BILL NUMBER: AB 2724 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 27, 2010
AMENDED IN ASSEMBLY APRIL 19, 2010
AMENDED IN ASSEMBLY MARCH 23, 2010
INTRODUCED BY Assembly Member Blumenfield
FEBRUARY 19, 2010
An act to amend Sections 2830 and 2851 of, to amend the heading of
Chapter 7.5 (commencing with Section 2830) of Part 2 of Division 1
of, and to add Section 2831 Sections 2831 and
2832 to, the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2724, as amended, Blumenfield. Governmental Renewable Energy
Self-generation Self-Generation
Program.
(1) Under existing law, the Public Utilities Commission (CPUC) has
regulatory authority over public utilities, including electrical
corporations, as defined. The Local Government Renewable Energy
Self-Generation Program authorizes a local government, as defined, to
receive a bill credit, as defined, to be applied to a designated
benefiting account for electricity exported to the electrical grid by
an eligible renewable generating facility, as defined, and requires
the commission to adopt a rate tariff for the benefiting account.
This bill would rename the program the Governmental Renewable
Energy Self-Generation Program. The bill would authorize a state
agency, as defined, to receive a bill credit to be applied to a
designated benefiting account for electricity exported to the
electrical grid by an eligible state renewable generating facility,
as defined , and . The bill, in
the case of an eligible state renewable generating facility
interconnected with the facilities of an electrical corporation,
would require the CPUC to adopt a rate tariff for the
benefiting account.
(2) Decisions of the CPUC adopted the California Solar Initiative.
Existing law requires the CPUC to undertake certain steps in
implementing the California Solar Initiative including the
requirement that the CPUC authorize the award of monetary incentives
for up to the first megawatt of alternating current generated by
solar energy systems, as defined, that meet the eligibility criteria
established by the State Energy Resources Conservation and
Development Commission (Energy Commission).
This bill would require the CPUC to authorize the award of
monetary incentives for up to 5 megawatts of alternating current
generated by an eligible state renewable generating facility that
meets the eligibility criteria established by the Energy Commission
for the California Solar Initiative. The bill would require the CPUC
to limit any incentives provided for eligible state renewable
generating facilities, as specified, to ensure that those facilities
do not receive an unreasonable portion of the available incentives
under the California Solar Initiative and to ensure that certain
goals and purposes of the California Solar Initiative are achieved.
(3) Under existing law, a violation of the Public Utilities Act or
any order, decision, rule, direction, demand, or requirement of the
CPUC is a crime.
Because certain of the provisions of this bill require action by
the CPUC to implement, a violation of these CPUC-imposed requirements
would impose a state-mandated local program by creating a new crime.
(4) 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. The heading of Chapter 7.5 (commencing with Section
2830) of Part 2 of Division 1 of the Public Utilities Code is amended
to read:
CHAPTER 7.5. GOVERNMENTAL RENEWABLE ENERGY SELF-GENERATION
PROGRAM
SEC. 2. Section 2830 of the Public Utilities Code is amended to
read:
2830. (a) As used in this section, the following terms have the
following meanings:
(1) "Benefiting account" means an electric service account, or
more than one account, located within a the
geographical boundaries of a local government or, for a campus,
within the geographical boundary of the city, county, or city and
county in which the campus is located, that is mutually agreed upon
by the local government or campus and an electrical corporation.
(2) "Bill credit" means an amount of money credited to a
benefiting account that is calculated based upon the time-of-use
electricity generation component of the electricity usage charge of
the generating account, multiplied by the quantities of electricity
generated by an eligible local government renewable generating
facility that are exported to the grid during the corresponding time
period. Electricity is exported to the grid if it is generated by an
eligible local government renewable generating facility, is not
utilized onsite by the local government, and the electricity flows
through the meter site and on to the electrical corporation's
distribution or transmission infrastructure.
(3) "Campus" means an individual community college campus,
individual California State University campus, or individual
University of California campus.
(4) "Eligible local government renewable generating facility"
means a generation facility that meets all of the following
requirements:
(A) Has a generating capacity of no more than one megawatt.
(B) Is an eligible renewable energy resource, as defined in
Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1.
(C) Is located within the geographical boundary of the local
government or, for a campus, within the geographical boundary of the
city or city and county, if the campus is located in an incorporated
area, or county, if the campus is located in an unincorporated area.
(D) Is owned by, operated by, or on property under the control of,
the local government or campus. For these purposes, premises that
are leased by a local government or campus are under the control of
the local government or campus.
(E) Is sized to offset all or part of the electrical load of the
benefiting account.
(5) "Generating account" means the time-of-use electric service
account of the local government or campus where the eligible local
government renewable generating facility is located.
(6) "Local government" means a city, county, whether general law
or chartered, city and county, special district, school district,
political subdivision, or other local public agency, but shall not
mean a joint powers authority, the state or any agency or department
of the state, other than an individual campus of the University of
California or the California State University.
(b) Subject to the limitation in subdivision (h), a local
government may elect to receive electric service pursuant to this
section, if all of the following conditions are met:
(1) The local government designates one or more benefiting
accounts to receive a bill credit.
(2) A benefiting account receives service under a time-of-use rate
schedule.
(3) The benefiting account is the responsibility of, and serves
property that is owned, operated, or on property under the control of
the same local government that owns, operates, or controls the
eligible local government renewable generating facility.
(4) The electrical output of the eligible local government
renewable generating facility is metered for time of use to allow
calculation of the bill credit based upon when the electricity is
exported to the grid.
(5) All costs associated with the metering requirements of
paragraphs (2) and (4) are the responsibility of the local
government.
(6) All costs associated with interconnection are the
responsibility of the local government. For purposes of this
paragraph, "interconnection" has the same meaning as defined in
Section 2803, except that it applies to the interconnection of an
eligible local government renewable generating facility rather than
the energy source of a private energy producer.
(7) The local government does not sell electricity exported to the
electrical grid to a third party.
(8) All electricity exported to the grid by the local government
that is generated by the eligible local government renewable
generating facility becomes the property of the electrical
corporation to which the facility is interconnected, but shall not be
counted toward the electrical corporation's total retail sales for
purposes of Article 16 (commencing with Section 399.11) of Chapter
2.3 of Part 1. Ownership of the renewable energy credits, as defined
in Section 399.12, shall be the same as the ownership of the
renewable energy credits associated with electricity that is net
metered pursuant to Section 2827.
(c) (1) A benefiting account shall be billed for all electricity
usage, and for each bill component, at the rate schedule applicable
to the benefiting account, including any cost-responsibility
surcharge or other cost recovery mechanism, as determined by the
commission, to reimburse the Department of Water Resources for
purchases of electricity, pursuant to Division 27 (commencing with
Section 80000) of the Water Code.
(2) The bill shall then subtract the bill credit applicable to the
benefiting account. The generation component credited to the
benefiting account shall not include the cost-responsibility
surcharge or other cost recovery mechanism, as determined by the
commission, to reimburse the Department of Water Resources for
purchases of electricity, pursuant to Division 27 (commencing with
Section 80000) of the Water Code. The electrical corporation shall
ensure that the local government receives the full bill credit.
(3) If, during the billing cycle, the generation component of the
electricity usage charges exceeds the bill credit, the benefiting
account shall be billed for the difference.
(4) If, during the billing cycle, the bill credit applied pursuant
to paragraph (2) exceeds the generation component of the electricity
usage charges, the difference shall be carried forward as a
financial credit to the next billing cycle.
(5) After the electricity usage charge pursuant to paragraph (1)
and the credit pursuant to paragraph (2) are determined for the last
billing cycle of a 12-month period, any remaining credit resulting
from the application of this section shall be reset to zero.
(d) The commission shall ensure that the transfer of a bill credit
to a benefiting account does not result in a shifting of costs to
bundled service subscribers. The costs associated with the transfer
of a bill credit shall include all billing-related expenses.
(e) Not more frequently than once per year, and upon providing the
electrical corporation with a minimum of 60 days' notice, the local
government may elect to change a benefiting account. Any credit
resulting from the application of this section earned prior to the
change in a benefiting account that has not been used as of the date
of the change in the benefiting account, shall be applied, and may
only be applied, to a benefiting account as changed.
(f) A local government shall provide the electrical corporation to
which the eligible local government renewable generating facility
will be interconnected with not less than 60 days' notice prior to
the eligible local government renewable generating facility becoming
operational. The electrical corporation shall file an advice letter
with the commission, that complies with this section, not later than
30 days after receipt of the notice, proposing a rate tariff for a
benefiting account. The commission, within 30 days of the date of
filing, shall approve the proposed tariff, or specify conforming
changes to be made by the electrical corporation to be filed in a new
advice letter.
(g) The local government may terminate its election pursuant to
subdivision (b), upon providing the electrical corporation with a
minimum of 60 days' notice. Should the local government sell its
interest in the eligible local government renewable generating
facility, or sell the electricity generated by the eligible local
government renewable generating facility, in a manner other than as
required by this section, upon the date of either event, and the
earliest date if both events occur, no further bill credit pursuant
to subdivision (c) may be earned. Only credit earned prior to that
date shall be made to a benefiting account.
(h) An electrical corporation is not obligated to provide a bill
credit to a benefiting account that is not designated by a local
government prior to the point in time that the combined statewide
cumulative rated generating capacity of all eligible local government
renewable generating facilities within the service territories of
the state's three largest electrical corporations reaches 250
megawatts. Only those eligible local government renewable generating
facilities that are providing bill credits to benefiting accounts
pursuant to this section shall count toward reaching this
250-megawatt limitation. Each electrical corporation shall only be
required to offer service or contracts under this section until that
electrical corporation reaches its proportionate share of the
250-megawatt limitation based on the ratio of its peak demand to the
total statewide peak demand of all electrical corporations.
SEC. 3. Section 2831 is added to the Public Utilities Code, to
read:
2831. (a) As used in this section, the following terms have the
following meanings:
(1) "Benefiting account" means an electric service account, or
more than one account, that is the responsibility of, or serves
property that is owned, operated, or under the control of any state
agency, that is located within the service territory of an electrical
corporation in which the eligible renewable state
state renewable generating facility is located, and which
is designated by a state agency pursuant to this section.
(2) "Bill credit" means an amount of money credited to a
benefiting account that is calculated based upon the time-of-use
electricity generation component of the electricity usage charge of
the generating account, multiplied by the quantities of electricity
generated by an eligible state renewable generating facility that are
exported to the grid during the corresponding time period.
Electricity is exported to the grid if it is generated by an eligible
state renewable generating facility, is not utilized onsite by the
local government, and the electricity flows through the meter site
and on to the electrical corporation's distribution or transmission
infrastructure.
(3) "Eligible state renewable generating facility" means a
generation facility that meets all of the following requirements:
(A) Is an eligible renewable energy resource pursuant to Article
16 (commencing with Section 399.11) of Chapter 2.3 of Part 1.
(B) Is located within the service territory of an electrical
corporation within the state.
(C) Is owned by, operated by, or on property under the control of
a state agency. For these purposes, premises that are leased by a
state agency are under the control of the state agency.
(D) Is sized to offset all or part of the electrical load of the
benefiting account.
(4) "Generating account" means the time-of-use electric service
account of the state agency where the eligible state renewable
generating facility is located.
(5) "State agency" means every state office, officer, agency,
department, division, bureau, board, and commission or other state
body, except those agencies provided for in Article IV (except
Section 20 thereof) or Article VI of the California Constitution.
(b) Subject to the limitation in subdivision (h), a state agency
may elect to receive electric service pursuant to this section, if
all of the following conditions are met:
(1) A state agency designates one or more benefiting accounts to
receive a bill credit.
(2) A benefiting account receives service under a time-of-use rate
schedule.
(3) The benefiting account is the responsibility of, and serves
property that is owned, operated, or on property under the control of
a state agency.
(4) The electrical output of the eligible state renewable
generating facility is metered for time of use to allow calculation
of the bill credit based upon when the electricity is exported to the
grid.
(5) The commission has given approval for the eligible state
renewable generation facility to interconnect to that portion of the
grid that is under its jurisdiction or the Independent System
Operator has given approval for the facility to interconnect to the
transmission system under its operative control.
(6) All costs associated with the metering requirements of
paragraphs (2) and (4) are the responsibility of a state agency.
(7) All costs associated with interconnection are the
responsibility of a state agency. For purposes of this paragraph,
"interconnection" has the same meaning as defined in Section 2803,
except that it applies to the interconnection of an eligible state
renewable generating facility rather than the energy source of a
private energy producer.
(8) The state agency does not sell electricity exported to the
electrical grid to a third party.
(9) All electricity exported to the grid by the state agency that
is generated by the eligible state renewable generating facility
becomes the property of the electrical corporation to which the
facility is interconnected, but shall not be counted toward the
electrical corporation's total retail sales for purposes of Article
16 (commencing with Section 399.11) of Chapter 2.3 of Part 1.
Ownership of the renewable energy credits, as defined in Section
399.12, for all electricity generated by the eligible state
renewable generating facility, whether exported to the grid or
utilized onsite, shall belong to the electrical corporation.
shall be the same as the ownership of the renewable
energy credits associated with electricity that is net metered
pursuant to Section 2827.
(c) (1) A benefiting account shall be billed for all electricity
usage, and for each bill component, at the rate schedule applicable
to the benefiting account, including any cost-responsibility
surcharge or other cost recovery mechanism, as determined by the
commission, to reimburse the Department of Water Resources for
purchases of electricity, pursuant to Division 27 (commencing with
Section 80000) of the Water Code.
(2) The bill shall then subtract the bill credit applicable to the
benefiting account. The generation component credited to the
benefiting account shall not include the cost-responsibility
surcharge or other cost recovery mechanism, as determined by the
commission, to reimburse the Department of Water Resources for
purchases of electricity, pursuant to Division 27 (commencing with
Section 80000) of the Water Code. The electrical corporation shall
ensure that the benefiting account receives the full bill credit.
(3) If, during the billing cycle, the generation component of the
electricity usage charges exceeds the bill credit, the benefiting
account shall be billed for the difference.
(4) If, during the billing cycle, the bill credit applied pursuant
to paragraph (2) exceeds the generation component of the electricity
usage charges, the difference shall be carried forward as a
financial credit to the next billing cycle.
(5) After the electricity usage charge pursuant to paragraph (1)
and the credit pursuant to paragraph (2) are determined for the last
billing cycle of a 12-month period, any remaining credit resulting
from the application of this section shall be reset to zero.
(d) The commission shall ensure that the transfer of a bill credit
to a benefiting account does not result in a shifting of costs to
bundled service subscribers. The costs associated with the transfer
of a bill credit shall include all billing-related expenses.
(e) Not more frequently than once per year, and upon providing the
electrical corporation with a minimum of 60 days' notice, the state
agency may elect to change a benefiting account. Any credit resulting
from the application of this section earned prior to the change in a
benefiting account that has not been used as of the date of the
change in the benefiting account, shall be applied, and may only be
applied, to a benefiting account as changed.
(f) A state agency shall provide the electrical corporation to
which the eligible state renewable generating facility will be
interconnected with not less than 60 days' notice prior to the
eligible state renewable generating facility becoming operational.
The electrical corporation shall file an advice letter with the
commission, that complies with this section, not later than 30 days
after receipt of the notice, proposing a rate tariff for a benefiting
account. The commission, within 30 days of the date of filing, shall
approve the proposed tariff, or specify conforming changes to be
made by the electrical corporation to be filed in a new advice
letter.
(g) The state agency may terminate its election pursuant to
subdivision (b), upon providing the electrical corporation with a
minimum of 60 days' notice. Should the state agency sell its interest
in the eligible state renewable generating facility, or sell the
electricity generated by the eligible state renewable generating
facility, in a manner other than as required by this section, upon
the date of either event, and the earliest date if both events occur,
no further bill credit pursuant to subdivision (c) may be earned.
Only credit earned prior to that date shall be made to a benefiting
account.
(h) An electrical corporation is not obligated to provide a bill
credit to a benefiting account that is not designated by a state
agency prior to the point in time that the combined statewide
cumulative rated generating capacity of all eligible state renewable
generating facilities within the service territories of the state's
three largest electrical corporations reaches 500 megawatts. Only
those eligible state renewable generating facilities that are
providing bill credits to benefiting accounts pursuant to this
section shall count toward reaching this 500-megawatt limitation.
Each electrical corporation shall only be required to offer service
or contracts under this section until that electrical corporation
reaches its proportionate share of the 500-megawatt limitation based
on the ratio of its peak demand to the total statewide peak demand of
all electrical corporations.
SEC. 4. Section 2832 is added to the
Public Utilities Code , to read:
2832. (a) As used in this section, the following terms have the
following meanings:
(1) "Benefiting account" means an electric service account, or
more than one account, that is the responsibility of, or serves
property that is owned, operated, or under the control of any state
agency, that is located within the service territory of a local
publicly owned electric utility in which the eligible state renewable
generating facility is located, and which is designated by a state
agency pursuant to this section.
(2) "Bill credit" means an amount of money credited to a
benefiting account that is calculated based upon the time-of-use
electricity generation component of the electricity usage charge of
the generating account, multiplied by the quantities of electricity
generated by an eligible state renewable generating facility that are
exported to the grid during the corresponding time period.
Electricity is exported to the grid if it is generated by an eligible
state renewable generating facility, is not utilized onsite by the
local government, and the electricity flows through the meter site
and on to the local publicly owned electric utility's distribution or
transmission infrastructure.
(3) "Eligible state renewable generating facility" means a
generation facility that meets all of the following requirements:
(A) Is an eligible renewable energy resource pursuant to Article
16 (commencing with Section 399.11) of Chapter 2.3 of Part 1.
(B) Is located within the service territory of a local publicly
owned electric utility within the state.
(C) Is owned by, operated by, or on property under the control of
a state agency. For these purposes, premises that are leased by a
state agency are under the control of the state agency.
(D) Is sized to offset all or part of the electrical load of the
benefiting account.
(4) "Generating account" means the time-of-use electric service
account of the state agency where the eligible state renewable
generating facility is located.
(5) "State agency" means every state office, officer, agency,
department, division, bureau, board, and commission or other state
body, except those agencies provided for in Article IV, except
Section 20 thereof, or Article VI of the California Constitution.
(b) Subject to the limitation in subdivision (h), a state agency
may elect to receive electric service pursuant to this section, if
all of the following conditions are met:
(1) A state agency designates one or more benefiting accounts to
receive a bill credit.
(2) A benefiting account receives service under a time-of-use rate
schedule.
(3) The benefiting account is the responsibility of, and serves
property that is owned, operated, or on property under the control of
a state agency.
(4) The electrical output of the eligible state renewable
generating facility is metered for time of use to allow calculation
of the bill credit based upon when the electricity is exported to the
grid.
(5) The local publicly owned electric utility has given approval
for the eligible state renewable generation facility to interconnect
to that portion of the grid that is under its jurisdiction or the
Independent System Operator has given approval for the facility to
interconnect to the transmission system under its operative control,
if applicable.
(6) All costs associated with the metering requirements of
paragraphs (2) and (4) are the responsibility of a state agency.
(7) All costs associated with interconnection are the
responsibility of a state agency. For purposes of this paragraph,
"interconnection" has the same meaning as defined in Section 2803,
except that it applies to the interconnection of an eligible state
renewable generating facility with the existing transmission
facilities of a local publicly owned electric utility rather than the
energy source of a private energy producer.
(8) The state agency does not sell electricity exported to the
electrical grid to a third party.
(9) All electricity exported to the grid by the state agency that
is generated by the eligible state renewable generating facility
becomes the property of the local publicly owned electric utility to
which the facility is interconnected, but shall not be counted toward
the local publicly owned electric utility's total retail sales for
purposes of Section 387. Ownership of the renewable energy credits,
as defined in Section 399.12, shall be the same as the ownership of
the renewable energy credits associated with electricity that is net
metered pursuant to Section 2827.
(c) (1) A benefiting account shall be billed for all electricity
usage, and for each bill component, at the rate schedule applicable
to the benefiting account.
(2) The bill shall then subtract the bill credit applicable to the
benefiting account. The local publicly owned electric utility shall
ensure that the benefiting account receives the full bill credit.
(3) If, during the billing cycle, the generation component of the
electricity usage charges exceeds the bill credit, the benefiting
account shall be billed for the difference.
(4) If, during the billing cycle, the bill credit applied pursuant
to paragraph (2) exceeds the generation component of the electricity
usage charges, the difference shall be carried forward as a
financial credit to the next billing cycle.
(5) After the electricity usage charge pursuant to paragraph (1)
and the credit pursuant to paragraph (2) are determined for the last
billing cycle of a 12-month period, any remaining credit resulting
from the application of this section shall be reset to zero.
(d) The local publicly owned electric utility shall ensure that
the transfer of a bill credit to a benefiting account does not result
in a shifting of costs to bundled service subscribers. The costs
associated with the transfer of a bill credit shall include all
billing-related expenses.
(e) Not more frequently than once per year, and upon providing the
local publicly owned electric utility with a minimum of 60 days'
notice, the state agency may elect to change a benefiting account.
Any credit resulting from the application of this section earned
prior to the change in a benefiting account that has not been used as
of the date of the change in the benefiting account, shall be
applied, and may only be applied, to a benefiting account as changed.
(f) A state agency shall provide the local publicly owned electric
utility to which the eligible state renewable generating facility
will be interconnected with not less than 60 days' notice prior to
the eligible state renewable generating facility becoming
operational.
(g) The state agency may terminate its election pursuant
to subdivision (b), upon providing the local publicly owned electric
utility with a minimum of 60 days' notice. Should the state agency
sell its interest in the eligible state renewable generating
facility, or sell the electricity generated by the eligible state
renewable generating facility, in a manner other than as required by
this section, upon the date of either event, and the earliest date if
both events occur, no further bill credit pursuant to subdivision
(c) may be earned. Only credit earned prior to that date shall be
made to a benefiting account.
(h) A local publicly owned electric utility is not obligated to
provide a bill credit to a benefiting account that is not designated
by a state agency prior to the point in time that the combined
statewide cumulative rated generating capacity of all eligible state
renewable generating facilities within the service territories of the
state's three largest electrical corporations reaches 500 megawatts.
Only those eligible state renewable generating facilities that are
providing bill credits to benefiting accounts pursuant to Section
2831 shall count toward reaching this 500-megawatt limitation.
SEC. 4. SEC.5. Section 2851 of the
Public Utilities Code is amended to read:
2851. (a) In implementing the California Solar Initiative, the
commission shall do all of the following:
(1) The commission shall authorize the award of monetary
incentives for up to the first megawatt of alternating current
generated by solar energy systems that meet the eligibility criteria
established by the Energy Commission pursuant to Chapter 8.8
(commencing with Section 25780) of Division 15 of the Public
Resources Code. For an eligible state renewable generating facility
authorized by Section 2831, the commission shall authorize the award
of monetary incentives for up to five megawatts of alternating
current generated by solar energy systems that meet the eligibility
criteria established by the Energy Commission. The commission shall
limit the incentives provided for eligible state renewable generating
facilities for that portion of the generating capacity that is
greater than one megawatt, to not more than one-half of 1 percent, to
ensure that those facilities do not receive an unreasonable portion
of the available incentives under the program and to ensure that the
goals and purposes identified in Section 25780 of the Public
Resources Code are achieved. The commission shall determine the
eligibility of a solar energy system, as defined in Section 25781 of
the Public Resources Code, to receive monetary incentives until the
time the Energy Commission establishes eligibility criteria pursuant
to Section 25782. Monetary incentives shall not be awarded for solar
energy systems that do not meet the eligibility criteria. The
incentive level authorized by the commission shall decline each year
following implementation of the California Solar Initiative, at a
rate of no less than an average of 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 30 days in
advance of the first decline in incentive levels. The commission may
develop incentives based upon the output of electricity from the
system, provided those incentives are consistent with the declining
incentive levels of this paragraph and the incentives apply to only
the first megawatt of electricity generated by the system.
(2) The commission shall adopt a performance-based incentive
program so that by January 1, 2008, 100 percent of incentives for
solar energy systems of 100 kilowatts or greater and at least 50
percent of incentives for solar energy systems of 30 kilowatts or
greater are earned based on the actual electrical output of the solar
energy systems. The commission shall encourage, and may require,
performance-based incentives for solar energy systems of less than 30
kilowatts. Performance-based incentives shall decline at a rate of
no less than an average of 7 percent per year. In developing the
performance-based incentives, the commission may:
(A) Apply performance-based incentives only to customer classes
designated by the commission.
(B) Design the performance-based incentives so that customers may
receive a higher level of incentives than under incentives based on
installed electrical capacity.
(C) Develop financing options that help offset the installation
costs of the solar energy system, provided that this financing is
ultimately repaid in full by the consumer or through the application
of the performance-based rebates.
(3) By January 1, 2008, the commission, in consultation with the
Energy Commission, shall require reasonable and cost-effective energy
efficiency improvements in existing buildings as a condition of
providing incentives for eligible solar energy systems, with
appropriate exemptions or limitations to accommodate the limited
financial resources of low-income residential housing.
(4) Notwithstanding subdivision (g) of Section 2827, the
commission may develop a time-variant tariff that creates the maximum
incentive for ratepayers to install solar energy systems so that the
system's peak electricity production coincides with California's
peak electricity demands and that assures
ensures 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. In developing the time-variant tariff, the
commission may exclude customers participating in the tariff 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. Nothing
in this paragraph authorizes the commission to require time-variant
pricing for ratepayers without a solar energy system.
(b) Notwithstanding subdivision (a), in implementing the
California Solar Initiative, the commission may authorize the award
of monetary incentives for solar thermal and solar water heating
devices, in a total amount up to one hundred million eight hundred
thousand dollars ($100,800,000).
(c) (1) In implementing the California Solar Initiative, the
commission shall not allocate more than fifty million dollars
($50,000,000) to research, development, and demonstration that
explores solar technologies and other distributed generation
technologies that employ or could employ solar energy for generation
or storage of electricity or to offset natural gas usage. Any program
that allocates additional moneys to research, development, and
demonstration shall be developed in collaboration with the Energy
Commission to ensure there is no duplication of efforts, and adopted
by the commission through a rulemaking or other appropriate public
proceeding. Any grant awarded by the commission for research,
development, and demonstration shall be approved by the full
commission at a public meeting. This subdivision does not prohibit
the commission from continuing to allocate moneys to research,
development, and demonstration pursuant to the self-generation
incentive program for distributed generation resources originally
established pursuant to Chapter 329 of the Statutes of 2000, as
modified pursuant to Section 379.6.
(2) The Legislature finds and declares that a program that
provides a stable source of monetary incentives for eligible solar
energy systems will encourage private investment sufficient to make
solar technologies cost effective.
(3) On or before June 30, 2009, and by June 30th
30 of every year thereafter, the commission
shall submit to the Legislature an assessment of the success of the
California Solar Initiative program. That assessment shall include
the number of residential and commercial sites that have installed
solar thermal devices for which an award was made pursuant to
subdivision (b) and the dollar value of the award, the number of
residential and commercial sites that have installed solar energy
systems, the electrical generating capacity of the installed solar
energy systems, the cost of the program, total electrical system
benefits, including the effect on electrical service rates,
environmental benefits, how the program affects the operation and
reliability of the electrical grid, how the program has affected peak
demand for electricity, the progress made toward reaching the goals
of the program, whether the program is on schedule to meet the
program goals, and recommendations for improving the program to meet
its goals. If the commission allocates additional moneys to research,
development, and demonstration that explores solar technologies and
other distributed generation technologies pursuant to paragraph (1),
the commission shall include in the assessment submitted to the
Legislature, a description of the program, a summary of each award
made or project funded pursuant to the program, including the
intended purposes to be achieved by the particular award or project,
and the results of each award or project.
(d) (1) The commission shall not impose any charge upon the
consumption of natural gas, or upon natural gas ratepayers, to fund
the California Solar Initiative.
(2) Notwithstanding any other law, any charge imposed to fund the
program adopted and implemented pursuant to this section shall be
imposed upon all customers not participating in the California
Alternate Rates for Energy (CARE) or family electric rate assistance
(FERA) programs as provided in paragraph (2), 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.
(3) The costs of the program adopted and implemented pursuant to
this section shall not be recovered from customers participating in
the California Alternate Rates for Energy or CARE
program established pursuant to Section 739.1, except to the extent
that program costs are recovered out of the nonbypassable system
benefits charge authorized pursuant to Section 399.8.
(e) In implementing the California Solar Initiative, the
commission shall ensure that the total cost over the duration of the
program does not exceed three billion three hundred fifty million
eight hundred thousand dollars ($3,350,800,000). The financial
components of the California Solar Initiative shall consist of the
following:
(1) Programs under the supervision of the commission funded by
charges collected from customers of San Diego Gas and Electric
Company, Southern California Edison Company, and Pacific Gas and
Electric Company. The total cost over the duration of these programs
shall not exceed two billion one hundred sixty-six million eight
hundred thousand dollars ($2,166,800,000) and includes moneys
collected directly into a tracking account for support of the
California Solar Initiative and moneys collected into other accounts
that are used to further the goals of the California Solar
Initiative.
(2) Programs adopted, implemented, and financed in the amount of
seven hundred eighty-four million dollars ($784,000,000), by charges
collected by local publicly owned electric utilities pursuant to
Section 387.5. Nothing in this subdivision shall give the commission
power and jurisdiction with respect to a local publicly owned
electric utility or its customers.
(3) Programs for the installation of solar energy systems on new
construction, administered by the Energy Commission pursuant to
Chapter 8.6 (commencing with Section 25740) of Division 15 of the
Public Resources Code, and funded by nonbypassable charges in the
amount of four hundred million dollars ($400,000,000), collected from
customers of San Diego Gas and Electric Company, Southern California
Edison Company, and Pacific Gas and Electric Company pursuant to
Article 15 (commencing with Section 399) of Chapter 2.3 of Part 1.
SEC. 5. SEC. 6. 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.