Bill Text: CA SB1332 | 2011-2012 | Regular Session | Chaptered
Bill Title: Renewable energy resources: electric utilities.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2012-09-27 - Chaptered by Secretary of State. Chapter 616, Statutes of 2012. [SB1332 Detail]
Download: California-2011-SB1332-Chaptered.html
BILL NUMBER: SB 1332 CHAPTERED
BILL TEXT
CHAPTER 616
FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2012
APPROVED BY GOVERNOR SEPTEMBER 27, 2012
PASSED THE SENATE AUGUST 22, 2012
PASSED THE ASSEMBLY AUGUST 20, 2012
AMENDED IN ASSEMBLY JUNE 7, 2012
AMENDED IN SENATE APRIL 26, 2012
AMENDED IN SENATE APRIL 9, 2012
INTRODUCED BY Senator Negrete McLeod
FEBRUARY 23, 2012
An act to amend and renumber Section 387.6 of the Public Utilities
Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1332, Negrete McLeod. Renewable energy resources: electric
utilities.
(1) Existing law requires a local publicly owned electric utility
that sells electricity at retail to 75,000 or more customers to adopt
and implement a tariff for electricity purchased from an electric
generation facility meeting certain size, deliverability, and
interconnection requirements and to consider certain factors.
Existing law requires the local publicly owned electric utility to
make the tariff available to owners and operators of an electric
generation facility within the service territory of the utility, upon
request, on a first-come-first-served basis, until the utility meets
its proportionate share of a statewide cap of 750 megawatts
cumulative rated generation capacity served under the feed-in tariffs
adopted pursuant to the above-described requirements. Existing law
provides that the electricity purchased from an electric generation
facility counts toward meeting the local publicly owned electric
utility's renewables portfolio standard annual procurement targets.
This bill would move this requirement to that portion of the
Public Utilities Code concerning the California Renewables Portfolio
Standard Program and would require that the tariff be adopted by July
1, 2013. The bill would make other technical and nonsubstantive
changes.
Existing law requires that the governing board of a local publicly
owned utility ensure that the adopted tariff reflects the value of
every kilowatthour of electricity generated on a time-of-delivery
basis.
This bill would additionally require the board to consider avoided
costs for distribution and transmission system upgrades, whether the
facility generates electricity in a manner that offsets peak demand
on the distribution circuit, and all current and anticipated
environmental and greenhouse gases reduction compliance costs.
By imposing additional requirements upon a local publicly owned
electric utility, the bill would impose a state-mandated local
program.
(2) 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 PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 387.6 of the Public Utilities Code is amended
and renumbered to read:
399.32. (a) It is the policy of the state and the intent of the
Legislature to encourage electrical generation from eligible
renewable energy resources.
(b) As used in this section, "electric generation facility" means
an electric generation facility located within the service territory
of, and developed to sell electricity to, a local publicly owned
electric utility, and that meets all of the following criteria:
(1) Has an effective capacity of not more than three megawatts.
(2) Is interconnected and operates in parallel with the electrical
transmission and distribution grid.
(3) Is strategically located and interconnected to the electrical
transmission and distribution grid in a manner that optimizes the
deliverability of electricity generated at the facility to load
centers.
(4) Is an eligible renewable energy resource pursuant to this
article.
(c) A local publicly owned electric utility that sells electricity
at retail to 75,000 or more customers shall adopt a standard tariff
for electricity purchased from an electric generation facility by
July 1, 2013.
(d) The governing board of the local publicly owned electric
utility shall ensure that the tariff adopted pursuant to subdivision
(c) reflects the value of every kilowatthour of electricity generated
on a time-of-delivery basis, and shall consider avoided costs for
distribution and transmission system upgrades, whether the facility
generates electricity in a manner that offsets peak demand on the
distribution circuit, and all current and anticipated environmental
and greenhouse gases reduction compliance costs. The governing board
may adjust this value based on the other attributes of renewable
generation. The governing board shall ensure, with respect to rates
and charges, that ratepayers that do not receive service pursuant to
the tariff are indifferent to whether a ratepayer with an electric
generation facility receives service pursuant to the tariff.
(e) A local publicly owned electric utility that sells electricity
at retail to 75,000 or more customers shall make the tariff
available to the owner or operator of an electric generation facility
within the service territory of the utility, upon request, on a
first-come-first-served basis, until the utility meets its
proportionate share of a statewide cap of 750 megawatts cumulative
rated generation capacity served under this section and Section
399.20. The proportionate share shall be calculated based on the
ratio of the utility's peak demand compared to the total statewide
peak demand.
(f) The local publicly owned electric utility may make the terms
of the tariff available to owners and operators of an electric
generation facility in the form of a standard contract.
(g) Every kilowatthour of electricity purchased from an electric
generation facility shall count toward meeting the local publicly
owned electric utility's renewables portfolio standard annual
procurement targets for purposes of Section 399.30.
(h) (1) A local publicly owned electric utility may establish
performance standards for any electric generation facility that has a
capacity greater than one megawatt to ensure that those facilities
are constructed, operated, and maintained to generate the expected
annual net production of electricity and do not impact system
reliability.
(2) A local publicly owned electric utility may reduce the three
megawatt capacity limitation of paragraph (1) of subdivision (b) if
the utility finds that a reduced capacity limitation is necessary.
(i) Within 10 days of receipt of a request for a tariff pursuant
to this section from an owner or operator of an electric generation
facility, the local publicly owned electric utility that receives the
request shall post a copy of the request on its Internet Web site.
The information posted on the Internet Web site shall include the
name of the city in which the facility is located, but information
that is proprietary and confidential, including, but not limited to,
address information beyond the name of the city in which the facility
is located, shall be redacted.
(j) A local publicly owned electric utility may deny a tariff
request pursuant to this section if the local publicly owned electric
utility makes any of the following findings:
(1) The electric generation facility does not meet the
requirements of this section.
(2) The transmission or distribution grid that would serve as the
point of interconnection is inadequate.
(3) The electric generation facility does not meet all applicable
state and local laws and building standards, and utility
interconnection requirements.
(4) The aggregate of all electric generating facilities on a
distribution circuit would adversely impact utility operation and
load restoration efforts of the distribution system.
(k) Upon receiving a notice of denial from a local publicly owned
electric utility, the owner or operator of the electric generation
facility denied a tariff pursuant to this section shall have the
right to appeal that decision to the governing board of the local
publicly owned electric utility.
(l) In order to ensure the safety and reliability of electric
generation facilities, the owner of an electric generation facility
receiving a tariff pursuant to this section shall provide an
inspection and maintenance report to the local publicly owned
electric utility at least once every other year. The inspection and
maintenance report shall be prepared at the owner's or operator's
expense by a California-licensed contractor who is not the owner or
operator of the electric generation facility. A California-licensed
electrician shall perform the inspection of the electrical portion of
the generation facility.
(m) The contract between the electric generation facility
receiving the tariff and the local publicly owned electric utility
shall contain provisions that ensure that construction of the
electric generating facility complies with all applicable state and
local laws and building standards, and utility interconnection
requirements.
(n) (1) All construction and installation of facilities of the
local publicly owned electric utility, including at the point of the
output meter or at the transmission or distribution grid, shall only
be performed by that local publicly owned electric utility.
(2) All interconnection facilities installed on the local publicly
owned electric utility's side of the transfer point for electricity
between the local publicly owned electric utility and the electrical
conductors of the electric generation facility shall be owned,
operated, and maintained only by the local publicly owned electric
utility. The ownership, installation, operation, reading, and testing
of revenue metering equipment for electric generating facilities
shall be performed only by the local publicly owned electric utility.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.
