BILL NUMBER: AB 2165 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 24, 2012
AMENDED IN SENATE JUNE 25, 2012
AMENDED IN ASSEMBLY MAY 7, 2012
AMENDED IN ASSEMBLY APRIL 23, 2012
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 amended, 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 a level equal to its proportionate share of a statewide
limitation of 500 megawatts cumulative rated generation capacity,
calculated as prescribed. The bill would authorize the commission, in
order to continue the growth of the market for onsite electric
generation using fuel cells, to review and incrementally raise this
limitation on the total cumulative rated generating capacity of the
eligible fuel cell electrical generating facilities receiving service
pursuant to the tariff. The bill would require the commission to
authorize an electrical corporation to charge a customer a fee based
on the cost to the utility associated with providing interconnection
inspection services for that customer. The bill would provide that no
fuel cell electrical generating facility is eligible for the tariff
unless it commences operation prior to January 1, 2015, unless this
eligibility commencement date is extended by statute. The bill would
provide that the tariff remains in effect for an eligible fuel cell
electrical generating facility that commences operation pursuant to
the tariff prior to January 1, 2015.
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.
The bill would incorporate additional changes in Section 2827.10
of the Public Utilities Code, proposed by SB 594, to be operative
only if SB 594 and this bill are both chaptered and become effective
on or before January 1, 2013, and this bill is chaptered last.
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:
(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.
(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.
(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 electrical 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) (1) Every electrical corporation, not later than March 1,
2004, shall file with the commission a standard tariff providing for
net energy metering for eligible fuel cell customer-generators,
consistent with this section. Subject to the limitation in
subdivision (f), 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 of the eligible fuel cell electrical generating
facilities receiving service pursuant to the tariff reaches a level
equal to its proportionate share of a statewide limitation of 500
megawatts cumulative rated generation capacity served under this
section. The proportionate share shall be calculated based on the
ratio of the electrical corporation's peak demand compared to the
total statewide peak demand.
(2) To continue the growth of the market for onsite electric
generation using fuel cells, the commission may review and
incrementally raise the limitation established in paragraph (1) on
the total cumulative rated generating capacity of the eligible fuel
cell electrical generating facilities receiving service pursuant to
the tariff in paragraph (1).
(c) In determining the eligibility for the cumulative rated
generating capacity within an electrical corporation's service
territory, preference shall be given to facilities that, 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) (1) 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 this section, and may
shall not form a part of net energy metering
tariffs.
(2) The commission shall authorize an electrical corporation to
charge a fuel cell customer-generator a fee based on the cost to the
utility associated with providing interconnection inspection services
for that fuel cell customer-generator.
(e) The net metering calculation shall be made by measuring the
difference between the electricity supplied to the eligible fuel cell
customer-generator and the electricity generated by the eligible
fuel cell customer-generator and fed back to the electrical 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-generator 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) No fuel cell electrical generating facility shall be eligible
for the tariff unless it commences operation prior to January 1,
2015, unless a later enacted statute, that is chaptered before
January 1, 2015, extends this eligibility commencement date. The
tariff shall remain in effect for an eligible fuel cell electrical
generating facility that commences operation pursuant to the tariff
prior to January 1, 2015. 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. 1.5. 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
electrical 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
electrical 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) (1) Every electrical corporation
shall , not later than March 1, 2004, shall
file with the commission a standard tariff providing for net
energy metering for eligible fuel cell customer-generators,
consistent with this section. Every Subject
to the limitation in subdivision (f), 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 of 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 electrical generating facilities
receiving service pursuant to the tariff reaches a level equal to
its proportionate share of a statewide limitation of 500 megawatts
cumulative rated generation capacity served under this section. The
proportionate share shall be calculated based on the ratio 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
corporation's peak demand compared to the total
statewide peak demand .
(2) To continue the growth of the market for onsite electric
generation using fuel cells, the commission may review and
incrementally raise the limitation established in paragraph (1) on
the total cumulative rated generating capacity of the eligible fuel
cell electrical generating facilities receiving service pursuant to
the tariff in paragraph (1).
(c) In determining the eligibility for the cumulative rated
generating capacity within an electrical corporation's
service area territory , preference
shall be given to facilities which that
, 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) (1) 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 shall
not form a part of net energy metering tariffs.
(2) The commission shall authorize an electrical corporation to
charge a fuel cell customer-generator a fee based on the cost to the
utility associated with providing interconnection inspection services
for that fuel cell customer-generator.
(e) The net metering calculation shall be made by measuring the
difference between the electricity supplied to the eligible fuel
cell customer-generator and the electricity generated by the
eligible fuel cell customer-generator and fed back to the
electric electrical 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 meters
located on the property where the eligible fuel cell
customer-generator under the same ownership
electrical generation facility is located and on all property
adjacent or contiguous to the property on which the facility is
located, if those properties are solely owned, leased, or rented by
the eligible fuel cell customer-generator . 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
customer-generator 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 No 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 the tariff unless it commences operation
prior to January 1, 2015, unless a later enacted statute, that is
chaptered before January 1, 2015, extends this eligibility
commencement date. The tariff shall remain in effect for an eligible
fuel cell electrical generating facility that commences operation
pursuant to the tariff prior to January 1, 2015 . 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. Section 1.5 of this bill incorporates
amendments to Section 2827.10 of the Public Utilities Code proposed
by both this bill and Senate Bill 594. It shall only become operative
if (1) both bills are enacted and become effective on or before
January 1, 2013, (2) each bill amends Section 2827.10 of the Public
Utilities Code, and (3) this bill is enacted after Senate Bill 594,
in which case Section 1 of this bill shall not become operative.
SEC. 2. SEC. 3. 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.