Bill Text: CA SB366 | 2009-2010 | Regular Session | Introduced
Bill Title: Energy: renewable energy: biomass.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB366 Detail]
Download: California-2009-SB366-Introduced.html
BILL NUMBER: SB 366 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Aanestad
FEBRUARY 25, 2009
An act to amend Section 2827 of the Public Utilities Code,
relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 366, as introduced, Aanestad. Energy: renewable energy:
biomass.
The Public Utilities Act imposes various duties and
responsibilities on the Public Utilities Commission with respect to
the purchase of electricity. Existing law requires every electric
distribution utility or cooperative to develop a standard contract or
tariff providing for net energy metering, and to make this contract
available to eligible customer-generators, as defined, upon request.
Existing law requires every electric service provider, upon request,
to make available to eligible customer-generators, contracts for net
energy metering subject to specified limitations on the number of
contracts. Existing law limits eligible customer-generators to
residential, small commercial, commercial, industrial, or
agricultural customers of an electric service provider that use a
solar or a wind turbine electrical generating facility, or a hybrid
solar and wind turbine generating facility. The commission is
responsible for enforcing these provisions.
This bill would change the definition of eligible
customer-generators to include residential, small commercial,
commercial, industrial, or agricultural customers of an electric
service provider that use biomass electricity generating facilities.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2827 of the Public Utilities Code is amended to
read:
2827. (a) The Legislature finds and declares that a program to
provide net energy metering, co-energy metering, and wind energy
co-metering for eligible customer-generators is one way to encourage
substantial private investment in renewable energy resources,
stimulate in-state economic growth, reduce demand for electricity
during peak consumption periods, help stabilize California's energy
supply infrastructure, enhance the continued diversification of
California's energy resource mix, and reduce interconnection and
administrative costs for electricity suppliers.
(b) As used in this section, the following terms have the
following meanings:
(1) "Co-energy metering" means a program that is the same in all
other respects as a net energy metering program, except that the
local publicly owned electric utility has elected to apply a
generation-to-generation energy and time-of-use credit formula as
provided in subdivision (i).
(2) "Electrical cooperative" means an electrical cooperative as
defined in Section 2776.
(3) "Electric distribution utility or cooperative" means an
electrical corporation, a local publicly owned electric utility, or
an electrical cooperative, or any other entity, except an electric
service provider, that offers electrical service. This section shall
not apply to a local publicly owned electric utility that serves more
than 750,000 customers and that also conveys water to its customers.
(4) "Eligible customer-generator" means a residential, small
commercial customer as defined in subdivision (h) of Section 331,
commercial, industrial, or agricultural customer of an electricity
distribution utility or cooperative, who uses a solar , biomass,
or a wind turbine electrical generating facility, or a hybrid
solar-wind system of both , with a
capacity of not more than one megawatt that is located on the
customer's owned, leased, or rented premises, is interconnected and
operates in parallel with the electric grid, and is intended
primarily to offset part or all of the customer's own electrical
requirements.
(5) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the
electricity generated by an eligible customer-generator and fed back
to the electric grid over a 12-month period as described in
subdivision (h). An eligible customer-generator who already owns an
existing solar , biomass, or wind turbine electrical
generating facility, or a hybrid solar-wind system
of both , is eligible to receive net energy
metering service in accordance with this section.
(6) "Ratemaking authority" means, for an electrical corporation,
electrical cooperative, or electric service provider, the commission,
and for a local publicly owned electric utility, the local elected
body responsible for setting the rates of the local publicly owned
utility.
(7) "Wind energy co-metering" means any wind energy project
greater than 50 kilowatts, but not exceeding one megawatt, where the
difference between the electricity supplied through the electric grid
and the electricity generated by an eligible customer-generator and
fed back to the electric grid over a 12-month period is as described
in subdivision (h). Wind energy co-metering shall be accomplished
pursuant to Section 2827.8.
(c) (1) Every electricity distribution utility or cooperative
shall develop a standard contract or tariff providing for net energy
metering, and shall make this standard contract or tariff available
to eligible customer-generators, upon request, on a
first-come-first-served basis until the time that the total rated
generating capacity used by eligible customer-generators exceeds 2.5
percent of the electricity distribution utility or cooperative's
aggregate customer peak demand. Net energy metering shall be
accomplished using a single meter capable of registering the flow of
electricity in two directions. An additional meter or meters to
monitor the flow of electricity in each direction may be installed
with the consent of the customer-generator, at the expense of the
electricity distribution utility or cooperative, and the additional
metering shall be used only to provide the information necessary to
accurately bill or credit the customer-generator pursuant to
subdivision (h), or to collect solar , biomass, or wind
electric electrical generating system
performance information for research purposes. If the existing
electrical meter of an eligible customer-generator is not capable of
measuring the flow of electricity in two directions, the
customer-generator shall be responsible for all expenses involved in
purchasing and installing a meter that is able to measure electricity
flow in two directions. If an additional meter or meters are
installed, the net energy metering calculation shall yield a result
identical to that of a single meter.
(2) (A) On an annual basis, beginning in 2003, every electricity
distribution utility or cooperative shall make available to the
ratemaking authority information on the total rated generating
capacity used by eligible customer-generators that are customers of
that provider in the provider's service area.
(B) An electric service provider operating pursuant to Section 394
shall make available to the ratemaking authority the information
required by this paragraph for each eligible customer-generator that
is their customer for each service area of an electric
electrical corporation, local publicly owned
electric utility, or electrical cooperative, in which the customer
has net energy metering.
(C) The ratemaking authority shall develop a process for making
the information required by this paragraph available to electricity
distribution utilities and cooperatives, and for using that
information to determine when, pursuant to paragraphs (1) and (3), an
electricity distribution utility or cooperative is not obligated to
provide net energy metering to additional customer-generators in its
service area.
(3) An electricity distribution utility or cooperative is not
obligated to provide net energy metering to additional
customer-generators in its service area when the combined total peak
demand of all customer-generators served by all the electricity
distribution utilities or cooperatives in that service area
furnishing net energy metering to eligible customer-generators
exceeds 2.5 percent of the aggregate customer peak demand of those
electricity distribution utilities or cooperatives.
(4) By January 1, 2010, the commission, in consultation with the
Energy Commission, shall submit a report to the Governor and the
Legislature on the costs and benefits of net energy metering, wind
energy co-metering, and co-energy metering to participating customers
and nonparticipating customers and with options to replace the
economic costs and benefits of net energy metering, wind energy
co-metering, and co-energy metering with a mechanism that more
equitably balances the interests of participating and
nonparticipating customers, and that incorporates the findings of the
report on economic and environmental costs and benefits of net
metering required by subdivision (n).
(d) Every electricity distribution utility or cooperative shall
make all necessary forms and contracts for net energy metering
service available for download from the Internet.
(e) (1) Every electricity distribution utility or cooperative
shall ensure that requests for establishment of net energy metering
are processed in a time period not exceeding that for similarly
situated customers requesting new electric service, but not to exceed
30 working days from the date it receives a completed application
form for net energy metering service, including a signed
interconnection agreement from an eligible customer-generator and the
electric inspection clearance from the governmental authority having
jurisdiction.
(2) Every electricity distribution utility or cooperative shall
ensure that requests for an interconnection agreement from an
eligible customer-generator are processed in a time period not to
exceed 30 working days from the date it receives a completed
application form from the eligible customer-generator for an
interconnection agreement.
(3) If an electricity distribution utility or cooperative is
unable to process a request within the allowable timeframe pursuant
to paragraph (1) or (2), it shall notify the eligible
customer-generator and the ratemaking authority of the reason for its
inability to process the request and the expected completion date.
(f) (1) If a customer participates in direct transactions pursuant
to paragraph (1) of subdivision (b) of Section 365 with an electric
service provider that does not provide distribution service for the
direct transactions, the electricity distribution utility or
cooperative that provides distribution service for an eligible
customer-generator is not obligated to provide net energy metering to
the customer.
(2) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
service provider, and the customer is an eligible customer-generator,
the electricity distribution utility or cooperative that provides
distribution service for the direct transactions may recover from the
customer's electric service provider the incremental costs of
metering and billing service related to net energy metering in an
amount set by the ratemaking authority.
(g) Except for the time-variant kilowatthour pricing portion of
any tariff adopted by the commission pursuant to paragraph (4) of
subdivision (a) of Section 2851, each net energy metering contract or
tariff shall be identical, with respect to rate structure, all
retail rate components, and any monthly charges, to the contract or
tariff to which the same customer would be assigned if the customer
did not use an eligible solar , biomass, or wind
electrical generating facility, except that eligible
customer-generators shall not be assessed standby charges on the
electrical generating capacity or the kilowatthour production of an
eligible solar , biomass, or wind electrical generating
facility. The charges for all retail rate components for eligible
customer-generators shall be based exclusively on the
customer-generator's net kilowatthour consumption over a 12-month
period, without regard to the customer-generator's choice as to whom
it purchases electricity that is not self-generated. Any new or
additional demand charge, standby charge, customer charge, minimum
monthly charge, interconnection charge, or any other charge that
would increase an eligible customer-generator's costs beyond those of
other customers who are not eligible customer-generators in the rate
class to which the eligible customer-generator would otherwise be
assigned if the customer did not own, lease, rent, or otherwise
operate an eligible solar , biomass, or wind electrical
generating facility are contrary to the intent of this section, and
shall not form a part of net energy metering contracts or tariffs.
(h) For eligible residential and small commercial
customer-generators, the net energy metering calculation shall be
made by measuring the difference between the electricity supplied to
the eligible customer-generator and the electricity generated by the
eligible customer-generator and fed back to the electric grid over a
12-month period. The following rules shall apply to the annualized
net metering calculation:
(1) The eligible residential or small commercial
customer-generator shall, at the end of each 12-month period
following the date of final interconnection of the eligible
customer-generator's system with an electricity distribution utility
or cooperative, and at each anniversary date thereafter, be billed
for electricity used during that 12-month period. The electricity
distribution utility or cooperative shall determine if the eligible
residential or small commercial customer-generator was a net consumer
or a net producer of electricity during that period.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electricity distribution utility or
cooperative exceeds the electricity generated by the eligible
residential or small commercial customer-generator during that same
period, the eligible residential or small commercial
customer-generator is a net electricity consumer and the electricity
distribution utility or cooperative shall be owed compensation for
the eligible customer-generator's net kilowatthour consumption over
that 12-month period. The compensation owed for the eligible
residential or small commercial customer-generator's consumption
shall be calculated as follows:
(A) For all eligible customer-generators taking service under
contracts or tariffs employing "baseline" and "over baseline" rates
or charges, any net monthly consumption of electricity shall be
calculated according to the terms of the contract or tariff to which
the same customer would be assigned to, or be eligible for, if the
customer was not an eligible customer-generator. If those same
customer-generators are net generators over a billing period, the net
kilowatthours generated shall be valued at the same price per
kilowatthour as the electricity distribution utility or cooperative
would charge for the baseline quantity of electricity during that
billing period, and if the number of kilowatthours generated exceeds
the baseline quantity, the excess shall be valued at the same price
per kilowatthour as the electricity distribution utility or
cooperative would charge for electricity over the baseline quantity
during that billing period.
(B) For all eligible customer-generators taking service under
contracts or tariffs employing "time-of-use" rates or charges, any
net monthly consumption of electricity shall be calculated according
to the terms of the contract or tariff to which the same customer
would be assigned to, or be eligible for, if the customer was not an
eligible customer-generator. When those same customer-generators are
net generators during any discrete time-of-use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electricity distribution utility or cooperative
would charge for retail kilowatthour sales during that same
"time-of-use" period. If the eligible customer-generator's
"time-of-use" electrical meter is unable to measure the flow of
electricity in two directions, subparagraph (A) of
paragraph (1) of subdivision (c) shall apply.
(C) For all eligible residential and small commercial
customer-generators and for each billing period, the net balance of
moneys owed to the electricity distribution utility or cooperative
for net consumption of electricity or credits owed to the eligible
customer-generator for net generation of electricity shall be carried
forward as a monetary value until the end of each 12-month period.
For all eligible commercial, industrial, and agricultural
customer-generators, the net balance of moneys owed shall be paid in
accordance with the electricity distribution utility or cooperative's
normal billing cycle, except that if the eligible commercial,
industrial, or agricultural customer-generator is a net electricity
producer over a normal billing cycle, any excess kilowatthours
generated during the billing cycle shall be carried over to the
following billing period as a monetary value, calculated according to
the procedures set forth in this section, and appear as a credit on
the eligible customer-generator's account, until the end of the
annual period when paragraph (3) shall apply.
(3) At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electricity
distribution utility or cooperative during that same period, the
eligible customer-generator is a net electricity producer and the
electricity distribution utility or cooperative shall retain any
excess kilowatthours generated during the prior 12-month period. The
eligible customer-generator shall not be owed any compensation for
those excess kilowatthours unless the electricity distribution
utility or cooperative enters into a purchase agreement with the
eligible customer-generator for those excess kilowatthours.
(4) The electricity distribution utility or cooperative shall
provide every eligible residential or small commercial
customer-generator with net electricity consumption information with
each regular bill. That information shall include the current
monetary balance owed the electricity distribution utility or
cooperative for net electricity consumed, or the current amount of
excess electricity produced, since the last 12-month period ended.
Notwithstanding this subdivision, an electricity distribution utility
or cooperative shall permit that customer to pay monthly for net
energy consumed.
(5) If an eligible residential or small commercial
customer-generator terminates the customer relationship with the
electricity distribution utility or cooperative, the electricity
distribution utility or cooperative shall reconcile the eligible
customer-generator's consumption and production of electricity during
any part of a 12-month period following the last reconciliation,
according to the requirements set forth in this subdivision, except
that those requirements shall apply only to the months since the most
recent 12-month bill.
(6) If an electric service provider or electricity distribution
utility or cooperative providing net energy metering to a residential
or small commercial customer-generator ceases providing that
electric service to that customer during any 12-month period, and the
customer-generator enters into a new net energy metering contract or
tariff with a new electric service provider or electricity
distribution utility or cooperative, the 12-month period, with
respect to that new electric service provider or electricity
distribution utility or cooperative, shall commence on the date on
which the new electric service provider or electricity distribution
utility or cooperative first supplies electric service to the
customer-generator.
(i) Notwithstanding any other provisions of this section, the
following provisions shall apply to an eligible customer-generator
with a capacity of more than 10 kilowatts, but not exceeding one
megawatt, that receives electric service from a local publicly owned
electric utility that has elected to utilize a co-energy metering
program unless the local publicly owned electric utility chooses to
provide service for eligible customer-generators with a capacity of
more than 10 kilowatts in accordance with subdivisions (g) and (h):
(1) The eligible customer-generator shall be required to utilize a
meter, or multiple meters, capable of separately measuring
electricity flow in both directions. All meters shall provide
"time-of-use" measurements of electricity flow, and the customer
shall take service on a time-of-use rate schedule. If the existing
meter of the eligible customer-generator is not a time-of-use meter
or is not capable of measuring total flow of energy in both
directions, the eligible customer-generator shall be responsible for
all expenses involved in purchasing and installing a meter that is
both time-of-use and able to measure total electricity flow in both
directions. This subdivision shall not restrict the ability of an
eligible customer-generator to utilize any economic incentives
provided by a government agency or an electricity distribution
utility or cooperative to reduce its costs for purchasing and
installing a time-of-use meter.
(2) The consumption of electricity from the local publicly owned
electric utility shall result in a cost to the eligible
customer-generator to be priced in accordance with the standard rate
charged to the eligible customer-generator in accordance with the
rate structure to which the customer would be assigned if the
customer did not use an eligible solar , biomass, or wind
electrical generating facility. The generation of electricity
provided to the local publicly owned electric utility shall result in
a credit to the eligible customer-generator and shall be priced in
accordance with the generation component, established under the
applicable structure to which the customer would be assigned if the
customer did not use an eligible solar , biomass, or wind
electrical generating facility.
(3) All costs and credits shall be shown on the eligible
customer-generator's bill for each billing period. In any months in
which the eligible customer-generator has been a net consumer of
electricity calculated on the basis of value determined pursuant to
paragraph (2), the customer-generator shall owe to the local publicly
owned electric utility the balance of electricity costs and credits
during that billing period. In any billing period in which the
eligible customer-generator has been a net producer of electricity
calculated on the basis of value determined pursuant to paragraph
(2), the local publicly owned electric utility shall owe to the
eligible customer-generator the balance of electricity costs and
credits during that billing period. Any net credit to the eligible
customer-generator of electricity costs may be carried forward to
subsequent billing periods, provided that a local publicly owned
electric utility may choose to carry the credit over as a
kilowatthour credit consistent with the provisions of any applicable
contract or tariff, including any differences attributable to the
time of generation of the electricity. At the end of each 12-month
period, the local publicly owned electric utility may reduce any net
credit due to the eligible customer-generator to zero.
(j) A solar , biomass, or wind turbine electrical
generating system, or a hybrid solar-wind system
of both , used by an eligible customer-generator shall meet
all applicable safety and performance standards established by the
National Electrical Code, the Institute of Electrical and Electronics
Engineers, and accredited testing laboratories, including
Underwriters Laboratories and, where applicable, rules of the
commission regarding safety and reliability. A customer-generator
whose solar , biomass, or wind turbine electrical
generating system, or a hybrid solar-wind system
of both , meets those standards and rules shall not be
required to install additional controls, perform or pay for
additional tests, or purchase additional liability insurance.
(k) If the commission determines that there are cost or revenue
obligations for an electric corporation, as defined in Section 218,
that may not be recovered from customer-generators acting pursuant to
this section, those obligations shall remain within the customer
class from which any shortfall occurred and may not be shifted to any
other customer class. Net energy metering and co-energy metering
customers shall not be exempt from the public goods charges imposed
pursuant to Article 7 (commencing with Section 381), Article 8
(commencing with Section 385), or Article 15 (commencing with Section
399) of Chapter 2.3 of Part 1. In its report to the Legislature, the
commission shall examine different methods to ensure that the public
goods charges remain nonbypassable.
() A net energy metering, co-energy metering, or wind energy
co-metering customer shall reimburse the Department of Water
Resources for all charges that would otherwise be imposed on the
customer by the commission to recover bond-related costs pursuant to
an agreement between the commission and the Department of Water
Resources pursuant to Section 80110 of the Water Code, as well as the
costs of the department equal to the share of the department's
estimated net unavoidable power purchase contract costs attributable
to the customer. The commission shall incorporate the determination
into an existing proceeding before the commission, and shall ensure
that the charges are nonbypassable. Until the commission has made a
determination regarding the nonbypassable charges, net energy
metering, co-energy metering, and wind energy co-metering shall
continue under the same rules, procedures, terms, and conditions as
were applicable on December 31, 2002.
(m) In implementing the requirements of subdivisions (k) and (), a
customer-generator shall not be required to replace its existing
meter except as set forth in subparagraph (A) of
paragraph (1) of subdivision (c), nor shall the electricity
distribution utility or cooperative require additional measurement of
usage beyond that which is necessary for customers in the same rate
class as the eligible customer-generator.
(n) It is the intent of the Legislature that the Treasurer
incorporate net energy metering, co-energy metering, and wind energy
co-metering projects undertaken pursuant to this section as
sustainable building methods or distributive energy technologies for
purposes of evaluating low-income housing projects.
