Bill Text: CA SB674 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: California Environmental Quality Act: exemption: residential infill projects.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-09-25 - Chaptered by Secretary of State. Chapter 549, Statutes of 2014. [SB674 Detail]

Download: California-2013-SB674-Amended.html

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BILL NUMBER: SB 674	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 6, 2014

INTRODUCED BY   Senator Corbett

                        FEBRUARY 22, 2013

    An act to amend Section 399.20 of the Public Utilities
Code, relating to energy.   An act to amend Section
21159.24 of the Public Resources Code, relating to environmental
quality. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 674, as amended, Corbett.  Energy: renewable energy.
  California Environmental Quality Act: exemption:
residential infill projects.  
   (1) The California Environmental Quality Act, commonly referred to
as CEQA, requires a lead agency, as defined, to prepare, or cause to
be prepared, and certify the completion of, an environmental impact
report on a project that it proposes to carry out or approve that may
have a significant effect on the environment or to adopt a negative
declaration if it finds that the project will not have that effect.
CEQA also requires a lead agency to prepare a mitigated negative
declaration for a project that may have a significant effect on the
environment if revisions in the project would avoid or mitigate that
effect and there is no substantial evidence that the project, as
revised, would have a significant effect on the environment. 

   CEQA exempts from these requirements residential infill projects
meeting specified criteria, including, among other things, that a
community-level environmental review was adopted or certified within
5 years of the date that the application for the project is deemed
complete and the project promotes higher density infill housing. For
the purposes of this exemption, CEQA defines "residential" to include
a use consisting of residential units and primarily
neighborhood-serving goods, services, or retail uses that do not
exceed 15% of the total floor area of the project.  
   This bill would instead exempt as "residential" a use consisting
of residential units and primarily neighborhood-serving goods,
services, or retail uses that do not exceed 25% of the total building
square footage of the project.  
   (2) Because this bill would require a lead agency to determine
whether a project meets the above criteria to qualify for an
exemption from CEQA, the bill would impose a state-mandated local
program.  
   (3) 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.  
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities. Existing law requires every
electrical corporation to file with the commission a standard tariff
for electricity generated by an electric generation facility, as
defined, that qualifies for the tariff, is owned and operated by a
retail customer of the electrical corporation, and is located within
the service territory of, and developed to sell electricity to, the
electrical corporation. Existing law requires an electrical
corporation to make the tariff available to the owner or operator of
an electric generation facility within the service territory of the
electrical corporation, as specified, until the electrical
corporation meets its proportionate share of a statewide cap of 750
megawatts, as specified.  
   This bill would require the commission to adjust the payment rate
for electricity purchased from electrical generation facility
projects that integrate energy storage to adequately compensate for
the additional value that energy storage system provides. 
   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.    Section 21159.24 of the  
Public Resources Code   is amended to read: 
   21159.24.  (a) Except as provided in subdivision (b), this
division does not apply to a project if all of the following criteria
are met:
   (1) The project is a residential project on an infill site.
   (2) The project is located within an urbanized area.
   (3) The project satisfies the criteria of Section 21159.21.
   (4) Within five years of the date that the application for the
project is deemed complete pursuant to Section 65943 of the
Government Code, community-level environmental review was certified
or adopted.
   (5) The site of the project is not more than four acres in total
area.
   (6) The project does not contain more than 100 residential units.
   (7) Either of the following criteria are met:
   (A) (i) At least 10 percent of the housing is sold to families of
moderate income, or not less than 10 percent of the housing is rented
to families of low income, or not less than 5 percent of the housing
is rented to families of very low income.
   (ii) The project developer provides sufficient legal commitments
to the appropriate local agency to ensure the continued availability
and use of the housing units for very low, low-, and moderate-income
households at monthly housing costs determined pursuant to paragraph
(3) of subdivision (h) of Section 65589.5 of the Government Code.
   (B) The project developer has paid or will pay in-lieu fees
pursuant to a local ordinance in an amount sufficient to result in
the development of an equivalent number of units that would otherwise
be required pursuant to subparagraph (A).
   (8) The project is within one-half mile of a major transit stop.
   (9) The project does not include any single level building that
exceeds 100,000 square feet.
   (10) The project promotes higher density infill housing. A project
with a density of at least 20 units per acre shall be conclusively
presumed to promote higher density infill housing. A project with a
density of at least 10 units per acre and a density greater than the
average density of the residential properties within 1,500 feet shall
be presumed to promote higher density housing unless the
preponderance of the evidence demonstrates otherwise.
   (b) Notwithstanding subdivision (a), this division shall apply to
a development project that meets the criteria described in
subdivision (a), if any of the following occur:
   (1) There is a reasonable possibility that the project will have a
project-specific, significant effect on the environment due to
unusual circumstances.
   (2) Substantial changes with respect to the circumstances under
which the project is being undertaken that are related to the project
have occurred since community-level environmental review was
certified or adopted.
   (3) New information becomes available regarding the circumstances
under which the project is being undertaken and that is related to
the project, that was not known, and could not have been known, at
the time that community-level environmental review was certified or
adopted.
   (c) If a project satisfies the criteria described in subdivision
(a), but is not exempt from this division as a result of satisfying
the criteria described in subdivision (b), the analysis of the
environmental effects of the project in the environmental impact
report or the negative declaration shall be limited to an analysis of
the project-specific effect of the projects and any effects
identified pursuant to paragraph (2) or (3) of subdivision (b).
   (d) For the purposes of this section, "residential" means a use
consisting of either of the following:
   (1) Residential units only.
   (2) Residential units and primarily neighborhood-serving goods,
services, or retail uses that do not exceed  15 
25  percent of the total  floor area  
building square footage  of the project.
   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.  
  SECTION 1.    Section 399.20 of the Public
Utilities Code is amended to read:
   399.20.  (a) It is the policy of this 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, an electrical corporation
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.
   (c) Every electrical corporation shall file with the commission a
standard tariff for electricity purchased from an electric generation
facility. The commission may modify or adjust the requirements of
this section for any electrical corporation with less than 100,000
service connections, as individual circumstances merit.
   (d) (1) The tariff shall provide for payment for every
kilowatthour of electricity purchased from an electric generation
facility for a period of 10, 15, or 20 years, as authorized by the
commission. The payment shall be the market price determined by the
commission pursuant to paragraph (2) and shall include all current
and anticipated environmental compliance costs, including, but not
limited to, mitigation of emissions of greenhouse gases and air
pollution offsets associated with the operation of new generating
facilities in the local air pollution control or air quality
management district where the electric generation facility is
located.
   (2) The commission shall establish a methodology to determine the
market price of electricity for terms corresponding to the length of
contracts with an electric generation facility, in consideration of
the following:
   (A) The long-term market price of electricity for fixed price
contracts, determined pursuant to an electrical corporation's general
procurement activities as authorized by the commission.
   (B) The long-term ownership, operating, and fixed-price fuel costs
associated with fixed-price electricity from new generating
facilities.
   (C) The value of different electricity products including
baseload, peaking, and as-available electricity.
   (3) The commission may adjust the payment rate to reflect the
value of every kilowatthour of electricity generated on a
time-of-delivery basis.
   (4) The commission 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.
   (5) The commission shall adjust the payment rate for electricity
purchased from electrical generation facility projects that integrate
energy storage to adequately compensate for the additional value
that energy storage system provides. The adjustment shall reflect all
the benefits that the energy storage system provides to the
electrical corporation and the grid.
   (e) An electrical corporation shall provide expedited
interconnection procedures to an electric generation facility located
on a distribution circuit that generates electricity at a time and
in a manner so as to offset the peak demand on the distribution
circuit, if the electrical corporation determines that the electric
generation facility will not adversely affect the distribution grid.
The commission shall consider and may establish a value for an
electric generation facility located on a distribution circuit that
generates electricity at a time and in a manner so as to offset the
peak demand on the distribution circuit.
   (f) (1) An electrical corporation shall make the tariff available
to the owner or operator of an electric generation facility within
the service territory of the electrical corporation, upon request, on
a first-come-first-served basis, until the electrical corporation
meets its proportionate share of a statewide cap of 750 megawatts
cumulative rated generation capacity served under this section and
Section 387.6. The proportionate share shall be calculated based on
the ratio of the electrical corporation's peak demand compared to the
total statewide peak demand.
   (2) By June 1, 2013, the commission shall, in addition to the 750
megawatts identified in paragraph (1), direct the electrical
corporations to collectively procure at least 250 megawatts of
cumulative rated generating capacity from developers of bioenergy
projects that commence operation on or after June 1, 2013. The
commission shall, for each electrical corporation, allocate shares of
the additional 250 megawatts based on the ratio of each electrical
corporation's peak demand compared to the total statewide peak
demand. In implementing this paragraph, the commission shall do all
of the following:
   (A) Allocate the 250 megawatts identified in this paragraph among
the electrical corporations based on the following categories:
   (i) For biogas from wastewater treatment, municipal organic waste
diversion, food processing, and codigestion, 110 megawatts.
   (ii) For dairy and other agricultural bioenergy, 90 megawatts.
   (iii) For bioenergy using byproducts of sustainable forest
management, 50 megawatts. Allocations under this category shall be
determined based on the proportion of bioenergy that sustainable
forest management providers derive from sustainable forest management
in fire threat treatment areas, as designated by the Department of
Forestry and Fire Protection.
   (B) Direct the electrical corporations to develop standard
contract terms and conditions that reflect the operational
characteristics of the projects, and to provide a streamlined
contracting process.
   (C) Coordinate, to the maximum extent feasible, any incentive or
subsidy programs for bioenergy with the agencies listed in
subparagraph (A) of paragraph (3) in order to provide maximum
benefits to ratepayers and to ensure that incentives are used to
reduce contract prices.
   (D) The commission shall encourage gas and electrical corporations
to develop and offer programs and services to facilitate development
of in-state biogas for a broad range of purposes.
   (3) (A) The commission, in consultation with the State Energy
Resources Conservation and Development Commission, the State Air
Resources Board, the Department of Forestry and Fire Protection, the
Department of Food and Agriculture, and the Department of Resources
Recycling and Recovery, may review the allocations of the 250
additional megawatts identified in paragraph (2) to determine if
those allocations are appropriate.
   (B) If the commission finds that the allocations of the 250
additional megawatts identified in paragraph (2) are not appropriate,
the commission may reallocate the 250 megawatts among the categories
established in subparagraph (A) of paragraph (2).
   (4) For the purposes of this subdivision, "bioenergy" means biogas
and biomass.
   (g) The electrical corporation may make the terms of the tariff
available to owners and operators of an electric generation facility
in the form of a standard contract subject to commission approval.
   (h) Every kilowatthour of electricity purchased from an electric
generation facility shall count toward meeting the electrical
corporation's renewables portfolio standard annual procurement
targets for purposes of paragraph (1) of subdivision (b) of Section
399.15.
   (i) The physical generating capacity of an electric generation
facility shall count toward the electrical corporation's resource
adequacy requirement for purposes of Section 380.
   (j) (1) The commission shall 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) The commission may reduce the three megawatt capacity
limitation of paragraph (1) of subdivision (b) if the commission
finds that a reduced capacity limitation is necessary to maintain
system reliability within that electrical corporation's service
territory.
   (k) (1) Any owner or operator of an electric generation facility
that received ratepayer-funded incentives in accordance with Section
379.6 of this code, or with Section 25782 of the Public Resources
Code, and participated in a net metering program pursuant to Sections
2827, 2827.9, and 2827.10 of this code prior to January 1, 2010,
shall be eligible for a tariff or standard contract filed by an
electrical corporation pursuant to this section.
   (2) In establishing the tariffs or standard contracts pursuant to
this section, the commission shall consider ratepayer-funded
incentive payments previously received by the generation facility
pursuant to Section 379.6 of this code or Section 25782 of the Public
Resources Code. The commission shall require reimbursement of any
funds received from these incentive programs to an electric
generation facility, in order for that facility to be eligible for a
tariff or standard contract filed by an electrical corporation
pursuant to this section, unless the commission determines ratepayers
have received sufficient value from the incentives provided to the
facility based on how long the project has been in operation and the
amount of renewable electricity previously generated by the facility.

   (3) A customer that receives service under a tariff or contract
approved by the commission pursuant to this section is not eligible
to participate in any net metering program.
   (l) An owner or operator of an electric generation facility
electing to receive service under a tariff or contract approved by
the commission shall continue to receive service under the tariff or
contract until either of the following occurs:
   (1) The owner or operator of an electric generation facility no
longer meets the eligibility requirements for receiving service
pursuant to the tariff or contract.
   (2) The period of service established by the commission pursuant
to subdivision (d) is completed.
   (m) 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 electrical corporation 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.
   (n) An electrical corporation may deny a tariff request pursuant
to this section if the electrical corporation 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.
   (o) Upon receiving a notice of denial from an electrical
corporation, 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 commission.
   (p) 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 electrical corporation 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.
   (q) The contract between the electric generation facility
receiving the tariff and the electrical corporation 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.
   (r) (1) All construction and installation of facilities of the
electrical corporation, including at the point of the output meter or
at the transmission or distribution grid, shall be performed only by
that electrical corporation.
   (2) All interconnection facilities installed on the electrical
corporation's side of the transfer point for electricity between the
electrical corporation and the electrical conductors of the electric
generation facility shall be owned, operated, and maintained only by
the electrical corporation. The ownership, installation, operation,
reading, and testing of revenue metering equipment for electric
generating facilities shall only be performed by the electrical
corporation.