BILL NUMBER: AB 1303 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 25, 2011
AMENDED IN ASSEMBLY APRIL 13, 2011
INTRODUCED BY Assembly Member Williams
FEBRUARY 18, 2011
An act to amend Sections 25740.5 25620.15,
2 5740.5, and 25742 of the Public Resources Code,
relating to energy resources, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1303, as amended, Williams. Renewable Energy Resources
Program. Energy programs.
Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations. Existing law requires the PUC to require the 3 largest
electrical corporations in the state to identify a separate
electrical rate component to fund energy efficiency, renewable
energy, and research, development and demonstration programs.
Existing
Existing law establishes the Renewable Resource Trust
Fund in the state Treasury as a fund that is continuously
appropriated, with certain exceptions for administrative expenses
incurred by the State Energy Resources Conservation and Development
Commission (Energy Commission), for the implementation of the
renewable resources programs. Existing law requires that specified
portions of the moneys collected as a part of the electrical
rate to fund renewable energy programs be deposited into
specified accounts within the fund. Existing law further requires
that 20% of the funds collected pursuant to the renewable energy
public good charge be deposited into the Existing Renewable Resources
Account within the fund to be used for programs that are designed to
achieve fully competitive and self-sustaining existing in-state
renewable electricity generation facilities, and to secure for the
state the environmental, economic, and reliability benefits that
continued operation of those facilities will provide during the
2007-2011 investment cycle.
This bill would require that 20% of the funds collected pursuant
to that renewable energy public good charge be used for programs that
are designed to achieve fully competitive and self-sustaining
existing in-state renewable electricity generation facilities, and to
secure for the state the environmental, economic, and reliability
benefits that continued operation of those facilities will provide
during the 2012-2020 investment cycle. By extending the authority of
the Energy Commission to expend money pursuant to a continuously
appropriated fund, the bill would make an appropriation.
Existing law requires that money collected as a part of the
electrical rate for public interest research, development, and
demonstration programs be transferred to the Public Interest
Research, Development, and Demonstration Fund and, until January 1,
2012, upon appropriation by the Legislature, be expended by the
Energy Commission to implement the Public Interest Research,
Development, and Demonstration Program.
This bill would extend, to January 1, 2020, this authority to
expend the money collected for public interest research, development,
and demonstration programs that is transferred to the Public
Interest Research, Development, and Demonstration Fund.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25620.15 of the
Public Resources Code is amended to read:
25620.15. (a) In order to ensure that prudent investments in
research, development, and demonstration of energy efficient
technologies continue to produce substantial economic, environmental,
public health, and reliability benefits, it is the policy of the
state and the intent of the Legislature that funds made available,
upon appropriation, for energy related public interest research,
development, and demonstration programs shall be used to advance
science or technology that is not adequately provided by competitive
and regulated markets.
(b) Notwithstanding any other provision of law, money collected
for public interest research, development, and demonstration pursuant
to Section 399.8 of the Public Utilities Code shall be transferred
to the Public Interest Research, Development, and Demonstration Fund.
Money collected between January 1, 2007, and January 1,
2012 2020 , shall be used for the purposes
specified in this chapter.
(c) In lieu of the Public Utilities Commission retaining funds
authorized pursuant to Section 381 of the Public Utilities Code for
investments made by electrical corporations in public interest
research, development, and demonstration projects for transmission
and distribution functions, up to 10 percent of the funds transferred
to the commission pursuant to subdivision (b) shall be awarded to
electrical corporations for public interest research, development,
and demonstration projects for transmission and distribution
functions consistent with the policies and subject to the
requirements of this chapter.
SECTION 1. SEC. 2. Section 25740.5 of
the Public Resources Code is amended to read:
25740.5. (a) The commission shall optimize public investment and
ensure that the most cost-effective and efficient investments in
renewable energy resources are vigorously pursued.
(b) The commission's long-term goal shall be a fully competitive
and self-sustaining supply of electricity generated from renewable
sources.
(c) The program objective shall be to increase, in the near term,
the quantity of California's electricity generated by in-state
renewable electricity generation facilities, while protecting system
reliability, fostering resource diversity, and obtaining the greatest
environmental benefits for California residents.
(d) An additional objective of the program shall be to identify
and support emerging renewable technologies in distributed generation
applications that have the greatest near-term commercial promise and
that merit targeted assistance.
(e) The Legislature recommends allocations among all of the
following:
(1) Rebates, buydowns, or equivalent incentives for emerging
renewable technologies.
(2) Customer education.
(3) Production incentives for reducing fuel costs, that are
confirmed to the satisfaction of the commission, at solid fuel
biomass energy facilities in order to provide demonstrable
environmental and public benefits, including improved air quality.
(4) Solar thermal generating resources that enhance the
environmental value or reliability of the electrical system and that
require financial assistance to remain economically viable, as
determined by the commission. The commission may require financial
disclosure from applicants for purposes of this paragraph.
(5) Specified fuel cell technologies, if the commission makes all
of the following findings:
(A) The specified technologies have similar or better air
pollutant characteristics than renewable technologies in the report
made pursuant to Section 25748.
(B) The specified technologies require financial assistance to
become commercially viable by reference to wholesale generation
prices.
(C) The specified technologies could contribute significantly to
the infrastructure development or other innovation required to meet
the long-term objective of a self-sustaining, competitive supply of
electricity generated from renewable sources.
(6) Existing wind-generating resources, if the commission finds
that the existing wind-generating resources are a cost-effective
source of reliable energy and environmental benefits compared with
other in-state renewable electricity generation facilities, and that
the existing wind-generating resources require financial assistance
to remain economically viable. The commission may require financial
disclosure from applicants for the purposes of this paragraph.
(f) Notwithstanding any other provision of law, moneys collected
for renewable energy pursuant to Article 15 (commencing with Section
399) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities
Code shall be transferred to the Renewable Resource Trust Fund.
Moneys collected between January 1, 2007, and January 1, 2020, shall
be used for the purposes specified in this chapter.
SEC. 2. SEC. 3. Section 25742 of the
Public Resources Code is amended to read:
25742. (a) Twenty percent of the funds collected pursuant to the
renewable energy public goods charge shall be used for programs that
are designed to achieve fully competitive and self-sustaining
existing in-state renewable electricity generation facilities, and to
secure for the state the environmental, economic, and reliability
benefits that continued operation of those facilities will provide
during the 2012-2020 investment cycle. Eligibility for production
incentives under this section shall be limited to those technologies
found eligible for funds by the commission pursuant to paragraphs
(3), (4), and (6) of subdivision (e) of Section 25740.5.
(b) Any funds used to support in-state renewable electricity
generation facilities pursuant to this section shall be expended in
accordance with the provisions of this chapter.
(c) Facilities that are eligible to receive funding pursuant to
this section shall be registered in accordance with criteria
developed by the commission and those facilities shall not receive
payments for any electricity produced that has any of the following
characteristics:
(1) Is sold at monthly average rates equal to, or greater than,
the applicable target price, as determined by the commission.
(2) Is used onsite.
(d) (1) Existing facilities generating electricity from biomass
energy shall be eligible for funding and otherwise considered an
in-state renewable electricity generation facility only if they
report to the commission the types and quantities of biomass fuels
used.
(2) The commission shall report the types and quantities of
biomass fuels used by each facility to the Legislature in the reports
prepared pursuant to Section 25748.
(e) Each existing facility seeking an award pursuant to this
section shall be evaluated by the commission to determine the amount
of the funds being sought, the cumulative amount of funds the
facility has received previously from the commission and other state
sources, the value of any past and current federal or state tax
credits, the facility's contract price for energy and capacity, the
prices received by similar facilities, the market value of the
facility, and the likelihood that the award will make the facility
competitive and self-sustaining within the 2012-2020 investment
cycle. The commission shall use this evaluation to determine the
value of an award to the public relative to other renewable energy
investment alternatives. The commission shall compile its findings
and report them to the Legislature in the reports prepared pursuant
to Section 25748.