BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1014
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          ASSEMBLY THIRD READING
          AB 1014 (Williams)
          As Amended  May 8, 2014
          Majority vote 

           UTILITIES & COMMERCE             11-0                
          APPROPRIATIONS      13-4        
           
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          |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
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           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
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               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 



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