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