BILL NUMBER: AB 347 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 25, 2011
INTRODUCED BY Assembly Member Galgiani
FEBRUARY 10, 2011
An act to amend Section 399.20 of the Public Utilities
Code, relating to energy. An act to amend Section
38562 of the Health and Safety Code, relating to air pollution.
LEGISLATIVE COUNSEL'S DIGEST
AB 347, as amended, Galgiani. Renewable energy resources.
California Global Warming Solutions Act of 2006:
early actions.
The California Global Warming Solutions Act of 2006 designates the
State Air Resources Board as the state agency charged with
monitoring and regulating sources of emissions of greenhouse gases.
The state board is required to adopt a statewide greenhouse gas
emissions limit equivalent to the statewide greenhouse gas emissions
level in 1990 to be achieved by 2020, and to adopt by January 1,
2011, greenhouse gas emission limits and emission reduction measures
to achieve the maximum technologically feasible and cost-effective
greenhouse gas emission reductions.
Existing law requires the state board to ensure that entities that
have voluntarily reduced their greenhouse gas emissions prior to the
implementation of the regulations receive appropriate credit for
early voluntary reductions.
This bill would require the state board to ensure that the cement
manufacturing, glass manufacturing, soda ash manufacturing, and steel
production sectors receive appropriate credit for taking early
action through energy efficiency or energy reduction improvements.
The bill would also make specified legislative findings.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
as defined. Existing law requires every electrical corporation to
file a standard tariff with the commission 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 commission 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. Existing law
requires that the owner of an electric generation facility provide an
inspection and maintenance report to the electrical corporation at
least once every year that is prepared by a California licensed
contractor who is not the owner or operator of the facility.
This bill would make technical, nonsubstantive changes to this
requirement.
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. The Legislature finds and declares that
it is in the state's interest to prepare for the aggregate and
construction material needs associated with the construction of
high-speed rail. It is in the state's interest to ensure these
materials are manufactured in California, in order to create
additional jobs and prevent "leakage" of greenhouse gas emissions
that might occur if these materials were imported from outside of
California. Therefore, it is in the state's interest to encourage
growth in the cement manufacturing, glass manufacturing, soda ash
manufacturing, and steel production sectors, while providing
incentives for these industries to reach compliance with the
California Global Warming Solutions Act of 2006.
SEC. 2. Section 38562 of the Health and
Safety Code is amended to read:
38562. (a) On or before January 1, 2011, the state board shall
adopt greenhouse gas emission limits and emission reduction measures
by regulation to achieve the maximum technologically feasible and
cost-effective reductions in greenhouse gas emissions in furtherance
of achieving the statewide greenhouse gas emissions limit, to become
operative beginning on January 1, 2012.
(b) In adopting regulations pursuant to this section and Part 5
(commencing with Section 38570), to the extent feasible and in
furtherance of achieving the statewide greenhouse gas emissions
limit, the state board shall do all of the following:
(1) Design the regulations, including distribution of emissions
allowances where appropriate, in a manner that is equitable, seeks to
minimize costs and maximize the total benefits to California, and
encourages early action to reduce greenhouse gas emissions.
(2) Ensure that activities undertaken to comply with the
regulations do not disproportionately impact low-income communities.
(3) Ensure that entities that have voluntarily reduced their
greenhouse gas emissions prior to the implementation of this section
receive appropriate credit for early voluntary reductions. In
implementing this paragraph, the state board shall ensure that the
cement manufacturing, glass manufacturing, soda ash manufacturing,
and steel production sectors receive appropriate credit for taking
early action through energy efficiency or energy reduction
improvements.
(4) Ensure that activities undertaken pursuant to the regulations
complement, and do not interfere with, efforts to achieve and
maintain federal and state ambient air quality standards and to
reduce toxic air contaminant emissions.
(5) Consider cost-effectiveness of these regulations.
(6) Consider overall societal benefits, including reductions in
other air pollutants, diversification of energy sources, and other
benefits to the economy, environment, and public health.
(7) Minimize the administrative burden of implementing and
complying with these regulations.
(8) Minimize leakage.
(9) Consider the significance of the contribution of each source
or category of sources to statewide emissions of greenhouse gases.
(c) In furtherance of achieving the statewide greenhouse gas
emissions limit, by January 1, 2011, the state board may adopt a
regulation that establishes a system of market-based declining annual
aggregate emission limits for sources or categories of sources that
emit greenhouse gas emissions, applicable from January 1, 2012, to
December 31, 2020, inclusive, that the state board determines will
achieve the maximum technologically feasible and cost-effective
reductions in greenhouse gas emissions, in the aggregate, from those
sources or categories of sources.
(d) Any regulation adopted by the state board pursuant to this
part or Part 5 (commencing with Section 38570) shall ensure all of
the following:
(1) The greenhouse gas emission reductions achieved are real,
permanent, quantifiable, verifiable, and enforceable by the state
board.
(2) For regulations pursuant to Part 5 (commencing with Section
38570), the reduction is in addition to any greenhouse gas emission
reduction otherwise required by law or regulation, and any other
greenhouse gas emission reduction that otherwise would occur.
(3) If applicable, the greenhouse gas emission reduction occurs
over the same time period and is equivalent in amount to any direct
emission reduction required pursuant to this division.
(e) The state board shall rely upon the best available economic
and scientific information and its assessment of existing and
projected technological capabilities when adopting the regulations
required by this section.
(f) The state board shall consult with the Public Utilities
Commission in the development of the regulations as they affect
electricity and natural gas providers in order to minimize
duplicative or inconsistent regulatory requirements.
(g) After January 1, 2011, the state board may revise regulations
adopted pursuant to this section and adopt additional regulations to
further the provisions of this division.
SECTION 1. Section 399.20 of the Public
Utilities Code is amended to read:
399.20. (a) It is the policy of this state and the intent of the
Legislature to encourage electrical generation from eligible
renewable energy resources.
(b) As used in this section, "electric generation facility" means
an electric generation facility located within the service territory
of, and developed to sell electricity to, an electrical corporation
that meets all of the following criteria:
(1) Has an effective capacity of not more than three megawatts.
(2) Is interconnected and operates in parallel with the electrical
transmission and distribution grid.
(3) Is strategically located and interconnected to the electrical
transmission and distribution grid in a manner that optimizes the
deliverability of electricity generated at the facility to load
centers.
(4) Is an eligible renewable energy resource.
(c) Every electrical corporation shall file with the commission a
standard tariff for electricity purchased from an electric generation
facility. The commission may modify or adjust the requirements of
this section for any electrical corporation with less than 100,000
service connections, as individual circumstances merit.
(d) (1) The tariff shall 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
commission. The payment shall be the market price determined by the
commission pursuant to Section 399.15 and shall include all current
and anticipated environmental compliance costs, including, but not
limited to, mitigation of emissions of greenhouse gases and air
pollution offsets associated with the operation of new generating
facilities in the local air pollution control or air quality
management district where the electric generation facility is
located.
(2) The commission may adjust the payment rate to reflect the
value of every kilowatthour of electricity generated on a
time-of-delivery basis.
(3) The commission shall ensure, with respect to rates and
charges, that ratepayers that do not receive service pursuant to the
tariff are indifferent to whether a ratepayer with an electric
generation facility receives service pursuant to the tariff.
(e) An electrical corporation shall provide expedited
interconnection procedures to an electric generation facility located
on a distribution circuit that generates electricity at a time and
in a manner so as to offset the peak demand on the distribution
circuit, if the electrical corporation determines that the electric
generation facility will not adversely affect the distribution grid.
The commission shall consider and may establish a value for an
electric generation facility located on a distribution circuit that
generates electricity at a time and in a manner so as to offset the
peak demand on the distribution circuit.
(f) An electrical corporation shall make the tariff available to
the owner or operator of an electric generation facility within the
service territory of the electrical corporation, upon request, on a
first-come-first-served basis, until the electrical corporation meets
its proportionate share of a statewide cap of 750 megawatts
cumulative rated generation capacity served under this section and
Section 387.6. The proportionate share shall be calculated based on
the ratio of the electrical corporation's peak demand compared to the
total statewide peak demand.
(g) The electrical corporation may make the terms of the tariff
available to owners and operators of an electric generation facility
in the form of a standard contract subject to commission approval.
(h) Every kilowatthour of electricity purchased from an electric
generation facility shall count toward meeting the electrical
corporation's renewables portfolio standard annual procurement
targets for purposes of paragraph (1) of subdivision (b) of Section
399.15.
(i) The physical generating capacity of an electric generation
facility shall count toward the electrical corporation's resource
adequacy requirement for purposes of Section 380.
(j) (1) The commission shall establish performance standards for
any electric generation facility that has a capacity greater than one
megawatt to ensure that those facilities are constructed, operated,
and maintained to generate the expected annual net production of
electricity and do not impact system reliability.
(2) The commission may reduce the three megawatt capacity
limitation of paragraph (1) of subdivision (b) if the commission
finds that a reduced capacity limitation is necessary to maintain
system reliability within that electrical corporation's service
territory.
(k) (1) Any owner or operator of an electric generation facility
that received ratepayer-funded incentives in accordance with Section
379.6 of this code, or with Section 25782 of the Public Resources
Code, and participated in a net metering program pursuant to Sections
2827, 2827.9, and 2827.10 of this code prior to January 1, 2010,
shall be eligible for a tariff or standard contract filed by an
electrical corporation pursuant to this section.
(2) In establishing the tariffs or standard contracts pursuant to
this section, the commission shall consider ratepayer-funded
incentive payments previously received by the generation facility
pursuant to Section 379.6 of this code or Section 25782 of the Public
Resources Code. The commission shall require reimbursement of any
funds received from these incentive programs to an electric
generation facility, in order for that facility to be eligible for a
tariff or standard contract filed by an electrical corporation
pursuant to this section, unless the commission determines ratepayers
have received sufficient value from the incentives provided to the
facility based on how long the project has been in operation and the
amount of renewable electricity previously generated by the facility.
(3) A customer that receives service under a tariff or contract
approved by the commission pursuant to this section is not eligible
to participate in any net metering program.
(l) An owner or operator of an electric generation facility
electing to receive service under a tariff or contract approved by
the commission shall continue to receive service under the tariff or
contract until either of the following occurs:
(1) The owner or operator of an electric generation facility no
longer meets the eligibility requirements for receiving service
pursuant to the tariff or contract.
(2) The period of service established by the commission pursuant
to subdivision (d) is completed.
(m) Within 10 days of receipt of a request for a tariff pursuant
to this section from an owner or operator of an electric generation
facility, the electrical corporation that receives the request shall
post a copy of the request on its Internet Web site. The information
posted on the Internet Web site shall include the name of the city in
which the facility is located, but information that is proprietary
and confidential, including, but not limited to, address information
beyond the name of the city in which the facility is located, shall
be redacted.
(n) An electrical corporation may deny a tariff request pursuant
to this section if the electrical corporation makes any of the
following findings:
(1) The electric generation facility does not meet the
requirements of this section.
(2) The transmission or distribution grid that would serve as the
point of interconnection is inadequate.
(3) The electric generation facility does not meet all applicable
state and local laws and building standards, and utility
interconnection requirements.
(4) The aggregate of all electric generating facilities on a
distribution circuit would adversely impact utility operation and
load restoration efforts of the distribution system.
(o) Upon receiving a notice of denial from an electrical
corporation, the owner or operator of the electric generation
facility denied a tariff pursuant to this section shall have the
right to appeal that decision to the commission.
(p) In order to ensure the safety and reliability of electric
generation facilities, the owner of an electric generation facility
receiving a tariff pursuant to this section shall provide an
inspection and maintenance report to the electrical corporation at
least once every other year. The inspection and maintenance report
shall be prepared at the owner's or operator's expense by a
California licensed contractor who is not the owner or operator of
the electric generation facility. A California licensed electrician
shall perform the inspection of the electrical portion of the
generation facility.
(q) The contract between the electric generation facility
receiving the tariff and the electrical corporation shall contain
provisions that ensure that construction of the electric generating
facility complies with all applicable state and local laws and
building standards, and utility interconnection requirements.
(r) (1) All construction and installation of facilities of the
electrical corporation, including at the point of the output meter or
at the transmission or distribution grid, shall be performed only by
that electrical corporation.
(2) All interconnection facilities installed on the electrical
corporation's side of the transfer point for electricity between the
electrical corporation and the electrical conductors of the electric
generation facility shall be owned, operated, and maintained only by
the electrical corporation. The ownership, installation, operation,
reading, and testing of revenue metering equipment for electric
generating facilities shall only be performed by the electrical
corporation.