BILL NUMBER: AB 2724 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 17, 2010
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 Sections 2831 and 2832 to,
add Sections 399.22 and 2853 to the Public Utilities Code,
relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2724, as amended, Blumenfield. Governmental Renewable
Energy Self-Generation Program. Renewable energy
resources.
(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. Existing law requires every
electrical corporation to file with the CPUC a standard tariff for
electricity generated by an electric generation facility, as defined,
that qualifies for the tariff, is owned and operated by a retail
customer of the electrical corporation, and is located
within the service territory of, and developed to sell ele
ctricity to, the electrical corporation. Existing law requires that,
in order to qualify for the tariff, the electric generation
facility: (1) have an effective capacity of not more than 3
megawatts, subject to the authority of the CPUC to reduce this
megawatt limitation, (2) be interconnected and operate in parallel
with the electric transmission and distribution grid, (3) be
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, and (4) meet the
definition of an eligible renewable energy resource under the
California Renewables Portfolio Standard Program (RPS program).
Existing law requires that the tariff provide for payment for every
kilowatthour of electricity purchased from an electric generation
facility for a period of 10, 15, or 20 years, as authorized by the
CPUC, and requires that the payment be the market price
referent established by the CPUC pursuant to the RPS program and
requires the price to include all current and anticipated
environmental compliance costs. Existing decisions of the CPUC refer
to a tariff adopted pursuant to these requirements as a feed-in
tariff.
Existing law requires a local publicly owned electric utility that
sells electricity at retail to 75,000 or more customers to adopt and
implement a feed-in tariff for electricity purchased from an
electric generation facility meeting certain size, deliverability,
and interconnection requirements and to consider certain factors.
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. 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. require a state agency,
as defined, generating electricity from an electric generation
facility that operates under a feed-in tariff adopted pursuant to
these requirements, and that is owned by, operated by, or on property
under the control of, the state agency, to take the total annual
amount of kilowatthours exported to the grid into consideration when
determining whether the state agency has achieved the policy goals
and objectives established by law or executive order for the state
agency.
(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 solar
energy system, as defined . 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
solar energy systems to an aggregate of 26 megawatts
of alternating current. The bill would prohibit a solar energy system
that is an electric generation facility operating under a feed-in
tariff and that is owned by, operated by, or on property under the
control of, a state agency from being eligible to receive
monetary incentives pursuant to the California Solar Initiative
.
(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 no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 399.22 is added to the
Public Utilities Code , to read:
399.22. (a) For purposes of this section, "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) A state agency generating electricity from an electric
generation facility, as defined in Section 387.6 or 399.20, that
operates under a tariff adopted pursuant to either of those sections,
and that is owned by, operated by, or on property under the control
of, the state agency shall take the total annual amount of
kilowatthours exported to the grid into consideration when
determining whether the state agency has achieved the policy goals
and objectives established by law or executive order for the state
agency.
(c) A solar energy system that is an electric generation facility
operating under a tariff adopted pursuant to Section 387.6 or 399.20,
and that is owned by, operated by, or on property under the control
of, a state agency shall not be eligible to receive monetary
incentives pursuant to Article 1 (commencing with Section 2851) of
Chapter 9 of Part 2.
SEC. 2. Section 2853 is added to the
Public Utilities Code , to read:
2853. (a) For purposes of this section, "eligible state solar
energy system" means a solar energy system that meets all of the
following requirements:
(1) Is an eligible renewable energy resource pursuant to Article
16 (commencing with Section 399.11) of Chapter 2.3 of Part 1.
(2) Meets 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.
(3) 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.
(4) Is sized to generate electricity for use on the premises and
the state agency does not sell electricity exported to the electrical
grid to a third party.
(b) In addition to an award of monetary incentives for the first
megawatt pursuant to Section 2851, the commission shall authorize the
award of monetary incentives for alternating current generated by an
eligible state solar energy system above the first megawatt, up to
five megawatts of alternating current.
(c) The commission shall limit the monetary incentives awarded
pursuant to subdivision (b) to an aggregate of 26 megawatts of
alternating current. All matter omitted in this version of the
bill appears in the bill as amended in the Assembly, April 27, 2010.
(JR11)