BILL ANALYSIS Ó
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THIRD READING
Bill No: SB 1332
Author: Negrete McLeod (D)
Amended: 4/26/12
Vote: 21
SENATE ENERGY, UTILITIES & COMMUN. COMM. : 7-5, 04/17/12
AYES: Padilla, Corbett, DeSaulnier, Kehoe, Pavley, Rubio,
Simitian
NOES: Fuller, Berryhill, Emmerson, Strickland, Wright
NO VOTE RECORDED: De León
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Renewable energy resources: electric utilities
SOURCE : Clean Coalition
DIGEST : This bill requires the governing board of a
local publicly owned utility to consider avoided costs of
distribution and transmission upgrades, the offset of peak
demand and all current and anticipated environmental and
greenhouse gas reduction compliance costs and avoided
costs, and requires that the specified publicly-owned
utilities (POUs) adopt a Feed-in-Tariff (FiT) by March 1,
2013.
ANALYSIS : Existing law requires all investor-owned
utilities (IOUs) and POUs, that serve more than 75,000
retail customers, to develop a standard contract or tariff
(aka FiT) available for renewable energy facilities up to
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three megawatts (MWs). Statewide participation is capped
at 750 MWs.
Existing law requires the FiT contract price for IOUs to
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.
What is a Feed-in-Tariff ? - A FiT is a simple,
comprehensible, transparent contracting mechanism for small
renewable generators to sell power to a utility at
predefined terms and conditions, without contract
negotiations. For the IOUs, the FiT operates as a
"must-take" contract in its portfolio. If the participant
generates the power, the IOU must take it and pay for it
according to the pre-defined terms of the FiT.
Small renewable generator FiTs are available in the
territories of the three largest IOUs and provide a 10, 15,
or 20-year fixed-price, non-negotiable contract for systems
sized up to 1.5 MW. The California Public Utilities
Commission has a rulemaking open to implement the terms of
SB 32 (Negrete McLeod, 2009) and expand the IOU FiT to 3
MWs. The total program allocation between the three IOUs,
is approximately 500 MWs.
Applicable POUs - Existing law requires that only the
largest POUs adopt a FiT and specifies that those serving a
population of 75,000 customers or more make a FiT available
to renewable developers in those territories. The affected
POUs are: Anaheim, Glendale, Imperial, Los Angeles,
Modesto, Riverside, Turlock, and Sacramento. The total
program allocation between the nine POUs is approximately
250 MWs.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 5/21/12)
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Clean Coalition (source)
American Biogas Council
Los Angeles Business Council
Sierra Club California
Solar Developers Council
Union of Concerned Scientists
OPPOSITION : (Verified 5/21/12)
Southern California Public Power Authority
RM:nl 5/21/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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