30 days of the date of filing, shall
approve the proposed tariff, or specify conforming changes to be
made by the electrical corporation to be filed in a new advice
letter.
(g) The state agency may terminate its election pursuant to
subdivision (b), upon providing the electrical corporation with a
minimum of 60 days' notice. Should the state agency sell its interest
in the eligible state renewable generating facility, or sell the
electricity generated by the eligible state renewable generating
facility, in a manner other than as required by this section, upon
the date of either event, and the earliest date if both events occur,
no further bill credit pursuant to subdivision (c) may be earned.
Only credit earned prior to that date shall be made to a benefiting
account.
(h) An electrical corporation is not obligated to provide a bill
credit to a benefiting account that is not designated by a state
agency prior to the point in time that the combined statewide
cumulative rated generating capacity of all eligible state renewable
generating facilities within the service territories of the state's
three largest electrical corporations reaches 500 megawatts. Only
those eligible state renewable generating facilities that are
providing bill credits to benefiting accounts pursuant to this
section shall count toward reaching this 500-megawatt limitation.
Each electrical corporation shall only be required to offer service
or contracts under this section until that electrical corporation
reaches its proportionate share of the 500-megawatt limitation based
on the ratio of its peak demand to the total statewide peak demand of
all electrical corporations.
SEC. 4. 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) 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 State Energy Resources Conservation and
Development Energy Commission pursuant to
Chapter 8.8 (commencing with Section 25780) of Division 15 of the
Public Resources Code. For an eligible state renewable
generating facility authorized by Section 2831, the commission shall
authorize the award of monetary incentives for up to five megawatts
of alternating current generated by solar energy systems that meet
the eligibility criteria established by the Energy Commission.
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 State Energy
Resources Conservation and Development 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 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.
(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
State Energy Resources Conservation and Development
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 assures 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 80110 of the Water Code. 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 as provided in
paragraph (2), including those residential customers subject to the
rate cap required by Section 80110 of the Water Code 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 shall 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 ensure that the total cost over the duration of the
program does not exceed three billion three hundred fifty million
eight hundred thousand dollars ($3,350,800,000). 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. The total cost over the duration of these programs
shall not exceed two billion one hundred sixty-six million eight
hundred thousand dollars ($2,166,800,000) and includes moneys
collected directly into a tracking account for support of the
California Solar Initiative and moneys collected into other accounts
that are used to further the goals 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 Energy Commission
pursuant to Chapter 8.6 (commencing with Section 25740) of Division
15 of the Public Resources Code, and funded by nonbypassable 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 pursuant to Article 15 (commencing with Section 399) of
Chapter 2.3 of Part 1 .
SEC. 5. 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.
SECTION 1. Section 2863 of the Public Utilities
Code is amended to read:
2863. (a) (1) The commission shall evaluate the data available
from the Solar Water Heating Pilot Project conducted by the
California Center for Sustainable Energy. If, after a public hearing,
the commission determines that a solar water heating program is cost
effective for ratepayers and in the public interest, the commission
shall design and implement a program applicable to the service
territories of a gas corporation, to achieve the goal of the
Legislature to promote the installation of 200,000 solar water
heating systems in homes and businesses throughout the state by 2017.
(2) The program shall be administered by gas corporations or
third-party administrators, as determined by the commission, and
subject to the supervision of the commission.
(3) The commission shall coordinate the program with the Energy
Commission's New Solar Homes Partnership to achieve the goal of
building zero-energy homes.
(4) To encourage the installation of solar water heating systems
in buildings owned and occupied by public agencies, the commission
shall consider additional incentives for the installation of solar
water heating systems by public entities, including, but not limited
to, exemptions or partial exemptions from the surcharge imposed
pursuant to subdivision (b). The commission shall give special
consideration to large users of hot water such as jails, prisons, and
public hospitals.
(b) (1) The commission shall fund the program through the use of a
surcharge applied to gas customers based upon the amount of natural
gas consumed. The surcharge shall be in addition to any other charges
for natural gas sold or transported for consumption in this state.
(2) The commission shall impose the surcharge at a level that is
necessary to meet the goal of installing 200,000 solar water heating
systems, or the equivalent output of 200,000 solar water heating
systems, on homes and businesses in California by 2017. Funding for
the program established by this article shall not, for the collective
service territories of all gas corporations, exceed two hundred
fifty million dollars ($250,000,000) over the course of the 10-year
program.
(3) The commission shall annually establish a surcharge rate for
each class of gas customers. Any gas customer participating in the
California Alternate Rates for Energy (CARE) or Family Electric Rate
Assistance (FERA) programs shall be exempt from paying any surcharge
imposed to fund the program designed and implemented pursuant to this
article.
(4) Any surcharge imposed to fund the program designed and
implemented pursuant to this article shall not be imposed upon the
portion of any gas customer's procurement of natural gas that is used
or employed for a purpose that Section 896 excludes from being
categorized as the consumption of natural gas.
(5) The gas corporation or other person or entity providing
revenue cycle services, as defined in Section 328.1, shall be
responsible for collecting the surcharge.
(c) Funds shall be allocated for the benefit of gas customers to
promote utilization of solar water heating systems.
(d) In designing and implementing the program required by this
article, no moneys shall be diverted from any existing programs for
low-income ratepayers or cost-effective energy efficiency programs.