BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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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 León, 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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