Bill Text: CA SB1018 | 2023-2024 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Electricity.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-08-15 - August 15 hearing: Held in committee and under submission. [SB1018 Detail]
Download: California-2023-SB1018-Amended.html
NOYES
Bill Title: Electricity.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-08-15 - August 15 hearing: Held in committee and under submission. [SB1018 Detail]
Download: California-2023-SB1018-Amended.html
|
Amended
IN
Assembly
June 04, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1018
| Introduced by Senator Becker |
February 05, 2024 |
An act to amend Section 218 of of, and to add Section 740.25 to, the Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
SB 1018, as amended, Becker.
Electrical corporation: definition: exclusion of certain solar or wind generating technologies. Electricity.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. “Electrical corporation” is defined for that purpose to include every corporation or person owning, controlling, operating, or managing any electric plant for compensation within this state, except as specified. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.
This bill would revise the definition of “electrical corporation” to exclude a corporation or person employing certain solar or wind generating technology if the electrical energy is transmitted exclusively and directly through private
electric lines to a single facility owned by a different corporation or person that uses the energy only for
new load, not for departing load, and for (1) an electrolyzer technology facility that produces hydrogen from water, or (2) a facility using the electricity to provide industrial process heat, but not for departing
electric load, as specified. The bill would also make various nonsubstantive changes. or both.
This bill would require the commission, on or before July 1, 2026, in a new or existing proceeding, to evaluate and, if just and reasonable, establish a tariff for qualified self-generation projects with a generating capacity exceeding 80,000 kilowatts. The bill would require the commission to structure the tariff so that an electrical corporation serves as a contractual intermediary between the electrical generation and energy storage facilities providing the electricity and the customer. The bill would require the commission to structure rates for qualified self-generation projects to administer the purchase and resale of the electricity from the electrical generation and energy
storage facilities solely at cost, as specified. The bill would also require a customer to meet various requirements to be considered a qualified self-generation project, including, among other requirements, that the customer uses certain electricity, that, in the aggregate, is synchronized with the customer’s load, as defined, and transmitted directly to the customer’s facility.
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 a commission action implementing the bill’s requirements would be a crime, the 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: YES Local Program:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 218 of the Public Utilities Code is amended to read:218.
(a) “Electrical corporation” includes every corporation or person owning, controlling, operating, or managing any electric plant for compensation within this state, except where electricity is generated on or distributed by the producer through private property solely for its own use or the use of its tenants and not for sale or transmission to others.(b) “Electrical corporation” does not include a corporation or person employing cogeneration technology or producing power from other than a conventional power source for the generation of electricity solely for one or more of the following purposes:
(1) Its own use or the use of its tenants.
(2) The use of or sale to not more than two other corporations or persons solely for use on the real property on which the electricity is generated or on real property immediately adjacent thereto, unless there is an intervening public street constituting the boundary between the real property on which the electricity is generated and the immediately adjacent property and one or more of the following applies:
(A) The real property on which the electricity is generated and the immediately adjacent real property is not under common ownership or control, or that common ownership or control was gained solely for purposes of sale of the generated electricity and not for other business purposes.
(B) The useful thermal output of the facility generating the electricity is not used on the immediately adjacent property for petroleum production or refining.
(C) The electricity furnished to the immediately adjacent property is not used by a subsidiary or affiliate of the corporation or person generating the electricity.
(3) Sale or transmission to an electrical corporation or state or local public agency, but not for sale or transmission to others, unless the corporation or person is otherwise an electrical corporation.
(c) “Electrical corporation” does not include a corporation or person employing landfill gas technology for the generation of electricity
for one or more of the following purposes:
(1) Its own use or the use of not more than two of its tenants located on the real property on which the electricity is generated.
(2) The use of or sale to not more than two other corporations or persons solely for use on the real property on which the electricity is generated.
(3) Sale or transmission to an electrical corporation or state or local public agency.
(d) “Electrical corporation” does not include a corporation or person employing digester gas technology for the generation of electricity for one or more of the following purposes:
(1) Its own use or
the use of not more than two of its tenants located on the real property on which the electricity is generated.
(2) The use of or sale to not more than two other corporations or persons solely for use on the real property on which the electricity is generated.
(3) Sale or transmission to an electrical corporation or state or local public agency, if the sale or transmission of the electricity service to a retail customer is provided through the transmission system of the existing local publicly owned electric utility or electrical corporation of that retail customer.
(e) “Electrical corporation” does not include an independent solar energy producer, as defined in Article 3 (commencing with Section 2868) of Chapter 9 of Part
2.
(f) “Electrical corporation” does not include a corporation or person employing solar or wind generating technology of not less than five megawatts, which may have associated on-site battery energy storage technology, if the electrical energy is transmitted exclusively and directly through private electric lines to a single facility owned by a different corporation or person that uses the energy only for new load, not for departing load, and
for one or more of the following, but not for departing electric load: following uses, including de minimis consumption necessary for the management and control of these uses:
(1) An electrolyzer technology facility that produces hydrogen from water.
(2) A facility using the electricity to provide industrial process heat, including through the use of a thermal energy storage system.
(g) The amendments made to this section at the 1987 portion of the 1987–88
Regular Session of the Legislature do not apply to any corporation or person employing cogeneration technology or producing power from other than a conventional power source for the generation of electricity that physically produced electricity before January 1, 1989, and furnished that electricity to immediately adjacent real property for use on that real property before January 1, 1989.
SEC. 2.
Section 740.25 is added to the Public Utilities Code, to read:740.25.
(a) On or before July 1, 2026, the commission shall, in a new or existing proceeding, evaluate and, if just and reasonable, establish a tariff for qualified self-generation projects with a generating capacity exceeding 80,000 kilowatts.(b) The commission shall structure the tariff so that the electrical corporation serves as a contractual intermediary between the electrical generation and energy storage facilities providing the electricity and the customer for purposes of providing retail service and allowing the electrical generation and energy storage facilities to be considered exempt wholesale generators as defined in Section 366.1 of Title 18 of the Code of Federal Regulations.
(c) The commission shall structure rates for qualified self-generation projects to administer the purchase and resale of the electricity from the electrical generation and energy storage facilities solely at cost and then add on the incremental administrative or operational costs of the electrical corporation serving as a contractual intermediary.
(d) Nothing in this section shall prevent customers from taking supplemental service for auxiliary equipment or loads that are not part of the qualified self-generation project under a standard offer tariff with separate metering or submetering, as determined by the commission.
(e) Nothing in this section shall prohibit electrical generation or energy storage facilities that are providing electricity to a qualified self-generation project from also participating in wholesale electricity markets.
(f) As used in this section, the following definitions apply:
(1) “Qualified self-generation project” means a customer that meets all of the following requirements:
(A) The customer uses electricity from one or both of the following sources that, in the aggregate, is synchronized with the customer’s load and transmitted directly to the customer’s facility:
(i) Electricity from an electrical generation facility using solar or wind technology.
(ii) Electricity from an energy storage facility that stores energy exclusively from a facility using solar or wind technology.
(B) The customer bears responsibility for the cost of any
infrastructure constructed for the purpose of connecting the customer’s facility with the electrical generation or energy storage facility, whether built by the customer or by the electrical corporation.
(C) The customer consumes the electricity for one or both of the following uses, including de minimis consumption necessary for management and control of those uses:
(i) Producing hydrogen using an electrolysis of water.
(ii) Using electricity to provide industrial process heat, including through the use of a thermal energy storage system.
(2) “Synchronized with the customer’s load” means that supply and demand between the electrical generation and energy storage facilities and the customer’s consumption are temporally balanced in a manner that avoids
the use of the bulk power system and that the customer’s load shall not use electricity from the electrical corporation’s transmission, distribution, or generation assets except for incidental, emergency, or testing purposes.
