BILL NUMBER: SB 7 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 5, 2009
AMENDED IN SENATE APRIL 13, 2009
INTRODUCED BY Senator Wiggins
DECEMBER 1, 2008
An act to amend Section 25782 of the Public Resources
Code, and to amend Sections 387.5 and 2827 of the Public
Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 7, as amended, Wiggins. Renewable energy sources: feed-in
tariff: net metering.
(1) The existing Public Utilities Act imposes various duties and
responsibilities on the Public Utilities Commission with respect to
the purchase of electricity 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, community choice
aggregators, and electric service providers, but not including local
publicly owned electric utilities, 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. Under existing law, the governing board of a local publicly
owned electric utility is responsible for implementing and enforcing
a renewables portfolio standard that recognizes the intent of the
Legislature to encourage renewable resources, while taking into
consideration the effect of the standard on rates, reliability, and
financial resources and the goal of environmental improvement.
Existing
Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical
corporations. Existing law authorizes the commission to fix the r
ates and charges for every public utility, and requires
that those rates and charges be just and reasonable. Existing
law relative to private energy producers requires every electric
distribution utility or cooperative, upon request, to make available
to an eligible customer-generator, as defined, a standard contract or
tariff for net energy metering on a first-come-first-served basis
until the time that the total rated generating capacity used by
eligible customer-generators exceeds a specified amount. Existing law
provides that where the electricity generated by the eligible
customer-generator exceeds the electricity supplied by the electric
distribution utility or cooperative during a 12-month period, the
eligible customer-generator is a net electricity producer and the
electric distribution utility or cooperative retains any excess
kilowatthours generated and the customer-generator is not owed
compensation for those excess kilowatthours unless the electric
service provider enters into a purchase agreement with the eligible
customer-generator for those excess kilowatthours.
This bill would require the electricity distribution utility or
cooperative , at the discretion of the eligible
customer-generator, to either: (1) provide net surplus electricity
compensation for any net surplus electricity generated, or
electricity distribution utility or cooperative credits owed, in the
12-month period, or (2) to allow the eligible
customer-generator to apply the net surplus
electricity, or electricity distribution utility or
cooperative credits owed as defined , as a
credit for kilowatthours consumed during one, or both, of
the two following , and any subsequent,
12-month periods.
Existing law requires the commission, in consultation with the
Energy Commission, to submit a report to the Governor and the
Legislature by January 1, 2010, on the costs and benefits of net
energy metering, wind energy co-metering, and co-energy metering to
participating customers and nonparticipating customers and with
options to replace the economic costs and benefits of net energy
metering, wind energy co-metering, and co-energy metering with a
mechanism that more equitably balances the interests of participating
and nonparticipating customers, and that incorporates the findings
from another specified report.
This bill would require the report be submitted by June 30, 2010,
and require that the report additionally evaluate the impact of the
generation of excess kilowatthours and excess credits based on
time-of-use rates on participating and nonparticipating customers.
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 certain of its requirements, a violation of these
provisions would impose a state-mandated local program by expanding
the definition of a crime.
This bill would place additional requirements upon local publicly
owned electric utilities with respect to providing net surplus
electricity compensation payments and credits, thereby imposing a
state-mandated local program.
(2) In a decision, the commission adopted the California Solar
Initiative to provide incentives to customer-side photovoltaics and
solar thermal electric projects under one megawatt. Existing law
requires the commission, in implementing the California Solar
Initiative, as defined, to authorize the award of monetary incentives
for up to the first megawatt of alternating current generated by a
solar energy system, as defined, that meets eligibility criteria
established by the State Energy Resources Conservation and
Development Commission. The eligibility requirements include a
requirement that the solar energy system is intended primarily to
offset part or all of the consumer's own electricity demand. Existing
law requires the governing body of a local publicly owned utility
that sells electricity at retail, to adopt, implement, and finance a
solar initiative program, for the purpose of investing in, and
encouraging the increased installation of, residential and commercial
solar energy systems, meeting certain requirements. The eligibility
requirements include the requirement that solar energy systems
receiving monetary incentives are intended primarily to offset part
or all of the consumer's own electricity demand.
This bill would provide that investments for solar energy systems
that exceed the electricity demand of a consumer shall be permitted,
but only the capacity needed to offset part or all of the electricity
demand of the consumer is eligible for ratepayer funded monetary
incentives pursuant to the solar initiative programs.
(3) The
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 reasons 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 25782 of the Public
Resources Code is amended to read:
25782. (a) The commission shall, by January 1, 2008, in
consultation with the Public Utilities Commission, local publicly
owned electric utilities, and interested members of the public,
establish eligibility criteria for solar energy systems receiving
ratepayer funded incentives that include all of the following:
(1) Design, installation, and electrical output standards or
incentives.
(2) The solar energy system is intended primarily to offset part
or all of the consumer's own electricity demand. Investments for
solar energy systems that exceed the electricity demand of the
consumer shall be permitted, but only the capacity needed to offset
part or all of the electricity demand of the consumer is eligible for
ratepayer funded monetary incentives.
(3) All components in the solar energy system are new and unused,
and have not previously been placed in service in any other location
or for any other application.
(4) The solar energy system has a warranty of not less than 10
years to protect against defects and undue degradation of electrical
generation output.
(5) The solar energy system is located on the same premises of the
end-use consumer where the consumer's own electricity demand is
located.
(6) The solar energy system is connected to the electrical
corporation's electrical distribution system within the state.
(7) The solar energy system has meters or other devices in place
to monitor and measure the system's performance and the quantity of
electricity generated by the system.
(8) The solar energy system is installed in conformance with the
manufacturer's specifications and in compliance with all applicable
electrical and building code standards.
(b) The commission shall establish conditions on ratepayer funded
incentives that require all of the following:
(1) Appropriate siting and high quality installation of the solar
energy system by developing installation guidelines that maximize the
performance of the system and prevent qualified systems from being
inefficiently or inappropriately installed. The conditions
established by the commission shall not impact housing designs or
densities presently authorized by a city, county, or city and county.
The goal of this paragraph is to achieve efficient installation of
solar energy systems to promote the greatest energy production per
ratepayer dollar.
(2) Optimal solar energy system performance during periods of peak
electricity demand.
(3) Appropriate energy efficiency improvements in the new or
existing home or commercial structure where the solar energy system
is installed.
(c) The commission shall set rating standards for equipment,
components, and systems to ensure reasonable performance and shall
develop standards that provide for compliance with the minimum
ratings.
(d) Upon establishment of eligibility criteria pursuant to
subdivision (a), no ratepayer funded incentives shall be made for a
solar energy system that does not meet the eligibility criteria.
SEC. 2. Section 387.5 of the Public Utilities
Code is amended to read:
387.5. (a) In order to further the state goal of encouraging the
installation of 3,000 megawatts of photovoltaic solar energy in
California within 10 years, the governing body of a local publicly
owned electric utility that sells electricity at retail, shall adopt,
implement, and finance a solar initiative program, funded in
accordance with subdivision (b), for the purpose of investing in, and
encouraging the increased installation of, residential and
commercial solar energy systems.
(b) On or before January 1, 2008, a local publicly owned electric
utility shall offer monetary incentives for the installation of solar
energy systems of at least two dollars and eighty cents ($2.80) per
installed watt, or for the electricity produced by the solar energy
system, measured in kilowatthours, as determined by the governing
board of a local publicly owned electric utility, for photovoltaic
solar energy systems. The incentive level shall decline each year
thereafter at a rate of no less than an average of 7 percent per
year.
(c) A local publicly owned electric utility shall initiate a
public proceeding to fund a solar energy program to adequately
support the goal of installing 3,000 megawatts of photovoltaic solar
energy in California. The proceeding shall determine what additional
funding, if any, is necessary to provide the incentives pursuant to
subdivision (b). The public proceeding shall be completed and the
comprehensive solar energy program established by January 1, 2008.
(d) The solar energy program of a local publicly owned electric
utility shall be consistent with all of the following:
(1) That a solar energy system receiving monetary incentives
comply with the eligibility criteria, design, installation, and
electrical output standards or incentives established by the State
Energy Resources Conservation and Development Commission pursuant to
Section 25782 of the Public Resources Code.
(2) That solar energy systems receiving monetary incentives are
intended primarily to offset part or all of the consumer's own
electricity demand. Investments for solar energy systems that exceed
the electricity demand of the consumer shall be permitted, but only
the capacity needed to offset part or all of the electricity demand
of the consumer is eligible for ratepayer funded monetary incentives.
(3) That all components in the solar energy system are new and
unused, and have not previously been placed in service in any other
location or for any other application.
(4) That the solar energy system has a warranty of not less than
10 years to protect against defects and undue degradation of
electrical generation output.
(5) 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.
(6) That the solar energy system be connected to the electric
utility's electrical distribution system within the state.
(7) That the solar energy system has meters or other devices in
place to monitor and measure the system's performance and the
quantity of electricity generated by the system.
(8) That the solar energy system be installed in conformance with
the manufacturer's specifications and in compliance with all
applicable electrical and building code standards.
(e) A local publicly owned electric utility shall, on an annual
basis beginning June 1, 2008, make available to its customers, to the
Legislature, and to the State Energy Resources Conservation and
Development Commission, information relating to the utility's solar
initiative program established pursuant to this section, including,
but not limited to, the number of photovoltaic solar watts installed,
the total number of photovoltaic systems installed, the total number
of applicants, the amount of incentives awarded, and the
contribution toward the program goals.
(f) In establishing the program required by this section, no
moneys shall be diverted from any existing programs for low-income
ratepayers, or from cost-effective energy efficiency or demand
response programs.
(g) The statewide expenditures for solar programs adopted,
implemented, and financed by local publicly owned electric utilities
shall be seven hundred eighty-four million dollars ($784,000,000).
The expenditure level for each local publicly owned electric utility
shall be based on that utility's percentage of the total statewide
load served by all local publicly owned electric utilities.
Expenditures by a local publicly owned electric utility may be less
than the utility's cap amount, provided that funding is adequate to
provide the incentives required by subdivisions (a) and (b).
SEC. 3. SECTION 1. Section 2827 of
the Public Utilities Code is amended to read:
2827. (a) The Legislature finds and declares that a program to
provide net energy metering, combined with net surplus
compensation, co-energy metering, and wind energy
co-metering for eligible customer-generators is one way to encourage
substantial private investment in renewable energy resources,
stimulate in-state economic growth, reduce demand for electricity
during peak consumption periods, help stabilize California's energy
supply infrastructure, enhance the continued diversification of
California's energy resource mix, and reduce interconnection and
administrative costs for electricity suppliers.
(b) As used in this section, the following terms have the
following meanings:
(1) "Co-energy metering" means a program that is the same in all
other respects as a net energy metering program, except that the
local publicly owned electric utility has elected to apply a
generation-to-generation energy and time-of-use credit formula as
provided in subdivision (i).
(2) "Electrical cooperative" means an electrical cooperative as
defined in Section 2776.
(3) "Electricity distribution utility or cooperative" means an
electrical corporation, a local publicly owned electric utility, or
an electrical cooperative, or any other entity, except an electric
service provider, that offers electrical service. This section shall
not apply to a local publicly owned electric utility that serves more
than 750,000 customers and that also conveys water to its customers.
(4) "Eligible customer-generator" means a residential, small
commercial customer as defined in subdivision (h) of Section 331,
commercial, industrial, or agricultural customer of an electricity
distribution utility or cooperative, who uses a solar or a wind
turbine electrical generating facility, or a hybrid system of both,
with a capacity of not more than one megawatt that is located on the
customer's owned, leased, or rented premises, or the
customer is the benefiting accountholder, and is
interconnected and operates in parallel with the electric grid ,
and is intended primarily to offset part or all of the customer's
own electrical requirements .
(5) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the
electricity generated by an eligible customer-generator and fed back
to the electric grid over a 12-month period as described in
subdivision (h). An eligible customer-generator who already owns an
existing solar or wind turbine electrical generating facility, or a
hybrid system of both, is eligible to receive net energy metering
service in accordance with this section.
(6) "Net surplus customer-generator" means an eligible
customer-generator that, during a 12-month period, generates more
electricity than is supplied by the electricity distribution utility
or cooperative to , or more electricity distribution utility
or cooperative credits than the equivalent amount of electricity is
used by, the eligible customer-generator during the same
12-month period.
(7) "Net surplus electricity" means all electricity generated by
an eligible customer-generator measured in kilowatthours over a
12-month period that exceeds the amount of electricity consumed
, or the number of electricity distribution utility or
cooperative credits that exceeds the equivalent amount of electricity
used, by that eligible customer-generator.
(8) "Net surplus electricity compensation" means a payment at a
per kilowatthour rate offered by the electric distribution utility or
cooperative to the net surplus customer-generator for net surplus
electricity pursuant to subdivision (h).
(9)
(8) "Ratemaking authority" means, for an electrical
corporation, electrical cooperative, or electric service provider,
the commission, and for a local publicly owned electric utility, the
local elected body responsible for setting the rates of the local
publicly owned utility.
(10)
(9) "Wind energy co-metering" means any wind energy
project greater than 50 kilowatts, but not exceeding one megawatt,
where the difference between the electricity supplied through the
electric grid and the electricity generated by an eligible
customer-generator and fed back to the electric grid over a 12-month
period is as described in subdivision (h). Wind energy co-metering
shall be accomplished pursuant to Section 2827.8.
(c) (1) Every electricity distribution utility or cooperative
shall develop a standard contract or tariff providing for net energy
metering, and shall make this standard contract or tariff available
to eligible customer-generators, upon request, on a
first-come-first-served basis until the time that the total rated
generating capacity used by eligible customer-generators exceeds 2.5
percent of the electricity distribution utility or cooperative's
aggregate customer peak demand. Net energy metering shall be
accomplished using a single meter capable of registering the flow of
electricity in two directions. An additional meter or meters to
monitor the flow of electricity in each direction may be installed
with the consent of the customer-generator, at the expense of the
electricity distribution utility or cooperative, and the additional
metering shall be used only to provide the information necessary to
accurately bill or credit the customer-generator pursuant to
subdivision (h), or to collect solar or wind electric generating
system performance information for research purposes. If the existing
electrical meter of an eligible customer-generator is not capable of
measuring the flow of electricity in two directions, the
customer-generator shall be responsible for all expenses involved in
purchasing and installing a meter that is able to measure electricity
flow in two directions. If an additional meter or meters are
installed, the net energy metering calculation shall yield a result
identical to that of a single meter.
(2) (A) On an annual basis, beginning in 2003, every electricity
distribution utility or cooperative shall make available to the
ratemaking authority information on the total rated generating
capacity used by eligible customer-generators that are customers of
that provider in the provider's service area.
(B) An electric service provider operating pursuant to Section 394
shall make available to the ratemaking authority the information
required by this paragraph for each eligible customer-generator that
is their customer for each service area of an electric corporation,
local publicly owned electric utility, or electrical cooperative, in
which the eligible customer-generator has net energy metering.
(C) The ratemaking authority shall develop a process for making
the information required by this paragraph available to electricity
distribution utilities and cooperatives, and for using that
information to determine when, pursuant to paragraphs (1) and (3), an
electricity distribution utility or cooperative is not obligated to
provide net energy metering to additional customer-generators in its
service area.
(3) An electricity distribution utility or cooperative is not
obligated to provide net energy metering to additional eligible
customer-generators in its service area when the combined total peak
demand of all electricity used by eligible customer-generators served
by all the electricity distribution utilities or cooperatives in
that service area furnishing net energy metering to eligible
customer-generators exceeds 2.5 percent of the aggregate customer
peak demand of those electricity distribution utilities or
cooperatives.
(4) By January 1, June 30, 2010, the
commission, in consultation with the Energy Commission, shall submit
a report to the Governor and the Legislature on the costs and
benefits of net energy metering, wind energy co-metering, and
co-energy metering to participating customers and nonparticipating
customers and with options to replace the economic costs and benefits
of net energy metering, wind energy co-metering, and co-energy
metering with a mechanism that more equitably balances the interests
of participating and nonparticipating customers, and that
incorporates the findings of the report on economic and environmental
costs and benefits of net metering required by subdivision (n).
The report shall additionally evaluate the impact of the generation
of excess kilowatthours and excess credits based on time-of-use rates
on participating and nonparticipating customers.
(d) Every electricity distribution utility or cooperative shall
make all necessary forms and contracts for net energy metering
and net surplus electricity compensation service
available for download from the Internet.
(e) (1) Every electricity distribution utility or cooperative
shall ensure that requests for establishment of net energy metering
and net surplus electricity compensation are
processed in a time period not exceeding that for similarly situated
customers requesting new electric service, but not to exceed 30
working days from the date it receives a completed application form
for net energy metering service or net surplus energy
compensation , including a signed interconnection agreement
from an eligible customer-generator and the electric inspection
clearance from the governmental authority having jurisdiction.
(2) Every electricity distribution utility or cooperative shall
ensure that requests for an interconnection agreement from an
eligible customer-generator are processed in a time period not to
exceed 30 working days from the date it receives a completed
application form from the eligible customer-generator for an
interconnection agreement.
(3) If an electricity distribution utility or cooperative is
unable to process a request within the allowable timeframe pursuant
to paragraph (1) or (2), it shall notify the eligible
customer-generator and the ratemaking authority of the reason for its
inability to process the request and the expected completion date.
(f) (1) If a customer participates in direct transactions pursuant
to paragraph (1) of subdivision (b) of Section 365 with an electric
service provider that does not provide distribution service for the
direct transactions, the electricity distribution utility or
cooperative that provides distribution service for an eligible
customer-generator is not obligated to provide net energy metering to
the customer.
(2) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
service provider, and the customer is an eligible customer-generator,
the electricity distribution utility or cooperative that provides
distribution service for the direct transactions may recover from the
customer's electric service provider the incremental costs of
metering and billing service related to net energy metering in an
amount set by the ratemaking authority.
(g) Except for the time-variant kilowatthour pricing portion of
any tariff adopted by the commission pursuant to paragraph (4) of
subdivision (a) of Section 2851, each net energy metering contract or
tariff shall be identical, with respect to rate structure, all
retail rate components, and any monthly charges, to the contract or
tariff to which the same customer would be assigned if the customer
did not use an eligible solar or wind electrical generating facility,
except that eligible customer-generators shall not be assessed
standby charges on the electrical generating capacity or the
kilowatthour production of an eligible solar or wind electrical
generating facility. The charges for all retail rate components for
eligible customer-generators shall be based exclusively on the
customer-generator's net kilowatthour consumption over a 12-month
period, without regard to the customer-generator's choice as to whom
it purchases electricity that is not self-generated. Any new or
additional demand charge, standby charge, customer charge, minimum
monthly charge, interconnection charge, or any other charge that
would increase an eligible customer-generator's costs beyond those of
other customers who are not eligible customer-generators in the rate
class to which the eligible customer-generator would otherwise be
assigned if the customer did not own, lease, rent, or otherwise
operate an eligible solar or wind electrical generating facility are
contrary to the intent of this section, and shall not form a part of
net energy metering contracts or tariffs.
(h) For eligible residential and small commercial
customer-generators, the net energy metering calculation shall be
made by measuring the difference between the electricity supplied to
the eligible customer-generator and the electricity generated by the
eligible customer-generator and fed back to the electric grid over a
12-month period. The following rules shall apply to the annualized
net metering calculation:
(1) The eligible residential or small commercial
customer-generator shall, at the end of each 12-month period
following the date of final interconnection of the eligible
customer-generator's system with an electricity distribution utility
or cooperative, and at each anniversary date thereafter, be billed
for electricity used during that 12-month period. The electricity
distribution utility or cooperative shall determine if the eligible
residential or small commercial customer-generator was a net consumer
or a net surplus customer-generator during that period.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electricity distribution utility or
cooperative exceeds the electricity generated by the eligible
residential or small commercial customer-generator during that same
period, the eligible residential or small commercial
customer-generator is a net electricity consumer and the electricity
distribution utility or cooperative shall be owed compensation for
the eligible customer-generator's net kilowatthour consumption over
that 12-month period. The compensation owed for the eligible
residential or small commercial customer-generator's consumption
shall be calculated as follows:
(A) For all eligible customer-generators taking service under
contracts or tariffs employing "baseline" and "over baseline" rates
or charges, any net monthly consumption of electricity shall be
calculated according to the terms of the contract or tariff to which
the same customer would be assigned to, or be eligible for, if the
customer was not an eligible customer-generator. If those same
customer-generators are net generators over a billing period, the net
kilowatthours generated shall be valued at the same price per
kilowatthour as the electricity distribution utility or cooperative
would charge for the baseline quantity of electricity during that
billing period, and if the number of kilowatthours generated exceeds
the baseline quantity, the excess shall be valued at the same price
per kilowatthour as the electricity distribution utility or
cooperative would charge for electricity over the baseline quantity
during that billing period.
(B) For all eligible customer-generators taking service under
contracts or tariffs employing "time-of-use" rates or charges, any
net monthly consumption of electricity shall be calculated according
to the terms of the contract or tariff to which the same customer
would be assigned to, or be eligible for, if the customer was not an
eligible customer-generator. When those same customer-generators are
net generators during any discrete time-of-use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electricity distribution utility or cooperative
would charge for retail kilowatthour sales during that same
"time-of-use" period. If the eligible customer-generator's
"time-of-use" electrical meter is unable to measure the flow of
electricity in two directions, subparagraph (A) of paragraph (1) of
subdivision (c) shall apply.
(C) For all eligible residential and small commercial
customer-generators and for each billing period, the net balance of
moneys owed to the electricity distribution utility or cooperative
for net consumption of electricity or credits owed to the eligible
customer-generator for net generation of electricity shall be carried
forward as a monetary value until the end of each 12-month period.
For all eligible commercial, industrial, and agricultural
customer-generators, the net balance of moneys owed shall be paid in
accordance with the electricity distribution utility or cooperative's
normal billing cycle, except that if the eligible commercial,
industrial, or agricultural customer-generator is a net electricity
producer over a normal billing cycle, any excess kilowatthours
generated during the billing cycle shall be carried over to the
following billing period as a monetary value, calculated according to
the procedures set forth in this section, and appear as a credit on
the eligible customer-generator's account, until the end of the
annual period when paragraph (3) shall apply.
(3) At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electricity
distribution utility or cooperative during that same period
, or where the number of electricity distribution utility or
cooperative credits generated by the eligible customer-generator
during the 12-month period exceeds the equivalent amount of
electricity used by the eligible customer-generator during that same
period, the eligible customer-generator
is a net surplus customer-generator and the
electricity distribution utility or cooperative shall , at
the discretion of the eligible customer-generator, either: (A)
provide a net surplus electricity compensation payment for any net
surplus electricity generated, or electricity distribution utility or
cooperative credits owed, during the prior 12-month period, or (B)
allow the eligible customer-generator to apply the net
surplus electricity , or electricity distribution utility or
cooperative credits owed, as a credit for kilowatthours
consumed during the following, or any subsequent, 12-month
period. one, or both, of the two following 12-month
periods:
(4) Net surplus electricity compensation shall provide for payment
for every kilowatthour of electricity, or electricity distribution
utility or cooperative credit owed, that is not less than the
existing market cost for electricity (market price referent) as
determined by the commission pursuant to subdivision (c) of Section
399.15.
(5)
(4) The electricity distribution utility or cooperative
shall provide every eligible residential or small commercial
customer-generator with net electricity consumption and net surplus
electricity generation information with each regular bill. That
information shall include the current monetary balance owed the
electricity distribution utility or cooperative for net electricity
consumed, or the net surplus electricity generated, since the last
12-month period ended. Notwithstanding this subdivision, an
electricity distribution utility or cooperative shall permit that
customer to pay monthly for net energy consumed.
(6)
(5) If an eligible residential or small commercial
customer-generator terminates the customer relationship with the
electricity distribution utility or cooperative, the electricity
distribution utility or cooperative shall reconcile the eligible
customer-generator's consumption and production of electricity during
any part of a 12-month period following the last reconciliation,
according to the requirements set forth in this subdivision, except
that those requirements shall apply only to the months since the most
recent 12-month bill.
(7)
(6) If an electric service provider or electricity
distribution utility or cooperative providing net energy metering to
a residential or small commercial customer-generator ceases providing
that electric service to that customer during any 12-month period,
and the customer-generator enters into a new net energy metering
contract or tariff with a new electric service provider or
electricity distribution utility or cooperative, the 12-month period,
with respect to that new electric service provider or electricity
distribution utility or cooperative, shall commence on the date on
which the new electric service provider or electricity distribution
utility or cooperative first supplies electric service to the
customer-generator.
(i) Notwithstanding any other provisions of this section, the
following provisions shall apply to an eligible customer-generator
with a capacity of more than 10 kilowatts, but not exceeding one
megawatt, that receives electric service from a local publicly owned
electric utility that has elected to utilize a co-energy metering
program unless the local publicly owned electric utility chooses to
provide service for eligible customer-generators with a capacity of
more than 10 kilowatts in accordance with subdivisions (g) and (h):
(1) The eligible customer-generator shall be required to utilize a
meter, or multiple meters, capable of separately measuring
electricity flow in both directions. All meters shall provide
"time-of-use" measurements of electricity flow, and the customer
shall take service on a time-of-use rate schedule. If the existing
meter of the eligible customer-generator is not a time-of-use meter
or is not capable of measuring total flow of energy in both
directions, the eligible customer-generator shall be responsible for
all expenses involved in purchasing and installing a meter that is
both time-of-use and able to measure total electricity flow in both
directions. This subdivision shall not restrict the ability of an
eligible customer-generator to utilize any economic incentives
provided by a government agency or an electricity distribution
utility or cooperative to reduce its costs for purchasing and
installing a time-of-use meter.
(2) The consumption of electricity from the local publicly owned
electric utility shall result in a cost to the eligible
customer-generator to be priced in accordance with the standard rate
charged to the eligible customer-generator in accordance with the
rate structure to which the customer would be assigned if the
customer did not use an eligible solar or wind electrical generating
facility. The generation of electricity provided to the local
publicly owned electric utility shall result in a credit to the
eligible customer-generator and shall be priced in accordance with
the generation component, established under the applicable structure
to which the customer would be assigned if the customer did not use
an eligible solar or wind electrical generating facility.
(3) All costs and credits shall be shown on the eligible
customer-generator's bill for each billing period. In any months in
which the eligible customer-generator has been a net consumer of
electricity calculated on the basis of value determined pursuant to
paragraph (2), the customer-generator shall owe to the local publicly
owned electric utility the balance of electricity costs and credits
during that billing period. In any billing period in which the
eligible customer-generator has been a net producer of electricity
calculated on the basis of value determined pursuant to paragraph
(2), the local publicly owned electric utility shall owe to the
eligible customer-generator the balance of electricity costs and
credits during that billing period. Any net credit to the eligible
customer-generator of electricity costs may be carried forward to
subsequent billing periods, provided that a local publicly owned
electric utility may choose to carry the credit over as a
kilowatthour credit consistent with the provisions of any applicable
contract or tariff, including any differences attributable to the
time of generation of the electricity. At the end of each 12-month
period, the local publicly owned electric utility may reduce any net
credit due to the eligible customer-generator to zero.
(j) A solar or wind turbine electrical generating system, or a
hybrid system of both, used by an eligible customer-generator shall
meet all applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories, including
Underwriters Laboratories and, where applicable, rules of the
commission regarding safety and reliability. A customer-generator
whose solar or wind turbine electrical generating system, or a hybrid
system of both, meets those standards and rules shall not be
required to install additional controls, perform or pay for
additional tests, or purchase additional liability insurance.
(k) If the commission determines that there are cost or revenue
obligations for an electric corporation, as defined in Section 218,
that may not be recovered from customer-generators acting pursuant to
this section, those obligations shall remain within the customer
class from which any shortfall occurred and may not be shifted to any
other customer class. Net energy metering and co-energy metering
customers shall not be exempt from the public goods charges imposed
pursuant to Article 7 (commencing with Section 381), Article 8
(commencing with Section 385), or Article 15 (commencing with Section
399) of Chapter 2.3 of Part 1. In its report to the Legislature, the
commission shall examine different methods to ensure that the public
goods charges remain nonbypassable.
() A net energy metering, co-energy metering, or wind energy
co-metering customer shall reimburse the Department of Water
Resources for all charges that would otherwise be imposed on the
customer by the commission to recover bond-related costs pursuant to
an agreement between the commission and the Department of Water
Resources pursuant to Section 80110 of the Water Code, as well as the
costs of the department equal to the share of the department's
estimated net unavoidable power purchase contract costs attributable
to the customer. The commission shall incorporate the determination
into an existing proceeding before the commission, and shall ensure
that the charges are nonbypassable. Until the commission has made a
determination regarding the nonbypassable charges, net energy
metering, co-energy metering, and wind energy co-metering shall
continue under the same rules, procedures, terms, and conditions as
were applicable on December 31, 2002.
(m) In implementing the requirements of subdivisions (k) and (), a
customer-generator shall not be required to replace its existing
meter except as set forth in subparagraph (A) of paragraph (1) of
subdivision (c), nor shall the electricity distribution utility or
cooperative require additional measurement of usage beyond that which
is necessary for customers in the same rate class as the eligible
customer-generator.
(n) It is the intent of the Legislature that the Treasurer
incorporate net energy metering, co-energy metering, and wind energy
co-metering projects undertaken pursuant to this section as
sustainable building methods or distributive energy technologies for
purposes of evaluating low-income housing projects.
SEC. 4. 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.
With respect to certain other costs, no reimbursement is required
by this act pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act, within
the meaning of Section 17556 of the Government Code.
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.