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 Bill No. 1014

Introduced by Assembly Member Williams

(Coauthor: Senator Wolk)

February 22, 2013

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

LEGISLATIVE COUNSEL’S DIGEST

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

SECTION 1.  

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

 

Chapter  7.6. Green Tariff begin delete and end delete Shared Renewable
begin delete Generation end delete Program

 

2832.  

The Legislature finds and declares all of the following:

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

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

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

begin delete

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

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

(f)

end delete

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

begin delete

(g)

end delete

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

begin delete

(h)

end delete

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

begin delete

(i)

end delete

begin insert ( end insert begin insert g) end insert  It is the intent of the Legislature that begin delete the Green Tariff and
Shared Renewable Generation Program end delete begin insert a green tariff shared
renewable program end insert be implemented in such a manner as to begin delete create end delete
begin insert facilitate end insert a large, sustainable market for the purchase of an interest
in offsite renewable generation, while fairly compensating electrical
corporations for the services they provide begin insert , without affecting
nonparticipating ratepayers end insert .

begin delete

(j)

end delete

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

2833.  

(a) On or before March 1, 2014, an electrical corporation
with at least 100,000 customers shall file with the commission an
advice letter requesting approval of a begin delete Green Tariff and Shared
Renewable Generation Program end delete begin insert green tariff shared renewable
program end insert that begin delete it end delete begin insert the electrical corporation end insert determines is consistent
with the findings specified in Section 2832.

(b) On or before July 1, 2014, the commission shall issue a
resolution on the electrical corporation’s advice letter for a begin delete Green
Tariff and Shared Renewable Generation Program end delete begin insert green tariff
shared renewable program end insert , determining whether to approve or
begin delete disprove end delete begin insert disapprove end insert it, with or without modifications.

(c) After notice and an opportunity for public comment, the
commission shall approve an advice letter by an electrical
corporation for a begin delete Green Tariff and Shared Renewable Generation
Program end delete begin insert green tariff shared renewable program end insert if the commission
determines that the program is reasonable and consistent with the
findings specified in Section 2832.

(d) This begin delete section does end delete begin insert chapter shall end insert not apply to applications by
electrical corporations for a begin delete Green Tariff and Shared Renewable
Generation Program that are end delete begin insert green tariff shared renewable program end insert
filed at the commission prior to May 1, 2013, begin delete and does not change
the existing authority of the commission to approve those
applications in accordance with its existing authority under the
Public Utilities Code end delete begin insert or to the approval of those applications by
the commission end insert .

begin insert

begin insert 2834. end insert   

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

end insert

SEC. 2.  

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