Bill Text: CA SB963 | 2011-2012 | Regular Session | Amended

California Senate Bill 963 (Prior Session Legislation)

Bill Title: Renewable energy resources: local publicly owned

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-02-13 - From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. [SB963 Detail]

Download: California-2011-SB963-Amended.html
BILL NUMBER: SB 963	AMENDED
	BILL TEXT

	AMENDED IN SENATE  FEBRUARY 13, 2012

INTRODUCED BY   Senator Cannella
    (   Principal coauthor: 
 Assembly Member   Olsen  
) 
    (   Coauthors:  
Senators   Berryhill   
 and La Malfa   ) 

                        JANUARY 11, 2012

   An act to amend  Sections 25740 and 25741 of, and to
repeal Section 25740.5 of, the Public Resources Code, and to amend
Sections 399.11, 399.12, 399.13, 399.14, 399.15, and 399.30 of, and
repeal Section 399.12.5   Sections 399.20 and 399.22 of,
and to amend and renumber Section 387.6  of, the Public
Utilities Code, relating to energy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 963, as amended, Cannella. Renewable energy resources  :
local publicly owned electric utilities  . 
   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 these requirements to that portion of the
Public Utilities Code concerning the California Renewables Portfolio
Standard Program. The bill would make other technical and
nonsubstantive changes.  
   Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations, as defined, while local publicly owned electric
utilities, as defined, are under the direction of their governing
board. The existing Renewables Portfolio Standard Program (RPS
program) requires a retail seller of electricity, as defined, and
local publicly owned electric utilities to purchase specified minimum
quantities of electricity products from eligible renewable energy
resources, as defined, for specified compliance periods. The
specified minimum quantities of electricity products are based upon a
percentage of the utility's total retail sales of electricity in
California. Pursuant to the RPS program, certain small, conduit, and
repowered hydroelectric generation facilities are eligible renewable
energy resources.  
   This bill would repeal those provisions of the RPS program making
small, conduit, and repowered hydroelectric generation facilities
eligible renewable energy resources. The bill would revise the RPS
program so that the specified minimum quantities of electricity
products required to be procured are based upon a percentage of the
utility's net program retail sales of electricity in California. The
bill would define "net program retail sales" of electricity as being
the total retail sales of electricity by the retail seller or local
publicly owned electric utility within California, minus those retail
sales where the load was met by generation from a hydroelectric
generation facility. The bill would make other conforming changes.
 
   The Renewable Energy Resources Program states the intent of the
Legislature to increase the amount of electricity generated from
eligible renewable energy resources per year so that amount equals at
least 33% of total retail sales of electricity in California per
year by December 31, 2020.  
   This bill would state the intent of the Legislature to increase
the amount of electricity generated from eligible renewable energy
resources per year so that amount equals at least 33% of net program
retail sales of electricity in California per year by December 31,
2020.  
   Existing law requires the State Energy Resources Conservation and
Development Commission, by June 30, 2011, to study and provide a
report to the Legislature that analyzes run-of-river hydroelectric
generating facilities, as defined, in British Columbia, including
whether these facilities are, or should be, included as renewable
electrical generation facilities for purposes of the Renewable Energy
Resources Program administered by the Energy Commission or eligible
renewable energy resources for purposes of the RPS program. 

   This bill would repeal that requirement. 
   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program: no.


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: 
    387.6.   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 
Article 16 (commencing with Section 399.11)   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.
   (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. 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  387 
 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  
California-licensed  contractor who is not the owner or operator
of the electric generation facility. A  California licensed
  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  only  be performed  only  by the
local publicly owned electric utility.
   SEC. 2.    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.
   (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) 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   399.32  . The
proportionate share shall be calculated based on the ratio of the
electrical corporation's peak demand compared to the total statewide
peak demand.
   (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.
   SEC. 3.   Section 399.22 of the   Public
Utilities Code   is amended to read: 
   399.22.  (a) For purposes of this section, "state agency" means
any state agency, board, department, or commission, including the
entities specified in subdivision (a) of Section 15814.12 of the
Government Code.
   (b) A state agency generating electricity from an electric
generation facility, as defined in Section  387.6 or
 399.20  or 399.32  , that operates under a tariff
adopted pursuant to either of those sections, and that is owned by,
operated by, or on property under the control of, the state agency
shall take the total annual amount of kilowatthours exported to the
grid into consideration when determining whether the state agency has
achieved the policy goals and objectives established by law for the
state agency. All matter omitted in this version of the bill appears
in the bill as introduced in the Senate, January 11, 2012. (JR11)