Amended in Assembly May 8, 2013

Amended in Assembly April 24, 2013

Amended in Assembly April 9, 2013

Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 1014

Introduced by Assembly Member Williams

(Coauthor: Senator Wolk)

February 22, 2013

An act to addbegin insert and repealend insert Chapter 7.6 (commencing with Section 2832) to Part 2 of Division 1 of the Public Utilities Code, relating to energy.


AB 1014, as amended, Williams. Energy: electrical corporations:begin delete Green Tariff and Shared Renewable Generation Program.end deletebegin insert green tariff shared renewable program.end insert

(1) Under existing law, the Public Utilities Commission has regulatory jurisdiction over public utilities, including electrical corporations, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Under existing law, the local government renewable energy self-generation program authorizes a local government, as defined, to receive a bill credit, as defined, to be applied to a designated benefiting account for electricity exported to the electrical grid by an eligible renewable generating facility, as defined, and requires the commission to adopt a rate tariff for the benefiting account.

This bill would require specified electrical corporations to file with the commission, by March 1, 2014, an advice letter requesting the approval of abegin delete Green Tariff and Shared Renewable Generation Programend deletebegin insert green tariff shared renewable programend insert. The bill would require the commission, by July 1, 2014, after notice and opportunity for public comment, to approve the advice letter if the commission finds that the proposed program is reasonable and consistent with specified findings.begin insert This bill would require the commission to require that a green tariff shared renewable program be administered in accordance with specified provisions. This bill would repeal these provisions on January 1, 2019.end insert

(2) 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 provisions of the bill would require action by the commission to implement its requirements, a violation of these provisions would impose a state-mandated local program by expanding the definition of a crime.

(3)  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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

P2    1


Chapter 7.6 (commencing with Section 2832) is
2added to Part 2 of Division 1 of the Public Utilities Code, to read:


4Chapter  7.6. Green Tariffbegin delete andend delete Shared Renewable
5begin delete Generationend delete Program




The Legislature finds and declares all of the following:

8(a) The creation of renewable energy within California provides
9significant financial, health, environmental, and workforce benefits
10to the State of California.

P3    1(b) The California Solar Initiative has been extremely successful,
2resulting in over 140,000 residential and commercial onsite
3installations of solar energy systems. However, it cannot reach all
4residents and businesses that want to participate and is limited to
5solar.begin delete The Green Tariff and Shared Renewable Generation Programend delete
6begin insert A green tariff shared renewable programend insert seeks to build on this
7success by expanding access to renewable energy resources to all
8ratepayers who are currently unable to access the benefits of onsite

10(c) The Governor has proposed the Clean Energy Jobs Plan
11calling for the development ofbegin delete 20,000end deletebegin insert 12,000end insert megawatts of
12begin insert localized electricityend insert generationbegin delete from renewable energy resourcesend delete
13 by 2020. There is widespread interest from many large institutional
14customers, including schools, colleges, universities, local
15governments, businesses, and the military, for development of
16renewable generation facilities to serve more than 33 percent of
17their energy needs.begin delete For these reasons, the Legislature agrees that
18the Governor’s Clean Energy Jobs Plan represents a desired policy
19direction for the state. It is the intent of the Legislature that
20renewable generation that comes online as part of the Green Tariff
21and Shared Renewable Generation Program is counted toward an
22electrical corporation’s efforts to implement the Governor’s Clean
23Energy Jobs Plan.end delete

begin delete

24(d) Properly designed, shared renewable energy programs can
25 provide access and long-term cost savings to underserved
26communities, such as low- to moderate-income residents, and
27residential and commercial renters, while not shifting costs to

29(e) While municipal utilities already have the authority to create
30their own shared renewable energy programs, only an act of the
31Legislature can empower the vast majority of California residents
32to be able to enjoy the significant benefits of shared renewable
33energy systems while the state benefits from avoided transmission
34and distribution upgrades, avoided line loss, and cleaner air and


end delete

37begin insert(end insertbegin insertd)end insert Public institutions will benefit frombegin delete the Green Tariff and
38Shared Renewable Generation Program’send delete
begin insert a green tariff shared
39renewable program’send insert
enhanced flexibility to participate in shared
40renewable energy facilities. begin delete Electricity usage is one of the most
P4    1significant cost pressures facing public institutions at a time when
2they have been forced to cut essential programs, increase classroom
3sizes, and lay off teachers. Schools may use the long-term savings
4for restoring funds for salaries, facility maintenance, and other
5budgetary needs.end delete

begin delete


end delete

7begin insert(end insertbegin inserte)end insert Renewable generation creates jobs, reduces emissions of
8greenhouse gases, and promotes energy independence.

begin delete


end delete

10begin insert(end insertbegin insertf)end insert Many large energy users in California have pursued onsite
11renewable energy generation, but cannot achieve their goals due
12to rooftop or land space limitations, or size limits on net metering.
13The enactment of this chapter will create a mechanism whereby
14institutional customers such as military installations, universities,
15and local governments, as well as commercial customers and
16groups of individuals, can efficiently invest in generating electricity
17from renewable generation.

begin delete


end delete

19begin insert(end insertbegin insertg)end insert It is the intent of the Legislature thatbegin delete the Green Tariff and
20Shared Renewable Generation Programend delete
begin insert a green tariff shared
21renewable programend insert
be implemented in such a manner as tobegin delete createend delete
22begin insert facilitateend insert a large, sustainable market for the purchase of an interest
23in offsite renewable generation, while fairly compensating electrical
24corporations for the services they providebegin insert, without affecting
25nonparticipating ratepayersend insert

begin delete


end delete

27begin insert(end insertbegin inserth)end insert It is the further intent of the Legislature to preserve a
28thriving, sustainable agricultural industry, and to ensure that the
29development of renewable energy does not remove prime farmland
30from productive use without a comprehensive public review



(a) On or before March 1, 2014, an electrical corporation
33with at least 100,000 customers shall file with the commission an
34advice letter requesting approval of abegin delete Green Tariff and Shared
35Renewable Generation Programend delete
begin insert green tariff shared renewable
36programend insert
thatbegin delete itend deletebegin insert the electrical corporationend insert determines is consistent
37with the findings specified in Section 2832.

38(b) On or before July 1, 2014, the commission shall issue a
39resolution on the electrical corporation’s advice letter for abegin delete Green
40Tariff and Shared Renewable Generation Programend delete
begin insert green tariff
P5    1shared renewable programend insert
, determining whether to approve or
2begin delete disproveend deletebegin insert disapproveend insert it, with or without modifications.

3(c) After notice and an opportunity for public comment, the
4commission shall approve an advice letter by an electrical
5corporation for abegin delete Green Tariff and Shared Renewable Generation
6Programend delete
begin insert green tariff shared renewable programend insert if the commission
7determines that the program is reasonable and consistent with the
8findings specified in Section 2832.

9(d) Thisbegin delete section doesend deletebegin insert chapter shallend insert not apply to applications by
10electrical corporations for abegin delete Green Tariff and Shared Renewable
11Generation Program that areend delete
begin insert green tariff shared renewable programend insert
12 filed at the commission prior to May 1, 2013,begin delete and does not change
13the existing authority of the commission to approve those
14applications in accordance with its existing authority under the
15Public Utilities Codeend delete
begin insert or to the approval of those applications by
16the commissionend insert

begin insert

begin insert2834.end insert  

In implementing this chapter, the commission shall
18require a green tariff shared renewable program to be
19administered in accordance with this section.

20(a) Electrical corporations shall use existing
21commission-approved tools and mechanisms to procure additional
22renewable energy resources from incremental, additional
23renewable generation facilities, primarily sized 20 megawatts and

25(b) The megawatts to be procured under this section are limited
26to an allocation of up to 600 megawatts to this program, divided
27proportionally among the electrical corporations required to file
28the tariff and allocated in equal increments over a five-year period.

29(c) To the extent possible, electrical corporations shall seek to
30procure renewable energy supplies that are located within a
31reasonable proximity to enrolled participants.

32(d) Electrical corporations shall ensure that the program
33complies with diverse procurement and General Order 156 goals.

34(e) Electrical corporations shall not subscribe a participant to
35more than two megawatts of generating capacity or the equivalent
36amount. This limitation does not apply to a federal, state, or local
37government, school, school district, county office of education, the
38California Community Colleges, the California State University,
39or the University of California. Electrical corporations shall ensure
40that no single entity or its affiliates or subsidiaries is awarded
P6    1more than 20 percent of any single calendar year’s total cumulative
2 rated generating capacity made available pursuant to this program.

3(f) To the extent possible, the electrical corporation shall
4actively market the program to low-income and minority
5communities and customers.

6(g) Participating customers are to receive bill credits for the
7generation using the class average retail generation rate as
8established in the electrical corporation’s approved tariff for the
9class to which the subscribed belongs plus a renewable adjustment
10value representing the difference between the time of day profile
11of the renewable resource used to serve the subscribed and the
12class average time of day profile and the resource adequacy value,
13if any, of the resource contained in this program.

14(h) Participating customers shall pay the administrative costs
15of the electrical corporation and pay charges to fully cover the
16cost of procuring a green tariff shared renewable program’s
17resources to serve their needs, consistent with other existing similar
18voluntary optional rate schedules. Electrical corporations may
19provide support for enhanced community renewable programs to
20facilitate development of additional renewable projects closer to

22(i) The commission shall ensure that the charges and credits
23associated with this program shall be structured to ensure
24nonparticipant ratepayer indifference for the remaining, bundled
25service, direct access, and community choice aggregation
26customers and that no costs are shifted from participating
27customers to nonparticipating ratepayers.

28(j) Electrical corporations shall track and account for all
29revenues and costs to ensure that the electrical corporation
30recovers the actual costs of the program and that all costs and
31revenues are fully transparent and auditable.

32(k) Any renewable energy credits associated with an interest
33shall be retired by either the provider or electrical corporation,
34as they may agree on behalf of the participant or transferred to
35the Western Renewable Energy Generation Information System
36account of that participant, for the purpose of demonstrating the
37purchase of renewable energy. Those renewable energy credits
38shall not be further sold, transferred, or otherwise monetized by
39a party for any purpose. Any renewable energy credits associated
40with electricity paid for by the electrical corporation shall be
P7    1counted toward meeting that electrical corporation’s renewables
2portfolio standard. For the purposes of this subdivision, the terms
3“renewable energy credit” and “renewables portfolio standard”
4have the same meanings as defined in Section 399.12.

5(l) An electrical corporation shall, in the event of participant
6attrition or related factors, apply the additional resources procured
7through this program to the electrical corporation’s renewable
8portfolio standard procurement obligations or banked for future
9use to benefit all customers in accordance with renewable portfolio
10standard banking and procurement rules.

11(m) In calculating its procurement requirements to meet the
12requirements of the California Renewables Portfolio Standard
13Program (Article 16 (commencing with Section 399.11) of Chapter
142.3 of Part 1), an electrical corporation may exclude from total
15retail sales the kilowatthours generated by a shared renewable
16energy facility commencing with the point in time at which the
17facility achieves commercial operation.

18(n) This chapter shall remain in effect only until January 1,
192019, and as of that date is repealed, unless a later enacted statute,
20that is enacted before January 1, 2019, deletes or extends that

end insert

SEC. 2.  

No reimbursement is required by this act pursuant to
23Section 6 of Article XIII B of the California Constitution because
24the only costs that may be incurred by a local agency or school
25district will be incurred because this act creates a new crime or
26infraction, eliminates a crime or infraction, or changes the penalty
27for a crime or infraction, within the meaning of Section 17556 of
28the Government Code, or changes the definition of a crime within
29the meaning of Section 6 of Article XIII B of the California