BILL NUMBER: AB 578 CHAPTERED BILL TEXT CHAPTER 627 FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2008 APPROVED BY GOVERNOR SEPTEMBER 30, 2008 PASSED THE SENATE AUGUST 22, 2008 PASSED THE ASSEMBLY AUGUST 28, 2008 AMENDED IN SENATE AUGUST 18, 2008 AMENDED IN SENATE JULY 14, 2008 AMENDED IN SENATE JULY 12, 2007 AMENDED IN ASSEMBLY JUNE 1, 2007 AMENDED IN ASSEMBLY APRIL 16, 2007 AMENDED IN ASSEMBLY APRIL 9, 2007 INTRODUCED BY Assembly Members Blakeslee and Levine FEBRUARY 21, 2007 An act to amend Section 25783 of the Public Resources Code, and to add Section 321.7 to the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGEST AB 578, Blakeslee. Energy: distributed energy generation: study. (1) Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with the Public Utilities Commission (PUC), to evaluate the costs and benefits of having an increased number of operational solar energy systems as part of the electrical system. This bill would delete this requirement. (2) Under the existing Public Utilities Act, the PUC is required to report to the Legislature by July 15, 2009, and triennially thereafter, on the energy efficiency and conservation programs overseen by the PUC, as specified. This bill would require the PUC, on or before January 1, 2010, and biennially thereafter, in consultation with the Independent System Operator and the Energy Commission, to study, and submit a report to the Legislature and the Governor, on the impacts of distributed energy generation on the state's distribution and transmission grid. The bill would require the PUC to specifically assess the impacts of the California Solar Initiative program, the self-generation incentive program, and the biogas customer-generator net energy metering pilot program. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 25783 of the Public Resources Code is amended to read: 25783. The commission shall do all the following: (a) Publish educational materials designed to demonstrate how builders may incorporate solar energy systems during construction as well as energy efficiency measures that best complement solar energy systems. (b) 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, life cycle costs, electricity prices, and other factors the commission determines to be relevant to a consumer when making a purchasing decision. (c) Provide assistance to builders and contractors. The assistance may include technical workshops, training, educational materials, and related research. (d) The commission shall annually conduct random audits of solar energy systems to evaluate their operational performance. SEC. 2. Section 321.7 is added to the Public Utilities Code, to read: 321.7. (a) On or before January 1, 2010, and biennially thereafter, the commission, in consultation with the Independent System Operator and the State Energy Resources Conservation and Development Commission, shall study, and submit a report to the Legislature and the Governor, on the impacts of distributed energy generation on the state's distribution and transmission grid. The study shall evaluate all of the following: (1) Reliability and transmission issues related to connecting distributed energy generation to the local distribution networks and regional grid. (2) Issues related to grid reliability and operation, including interconnection, and the position of federal and state regulators toward distributed energy accessibility. (3) The effect on overall grid operation of various distributed energy generation sources. (4) Barriers affecting the connection of distributed energy to the state's grid. (5) Emerging technologies related to distributed energy generation interconnection. (6) Interconnection issues that may arise for the Independent System Operator and local distribution companies. (7) The effect on peak demand for electricity. (b) In addition, the commission shall specifically assess the impacts of the California Solar Initiative program, specified in Section 2851 and Section 25783 of the Public Resources Code, the self-generation incentive program authorized by Section 379.6, and the net energy metering pilot program authorized by Section 2827.9.