BILL ANALYSIS Ó AB 1014 Page 1 ASSEMBLY THIRD READING AB 1014 (Williams) As Amended May 8, 2014 Majority vote UTILITIES & COMMERCE 11-0 APPROPRIATIONS 13-4 ----------------------------------------------------------------- |Ayes:|Bradford, Bonilla, |Ayes:|Gatto, Bocanegra, | | |Buchanan, Fong, Beth | |Bradford, | | |Gaines, Garcia, | |Ian Calderon, Campos, | | |Roger Hernández, Quirk, | |Eggman, Gomez, Hall, | | |Rendon, Skinner, Williams | |Ammiano, Linder, Pan, | | | | |Quirk, Weber | |-----+--------------------------+-----+--------------------------| | | |Nays:|Harkey, Bigelow, | | | | |Donnelly, Wagner | ----------------------------------------------------------------- SUMMARY : This bill creates a new renewable energy program substantially similar to a settlement agreement filed at the California Public Utilities Commission (PUC). Specifically, this bill : 1)Requires PUC to authorize electrical corporations to provide participating customers' with rate credits for avoided generation costs and pay charges to fully cover the cost of procuring Green Option resources to serve their needs. 2)States intent to further the Governor's Clean Energy Jobs Plan. 3)States intent to preserve a thriving, sustainable agricultural industry and to ensure that renewable energy development does not remove prime farmland from productive use without a comprehensive public review process. 4)Exempts small electrical corporations. FISCAL EFFECT : According to the Assembly Appropriations Committee, increased costs to PUC of approximately $250,000 (special fund) to administer the program. COMMENTS : AB 1014 Page 2 1)Author's Comment . "California accounts for more than 70% of solar photovoltaic installations for residential and commercial electricity production in the United States. Despite its substantial lead, California is missing an opportunity to speed the deployment of renewable energy technology to meet the electricity needs of its residents. Programs like the California Solar Initiative (CSI), are sunsetting soon and don't meet the needs of everyone who wants renewables. Specifically, CSI has primarily benefitted people who both own their homes and businesses and are oriented properly toward the sun. However, the overwhelming majority of California residents, businesses and other organizations can't utilize solar power due to obstructed or shaded roofs, renting their property, or other resource issues. That leaves a huge portion of solar opportunity on the table. "The state's Renewable Portfolio Standard (RPS), which requires investor-owned utilities (IOUs) to procure 33% of their electricity from renewable sources by 2020, will increase the proportion of IOU customers' overall power mix being served by renewables. However, without a Shared Renewables program, customers without suitable roofs do not have the option to invest in more clean energy than is required by RPS and to receive a corresponding credit on their power bills. "Off-site renewables arrangements allowing ratepayers to purchase shares in renewable facilities and receive generation credits on their utility bills can enable low-income Californians and those who don't own their roofs or who aren't oriented toward the sun to participate in the market for renewable energy." 2) Local Renewables . This bill proposes to address a subset of the Governor's proposed 20,000 MW "Clean Energy Jobs Plan:" 12,000 megawatts of localized energy and projects of up to 20 megawatts should be built on public and private property throughout the state. 3) Based on a Recent PG&E Settlement . 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 AB 1014 Page 3 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. 4) No cost shifting . As written, this bill does not shift costs of this program to non-participating ratepayers. 5) Streamlined Implementation . This bill specifies the electrical corporations are to propose the green tariff shared renewable programs using PUC's 'advice letter' process, which allows for a streamlined administrative review that includes public participation in a manner that facilitates expedited implementation. Analysis Prepared by : Susan Kateley / U. & C. / (916) 319-2083 FN: 0000944