BILL NUMBER: AB 1106	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Fuentes

                        FEBRUARY 27, 2009

   An act to add Section 399.21 to the Public Utilities Code,
relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1106, as introduced, Fuentes. Renewable electric generation
facilities: feed-in tariffs.
   Under existing law, the Public Utilities Commission is vested with
regulatory authority over public utilities, including electrical
corporations. The Public Utilities Act imposes various duties and
responsibilities on the commission with respect to the purchase of
electricity by electrical corporations and requires the 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, 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 requires every electrical corporation to file with
the commission a standard tariff for renewable energy output produced
at an electric generation facility, as defined, that is an eligible
renewable energy resource and meets other size, deliverability, and
interconnection requirements. 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. Existing law requires
that the electric generation facility be located on property owned or
under the control of the public water or wastewater agency and be
sized to offset part or all of the generator's electricity demand.
Existing law provides that the renewable energy output of an electric
generation facility counts toward the electrical corporation's
renewables portfolio standard and resource adequacy requirements.
   This bill would require every electrical corporation to file with
the commission a standard feed-in tariff for the electricity
generated by a renewable electric generation facility, as defined,
that is an eligible renewable energy resource and meets other size,
deliverability, and interconnection requirements. The bill would
require the commission to consult with the Energy Commission and the
Independent System Operator in approving feed-in tariffs and rules
for interconnection to the electrical grid. The bill would require
the electrical corporation to make the feed-in tariff available to
any customer of the electrical corporation, upon request, on a
first-come, first-served basis, until the electrical corporation
meets its renewables portfolio standard. The bill would require the
commission to ensure that a customer's eligibility to receive service
pursuant to the feed-in tariff is determined in advance so that a
customer can invest in a renewable electric generation facility
knowing that the customer will be eligible to receive service
pursuant to the feed-in tariff and the market price that will be
applicable to that customer. The bill would authorize the commission
to place time limitations upon a customer for completion of the
renewable electric generation facility to remain eligible for the
feed-in tariff at the applicable market price and to establish
reasonable operation and reliability standards for a renewable
electric generation facility to remain eligible for the feed-in
tariff at the applicable market price. The bill would provide that
the electricity generated by the renewable electric generation
facility, including generation used to offset the customer's own
usage of electricity, counts toward the electrical corporation's
renewables portfolio standard and resource adequacy requirements. The
bill would authorize a customer receiving electrical service
pursuant to an alternative net metering program, as defined, to elect
to receive service pursuant to the feed-in tariff filed by an
electrical corporation pursuant to the bill's requirements and would
provide that a customer electing to receive service pursuant to the
feed-in tariff waives any right the customer otherwise has to
thereafter receive service pursuant to an alternative net metering
program.
   This bill would require the commission, in consultation with the
Energy Commission, to develop feed-in tariffs for eligible renewable
energy resources of more than 20 megawatts that value a diverse mix
of sources of renewable energy based upon the most successful feed-in
tariffs utilized in Europe. The bill would require the commission,
in consultation with the Independent System Operator, to establish
tariff provisions that facilitate both the renewables portfolio
standard program and the reliable operation of the electrical grid.
   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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 399.21 is added to the Public Utilities Code,
to read:
   399.21.  (a) It is the policy of this state and the intent of the
Legislature to encourage energy production from renewable resources
in an amount commensurate with electricity demand.
   (b) As used in this section the following terms have the following
meanings:
   (1) "Alternative net metering program" means any program that
requires an electrical corporation to purchase or credit electricity
generated by a subscriber pursuant to Article 3 (commencing with
Section 2821) of Chapter 7 of Part 2.
   (2) "Renewable electric generation facility" means a facility for
the generation of electricity that is owned and operated by a
customer of an electrical corporation and that meets all of the
following criteria:
   (A) Has an effective generating capacity of not more than 20
megawatts and is located on property owned or under the control of
the customer.
   (B) Is interconnected and operates in parallel with the electric
transmission and distribution grid.
   (C) 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.
   (D) Is an eligible renewable energy resource pursuant to this
article.
   (c) Every electrical corporation shall file with the commission a
standard feed-in tariff for the electricity generated by a renewable
electric generation facility. The commission shall consult with the
Energy Commission and the Independent System Operator in approving
feed-in tariffs and rules for interconnection.
   (d) The feed-in tariff shall provide for payment for every
kilowatthour of electricity generated at a renewable 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 the feed-in tariff
available to customers that own and operate a renewable 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 renewables portfolio standard.
An electrical corporation may make the terms of the feed-in tariff
available to customers in the form of a standard contract subject to
commission approval. An electrical corporation shall only be required
to offer service or contracts under this section until that
electrical corporation meets its renewables portfolio standard, as
determined by the commission.
   (f) The commission shall ensure that a customer's eligibility to
receive service pursuant to the feed-in tariff is determined in
advance so that a customer can invest in a renewable electric
generation facility knowing that the customer will be eligible to
receive service pursuant to the feed-in tariff and the market price
that will be applicable to that customer. The commission may place
time limitations upon a customer for completion of the renewable
electric generation facility to remain eligible for the feed-in
tariff at the applicable market price. The commission may establish
reasonable operation and reliability standards for a renewable
electric generation facility to remain eligible for the feed-in
tariff at the applicable market price.
   (g) Every kilowatthour of the electricity generated by the
renewable electric generation facility, including generation used to
offset the customer's own usage of electricity, 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.
   (h) The physical generating capacity of a renewable electric
generation facility shall count toward the electrical corporation's
resource adequacy requirement for purposes of Section 380.
   (i) (1) A customer receiving electrical service pursuant to an
alternative net metering program may elect to receive service
pursuant to the feed-in tariff filed by an electrical corporation
pursuant to this section.
   (2) A customer that elects to receive electrical service pursuant
to the feed-in tariff filed by an electrical corporation pursuant to
this section waives any right that the customer otherwise has to
thereafter receive service pursuant to an alternative net metering
program.
   (j) The commission, in consultation with the Energy Commission,
shall develop feed-in tariffs for eligible renewable energy resources
of more than 20 megawatts that value a diverse mix of sources of
renewable energy based upon the most successful feed-in tariffs
utilized in Europe.
   (k) The commission shall, in consultation with the Independent
System Operator, establish tariff provisions that facilitate both the
provisions of this section and the reliable operation of the grid.
  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.