BILL ANALYSIS                                                                                                                                                                                                    Ó
                                                                  AB 1295
                                                                  Page  1
          ASSEMBLY THIRD READING
          AB 1295 (Roger Hernández) 
          As Amended  May 29, 2013
          Majority vote 
           UTILITIES & COMMERCE         14-0                    
          APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Bradford, Patterson,      |Ayes:|Gatto, Harkey, Bigelow,   |
          |     |Bonilla, Buchanan,        |     |Bocanegra, Bradford, Ian  |
          |     |Chávez, Fong,             |     |Calderon, Campos,         |
          |     |Beth Gaines, Garcia,      |     |Donnelly, Eggman, Gomez,  |
          |     |Gorell,                   |     |Hall, Ammiano, Linder,    |
          |     |Roger Hernández, Jones,   |     |Pan, Quirk, Wagner, Weber |
          |     |Quirk, Rendon, Williams   |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires an electrical corporation to offer customers  
          an option to assign a payment from an electrical corporation to  
          a subscribing customer from eligible renewable facilities in the  
          form of a bill credit.  
           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, increased costs to Public Utilities Committee (PUC)  
          of approximately $200,000 (special fund) to authorize and  
          evaluate the program.
           COMMENTS  :   
           1)Author's Statement .  "The purpose of AB 1295 is to provide  
            electric customers who want to serve their energy needs with a  
            greater proportion of renewable energy the option to subscribe  
            to a portion of output from a renewable facility and receive a  
            credit on their bill related to that subscription, without  
            requiring other customers to pay more."
           2)Designated electricity  .  This bill would create a program  
            where a utility customer could elect to receive their  
            electricity from an independent renewable developer,  
            presumably to use renewable energy beyond that which is  
            already currently available through investor owned utilities  
            (IOUs) resource mix. The transaction would be implemented on  
            the customer's electricity bill.  Qualified projects under  
            contract to the utility can be designated as a community  
                                                                  AB 1295
                                                                  Page  2
            renewable facility.  Once designated, payments for electricity  
            generation that would otherwise be remitted to the developer  
            would instead be remitted to the utility customer, per the  
            direction of the developer.  The payments would appear as a  
            bill credit on the customer's monthly utility bill.
           3)33% renewable electric generation  .  All customers of  
            electricity sellers in California are already receiving  
            electricity from renewable energy. Currently IOUs have  
            procured approximately 20% renewable generation and have  
            signed contracts to procure at least 33% renewable generation  
            by 2020, plus a contingency for project drop outs.
            Renewable generation resulting from this bill would count  
            toward Renewable Portfolio Standard (RPS) procurement  
            requirements.
            The bill specifies that IOUs would not be obligated to allow  
            direct access customers who receive distribution service from  
            IOU to participate in this program.  Direct access customers  
            do not procure their electricity from IOUs.
           4)Other electricity providers not required to offer comparable  
            programs  .  The provisions of this bill apply only to  
            electrical corporations regulated by PUC.  Community Choice  
            Aggregators and Electricity Service Providers are not required  
            to offer comparable programs.
            Publicly Owned Utilities may, but are not required, to offer  
            community solar programs.  The Public Owned Utilities are not  
            required to offer a comparable program if they decide to offer  
            such a program.
           5)No Cost-Shifting  .  This bill would not result in a shift in  
            costs to non-participating ratepayers. Customers electing to  
            receive designated electricity would continue to also  
            contribute to all other costs of receiving electricity service  
            and all other charges established by the Legislature or PUC  
            (such as low-income assistance programs, public purpose  
            programs, and charges established during the electricity  
            crisis of 2000-2001).
           6)Allows for projects or only existing  ? This bill would use  
            programs already approved by the Legislature or PUC from which  
            to draw megawatts (MWs) for this program, specifically the  
                                                                  AB 1295
                                                                  Page  3
            Renewable Market Adjusting Tariff (ReMat) authorized by SB 32  
            (Negrete-McLeod), Chapter 328, Statutes of 2009, the Renewable  
            Auction Mechanism (RAM) authorized by PUC, photovoltaic (PV)  
            programs authorized by PUC, and the Renewable Standard Tariff  
            (CREST) authorized by AB 1969 (Yee), Chapter 731, Statutes of  
            2006. 
           7)Evaluate participation  .  This bill requires PUC to evaluate  
            the community renewable program by January 1, 2016, to  
            determine whether the program should continue. 
            The bill requires PUC to evaluate the community renewable  
            program by January 1, 2016.  ReMAT is not yet authorized while  
            RAM might be fully subscribed before this bill is enacted  
            (depending on the results of RAM auctions scheduled in 2013  
            and early 2014).
           
          Analysis Prepared by  :    Susan Kateley / U. & C. / (916)  
          319-2083 
                                                                FN: 0001041