BILL NUMBER: SB 1 AMENDED
BILL TEXT
AMENDED IN SENATE FEBRUARY 28, 2005
INTRODUCED BY Senators Murray and Campbell
DECEMBER 6, 2004
An act to amend Section 25744 of, and to add Sections
25407, 25744.4, and 25744.5 to, the Public Resources Code, and to
amend Sections 399.6, 399.8, and 2827 of, and to add Section 379.8
to, the Public Utilities Code, relating to energy, and making an
appropriation therefor. add Sections 25405.5 and
25405.6 to, and to add Chapter 8.8 (commencing with Section 25780) to
Division 15 of, the Public Resources Code, and to add Sections
379.8, 387.5, and 760 to the Public Utilities Code, relating to solar
energy, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 1, as amended, Murray. Energy: renewable energy resources:
California Renewables Portfolio Standard Program
Million Solar Roofs Initiative .
(1) Existing law requires the State Energy Resources Conservation
and Development Commission (Energy Commission) to expand and
accelerate development of alternative sources of energy, including
solar resources. Existing law requires the Energy Commission, until
January 1, 2006, and to the extent that funds are appropriated for
that purpose in the annual Budget Act, to implement a grant program
to accomplish specified goals, including making solar energy systems
cost competitive with alternate forms of energy.
The existing Public Utilities Act requires the Public Utilities
Commission (PUC) to require Pacific Gas and Electric Company, San
Diego Gas and Electric, and Southern California Edison to identify a
separate electrical rate component to fund programs that enhance
system reliability and provide in-state benefits. This rate component
is a nonbypassable element of local distribution and collected on
the basis of usage. The funds are collected to support cost-effective
energy efficiency and conservation activities, public interest
research and development not adequately provided by competitive and
regulated markets, and renewable energy resources. Existing PUC
resolutions refer to the nonbypassable rate component as a "Public
Goods Charge" (PGC). Existing law requires that the PGC not exceed,
for any tariff schedule, the level that was in effect on January 1,
2000. Existing law requires that the PGC be adjusted annually at a
rate equal to the lesser of the annual growth in electric commodity
sales or inflation, as defined. Existing law requires the Energy
Commission to transfer funds collected by electrical corporations for
in-state operation and development of existing and new and emerging
renewable resources technologies into the Renewable Resource Trust
Fund, to fund specified programs.
Existing law requires that 17.5% of the money collected under the
renewable energy public goods charge be used to fund the Emerging
Renewable Resources Account within the Renewable Resource Trust
Account, for the purpose of a multiyear, consumer-based program to
foster the development of emerging renewable technologies in
distributed generation applications.
This bill would establish the Solar Homes Peak Energy Procurement
Subaccount within the Emerging Renewable Resources Account and would
make the moneys therein available, upon appropriation by the
Legislature, to fund the Solar Homes Peak Energy Procurement Program,
which the bill would establish. The bill would require the Energy
Commission to award rebates, and would authorize the Energy
Commission to provide incentives, to support the installation of
solar energy systems, as defined, on existing and new residential
construction. The bill would require that the amounts collected to
fund energy efficiency, renewable energy, and research, development,
and demonstration be set at the levels established by the PUC for
2005, and would require that any moneys collected above those 2005
levels during 2006 and 2007 be transferred to the Solar Homes Peak
Energy Procurement Subaccount.
This bill would require that the PUC, on or before February 1,
2006, and in consultation with the Energy Commission, issue an order
initiating an investigation and opening a ratemaking proceeding, or
to expand the scope of an existing proceeding, to adopt and implement
a program to invest in residential solar energy systems. The bill
would require the PUC to complete its investigation and proceeding
and adopt the program no later than January 1, 2008. The bill would
require every local publicly owned electric utility, as defined, to
establish a solar homes program consistent with the program adopted
and implemented by the PUC, within a reasonable time after the PUC
establishes any program for electrical corporations. Each local
publicly owned electric utility would be required to report, on an
annual basis, to its customers and to the Energy Commission,
information relative to the utility's solar homes program and would
authorize the Energy Commission to establish guidelines for the
information to be included in the annual report.
(2) Under the Reliable Electric Service Investments Act, the
Energy Commission was required to hold moneys collected for renewable
energy and deposited in the Renewable Resource Trust Fund until
further action by the Legislature. The act requires the Energy
Commission to create an initial investment plan, in accordance with
specified objectives, to govern the allocation of funds in the
Renewable Resource Trust Fund collected between January 1, 2002, and
January 1, 2007, in order to ensure a fully competitive and
self-sustaining California renewable energy supply. Existing law
requires the Energy Commission, on or before March 31, 2006, to
prepare an investment plan proposing the application of moneys
collected between January 1, 2007, and January 1, 2012.
This bill would delete the requirement that moneys collected for
renewable energy and deposited in the Renewal Resource Trust Fund be
held until further action by the Legislature. The bill would require
the Energy Commission, on or before March 31, 2006, to prepare a
report, rather than an investment plan, describing the application of
moneys collected between January 1, 2007, and January 1, 2012, and
to describe the use of any funds applied toward program activities
during the period January 1, 2002, through March 31, 2006.
(3) Existing law authorizes a local government to develop and
administer a program to encourage the construction of buildings that
use solar thermal and photovoltaic systems meeting certain standards
and requires that any program recognize owners and builders who
participate in the program by awarding these owners and builders a
"Sunny Homes Seal."
This bill would require that beginning January 1, 2008, a seller
of production homes, as defined, offer the option of a solar energy
system, as defined, to all customers negotiating to purchase a new
production home and to disclose certain information.
(4) Existing law requires every electric service provider, as
defined, to develop a standard contract or tariff providing for net
energy metering, and to make this contract available to eligible
customer generators, upon request. Existing law requires every
electric service provider, upon request, to make available to
eligible customer generators contracts for net energy metering on a
first-come-first-served basis until the time that 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 that every electric service provider, upon
request, make available to eligible customer generators contracts
for net energy metering on a first-come-first-served basis until the
time that the total rated generating capacity used by eligible
customer generators exceeds 5% of the electric service provider's
aggregate customer peak demand and would delete certain provisions of
existing law relative to the annualized net metering calculation.
(5) Under existing law, a violation of the Public Utilities Act or
an order or direction of the PUC is a crime.
Because various provisions of this bill are within the act and
require action by the PUC to implement the bill's requirements, a
violation of those provisions would be a crime thereby imposing a
state-mandated local program by creating a new crime.
(6) 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 (PUC) has
regulatory authority over public utilities, including electrical
corporations. The existing Public Utilities Act requires the PUC to
require Pacific Gas and Electric Company, San Diego Gas and Electric,
and Southern California Edison to identify a separate electrical
rate component to fund programs that enhance system reliability and
provide in-state benefits. This rate component is a nonbypassable
element of local distribution and collected on the basis of usage.
The funds are collected to support cost-effective energy efficiency
and conservation activities, public interest research and development
not adequately provided by competitive and regulated markets, and
renewable energy resources.
This bill would establish the Million Solar Roofs Initiative,
administered by the Energy Commission, with the goals of placing
1,000,000 solar energy systems, as defined, on new and existing
residential and commercial customer sites, or its generation capacity
equivalent of 3,000 megawatts, establishing a self-sufficient solar
industry in 10 years, and placing solar energy systems on 50 % of new
home developments in 13 years. The bill would establish the Million
Solar Roofs Initiative Trust Fund and would continuously appropriate
moneys deposited into the fund to the Energy Commission for purposes
of carrying out the Million Solar Roofs Initiative. The program would
require the Energy Commission to award incentives, pursuant to a
declining schedule to be adopted by the Energy Commission, and would
authorize certain other incentive programs, to support the
installation of eligible solar energy systems. The bill would require
the Energy Commission to establish eligibility criteria for solar
energy systems and to establish conditions for incentives. The bill
would require the Energy Commission to adopt guidelines governing the
program at a publicly noticed meeting.
This bill would require that the PUC, on or before February 1,
2006, and in consultation with the Energy Commission, issue an order
opening a proceeding, or expanding the scope of an existing
proceeding, to adopt, implement, and finance a comprehensive solar
energy program to invest in and encourage the increased installation
of residential and commercial solar energy systems, with the goal of
placing solar energy systems on 1,000,000 residential and commercial
customer sites or its equivalent of 3,000 megawatts of solar
generating capacity, by December 31, 2018. The bill would require
funding of the Million Solar Roofs Initiative to be an element of the
program adopted by the PUC. The bill would require that the
reasonable cost of the program be included in the distribution
revenue requirements of electrical corporations. The bill would
require that the program adopted by the PUC be a cost-effective
investment by ratepayers in peak electricity generation capacity that
enables ratepayers to recoup the cost of their investment through
lower rates as a result of avoiding purchases of electricity at peak
rates generated by traditional generation resources. The bill would
require the PUC to adopt the program no later than January 1, 2007.
This bill would require all local publicly owned electric
utilities, as defined, to establish a solar roofs initiative
consistent with the program adopted and implemented by the PUC,
within a reasonable time after the PUC establishes any program for
electrical corporations. All local publicly owned electric utilities
would be required to report, on an annual basis, to its customers and
to the Energy Commission, information relative to the utility's
solar roofs initiative and would authorize the Energy Commission to
establish guidelines for the information to be included in the
utility's annual report. By imposing additional duties upon local
publicly owned electric utilities, the bill would thereby impose a
state-mandated local program.
(2) Existing law requires all electric service providers, as
defined, to develop a standard contract or tariff providing for net
energy metering, and to make this contract available to eligible
customer generators, upon request. Existing law requires all
electric service providers, upon request, to make available to
eligible customer generators contracts for net energy metering on a
first-come-first-served basis until the time that 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, notwithstanding these requirements, require the
PUC to order electrical corporations to expand the availability of
net energy metering so that it is offered on a
first-come-first-served basis until the time that the total rated
generating capacity used by all eligible customer-generators exceeds
0.5% of the electrical corporation's total electricity sales.
(3) Existing law authorizes the PUC to fix the rates and charges
for every public utility, and requires that those rates and charges
be just and reasonable.
This bill would require the PUC, in collaboration with the Energy
Commission, to develop time-variant electricity pricing tariffs for
all customers that are not subject to mandatory time-variant pricing,
including net-metered customers.
(4) Existing law requires the Energy Commission to expand and
accelerate development of alternative sources of energy, including
solar resources.
This bill would require that beginning January 1, 2010, a seller
of production homes, as defined, offer the option of a solar energy
system, as defined, to all customers negotiating to purchase a new
production home constructed on land meeting certain criteria and to
disclose certain information. The bill would require that not later
than July 1, 2009, the Energy Commission initiate a public proceeding
and make findings if and under what conditions solar energy systems
are to be required on new residential and nonresidential buildings.
(5) Under existing law, a violation of the Public Utilities Act or
an order or direction of the PUC is a crime.
Various provisions of this bill are within the act and require
action by the PUC to implement the bill's requirements. Because a
violation of those provisions or of PUC actions to implement those
provisions would be a crime, this bill would impose a state-mandated
local program by creating new crimes.
(6) 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 specified reasons.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
SECTION 1. Section 25405.5 is added to the Public Resources Code,
to read:
25405.5. (a) As used in this section, the following terms have
the following meanings:
(1) "kW" means kilowatts or 1,000 watts, as measured from the
alternating current side of the solar energy system inverter
consistent with Section 223 of Title 15 of the United States Code.
(2) "Production home" means a single family residence constructed
as part of a development of at least 50 homes per project that is
intended or offered for sale.
(3) "Solar energy system" means a photovoltaic solar collector or
other photovoltaic solar energy device that has a primary purpose of
providing for the collection and distribution of solar energy for the
generation of electricity, and that produces at least 1 kW
alternating current rated peak electricity.
(b) A seller of production homes shall offer a solar energy system
option to all customers that enter into negotiations to purchase a
new production home constructed on land for which an application for
a tentative subdivision map has been deemed complete on or after
January 1, 2010, and disclose the following:
(1) The total installed cost of the solar energy system option.
(2) The estimated cost savings associated with the solar energy
system option, as determined by the commission pursuant to Chapter
8.8 (commencing with Section 25780) of Division 15.
SEC. 2. Section 25405.6 is added to the Public Resources Code, to
read:
25405.6. Not later than July 1, 2009, the commission shall
initiate a public proceeding and make findings if and under what
conditions solar energy systems shall be required on new residential
and new nonresidential buildings, including the establishment of
numerical targets. For purposes of this section, a solar energy
system means a photovoltaic solar collector or other photovoltaic
solar energy device that has a primary purpose of providing for the
collection and distribution of solar energy for the generation of
electricity.
SEC. 3. Chapter 8.8 (commencing with Section 25780) is added to
Division 15 of the Public Resources Code, to read:
8.8. MILLION SOLAR ROOFS INITIATIVE
25780. The Legislature finds and declares all of the following:
(a) California has a pressing need to procure a steady supply of
affordable and reliable peak electricity.
(b) Solar generated electricity is uniquely suited to California's
needs because it produces electricity when California needs it most,
during the peak demand hours in summer afternoons when the sun is
brightest and air conditioners are running at capacity.
(c) Procuring solar electric generation capacity to meet peak
electricity demand increases system reliability and decreases
California's dependence on unstable fossil fuel supplies.
(d) Solar generated electricity diversifies California's energy
portfolio. California currently relies on natural gas for the bulk of
its electricity generation needs. Increasing energy demands place
increasing pressure on limited natural gas supplies and threaten to
raise costs.
(e) More than 150,000 homes will be built annually in California
in the coming years, challenging energy reliability and
affordability.
(f) Investing in residential and commercial solar electricity
generation installations today will lower the cost of solar generated
electricity for all Californians in the future. In 10 years, solar
peak electric generation can be procured without the need for
rebates.
(g) Increasing California's solar electricity generation market
will also bring additional manufacturing, installation, and sales
jobs to the state at a higher rate than most conventional energy
production sources.
(h) Funding a Million Solar Roofs Initiative is a cost-effective
investment by ratepayers in peak electricity generation capacity and
ratepayers will recoup the cost of their investment through lower
rates as a result of avoiding purchases of electricity at peak rates,
with additional system reliability and pollution reduction benefits.
(i) Solar energy systems provide substantial energy reliability
and pollution reduction benefits. Solar energy systems also diversify
our energy supply and thereby reduce our dependence on imported
fossil fuels.
25781. As used in this chapter, the following terms have the
following meanings:
(a) "kW" means kilowatts or 1,000 watts, as measured from the
alternating current side of the solar energy system inverter
consistent with Section 223 of Title 15 of the United States Code.
(b) "kWh" means kilowatthours, as measured by the number of
kilowatts generated in an hour.
(c) "MW" means megawatts or 1,000,000 watts.
(d) "Solar energy system" means a photovoltaic solar collector or
other photovoltaic solar energy device that has a primary purpose of
providing for the collection and distribution of solar energy for the
generation of electricity, and that produces at least 1 kW
alternating current rated peak electricity.
(e) "Million Solar Roofs Initiative" means the program established
by this chapter.
25782. (a) The commission shall develop and implement a multiyear
Million Solar Roofs Initiative to provide funding and support to
foster the installation of solar energy systems on new and existing
residential and commercial customer sites in California. The goals of
this program are the placement of solar energy systems on 1,000,000
residential and commercial sites, or its generation capacity
equivalent of 3,000 MW, the establishment of a self-sufficient solar
industry in which solar energy systems are a viable mainstream option
for both homes and businesses in 10 years, and the placement of
solar energy systems on 50 percent of new homes in 13 years.
(b)All funds used for the Million Solar Roofs Initiative shall be
expended in accordance with the following:
(1) The commission shall award monetary incentives for eligible
solar energy systems not to exceed the existing level of incentive in
effect on January 1, 2006. The incentive level shall decline each
year thereafter at a rate of no less than 7 percent per year and
shall be zero as of December 31, 2016. The commission shall adopt and
publish a schedule of declining incentive levels no less than 60
days in advance of the first decline in incentive levels.
(2) Notwithstanding paragraph (1), the commission may increase the
incentive level by not more than 50 percent above the maximum
incentive level established pursuant to paragraph (1) for solar
energy systems that are installed on "zero energy homes" or "zero
energy commercial structures." Prior to an increase in the incentive
level, the commission shall adopt definitions for "zero energy homes"
and "zero energy commercial structures" through a public process,
including at least one public hearing with not less than 30 days'
notice.
(3) Notwithstanding paragraph (1), the commission may increase the
incentive level by not more than 25 percent above the maximum
incentive level established pursuant to paragraph (1) for solar
energy systems that are installed on homes or commercial structures
that exceed the commission's established building standards by a
specified percentage as determined by the commission.
(4) Awards shall be made for the installation of eligible solar
energy systems on new or existing residential and commercial customer
sites that are or will be receiving electrical distribution service
from an electrical corporation that is contributing funds to support
the Million Solar Roofs Initiative pursuant to Section 379.8 of the
Public Utilities Code.
(5) Awards shall not be made for eligible solar energy systems
installed on the premises of individuals or entities that are not
contributing funds to support the Million Solar Roofs Initiative.
(c) The commission shall establish eligibility criteria for solar
energy systems, including the following:
(1) The solar energy system is intended primarily to offset part
or all of the consumer's own electricity demand.
(2) All components in the solar energy system are new and unused,
and have not previously been placed in service in any other location
or for any other application.
(3) The solar energy system has a warranty of not less than 10
years to protect against defects and undue degradation of electrical
generation output.
(4) The solar energy system is located on the same premises of the
end-use consumer where the consumer's own electricity demand is
located.
(5) The solar energy system is connected to the electrical
corporation's electrical distribution system within the state.
(6) The solar energy system has meters or other devices in place
to monitor and measure the system's performance and the quantity of
electricity generated by the system.
(d) The commission may establish conditions on incentives that
require or encourage all of the following:
(1) Appropriate siting and high quality installation of the solar
energy system.
(2) Optimal solar energy system performance during periods of peak
electricity demand, including the use of advanced metering systems,
on-site performance meters, dispatchable battery backup systems, and
performance based incentives.
(3) Appropriate energy efficiency improvements in the new or
existing home or commercial structure where the solar energy system
is installed.
(e) The commission may limit the amount of funds available for any
system or project of multiple systems and reduce the level of
funding for any system or project of multiple systems that has
received, or may be eligible to receive, any other government or
utility funding, incentive, or credit, except for any income or
property tax credit or exemption.
(f) The commission may provide proportional program support, not
to exceed 10 percent of the overall funds for the Million Solar Roofs
Initiative, for installation of solar energy systems on affordable
housing projects undertaken pursuant to Section 50052.5, 50053, or
50199.14 of the Health and Safety Code. If deemed appropriate in
consultation with the California Tax Credit Allocation Committee, the
commission may establish a revolving loan or loan guarantee program
for affordable housing projects consistent with the requirements of
Chapter 5.3 (commencing with Section 25425).
(g) Pursuant to this chapter, the commission may provide
incentives in the form of a monetary incentive or its equivalent to
purchasers, lessees, lessors, or sellers of an eligible solar energy
system. The incentive shall benefit the end-use consumer by directly
and exclusively reducing the purchase or lease cost of the eligible
solar energy system, or the cost of electricity produced by the
eligible solar energy system. Incentives shall be issued on the basis
of the rated electrical capacity of the system measured in watts, or
in the electricity production of the system, measured in kW, as
determined by the commission.
25783. In administering the Million Solar Roofs Initiative, the
commission shall do all the following:
(a) Examine and implement, to the extent appropriate, financing
options that could lower solar energy system financing costs to
residential and commercial customers. The commission shall examine
wholesale and retail mortgage markets, and other issues that it deems
appropriate.
(b) Acquire, if the commission determines it necessary,
appropriate technical and administrative services or expertise to
support the Million Solar Roofs Initiative. The commission may award
contracts to develop or administer all or a portion of the Million
Solar Roofs Initiative.
(c) Publish educational materials designed to demonstrate how
builders may incorporate those energy efficiency measures that best
complement solar energy systems.
(d) Develop and publish the estimated annual electrical generation
and savings for solar energy systems. The estimates shall vary by
climate zone, type of system, size, lifecycle costs, electricity
prices, and other factors the commission determines to be relevant to
a consumer when making a purchasing decision.
(e) Provide assistance to builders and contractors in support of
the Million Solar Roofs Initiative. The assistance may include
technical workshops, training, educational materials, and related
research.
(f) Publish, and make available to the public, at least once
annually, the balance of funds available for the Million Solar Roofs
Initiative and the percentage of new and existing residential and
commercial customer sites that are equipped with solar energy systems
funded by the Million Solar Roofs Initiative.
25784. (a) The commission shall adopt guidelines governing the
Million Solar Roofs Initiative authorized under this chapter, at a
publicly noticed meeting offering all interested parties an
opportunity to comment. Not less than 30 days' public notice shall be
given of the meeting required by this section, before the commission
initially adopts guidelines. Substantive changes to the guidelines
shall not be adopted without at least 10 days' written notice to the
public. Notwithstanding any other provision of law, any guidelines
adopted pursuant to this chapter shall be exempt from the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.
(b) Funds to further the purposes of this chapter may be committed
for multiple years.
25785. (a) The Million Solar Roofs Initiative Trust Fund is
hereby created in the State Treasury.
(b) The money in the fund may be expended to implement and support
the Million Solar Roofs Initiative pursuant to this chapter and may
be used for the commission's administration only upon appropriature
in the annual Budget Act.
(c) Revenues collected by electrical corporations pursuant to
Section 379.8 of the Public Utilities Code shall be transmitted to
the commission at least quarterly for deposit in the Million Solar
Roofs Initiative Trust Fund. After setting aside in the fund money
that may be needed for expenditures authorized by subdivision (b),
the Treasurer shall immediately deposit money received pursuant to
this section into the Million Solar Roofs Initiative Trust Fund for
the current calendar year. Notwithstanding Section 13340 of the
Government Code, the money in the fund is hereby continuously
appropriated to the commission without regard to fiscal year for the
purposes enumerated in this chapter.
(d) Upon notification by the commission, the Controller shall pay
all awards of the money in the fund for purposes enumerated in this
chapter. The eligibility of an award shall be determined solely by
the commission based on the procedures it adopts under this chapter.
Based on the eligibility of an award, the commission shall also
establish the need for a multiyear commitment to any particular award
and so advise the Department of Finance. An eligible award submitted
by the commission to the Controller shall be accompanied by a
summary description of how payment of the award furthers the purposes
enumerated in this chapter, and an accounting of future costs
associated with any award or group of awards known to the commission
to represent a portion of a multiyear funding commitment.
SEC. 4. Section 379.8 is added to the Public Utilities Code, to
read:
379.8. (a) Notwithstanding any other law, on or before February
1, 2006, the commission, in consultation with the State Energy
Resources Conservation and Development Commission, shall initiate a
new proceeding or expand the scope of an existing proceeding to
adopt, implement, and finance a comprehensive solar energy program to
invest in and encourage the increased installation of residential
and commercial solar energy systems in the state. The goal of the
program is placing solar energy systems on one million residential
and commercial customer sites or its equivalent of 3,000 MW solar
generating capacity in the state by December 31, 2018.
(b) The commission's proceeding shall do all of the following:
(1) Evaluate current programs of the commission and the State
Energy Resources Conservation and Development Commission to determine
the level of additional funding needed to adequately support the
goal of placing solar energy systems on one million residential and
commercial customer sites or its equivalent of 3,000 MW solar
generating capacity in the state by December 31, 2018.
(2) Encourage participation by a broad and diverse range of
interests from all areas of the state, and interested state entities.
(c) The commission shall include the reasonable cost of the
program in the distribution revenue requirements of electrical
corporations.
(d) Notwithstanding any other provision of law, any charge imposed
to fund the programs adopted and implemented pursuant to this
section shall be imposed upon all customers, including those
residential customers subject to the rate cap required by Section
80110 of the Water Code for existing baseline quantities or usage up
to 130 percent of existing baseline quantities of electricity.
(e) The commission shall adopt the program no later than January
1, 2007.
(f) The program adopted by the commission pursuant to this
section, shall do all of the following:
(1) Be a cost-effective investment by ratepayers in peak
electricity generation capacity that enables ratepayers to recoup the
cost of their investment through lower rates as a result of avoiding
purchases of electricity at peak rates generated by traditional
powerplants and peaker generation units, with additional system
reliability and pollution reduction benefits.
(2) Utilize the most cost-effective administrative mechanism to
adequately accomplish the goals of the program.
(3) Provide a predictable long-term funding mechanism sufficient
to encourage adequate investment by the solar industry.
(4) Make time-variant pricing available for all ratepayers with a
solar energy system, upon adoption of time-variant pricing tariffs
pursuant to Section 760. The commission shall structure any
time-variant pricing so that ratepayers receive due value for their
contribution to the purchase of solar energy systems and customers
with solar energy systems continue to have an incentive to use
electricity efficiently.
(5) Require San Diego Gas and Electric Company, Southern
California Edison Company, and Pacific Gas and Electric Company to
each designate at least one employee to be accountable for solar
energy system installations and operations.
(6) Require San Diego Gas and Electric Company, Southern
California Edison Company, and Pacific Gas and Electric Company to
each monitor and report key solar program performance and progress
data to the commission in a clearly identified place on the utility's
Internet Web site.
(7) Consider energy efficiency and demand side management options,
in addition to solar energy system procurement, for new residential
and commercial construction.
(8) Notwithstanding Section 2827, require electrical corporations
to expand the availability of net energy metering so that it is
offered on a first-come-first-served basis until the time that the
total rated generating capacity used by all eligible
customer-generators exceeds 5 percent of the electrical corporation's
total electricity sales. However, the net metering cap shall not
exceed 2 percent until the commission has established an appropriate
net metering time-variant rate design that considers the costs to all
net metering participants and ratepayers as a whole and that
considers the recovery of the fixed costs of providing distribution
service to customers. The commission shall monitor the level of net
energy metering for each electrical corporation to ensure that the
cap is increased in a timely manner as needed to further the
objectives of this section.
(9) The commission may impose the requirements of this subdivision
on an electrical corporation in addition to those specified, when
and to the extent the commission determines this to be appropriate.
(g) The program adopted by the commission pursuant to this section
shall also include elements for the purpose of funding a Million
Solar Roofs Initiative by the State Energy Resources Conservation and
Development Commission pursuant to Chapter 8.8 (commencing with
Section 25780) of Division 15 of the Public Resources Code. These
program elements shall exclude customers participating in the State
Energy Resources Conservation and Development Commission's Million
Solar Roofs Initiative from the rate cap for residential customers
for existing baseline quantities or usage by those customers of up to
130 percent of existing baseline quantities, as required by Section
80110 of the Water Code.
SEC. 5. Section 387.5 is added to the Public Utilities Code, to
read:
387.5. (a) The governing body of a local publicly owned electric
utility, as defined in Section 9604, shall establish a comprehensive
solar roofs initiative consistent with programs adopted and
implemented by the commission pursuant to Section 379.8.
(b) The level of expenditure for program elements shall be
consistent with those established for the three largest electrical
corporations in California, and shall be at a rate proportional to
the size of the ratepayer base served by the local publicly owned
electric utility.
(c) A local publicly owned electric utility shall establish the
program within a reasonable period of time, but not to exceed six
months, after the commission adopts and implements its programs
pursuant to Section 379.8.
(d) A local publicly owned electric utility shall, on an annual
basis beginning June 1, 2007, report to its customers and to the
State Energy Resources Conservation and Development Commission,
information relative to the utility's solar roofs initiative. The
State Energy Resources Conservation and Development Commission may
establish guidelines for the information to be included in the
utility's annual report. Any guidelines established pursuant to this
subdivision shall be adopted in the manner specified in Section 25784
of the Public Resources Code. Notwithstanding any other provision of
law, any guidelines adopted by the State Energy Resources
Conservation and Development Commission pursuant to this subdivision
shall be exempt from the requirements of Chapter 3.5 (commencing with
Section 11340) of Part I of Division 3 of Title 2 of the Government
Code.
SEC. 6. Section 760 is added to the Public Utilities Code, to
read:
760. The commission, in collaboration with the State Energy
Resources Conservation and Development Commission, shall develop
optional time-variant electricity pricing tariffs for all customers
who are not subject to mandatory time-variant pricing, including
net-metered customers.
SEC. 7.
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.
SEC. 8.
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. All matter omitted in this version of
the bill appears in the bill as introduced in Senate, Dec. 6, 2004
(JR11)