BILL NUMBER: AB 1969	CHAPTERED
	BILL TEXT

	CHAPTER  731
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2006
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2006
	PASSED THE ASSEMBLY  AUGUST 22, 2006
	PASSED THE SENATE  AUGUST 21, 2006
	AMENDED IN SENATE  AUGUST 16, 2006
	AMENDED IN SENATE  JUNE 14, 2006
	AMENDED IN ASSEMBLY  MAY 4, 2006
	AMENDED IN ASSEMBLY  APRIL 6, 2006

INTRODUCED BY   Assembly Member Yee

                        FEBRUARY 9, 2006

   An act to add Section 399.20 to the Public Utilities Code,
relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1969, Yee  Electrical corporations: water agencies.
   (1) The Public Utilities Act requires the Public Utilities
Commission to review and adopt a procurement plan and a renewable
energy procurement plan for each electrical corporation pursuant to
the California Renewables Portfolio Standard Program. The program
requires that a retail seller of electricity, including electrical
corporations, community choice aggregators, and electric service
providers, but not including local publicly owned electric utilities,
purchase a specified minimum percentage of electricity generated by
eligible renewable energy resources, as defined, in any given year as
a specified percentage of total kilowatthours sold to retail end-use
customers each calendar year (renewables portfolio standard).
   Existing law, except as specified, requires every electric service
provider, as defined, to develop a standard contract or tariff
providing for net energy metering, and to make this contract or
tariff available to eligible customer generators, upon request, on a
first-come-first-served basis until the total rated generating
capacity used by eligible customer generators exceeds 0.5% of the
electric service provider's aggregate customer peak demand.
   This bill would require every electrical corporation to file with
the commission a standard tariff for renewable energy output produced
at an electric generation facility, as defined, that, among other
things, is an eligible renewable energy resource. The bill would
require the electrical corporation to make this tariff available to
public water or wastewater agencies that own and operate an electric
generation facility within the service territory of the electrical
corporation, upon request, on a first-come-first-served basis, until
the combined statewide cumulative rated generating capacity of those
electric generation facilities equals 250 megawatts. The bill would
specify that each electrical corporation would only be required to
offer service or contracts under the bill until that electrical
corporation meets its proportionate share of the 250 megawatts based
on the ratio of its peak demand to the total statewide peak demand of
all electrical corporations.
   The bill would provide that, upon approval by the commission, any
tariff or contract authorized by the bill may be made available to an
electric generation facility that has an effective capacity of not
more than 1.5 megawatts if that electrical generation facility
otherwise complies with the bill.
   (2) Under existing law, the failure to file a required tariff, or
a violation of an order or direction of the commission, including a
commission-approved tariff, is a crime.
   Because the bill would require electrical corporations to file new
tariffs, the bill would impose a state-mandated local program by
creating new crimes.
  (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.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The health of the state's economy depends upon reliable,
affordable, adequate, and environmentally sound supplies of energy
and water.
   (b) The state's rapidly growing population is increasing the
demand for water and the energy needed to deliver and treat it.
   (c) The state's water-related electricity demand accounts for
nearly 20 percent of the state's overall electricity consumption.
   (d) Despite improvements in power plant licensing, successful
energy efficiency programs, and continued technological advancements,
the development of new energy supplies is not keeping pace with the
state's increasing demand. Moreover, the development of new renewable
resources has been slower than anticipated and limited by existing
transmission constraints.
   (e) Unless properly managed on a statewide basis, water-related
electricity demand could ultimately affect the reliability of the
electric system.
   (f) Public water and wastewater facilities are strategically
located and interconnected to the electric transmission system in a
manner that optimizes the deliverability of electricity generated at
those facilities to load centers.
   (g) Renewable energy produced at public water and wastewater
facilities will reduce the demand for the production of nonrenewable
energy needed to serve water-related electricity demand.
  SEC. 2.  Section 399.20 is added to the Public Utilities Code, to
read:
   399.20.  (a) It is the policy of this state and the intent of the
Legislature to encourage energy production from renewable resources
at public water and wastewater facilities in an amount commensurate
with water-related electricity demand.
   (b) As used in this section, "electric generation facility" means
an electric generation facility, owned and operated by a public water
or wastewater agency that is a retail customer of an electrical
corporation, and that meets all of the following criteria:
   (1) Has an effective capacity of not more than one megawatt and is
located on or adjacent to a water or wastewater facility owned and
operated by the public water or wastewater agency.
   (2) Is interconnected and operates in parallel with the electric
transmission and distribution grid.
   (3) Is sized to offset part or all of the electricity demand of
the public water or wastewater agency.
   (4) Is strategically located and interconnected to the electric
transmission system in a manner that optimizes the deliverability of
electricity generated at the facility to load centers.
   (5) Is an eligible renewable energy resource, as defined in
Section 399.12.
   (c) Every electrical corporation shall file with the commission a
standard tariff for renewable energy output produced at an electric
generation facility.
   (d) The tariff shall provide for payment for every kilowatthour of
renewable energy output produced at an electric generation facility
at the market price as determined by the commission pursuant to
Section 399.15 for a period of 10, 15, or 20 years, as authorized by
the commission.
   (e) Every electrical corporation shall make this tariff available
to public water or wastewater agencies that own and operate an
electric generation facility within the service territory of the
electrical corporation, upon request, on a first-come-first-served
basis, until the combined statewide cumulative rated generating
capacity of those electric generation facilities equals 250
megawatts. An electrical corporation may make the terms of the tariff
available to public water or wastewater agencies in the form of a
standard contract subject to commission approval. Each electrical
corporation shall only be required to offer service or contracts
under this section until that electrical corporation meets its
proportionate share of the 250 megawatts based on the ratio of its
peak demand to the total statewide peak demand of all electrical
corporations.
   (f) Every kilowatthour of renewable energy output produced by the
electric generation facility shall count toward the electrical
corporation's renewable portfolio standard annual procurement targets
for purposes of paragraph (1) of subdivision (b) of Section 399.15.

   (g) The physical generating capacity of an electric generation
facility shall count toward the electrical corporation's resource
adequacy requirement for purposes of Section 380.
   (h) Upon approval by the commission, any tariff or contract
authorized by this section may be made available to an electric
generation facility that has an effective capacity of not more than
1.5 megawatts if that electrical generation facility otherwise
complies with all of the provisions of this section.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.