BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1014
                                                                  Page  1

          Date of Hearing:   May 24, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 1014 (Williams) - As Amended:  May 8, 2013 

          Policy Committee:                              Utilities and  
          Commerce     Vote:                            9-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill creates a shared renewable energy program by requiring  
          the PUC to authorize electrical corporations to provide  
          customers with a voluntary option to participate in a renewable  
          energy program.  Specifically, this bill:  

          1)Requires the PUC to authorize electrical corporations to  
            provide participating customers with bill credits from  
            renewable energy generation facilities.

          2)Requires the PUC, by July 1, 2014, to approve the advice  
            letters if the PUC finds that the proposed program is  
            reasonable and consistent with specified findings

          3)Exempts small electrical corporations from providing similar  
            programs.

          4)Requires the program to be funded by participants without  
            shifting costs to non-participants.

          5)Authorizes up to 600 MW divided proportionally among the  
            electrical corporations.

          6)Limits the size of each facility to no larger than 20 MWs.

          7)Sunsets the program on January 1, 2019.

           FISCAL EFFECT  

          Increased costs to the PUC of approximately $250,000 (special  
          fund) to administer the program.








                                                                  AB 1014
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           COMMENTS  

           1)Rationale  . According to the author, California accounts for  
            more than 70% of solar photovoltaic installations for  
            residential and commercial electricity production in the  
            United States.  Programs like the California Solar Initiative  
            (CSI) have provided significant benefits for customers who own  
            their homes and businesses. 

            An overwhelming majority of California residents, businesses  
            and other organizations are unable to utilize solar power due  
            to obstructed or shaded roofs, renting their property, or lack  
            of resources.    


            The author contends off-site renewables arrangements allowing  
            ratepayers to purchase shares in renewable facilities and  
            receive generation credits on utility bills will enable  
            low-income Californians and others to renewable energy market.

              2)   Background.   This bill is largely based on a recent  
               settlement between PG&E and interveners on a green tariff.   
               The settlement provides for up to 250 MWs of load to be  
               served by the green tariff from 20 MW facilities located as  
               close as possible to the participating customers. 
             
             Additional provisions include inclusion of disadvantaged  
            communities, treatment of renewable generation for purposes of  
            compliance with the Renewable Portfolio Standard, and other  
            considerations.

            This bill does not address the large scale renewable goal but  
            is intended to address a subset of the Governor's proposed  
            20,000 MW "Clean Energy Jobs Plan.  Specifically, the Governor  
            recommends 12,000 megawatts of localized energy and projects  
            of up to 20 megawatts  should be built on public and private  
            property throughout the state.

           Analysis Prepared by  :    Jennifer Galehouse /  APPR.  /  (916)  
          319-2081












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