BILL NUMBER: AB 2165	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Hill
   (Coauthor: Assembly Member Roger Hernández)

                        FEBRUARY 23, 2012

   An act to amend Section 2827.10 of the Public Utilities Code,
relating to electricity.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2165, as introduced, Hill. Net energy metering: eligible fuel
cell customer-generators.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
as defined. Existing law, relative to private energy producers,
requires every electrical corporation to make available to an
eligible fuel cell customer-generator, as defined, a standard
contract or tariff for net energy metering on a
first-come-first-served basis until the total cumulative rated
generating capacity used by the eligible fuel cell
customer-generators equals 45 megawatts within the service territory
of the electrical corporation, for an electrical corporation with a
peak demand above 10,000 megawatts, or equals 22.5 megawatts within
the service territory of the electrical corporation, for an
electrical corporation with a peak demand of 10,000 megawatts or
below. Existing law additionally limits the combined statewide
cumulative rated generating capacity used by the eligible fuel cell
customer-generators in the service territories of all electrical
corporations in the state to not more than 112.5 megawatts.
   This bill would revise the definition of an eligible fuel-cell
customer-generator to require that the customer be physically located
within the service territory of the electrical corporation and
receive bundled service, distribution service, or transmission
service from the electrical corporation. In place of the existing
maximum megawatt limitations upon an electrical corporation's
obligation to offer the tariff, the bill would require the electrical
corporation to make the tariff available until the total cumulative
rated generating capacity of the eligible fuel cell electrical
generating facilities receiving service pursuant to the tariff
reaches 1 percent of the aggregate customer peak demand for the
electrical corporation's service territory.
   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 bill expands the duties of an electrical corporation
in offering net energy metering and an order of the commission would
be required to implement these requirements, the bill 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 2827.10 of the Public Utilities Code is amended
to read:
   2827.10.  (a) As used in this section, the following terms have
the following meanings:
   (1) "Electrical corporation" means an electrical corporation, as
defined in Section 218.
   (2) "Eligible fuel cell electrical generating facility" means a
facility that includes the following:
   (A) Integrated powerplant systems containing a stack, tubular
array, or other functionally similar configuration used to
electrochemically convert fuel to electric energy.
   (B) An inverter and fuel processing system where necessary.
   (C) Other plant equipment, including heat recovery equipment,
necessary to support the plant's operation or its energy conversion.
   (3)  (A)    "Eligible fuel cell
customer-generator" means a customer of an electrical corporation
that meets all the following criteria: 
   (A) 
    (i)  Uses a fuel cell electrical generating facility
with a capacity of not more than one megawatt that is located on or
adjacent to the customer's owned, leased, or rented premises, is
interconnected and operates in parallel with the electric grid while
the grid is operational or in a grid independent mode when the grid
is nonoperational, and is sized to offset part or all of the eligible
fuel cell customer-generator's own electrical requirements. 
   (B) 
    (ii)  Is the recipient of local, state, or federal
funds, or who self-finances projects designed to encourage the
development of eligible fuel cell electrical generating facilities.

   (C) 
    (iii)  Uses technology the commission has determined
will achieve reductions in emissions of greenhouse gases pursuant to
subdivision (b), and meets the emission requirements for eligibility
for funding set forth in subdivision (c), of Section 379.6. 
   (B) For purposes of this paragraph, a person or entity is a
customer of the electrical corporation if the customer is physically
located within the service territory of the electrical corporation
and receives bundled service, distribution service, or transmission
service from the electrical corporation. 
   (4) "Net energy metering" means measuring the difference between
the electricity supplied through the electrical grid and the
difference between the electricity generated by an eligible fuel cell
electrical generating facility and fed back to the electric grid
over a 12-month period as described in subdivision (e). Net energy
metering shall be accomplished using a time-of-use meter capable of
registering the flow of electricity in two directions. If the
existing electrical meter of an eligible fuel cell customer-generator
is not capable of measuring the flow of electricity in two
directions, the eligible fuel cell 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 time-of-use
meter.
   (b) Every electrical corporation shall, not later than March 1,
2004, file with the commission a standard tariff providing for net
energy metering for eligible fuel cell customer-generators,
consistent with this section. Every electrical corporation shall make
this tariff available to eligible fuel cell customer-generators upon
request, on a first-come-first-served basis, until the total
cumulative rated generating capacity  used by the eligible
fuel cell customer-generators equals 45 megawatts within the service
territory of the electrical corporation for an electrical corporation
with a peak demand above 10,000 megawatts, or equals 22.5 megawatts
within the service territory of the electrical corporation for an
electrical corporation with a peak demand of 10,000 megawatts or
below. The combined statewide cumulative rated generating capacity
used by the eligible fuel cell customer-generators in the service
territories of all electrical corporations in the state may not
exceed 112.5 megawatts   of the eligible fuel cell
electrical generating facilities receiving service pursuant to the
tariff reaches 1 percent of the aggregate customer peak demand for
the electrical corporation's service territory. An electrical
corporation is not obligated to provide net energy metering to an
eligible fuel cell customer-generator when the total cumulative rated
generating capacity of the eligible fuel cell electrical generating
facilities receiving service   pursuant to the tariff is
equal to or exceeds 1 percent of the aggregate customer peak demand
for the electrical corporation's service territory  .
   (c) In determining the eligibility for the cumulative rated
generating capacity within an electrical service area, preference
shall be given to facilities which, at the time of installation, are
located in a community with significant exposure to air contaminants
or localized air contaminants, or both, including, but not limited
to, communities of minority populations or low-income populations, or
both, based on the ambient air quality standards established
pursuant to Section 39607 of the Health and Safety Code.
   (d) 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 customer would be assigned if the customer was not an
eligible fuel cell customer-generator. Any new or additional demand
charge, standby charge, customer charge, minimum monthly charge,
interconnection charge, or other charge that would increase an
eligible fuel cell customer-generator's costs beyond those of other
customers in the rate class to which the eligible fuel cell
customer-generator would otherwise be assigned are contrary to the
intent of the Legislature in enacting the act adding this section,
and may not form a part of net energy metering tariffs.
   (e) The net 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 metering
calculation:
   (1) The eligible fuel cell customer-generator shall, at the end of
each 12-month period following the date of final interconnection of
the eligible fuel cell electrical generating facility with an
electrical corporation, and at each anniversary date thereafter, be
billed for electricity used during that period. The electrical
corporation shall determine if the eligible fuel cell
customer-generator was a net consumer or a net producer of
electricity during that period. For purposes of determining if the
eligible fuel cell customer-generator was a net consumer or a net
producer of electricity during that period, the electrical
corporation shall aggregate the electrical load of the eligible fuel
cell customer-generator under the same ownership. Each aggregated
account shall be billed and measured according to a time-of-use rate
schedule.
   (2) At the end of each 12-month period, where the electricity
supplied during the period by the electrical corporation exceeds the
electricity generated by the eligible fuel cell customer-generator
during that same period, the eligible fuel cell customer-generator is
a net electricity consumer and the electrical corporation shall be
owed compensation for the eligible fuel cell customer-generator's net
kilowatthour consumption over that same period. The compensation
owed for the eligible fuel cell customer-generator's consumption
shall be calculated as follows:
   (A) The generation charges for any net monthly consumption of
electricity shall be calculated according to the terms of the tariff
to which the same customer would be assigned to or be eligible for if
the customer was not an eligible fuel cell customer-generator. When
the eligible fuel cell customer-generators is a net generator during
any discrete time-of-use period, the net kilowatthours produced shall
be valued at the same price per kilowatthour as the electrical
corporation would charge for retail kilowatthour sales for
generation, exclusive of any surcharges, during that same time-of-use
period. If the eligible fuel cell customer-generator's time-of-use
electrical meter is unable to measure the flow of electricity in two
directions, paragraph (4) of subdivision (a) shall apply. All other
charges, other than generation charges, shall be calculated in
accordance with the eligible fuel cell customer-generator's
applicable tariff and based on the total kilowatthours delivered by
the electrical corporation to the eligible fuel cell
customer-generator. To the extent that charges for transmission and
distribution services are recovered through demand charges in any
particular month, no standby reservation charges shall apply in that
monthly billing cycle.
   (B) The net balance of moneys owed shall be paid in accordance
with the electrical corporation's normal billing cycle.
   (3) At the end of each 12-month period, where the electricity
generated by the eligible fuel cell customer-generator during the
12-month period exceeds the electricity supplied by the electrical
corporation during that same period, the eligible fuel cell
customer-generator is a net electricity producer and the electrical
corporation shall retain any excess kilowatthours generated during
the prior 12-month period. The eligible fuel cell customer-generator
shall not be owed any compensation for those excess kilowatthours.
   (4) If an eligible fuel cell customer-generator terminates service
with the electrical corporation, the electrical corporation shall
reconcile the eligible fuel cell customer-generator's consumption and
production of electricity during any 12-month period.
   (f) A fuel cell electrical generating facility shall not be
eligible for participation in the tariff established pursuant to this
section unless it commenced operation before January 1, 2014. A fuel
cell customer-generator shall be eligible for the tariff established
pursuant to this section only for the operating life of the eligible
fuel cell electrical generating facility.
  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.