BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 796|
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THIRD READING
Bill No: AB 796
Author: Muratsuchi (D), et al.
Amended: 8/26/13 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SENATE ENERGY, UTILITIES & COMMUNICATIONS COMM. : 8-0, 8/30/13
AYES: Padilla, Fuller, Cannella, Corbett, De Le�n, Hill,
Knight, Wright
NO VOTE RECORDED: DeSaulnier, Pavley, Wolk
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Advanced electrical distributed generation
technology
SOURCE : Author
DIGEST : This bill extends the sunset date two years for a
program that qualifies customer-side fuel cell technology for
the same rates for natural gas as cogeneration technology.
ANALYSIS :
Existing law:
1. States that the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including
electrical corporations (IOUs), as defined.
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2. States that an IOU excludes a corporation or person employing
cogeneration, as defined, technology or producing electricity
from other than a conventional power source for certain
purposes.
3. Places certain limitations upon gas rates and surcharges
charged cogenerators.
4. Prohibits placing alternative fuel capability requirements
upon gas customers that use gas for purposes of cogeneration.
5. Authorizes the PUC and the 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.
6. 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:
1. Extends by two years, from January 1, 2014 to January 1,
2016, the program that qualifies an "advanced electrical
distributed generation technology" for the same rates for
natural gas as those given to cogeneration technology.
2. States that this is an urgency measure necessary for the
health and safety of the state and will take effect
immediately.
Comments
According to the author's office, customers that use natural
gas, to generate on-site electricity, are eligible for a
particular gas rate. Ensuring that this rate is available for
all technologies that generate electricity on-site and that meet
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the intent of the law, allows for customer choice and fair
markets. In 2009, AB 1110 (Fuentes) was passed and signed into
law to ensure that this policy applies to new, clean electric
generation technologies, such as fuel cells. AB 1110 contained
provisions to guarantee that the types of technologies that
qualify for the gas rate meet strict greenhouse gas,
particulate, and efficiency standards. AB 1110 also included a
sunset date of January 1, 2014 for these new, clean electric
generation technologies. There is an interest and need to
extend that sunset date in order to make it consistent with all
other on-site generation technologies such as combined heat and
power and co-generation, which currently are not subject to a
sunset date on the rate.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/26/13)
National Fuel Cell Research Center
The Technology Network
JG:d 8/30/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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