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 Page 2 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 AB 1014 Page 3