BILL NUMBER: AB 1947	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 25, 2010

INTRODUCED BY   Assembly  Member   Assembly
Member Fong   Members   Members Fong  
and Jones 

                        FEBRUARY 17, 2010

   An act to add Section  2829.5   387.8 
to the Public Utilities Code, relating to solar energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1947, as amended,  Assembly Member Fong  
Members Fong  . Solar  energy: solar farms: credits.
  energy.  
   Existing law requires local publicly owned electric utilities to
initiate a public proceeding to adopt, implement, and finance a solar
initiative program to further the state goal of installing 3,000
megawatts of photovoltaic solar energy in the state. Existing law
requires the program to be consistent with prescribed requirements,
including that solar energy systems receiving monetary incentives be
intended primarily to offset part or all of the consumer's own
electricity demand, and that the solar energy system be located on
the same premises of the end-use consumer where the consumer's own
electricity demand is located.  
   This bill would authorize a local publicly owned electric utility
to adopt, implement, and finance a solar initiative program exempt
from those offset and same-premises program requirements, where
residential and business consumers offset part or all of their
electricity demand with electricity generated by a solar energy
system not located on the premises of the consumer, if the program
meets certain requirements.  
   Under existing law, the Public Utilities Commission has 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, including solar, in any given year as a
specified percentage of total kilowatthours sold to retail end-use
customers each calendar year (renewables portfolio standard).
 
   This bill would direct the commission to require an electrical
corporation to apply a bill credit of up to 100% to a customer's
bill, calculated as prescribed, for electricity that is generated by
solar panels leased by the customer at a solar farm, as defined, and
fed back to the electric grid.  
   Under existing law, a violation of any order, decision, rule,
direction, demand, or requirement of the commission is a crime.
 
   Because this bill would require action by the commission to
implement its requirements, the violation of which would be a crime,
this 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
  no  . State-mandated local program:  yes
  no  .


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

   SECTION 1.    Section 387.8 is added   to
the   Public Utilities Code   , to read:  

   387.8.  Notwithstanding paragraphs (2) and (5) of subdivision (d)
of Section 387.5, a local publicly owned electric utility may adopt,
implement, and finance a solar initiative program otherwise in
accordance with that section, using monetary incentives authorized by
subdivision (b) of Section 387.5, to residential and business
consumers where consumers offset part or all of their electricity
demand with electricity generated by a solar energy system not
located on the premises of the consumer, if all of the following
requirements are met:
   (a) The solar energy system meets all of the following conditions:

   (1) It is located within the service territory of the local
publicly owned electric utility.
   (2) It has a capacity of no more than 5 megawatts.
   (3) It is interconnected to the local publicly owned utility's
system at the distribution level.
   (b) The local publicly owned electric utility meets one of the
following conditions:
   (1) It has contracted to purchase the total electricity produced
by the solar energy system or owns the solar energy system.
   (2) It provides no greater incentive per watt for the solar energy
system than provided for by systems that participate in the
applicable solar initiative program established under Section 387.5.
   (c) The total megawatt capacity of solar energy systems eligible
for a local publicly owned utility program under this section is both
of the following:
   (1) Not more than the total megawatt capacity of solar energy
systems installed in the service area of the local publicly owned
electric utility after the effective date of this section that
participate in the applicable solar initiative programs established
under Section 387.5.
   (2) Not more than 20 percent of the proportionate amount for the
local publicly owned electric utility of the overall 3,000 megawatt
state goal set forth in Section 387.5, based on the percentage of the
total statewide load served by that entity.  
  SECTION 1.    Section 2829.5 is added to the
Public Utilities Code, to read:
   2829.5.  (a) As used in this section:
   (1) "Eligible customer-generator" means a residential customer of
an electrical corporation that meets both of the following
requirements:
   (A) The customer leases solar panels at a solar farm, within the
service area of the electrical corporation, from which the electrical
corporation procures electricity.
   (B) The electricity generated by the solar panels described in
paragraph (A) is measured by a time-of-use meter capable of
registering the flow of electricity in two directions.
   (2) "Solar farm" means a photovoltaic facility that leases the use
of solar panels located at the facility.
   (b) The commission shall require an electrical corporation to
calculate the value of the electricity that is generated by an
eligible customer-generator and fed back to the electric grid at the
same rates as the electricity supplied to the eligible
customer-generator over the same billing period, and apply a credit
of equivalent value to the eligible customer-generator's bill of up
to 100 percent of the bill.  
  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.