BILL NUMBER: SB 380 CHAPTERED 09/28/08 CHAPTER 544 FILED WITH SECRETARY OF STATE SEPTEMBER 28, 2008 APPROVED BY GOVERNOR SEPTEMBER 28, 2008 PASSED THE SENATE AUGUST 21, 2008 PASSED THE ASSEMBLY AUGUST 14, 2008 AMENDED IN ASSEMBLY AUGUST 12, 2008 AMENDED IN ASSEMBLY JUNE 30, 2008 AMENDED IN ASSEMBLY MAY 29, 2008 INTRODUCED BY Senator Kehoe FEBRUARY 21, 2007 An act to amend Section 399.20 of the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGEST SB 380, Kehoe. Renewable energy resources. Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. 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 is an eligible renewable energy resource with an effective capacity of not more than one megawatt, is located on property owned or under the control of a public water or wastewater agency, is sized to offset part or all of the electricity demand of the public water or wastewater agency, and meets other deliverability and interconnection requirements. The tariff is required to provide for payment for every kilowatthour of electricity generated by the electric generation facility at a market price determined by the commission pursuant to a specified law, for a period of 10, 15, or 20 years. Existing law requires 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, or the electrical corporation meets its proportionate share of the 250 megawatt limit based upon the ratio of its peak demand to total statewide peak demand of all electrical corporations. Existing law authorizes the commission to extend availability of the tariff to electric generation facilities not larger than 1.5 megawatts that otherwise comply with the above-described requirements. This bill would instead require every electrical corporation to file with the commission a standard tariff for electricity generated by an electric generation facility with an effective capacity of not more than 1.5 megawatts, that is located on property owned or under the control of a customer, and that meets other deliverability and interconnection requirements. The bill would require the electrical corporation to make this tariff available to customers 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 500 megawatts, or the electrical corporation meets its proportionate share of the 500 megawatt limit based upon the ratio of its peak demand to total statewide peak demand of all electrical corporations. The bill would authorize the commission to modify or adjust the above-described requirements for any electrical corporation with less than 100,000 service connections, as individual circumstances merit. Under existing law, a violation of the Public Utilities Act or an order or direction of the commission is a crime. Because this bill would require an order or other action of the commission to implement its provisions and a violation of that order or action would be a crime, the bill would impose a state-mandated local program by creating a new crime. 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. This bill would provide that its provisions would not become operative if SB 1714 of the 2007-08 Regular Session is enacted on or before January 1, 2009, amending Section 399.20 of the Public Utilities Code. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: 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 energy production from renewable energy resources. (b) As used in this section, "electric generation facility" means an electric generation facility, owned and operated by 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 and one-half megawatts and is located on property owned or under the control of the customer. (2) Is interconnected and operates in parallel with the electric transmission and distribution grid. (3) 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. (4) 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 electricity generated by an electric generation facility. (d) The tariff shall provide for payment for every kilowatthour of electricity generated by 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 customers 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 500 megawatts. An electrical corporation may make the terms of the tariff available to customers 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 500 megawatts based on the ratio of its peak demand to the total statewide peak demand of all electrical corporations. (f) Every kilowatthour of electricity generated by the electric generation facility shall count toward the electrical corporation's renewables 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) 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. SEC. 2. 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. 3. This bill shall not become operative if Senate Bill 1714 of the 2007-08 Regular Session is enacted on or before January 1, 2009, and amends Section 399.20 of the Public Utilities Code.