Amended in Senate August 26, 2013

Amended in Senate August 22, 2013

Amended in Assembly April 10, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 796


Introduced by Assembly Member Muratsuchi

(Principal coauthor: Senator Corbett)

February 21, 2013


An act to amend Section 379.8 of the Public Utilities Code, relating to electricitybegin insert, and declaring the urgency thereof, to take effect immediatelyend insert.

LEGISLATIVE COUNSEL’S DIGEST

AB 796, as amended, Muratsuchi. Advanced electrical distributed generation technology.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. The existing definition of an electrical corporation excludes a corporation or person employing cogeneration, as defined, technology or producing electricity from other than a conventional power source for certain purposes. Existing law places certain limitations upon gas rates and surcharges charged cogenerators. Existing law prohibits placing alternative fuel capability requirements upon gas customers that use gas for purposes of cogeneration.

Existing law authorizes the commission and the State Air Resources Board to treat advanced electrical distributed generation technology, as defined, as cogeneration, and makes certain existing limitations upon gas rates and surcharges charged cogenerators applicable to an advanced electrical distributed generation technology. Existing law makes the prohibition upon placing alternative fuel capability requirements upon gas customers that use gas for purposes of cogeneration applicable to a generator using advanced electrical distributed generation technology. These provisions do not apply to an advanced electrical distributed generation technology that is first operational at a site on and after January 1, 2014.

This bill would make the above-described authority, limitations, and prohibitions inapplicable to an advanced electrical distributed generation technology that is first operational at a site on and after January 1, 2016begin insert, rather than January 1, 2014end insert.

begin insert

This bill would declare that it is to take effect immediately as an urgency statute.

end insert

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 379.8 of the Public Utilities Code is
2amended to read:

3

379.8.  

(a) As used in this section, “advanced electrical
4distributed generation technology” means any electric distributed
5generation technology that generates useful electricity and meets
6all of the following conditions:

7(1) The emissions standards adopted by the State Air Resources
8Board pursuant to the distributed generation certification program
9requirements of Article 3 (commencing with Section 94200) of
10Subchapter 8 of Chapter 1 of Division 3 of Title 17 of the
11California Code of Regulations.

12(2) Produces de minimis emissions of sulfur oxides and nitrogen
13oxides.

14(3) Meets the greenhouse gases emission performance standard
15established by the commission pursuant to Section 8341.

16(4) Has a total electrical efficiency of not less than 45 percent.
17If legislation is enacted that increases the 42.5 percent efficiency
18described in subdivision (b) of Section 216.6 above 45 percent,
19the commission may adjust the electrical efficiency standard
20described in this paragraph to ensure that this electrical efficiency
21standard meets or exceeds the standard enacted for the purposes
22of subdivision (b) of Section 216.6.

P3    1(5) Is sized to meet the generator’s onsite electrical demand.

2(6) Has parallel operation to the electrical distribution grid.

3(7) Utilizes renewable or nonrenewable fuel.

4(b) (1) An advanced electrical distributed generation technology
5shall qualify for the rate established by the commission pursuant
6to Section 454.4.

7(2) The limitation in subdivision (b) of Section 6352 upon the
8assessment of surcharges for gas used to generate electricity by a
9nonutility facility applies to an advanced electrical distributed
10generation technology.

11(3) The limitation in Section 2773.5 upon imposing alternative
12fuel capability requirements upon gas customers that use gas for
13purposes of cogeneration applies to an advanced electrical
14distributed generation technology.

15(c) The commission or State Air Resources Board may, in
16furtherance of the state’s goals for achieving cost-effective
17reductions in emissions of greenhouse gases, meeting resource
18adequacy requirements, or meeting the renewables portfolio
19standard, treat advanced electrical distributed generation technology
20as cogeneration.

21(d) Subdivisions (b) and (c) do not apply to an advanced
22electrical distributed generation technology that is first operational
23at a site on and after January 1, 2016.

24begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

This act is an urgency statute necessary for the
25immediate preservation of the public peace, health, or safety within
26the meaning of Article IV of the Constitution and shall go into
27immediate effect. The facts constituting the necessity are:

end insert
begin insert

28The current policies prohibiting the placement of alternative
29fuel capability requirements upon, and placing limitations upon
30gas rates and surcharges charged to, a generator using advanced
31electrical distributed generation technology will not apply unless
32the distributed generation facility is operational at the site before
33January 1, 2014. If these policies are allowed to sunset at the end
34of this year, it will hinder the deployment of clean energy
35generation technologies throughout the state by increasing the
36cost of advanced electrical distributed generation projects and
37creating uncertainty in the market. These technologies are
38necessary because they move the state closer to its environmental
39and energy goals and have the additional benefit of being much
40better for air quality than traditional sources of electrical
P4    1generation. Therefore, it is necessary to the health and safety of
2the state that this act take effect immediately.

end insert


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