BILL NUMBER: AB 2724 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 2, 2010
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 add Sections 399.22 and 2853 to the Public Utilities
Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2724, as amended, Blumenfield. Renewable energy resources.
(1) Under existing law, the Public Utilities Commission (CPUC) has
regulatory authority over public utilities, including electrical
corporations, as defined. 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 electricity 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 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 solar energy system, as defined. The
bill would require the CPUC to limit any incentives provided for
eligible state 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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: 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. any state
agency, board, department, or commission, including the entities
specified in subdivision (a) of Section 15814.12 of the Government
Code.
(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.