BILL NUMBER: SB 1247	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 22, 2010

INTRODUCED BY   Senator Dutton

                        FEBRUARY 19, 2010

   An act to amend Section  701 of   399.12 of,
and to repeal Section 399.12.5 of,  the Public Utilities Code,
relating to  public utilities   energy  .



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1247, as amended, Dutton.  Public utilities. 
 Renewable energy resources.  
   The existing California Renewables Portfolio Standard Program
requires the Public Utilities Commission to implement annual
procurement targets for the procurement of eligible renewable energy
resources, as defined, for all retail sellers, as defined, to achieve
the targets and goals of the program.  
   This bill would delete the existing definition of an eligible
renewable energy resource and, instead, define the term to mean an
electric generating facility that uses biomass, solar energy, wind,
geothermal, fuel cells using renewable fuels, hydroelectric
generation, nuclear generation, digester gas, municipal solid waste
conversion, landfill gas, ocean wave, ocean thermal, or tidal
current, and any additions or enhancements to the facility using that
technology. The bill would make other conforming changes and repeal
certain provisions relating to the eligibility of hydroelectric
generation.  
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, as defined. The existing Public
Utilities Act sets forth the general regulatory responsibilities of
the commission with respect to all public utilities. Existing law
authorizes the commission to supervise and regulate every public
utility and to do all things, whether specifically designated in the
act or in addition to the act, which are necessary and convenient in
the exercise of its power and jurisdiction.  
   This bill would make technical and nonsubstantive changes to the
provision that authorizes the commission to do all things that are
necessary and convenient in the exercise of its power and
jurisdiction. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 399.12 of the   Public
Utilities Code   is amended to read: 
   399.12.  For purposes of this article, the following terms have
the following meanings: 
   (a) "Conduit hydroelectric facility" means a facility for the
generation of electricity that uses only the hydroelectric potential
of an existing pipe, ditch, flume, siphon, tunnel, canal, or other
manmade conduit that is operated to distribute water for a beneficial
use.  
   (b) 
    (a)  "Delivered" and "delivery" have the same meaning as
provided in subdivision (a) of Section 25741 of the Public Resources
Code. 
   (c) "Eligible renewable energy resource" means an electric
generating facility that meets the definition of "in-state renewable
electricity generation facility" in Section 25741 of the Public
Resources Code, subject to the following limitations: 

   (1) (A) An existing small hydroelectric generation facility of 30
megawatts or less shall be eligible only if a retail seller or local
publicly owned electric utility owned or procured the electricity
from the facility as of December 31, 2005. A new hydroelectric
facility is not an eligible renewable energy resource if it will
cause an adverse impact on instream beneficial uses or cause a change
in the volume or timing of streamflow.  
   (B) Notwithstanding subparagraph (A), a conduit hydroelectric
facility of 30 megawatts or less that commenced operation before
January 1, 2006, is an eligible renewable energy resource. A conduit
hydroelectric facility of 30 megawatts or less that commences
operation after December 31, 2005, is an eligible renewable energy
resource so long as it does not cause an adverse impact on instream
beneficial uses or cause a change in the volume or timing of
streamflow.  
   (2) A facility engaged in the combustion of municipal solid waste
shall not be considered an eligible renewable resource unless it is
located in Stanislaus County and was operational prior to September
26, 1996.  
   (b) "Eligible renewable energy resource" means an electric
generating facility that uses biomass, solar energy, wind,
geothermal, fuel cells using renewable fuels, hydroelectric
generation, nuclear generation, digester gas, municipal solid waste
conversion, landfill gas, ocean wave, ocean thermal, or tidal
current, and any additions or enhancements to the facility using that
technology.  
   (d) 
    (c)  "Procure" means that a retail seller or local
publicly owned electric utility receives delivered electricity
generated by an eligible renewable energy resource that it owns or
for which it has entered into an electricity purchase agreement.
Nothing in this article is intended to imply that the purchase of
electricity from third parties in a wholesale transaction is the
preferred method of fulfilling a retail seller's obligation to comply
with this article or the obligation of a local publicly owned
electric utility to meet its renewables portfolio standard
implemented pursuant to Section 387. 
   (e) 
    (d)  "Renewables portfolio standard" means the specified
percentage of electricity generated by eligible renewable energy
resources that a retail seller is required to procure pursuant to
this article or the obligation of a local publicly owned electric
utility to meet its renewables portfolio standard implemented
pursuant to Section 387. 
   (f) 
    (e)  (1) "Renewable energy credit" means a certificate
of proof, issued through the accounting system established by the
Energy Commission pursuant to Section 399.13, that one unit of
electricity was generated and delivered by an eligible renewable
energy resource.
   (2) "Renewable energy credit" includes all renewable and
environmental attributes associated with the production of
electricity from the eligible renewable energy resource, except for
an emissions reduction credit issued pursuant to Section 40709 of the
Health and Safety Code and any credits or payments associated with
the reduction of solid waste and treatment benefits created by the
utilization of biomass or biogas fuels.
   (3) No electricity generated by an eligible renewable energy
resource attributable to the use of nonrenewable fuels, beyond a de
minimis quantity, as determined by the Energy Commission, shall
result in the creation of a renewable energy credit. 
   (g) 
    (f)     (1)  "Retail seller" means an
entity engaged in the retail sale of electricity to end-use customers
located within the state, including any of the following: 
   (1) 
    (A)  An electrical corporation, as defined in Section
218. 
   (2) 
    (B)  A community choice aggregator. The commission shall
institute a rulemaking to determine the manner in which a community
choice aggregator will participate in the renewables portfolio
standard program subject to the same terms and conditions applicable
to an electrical corporation. 
   (3) 
    (C)  An electric service provider, as defined in Section
218.3, for all sales of electricity to customers beginning January
1, 2006. The commission shall institute a rulemaking to determine the
manner in which electric service providers will participate in the
renewables portfolio standard program. The electric service provider
shall be subject to the same terms and conditions applicable to an
electrical corporation pursuant to this article. Nothing in this
paragraph shall impair a contract entered into between an electric
service provider and a retail customer prior to the suspension of
direct access by the commission pursuant to Section 80110 of the
Water Code. 
   (4) 
    (2)  "Retail seller" does not include any of the
following:
   (A) A corporation or person employing cogeneration technology or
producing electricity consistent with subdivision (b) of Section 218.

   (B) The Department of Water Resources acting in its capacity
pursuant to Division 27 (commencing with Section 80000) of the Water
Code.
   (C) A local publicly owned electric utility.
   SEC. 2.    Section 399.12.5 of the   Public
Utilities Code   is repealed.  
   399.12.5.  (a) Notwithstanding subdivision (c) of Section 399.12,
a small hydroelectric generation facility that satisfies the criteria
for an eligible renewable energy resource pursuant to Section 399.12
shall not lose its eligibility if efficiency improvements undertaken
after January 1, 2008, cause the generating capacity of the facility
to exceed 30 megawatts, and the efficiency improvements do not
result in an adverse impact on instream beneficial uses or cause a
change in the volume or timing of streamflow. The entire generating
capacity of the facility shall be eligible.
   (b) Notwithstanding subdivision (c) of Section 399.12, the
incremental increase in the amount of electricity generated from a
hydroelectric generation facility as a result of efficiency
improvements at the facility, is electricity from an eligible
renewable energy resource, without regard to the electrical output of
the facility, if all of the following conditions are met:
   (1) The incremental increase is the result of efficiency
improvements from a retrofit that do not result in an adverse impact
on instream beneficial uses or cause a change in the volume or timing
of streamflow.
   (2) (A) The hydroelectric generation facility has, within the
immediately preceding 15 years, received certification from the State
Water Resources Control Board pursuant to Section 401 of the Clean
Water Act (33 U.S.C. Sec. 1341), or has received certification from a
regional board to which the state board has delegated authority to
issue certification, unless the facility is not subject to
certification because there is no potential for discharge into waters
of the United States.
   (B) If the hydroelectric facility is not located in California,
the certification pursuant to Section 401 of the federal Clean Water
Act (33 U.S.C. Sec. 1341) may be received from the applicable state
board or agency or from a regional board to which the state board has
delegated authority to issue the certification.
   (3) The hydroelectric generation facility is owned by a retail
seller or a local publicly owned electric utility, was operational
prior to January 1, 2007, the efficiency improvements are initiated
on or after January 1, 2008, the efficiency improvements are not the
result of routine maintenance activities, as determined by the Energy
Commission, and the efficiency improvements were not included in any
resource plan sponsored by the facility owner prior to January 1,
2008.
   (4) All of the incremental increase in electricity resulting from
the efficiency improvements are demonstrated to result from a
long-term financial commitment by the retail seller or local publicly
owned electric utility. For purposes of this paragraph, "long-term
financial commitment" means either new ownership investment in the
facility by the retail seller or local publicly owned electric
utility or a new or renewed contract with a term of 10 or more years,
which includes procurement of the incremental generation.
   (c) The incremental increase in the amount of electricity
generated from a hydroelectric generation facility as a result of
efficiency improvements at the facility are not eligible for
supplemental energy payments pursuant to the Renewable Energy
Resources Program (Chapter 8.6 (commencing with Section 25740) of
Division 15 of the Public Resources Code), or a successor program.
 
  SECTION 1.    Section 701 of the Public Utilities
Code is amended to read:
   701.  The commission may supervise and regulate every public
utility in the state and may do all things, whether specifically
designated in this part or in addition thereto, that it determines
are necessary and convenient in the exercise of its power and
jurisdiction, in meeting its obligations.