Amended in Assembly April 9, 2013

Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1295

Introduced by Assembly Member Roger Hernández

February 22, 2013

An act to add and repeal Chapter 7.6 (commencing with Section 2831) of Part 2 of Division 1 begin delete of, and to repeal Sections 2832 and 3832.5 of, end delete begin insert of end insert the Public Utilities Code, relating to public utilities.

LEGISLATIVE COUNSEL’S DIGEST

AB 1295, as amended, Roger Hernández. Public utilities: renewable energy: community renewables option.

Under existing law, the Public Utilities Commission has regulatory jurisdiction over public utilities, including electrical corporations, as defined, while local publicly owned electric utilities, as defined, are under the direction of their governing boards. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Under existing law, the local government renewable energy self-generation program authorizes a local government, as defined, to receive a bill credit, as defined, to be applied to a designated benefiting account for electricity exported to the electrical grid by an eligible renewable generating facility, as defined, and requires the commission to adopt a rate tariff for the benefiting account.

The California Renewables Portfolio Standard Program, referred to as the RPS program, requires a retail seller of electricity, as defined, and local publicly owned electric utilities to purchase specified minimum quantities of electricity products from eligible renewable energy resources, as defined, for specified compliance periods, sufficient to ensure that the procurement of electricity products from eligible renewable energy resources achieves 20% of retail sales for the period January 1, 2011, to December 31, 2013, inclusive, 25% of retail sales by December 31, 2016, and 33% of retail sales by December 31, 2020, and in all subsequent years. The RPS program, consistent with the goals of procuring the least-cost and best-fit eligible renewable energy resources that meet project viability principles, requires that all retail sellers procure a balanced portfolio of electricity products from eligible renewable energy resources, as specified.

This bill would require an electrical corporation begin delete and a local publicly owned electric utility end delete to include provisions in its tariff and addenda to a standard contract or allow an electrical generation facility, as defined, to participate in the community renewables option that would allow the facility to assign the payment by the electrical corporation begin delete or a local publicly owned electric utility end delete due to that facility to a subscribing customer, as defined, in the form of a bill credit. The bill would, on and after January 1, 2016, require the commission begin delete and the governing board of the local publicly owned electric utility end delete to evaluate the demand for the community renewables option. If the commission begin delete or the governing board of a local publicly owned electric utility end delete finds that the community renewables option should be discontinued, the bill would make the begin insert above end insert provisions begin delete applicable to an electrical corporation or that local publicly owned electric utility, respective, be end delete inoperative. begin insert The bill would require a local publicly owned utility, by July 1, 2015, to offer a comparable community renewables option and would require the governing board of the local publicly owned utility to review and approve the community renewables option. end insert This bill would repeal the provision of the community renewables option on January 1, 2020 begin delete , unless the commission or the governing board of a local publicly owned electric utility finds that there is an adequate demand for the community renewables option, in which case, the provision of the community renewables option would remain in effect for the electrical corporation or that local publicly owned utility, respectively end delete .

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Chapter 7.6 (commencing with Section 2831) is
added to Part 2 of Division 1 of the Public Utilities Code, to read:

 

Chapter  7.6. Community Renewables Facility

 

2831.  

As used in this article, the following terms mean the
following:

(a) “Community renewables facility” means an electric
generation facility that has elected to participate in the community
renewables option.

(b) “Community renewables option” means the right of an
begin delete electrical end delete begin insert electric end insert generation facility to assign the payment by the
electrical corporation begin delete or a publicly owned electric utility end delete due to
that facility in accordance with this article to subscribing customers
of the electrical corporation in the form of a bill credit.

(c)  begin delete “Electrical end delete begin insert “Electric end insert generation facility” means an begin delete electrical end delete
begin insert electric end insert generation facility located within the service territory of,
and developed to sell electricity to, an electrical corporation begin delete or a
local publicly owned electric utility end delete that meets all of the following
criteria:

(1) Has an effective capacity of not more than three megawatts.

(2) Is interconnected and operates in parallel with the electrical
transmission and distribution grid.

(3) Is strategically located and interconnected to the electrical
transmission and distribution grid in a manner that optimizes the
deliverability of electricity generated at the facility to load centers.

(4) Is an eligible renewable energy resource, as defined in
Section 399.12.

begin insert

(5) Meets all the requirements established pursuant to Section
399.20 that are applicable to electric generation facilities.

end insert begin insert

(d) “Feed-in tariff payment” means the payment that is due to
the electric generation facility in accordance with the tariff or
standard contract established pursuant to Section 399.20 as
described in a monthly total payment.

end insert begin delete

(d)

end delete

begin insert (e) end insert  “Subscribing customer” means a customer of an electrical
corporation begin delete or publicly owned utility end delete who has subscribed to the
output of a community renewables facility.

begin delete

(e)

end delete

begin insert (f) end insert  “Subscription amount” means the percentage of kilowatthours
delivered to an electrical corporation begin delete or a local publicly owned
electric utility end delete from a community renewables facility to which a
subscribing customer has subscribed.

begin insert

(g) “Unsubscribed output” means the percentage of
kilowatthours delivered to an electrical corporation from a
community renewables facility to which no subscribing customer
has subscribed.

end insert

2831.5.  

A community renewables facility is not an electrical
corporation, as defined in Section 218 or an electric service
provider, as defined in Section 218.3.

2832.  

(a) An electrical corporation shall include provisions in
its tariff and an addendum to a standard contract developed
pursuant to Section 399.20 to provide for a community renewables
option allowing a community renewables facility to assign the
payment of electricity by the electrical corporation due to that
facility to a subscribing customer in the form of a bill credit.

begin insert

(b) The subscribing customer’s bill credit shall be calculated
as the feed-in tariff payment multiplied by the customer’s
subscription amount.

end insert begin delete

(b)

end delete

begin insert (c) end insert  In approving the tariff, the commission shall ensure all of
the following:

(1) Customers that do not participate in the community
renewables option are indifferent to whether other customers
participate in the community renewables option, and no costs are
shifted from subscribing customers to nonsubscribing customers.

(2) An electric generation facility that has executed a standard
contract with an electrical corporation and has begun deliveries
pursuant to the contract may, in its sole discretion, elect to become
a community renewables facility.

(3) (A) The community renewables facility is solely responsible
for any and all arrangements, agreements, or disputes with its
subscribing customers concerning the community renewables
option. The community renewables facility shall communicate, in
writing, to the electrical corporation, in a timely manner, to be
specified in the electrical corporation’s tariff and contract
addendum described in subdivision (c), but not less than once per
year, information necessary for the electrical corporation to make
payment under the standard contract and addendum to the standard
contract that, include, but is not limited to, all of the following:

(i) The name of each subscribing customer.

(ii) The service address and service account number of each
subscribing customer to which a bill credit should be applied.

(iii) Each subscribing customer’s subscription amount.

(iv) The begin delete percentage of delivered kilowatthours of electricity
that remains unsubscribed end delete begin insert unsubscribed output end insert , if any, for which
payment should be made directly to the community renewables
facility.

(B) The electrical corporation shall not be a party to an
arrangement or agreement between the community renewables
facility and the subscribing customer.

(4) The electrical corporation shall continue to bill subscribing
customers for all electricity consumed pursuant to each subscribing
customer’s otherwise applicable tariff. The payments made to a
subscribing customer in the form of a bill credit shall be applied
to the subscribing customer’s monthly bill calculated pursuant to
the customer’s otherwise applicable tariff.

begin insert

(5) The electrical corporation shall pay the community
renewables facility for any unsubscribed output by multiplying the
unsubscribed output by the feed-in tariff payment.

end insert begin delete

(5)

end delete

begin insert (6) end insert  All electricity purchases by an electrical corporation pursuant
begin insert to end insert this section shall be credited towards the electrical corporation’s
procurement requirements pursuant to Section 399.15 and shall
count toward the electrical corporation’s proportionate share of
the statewide cap specified in Section 399.20.

begin delete

(c)

end delete

begin insert (d) end insert  The commission shall not authorize the community
renewables option until it has adopted the tariff consistent with
this section.

begin delete

(d)

end delete

begin insert (e) end insert  Notwithstanding begin delete paragraph end delete begin insert paragraphs end insert (1) begin insert and (5) end insert of
subdivision (c) of Section 2831, the commission may allow begin delete other end delete
begin insert the end insert renewable programs adopted by the commission begin delete , including
those programs adopted end delete in commission decisions 10-12-048 and
09-06-049 begin delete , as those decisions and programs may be modified from
time to time, that meet the requirements of subdivisions (a) and
(b) to include an equivalent community renewables option end delete begin insert to
include a community renewables option if the community renewable
option meets the requirements of subdivision (c). If the commission
elects to establish a community renewables option pursuant to this
subdivision, the subscribing customer’s monthly bill credit shall
be calculated as the amount that would be otherwise be paid to
the participating renewable generator in accordance with the
power purchase contract between the utility and the renewable
generator multiplied by the customer’s subscription amount, and
all purchases pursuant to this subdivision shall count towards the
electrical corporation’s proportional share of the program’s cap end insert .

begin delete

(e)

end delete

begin insert (f) end insert  An electrical corporation shall recover from the community
renewables facility any costs of implementing the community
renewables option reasonably attributable to the community
facility. Any implementation costs not reasonably attributable to
the community renewables facility shall begin delete not end delete be recovered from the
ratepayers, as determined by the commission.

begin delete

(f)

end delete

begin insert (g) end insert  If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 or Section 365.1,
the electrical corporation that provides distribution service for the
customer is not obligated to allow that customer to participate in
a community renewables option.

begin delete

(g)

end delete

begin insert (h) end insert  On or before July 1, 2015, an energy service provider or
community choice aggregator shall offer a comparable community
renewables option begin insert of eligible renewable energy resources as
defined in Section 399.12 end insert in accordance with the procurement
practices of that load serving entity. The commission shall review
and approve the community renewables option proposed by the
load serving entity to ensure that it is comparable to the
requirements specified in subdivision begin delete (b) end delete begin insert (c) end insert .

begin delete

(h)

end delete

begin insert (i) end insert  (1) On and after January 1, 2016, the commission shall
evaluate the demand for the community renewables option and
consider whether to continue offering a community renewables
option.

(2) If the commission determines that the community renewables
option should terminate, the commission shall issue an order to
that effect and deliver a copy of the order to the Secretary of State.
The section shall become inoperative on the effective date of the
order.

begin delete

(i) (1) Except as provided in paragraph (2), this section shall
remain in effect only until January 1, 2020, and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2020, deletes or extends that date.

end delete begin delete

(2) Notwithstanding paragraph (1), if, before January 1, 2020,
the commission finds that there is adequate demand to continue
offering a community renewables option, this section shall remain
in effect. The commission shall issue an order finding an adequate
demand to continue offering a community renewables option and
deliver a copy of the order to the Secretary of State.

end delete

begin delete

2832.5.  

(a) A local publicly owned electric utility shall include
provisions in its tariff and an addendum to a standard contract
developed pursuant to Section 399.32 to provide for a community
renewables option allowing a community renewables facility to
assign the payment of electricity by the local publicly owned
electric utility due to that facility to a subscribing customer in the
form of a bill credit.

(b) The governing board of the local publicly owned electric
utility shall ensure all of the following:

(1) Customers that do not participate in the community
renewables option are indifferent to whether other customers
participate in the community renewables option, and no costs are
shifted from subscribing customers to nonsubscribing customers.

(2) An electric generation facility that has executed a standard
contract with a local publicly owned electric utility and has begun
deliveries pursuant to the contract may, in its sole discretion, elect
to become a community renewables facility.

(3) (A) The community renewables facility is solely responsible
for any and all arrangements, agreements, or disputes with its
subscribing customers concerning the community renewables
option. The community renewables facility shall communicate, in
writing, to the local publicly owned electric utility, information
necessary for the local publicly owned electric utility to make
payment under the standard contract and addendum to the standard
contact that, include, but is not limited to, all of the following:

(i) The name of each subscribing customer.

(ii) The service address and service account number of each
subscribing customer to which a bill credit should be applied.

(iii) Each subscribing customer’s subscription amount.

(iv) The percentage of delivered kilowatthours of electricity
that remain unsubscribed, if any, for which payment should be
made directly to the community renewables facility.

(B) The local publicly owned electric utility shall not be a party
to an arrangement or agreement between the community
renewables facility and the subscribing customer.

(4) The electrical corporation shall continue to bill subscribing
customers for all electricity consumed pursuant to each subscribing
customer’s otherwise applicable tariff. The payments made to a
subscribing customer in the form of a bill credit shall be applied
to the subscribing customer’s monthly bill calculated pursuant to
the customer’s otherwise applicable tariff.

(5) All electricity purchases by a local publicly owned electric
utility pursuant this section shall be credited towards the local
publicly owned electric utility’s procurement requirements pursuant
to Section 399.30.

(c) The local publicly owned electric utility may allow other
renewable programs it has adopted that meet the requirements of
subdivisions (a) and (b) to include an equivalent community
renewables option.

(d) (1) On and after January 1, 2016, the governing board of a
local publicly owned electric utility shall evaluate the demand for
the community renewables option and consider whether to continue
offering a community renewables option.

(2) If the governing board of a local publicly owned electric
utility determines the offering of a community renewables option
should terminate, the governing board shall adopt a resolution to
that effect and deliver a copy of the resolution to the Secretary of
State. This section shall not apply to that local publicly owned
electric utility on the effective date of the resolution.

(e) (1) Except as provided in paragraph (1), this section shall
remain in effect only until January 1, 2020, and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2020, deletes or extends that date.

(2) Notwithstanding paragraph (1), if, before January 1, 2020,
the governing board of a local publicly owned electric utility finds
that there is adequate demand to continue offering a community
renewables option, this section shall remain in effect for that local
publicly owned electric utility. The governing board shall adopt a
resolution finding and adequate demand to continue offering a
community renewables option and deliver a copy of the resolution
to the Secretary of State.

end delete begin insert

begin insert 2832.5. end insert   

On or before July 1, 2015, a local publicly owned
electric utility required to comply with Section 399.32 shall offer
a comparable community renewables option for an electric
generation facility as defined in Section 399.32. The governing
board of the local publicly owned electric utility shall review and
approve the community renewables option.

end insert

2833.  

begin delete Except as provided in paragraph (2) of subdivision (i)
of Section 2832 or paragraph (2) of subdivision (e) of Section
2832.5, this end delete begin insert This end insert chapter shall remain in effect only until January
1, 2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.