BILL NUMBER: AB 1935 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Campos
FEBRUARY 19, 2014
An act to amend Section 769 321.7 of
the Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
AB 1935, as amended, Campos. Electricity: clean distributed energy
technologies. resources.
Existing law requires the Public Utilities Commission (PUC), on a
biennial basis and in consultation with the Independent System
Operator and the State Energy Resources Conservation and Development
Commission, to study and submit a report to the Legislature and the
Governor on the impacts of distributed energy generation on the state'
s distribution and transmission grid.
This bill would instead requires the PUC, on a biennial basis, to
study and submit a report to the Legislature and the Governor on the
impacts of clean distributed energy resources, as defined, on the
state's distribution and transmission grid.
Existing law requires each electrical corporation, no later than
July 1, 2015, to submit to the Public Utilities Commission a
distribution resources plan proposal to identify the optimal
locations for the deployment of distributed resources. Existing law
defines the term "distributed resources." Existing law requires the
commission to review and approve the plan.
This bill would revise the definition of "distributed resources"
to include clean distributed energy technology, as defined.
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. Section 321.7 of the Public
Utilities Code is amended to read:
321.7. (a) On or before January 1, 2010, and biennially
thereafter, 1st of every other year, the
commission, in consultation with the Independent System Operator and
the State Energy Resources Conservation
and Development Commission, shall study, and submit a
report to the Legislature and the Governor, on the impacts of
clean distributed energy generation
resources on the state's distribution and transmission grid.
The
(b) For the purposes of this section, "clean distributed energy
resource" means any of the following:
(1) A clean energy generating technology that meets all of the
following criteria:
(A) Produces electricity, or electricity and useful heat.
(B) Has a greenhouse gas emissions factor, including, when
applicable, credit for waste heat recovery and savings on
transmission and distribution losses, that is less than or equal to
the emission factor for electricity developed by the State Air
Resources Board in the scoping plan adopted pursuant to Section 38561
of the Health and Safety Code.
(C) Has an oxide of nitrogen emissions rate, including, when
applicable, credit for waste heat recovery, that is less than or
equal to the standard set forth in Section 94203 of Title 17 of the
California Code of Regulations.
(D) Has a nameplate rated generation capacity of 20 or less
megawatts.
(2) An eligible renewable energy resource, as defined in Section
399.12, that uses organic waste or biogas as its feedstock and has a
nameplate generation capacity of 20 or less megawatts.
(3) A demandside reduction resource.
(4) An energy storage technology that stores energy from a
technology or resource specified in paragraph (1), (2), or (3).
(c) The study shall evaluate all
of the following:
(1) Reliability and transmission issues related to connecting
clean distributed energy generation
resources to the local distribution networks and regional grid.
(2) Issues related to grid reliability and operation, including
interconnection, and the position of federal and state regulators
toward distributed energy accessibility.
(3) The effect on overall grid operation of various clean
distributed energy generation sources.
resources.
(4) Barriers affecting the connection of distributed energy to the
state's grid.
(5) Emerging technologies related to clean distributed
energy generation resources
interconnection.
(6) Interconnection issues that may arise for the Independent
System Operator and local distribution companies.
(7) The effect on peak demand for electricity.
(b)
(d) In addition, the commission shall specifically
assess the impacts of the California Solar Initiative program,
specified in Section 2851 and Section 25783 of the Public Resources
Code, the self-generation incentive program authorized by Section
379.6, and the net energy metering pilot program authorized by
Section 2827.9.
(e) The report submitted to the Legislature pursuant to
subdivision (a) shall be submitted in compliance with Section 9795 of
the Government Code.
SECTION 1. Section 769 of the Public Utilities
Code is amended to read:
769. (a) For purposes of this section, the following terms have
the following meanings:
(1) "Clean distributed energy technology" means any of the
following:
(A) An energy generation technology that meets all of the
following criteria:
(i) Converts an energy resource into electricity or heat.
(ii) Meets or exceeds the emission factor for electricity
developed by the State Air Resources Board in the scoping plan
adopted pursuant to Section 38561 of the Health and Safety Code.
(iii) Meets or exceeds the oxides of nitrogen emissions rate
standard set forth in Section 94203 of Title 17 of the California
Code of Regulations.
(iv) Has a nameplate rated generation capacity of 20 or less
megawatts.
(B) A conversion technology that meets all of the following
criteria:
(i) (I) Converts organic waste into a useful energy resource.
(II) For the purposes of this clause, "organic waste" means waste
consisting of organic matter, as defined by the Department of
Resources Recycling and Recovery pursuant to Division 30 (commencing
with Section 40000) of the Public Resources Code, that is a byproduct
of another process that would normally be emitted or transported to
the environment.
(ii) Meets or exceeds the oxides of nitrogen emissions rate
standard set forth in Section 94203 of Title 17 of the California
Code of Regulations.
(iii) Has a nameplate rated generation capacity of 20 or less
megawatts.
(2) "Distributed resources" means distributed renewable generation
resources, clean distributed energy technology, energy efficiency,
energy storage, electric vehicles, and demand response technologies.
(3) "Energy resource" means a gas, liquid, or solid that can be
converted into mechanical work, electricity, or heat.
(b) Not later than July 1, 2015, each electrical corporation shall
submit to the commission a distribution resources plan proposal to
identify optimal locations for the deployment of distributed
resources. Each proposal shall do all of the following:
(1) Evaluate locational benefits and costs of distributed
resources located on the distribution system. This evaluation shall
be based on reductions or increases in local generation capacity
needs, avoided or increased investments in distribution
infrastructure, safety benefits, reliability benefits, and any other
savings the distributed resources provides to the electric grid or
costs to ratepayers of the electrical corporation.
(2) Propose or identify standard tariffs, contracts, or other
mechanisms for the deployment of cost-effective distributed resources
that satisfy distribution planning objectives.
(3) Propose cost-effective methods of effectively coordinating
existing commission-approved programs, incentives, and tariffs to
maximize the locational benefits and minimize the incremental costs
of distributed resources.
(4) Identify any additional utility spending necessary to
integrate cost-effective distributed resources into distribution
planning consistent with the goal of yielding net benefits to
ratepayers.
(5) Identify barriers to the deployment of distributed resources,
including, but not limited to, safety standards related to technology
or operation of the distribution circuit in a manner that ensures
reliable service.
(c) The commission shall review each distribution resources plan
proposal submitted by an electrical corporation and approve, or
modify and approve, a distribution resources plan for the
corporation. The commission may modify any plan as appropriate to
minimize overall system costs and maximize ratepayer benefit from
investments in distributed resources.
(d) An electrical corporation spending on distribution
infrastructure necessary to accomplish the distribution resources
plan shall be proposed and considered as part of the next general
rate case for the corporation. The commission may approve proposed
spending if it concludes that ratepayers would realize net benefits
and the associated costs are just and reasonable. The commission may
also adopt criteria, benchmarks, and accountability mechanisms to
evaluate the success of any investment authorized pursuant to a
distribution resources plan.