BILL NUMBER: AB 1150 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 28, 2011
AMENDED IN ASSEMBLY APRIL 25, 2011
AMENDED IN ASSEMBLY MARCH 29, 2011
INTRODUCED BY Assembly Member V. Manuel Pérez
FEBRUARY 18, 2011
An act to amend Section 379.6 of the Public Utilities Code,
relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
AB 1150, as amended, V. Manuel Pérez. Self-generation incentive
program.
Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations, as defined. Existing law requires the PUC , in
consultation with the State Energy Resources Conservation and
Development Commission (Energy Commission), to administer,
until January 1, 2016, a self-generation incentive program (SGIP) for
distributed generation resources and to separately administer solar
technologies pursuant to the California Solar Initiative. The PUC
, in consultation with the State Energy Resources Conservation
and Development Commission (Energy Commission), may authorize
electrical corporations to annually collect not more than the amount
authorized for the SGIP in the 2008 calendar year through December
31, 2011.
This bill would expand the authority of the PUC to authorize
electrical corporations to continue making the annual collections
through December 31, 2016 , as provided, and would require
the PUC to continue to administer the program until January 1, 2018.
The bill would require the PUC to periodically evaluate the
program to adjust the amount of rebates and other program design
elements to achieve specified program goals and objectives.
Existing law limits eligibility for incentives to distributed
energy resources that the PUC, in consultation with the State Air
Resources Board (state board), determines will achieve reductions in
emissions of greenhouse gases pursuant to the California Global
Warming Solutions Act of 2006.
The bill would, absent an order of the commission, prohibit an
electrical corporation or 3rd-party administrator from accepting an
application or reservation for incentive funding submitted by any
single distributed energy technology provider or affiliates of the
technology provider, for an amount in excess of 25% of the amount
collected from ratepayers in any calendar year pursuant to the SGIP.
The bill would, absent an order of the commission, prohibit an
electrical corporation or 3rd-party administrator from making
incentive payments on account of any distributed energy resource in
an amount greater than $2.50 per watt.
Under existing law, a violation of the Public Utilities Act or any
order, decision, rule, direction, demand, or requirement of the
commission is a crime.
Because the program that is extended under the provisions of this
bill are within the act and a decision or order of the commission
implements the program requirements, a violation of these provisions
would impose a state-mandated local program by expanding the
definition of a crime.
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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 379.6 of the Public Utilities Code is amended
to read:
379.6. (a) (1) It is the intent of the Legislature that the
self-generation incentive program should increase deployment of
distributed generation and distributed storage systems to facilitate
integration of those resources into the electrical grid and reduce
ratepayer costs.
(2) The commission, in consultation with the Energy Commission,
may authorize the annual collection of not more than the
greater of (A) the amount authorized for the self-generation
incentive program in the 2008 calendar year, through December 31,
2016, or (B) eighty-three million dollars ($83,000,000) in
each calendar year through December 31, 2016 , which the
commission may increase on an annual basis in an appropriate amount
consistent with, but not limited to, the annual rate of inflation.
The commission shall require the administration of the
program for distributed energy resources originally established
pursuant to Chapter 329 of the Statutes of 2000
administer the self-generation incentive program until January
1, 2018. On January 1, 2018, the commission shall provide repayment
of all unallocated funds collected pursuant to this section to reduce
ratepayer costs.
(3) The commission shall administer solar technologies separately,
pursuant to the California Solar Initiative adopted by the
commission in Decisions 05-12-044 and 06-01-024, as modified by
Article 1 (commencing with Section 2851) of Chapter 9 of Part 2 of
this code, and Chapter 8.8 (commencing with Section 25780) of
Division 15 of the Public Resources Code.
(b) Eligibility for incentives under the program shall be limited
to distributed energy resources that the commission, in consultation
with the State Air Resources Board, determines will achieve
reductions in emissions of greenhouse gases pursuant to the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code).
(c) Eligibility for the funding of any combustion-operated
distributed generation projects using fossil fuel is subject to all
of the following conditions:
(1) An oxides of nitrogen (NOx) emissions rate standard of 0.07
pounds per megawatthour and a minimum efficiency of 60 percent, or
any other NOx emissions rate and minimum efficiency standard adopted
by the State Air Resources Board. A minimum efficiency of 60 percent
shall be measured as useful energy output divided by fuel input. The
efficiency determination shall be based on 100 percent load.
(2) Combined heat and power units that meet the 60-percent
efficiency standard may take a credit to meet the applicable NOx
emissions standard of 0.07 pounds per megawatthour. Credit shall be
at the rate of one megawatthour for each 3.4 million British thermal
units (Btus) of heat recovered.
(3) The customer receiving incentives shall adequately maintain
and service the combined heat and power units so that during
operation, the system continues to meet or exceed the efficiency and
emissions standards established pursuant to paragraphs (1) and (2).
(4) Notwithstanding paragraph (1), a project that does not meet
the applicable NOx emissions standard is eligible if it meets both of
the following requirements:
(A) The project operates solely on waste gas. The commission shall
require a customer that applies for an incentive pursuant to this
paragraph to provide an affidavit or other form of proof, that
specifies that the project shall be operated solely on waste gas.
Incentives awarded pursuant to this paragraph shall be subject to
refund and shall be refunded by the recipient to the extent the
project does not operate on waste gas. As used in this paragraph,
"waste gas" means natural gas that is generated as a byproduct of
petroleum production operations and is not eligible for delivery to
the utility pipeline system.
(B) The air quality management district or air pollution control
district, in issuing a permit to operate the project, determines that
operation of the project will produce an onsite net air emissions
benefit, compared to permitted onsite emissions if the project does
not operate. The commission shall require the customer to secure the
permit prior to receiving incentives.
(d) In determining the eligibility for the self-generation
incentive program, minimum system efficiency shall be determined
either by calculating electrical and process heat efficiency as set
forth in Section 216.6, or by calculating overall electrical
efficiency.
(e) (1) In administering the self-generation incentive program,
the commission may adjust the amount of rebates and evaluate other
public policy interests, including, but not limited to, job
development, technology competitiveness, maximizing fund development
across all technologies, localized energy generation deployment,
protection of ratepayers, energy efficiency, peak load reduction,
load management, and environmental interests.
(2) Absent an express order of the commission, an electrical
corporation or third-party administrator shall not accept
applications or reservations for incentive funding submitted by a
single distributed energy technology provider or affiliates of the
technology provider that in the aggregate exceed 25 percent of the
amount collected from ratepayers in any calendar year pursuant to the
self-generation incentive program. Except in the case of fraud,
applications or reservations for funds submitted by a single
distributed energy technology provider or affiliates of the
technology provider that have been withdrawn, rejected, or expired in
the same calendar year shall not be counted in determining whether
the limit imposed by this paragraph has been exceeded.
(3) Absent an express order of the commission, an electrical
corporation or third-party administrator shall not make incentive
payments on account of any distributed energy resource, including any
biogas fuel cell and California supplier added incentive, in an
amount greater than two dollars and fifty cents ($2.50) per watt.
(e) In administering the self-generation incentive program, the
commission shall periodically evaluate the program to adjust the
amount of rebates and other program design elements to achieve the
following program goals and objectives:
(1) Cost-effective use of ratepayer funds to stimulate deployment
of eligible technologies.
(2) Meeting environmental objectives, including reduction of
emissions of greenhouse gases.
(3) In-state job growth.
(4) Development of market signals to provide incentives for
private investment in California.
(5) Market transformation of most, if not all, eligible
technologies by driving down prices and increasing performance of
these technologies.
(6) Energy efficiency, peakload reduction, and load management.
(7) Equitable distribution of rebates to all eligible technologies
and program participants.
(8) Assessment of technology penetration into underserved areas of
the state that are environmentally blighted and economically
stressed.
(f) The commission shall ensure that distributed generation
resources are made available in the program for all ratepayers.
(g) (1) In administering the self-generation incentive program,
the commission shall provide an additional incentive of 20 percent
from existing program funds for the installation of eligible
distributed generation resources from a California supplier.
(2) "California supplier" as used in this subdivision means any
sole proprietorship, partnership, joint venture, corporation, or
other business entity that manufactures eligible distributed
generation resources in California and that meets either of the
following criteria:
(A) The owners or policymaking officers are domiciled in
California and the permanent principal office, or place of business
from which the supplier's trade is directed or managed, is located in
California.
(B) A business or corporation, including those owned by, or under
common control of, a corporation, that meets all of the following
criteria continuously during the five years prior to providing
eligible distributed generation resources to a self-generation
incentive program recipient:
(i) Owns and operates a manufacturing facility located in
California that builds or manufactures eligible distributed
generation resources.
(ii) Is licensed by the state to conduct business within the
state.
(iii) Employs California residents for work within the state.
(3) For purposes of qualifying as a California supplier, a
distribution or sales management office or facility does not qualify
as a manufacturing facility.
(h) The costs of the program adopted and implemented pursuant to
this section shall not be recovered from customers participating in
the California Alternate Rates for Energy (CARE) program.
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.