BILL NUMBER: AB 2584 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Nestande
FEBRUARY 21, 2014
An act to amend Section 399.11 2827.8
of the Public Utilities Code, relating to energy.
electrici ty.
LEGISLATIVE COUNSEL'S DIGEST
AB 2584, as amended, Nestande. Energy: California Renewables
Portfolio Standard Program.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
as defined, while local publicly owned electric utilities, as
defined, are under the direction of their governing board. Existing
law relative to private energy producers requires every electric
utility, as defined, to develop a standard contract or tariff
providing for net energy metering, as defined, and to make this
contract or tariff available to eligible customer generators, as
defined, upon request for generation by a renewable electrical
generation facility, as defined. Existing law authorizes a local
publicly owned electric utility to elect to instead offer co-energy
metering, which uses a generation-to-generation energy and
time-of-use credit formula, as specified.
Existing law establishes separate requirements for wind energy
co-metering that provides a credit against the generation component
of an electricity bill of an electric utility for those eligible
customer-generators utilizing a wind energy project with a generating
capacity greater than 50 kilowatts, but not exceeding one megawatt,
unless approved by the electric utility.
This bill would provide that, for a United States Department of
Defense installation, wind energy co-metering is available if the
generating capacity does not exceed 1.5 megawatts.
Existing law requires the Public Utilities Commission to review
and adopt a renewable energy procurement plan for each electrical
corporation, as defined, pursuant to the California Renewables
Portfolio Standard Program.
This bill would make technical and nonsubstantive changes to the
program's legislative findings and declarations.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2827.8 of the Public
Utilities Code is amended to read:
2827.8. Notwithstanding any other provisions of this article, the
following provisions apply to an eligible customer-generator
utilizing wind energy co-metering with a capacity of more than 50
kilowatts, but not exceeding one megawatt , or for a
United States Department of Defense installation, not exceeding 1.5
megawatts , unless approved by the electric service
provider utility .
(a) The eligible customer-generator shall be required to utilize a
meter, or multiple meters, capable of separately measuring
electricity flow in both directions. Nothing in this section
precludes the use of advanced metering infrastructure devices. All
meters shall provide "time-of-use" measurements of electricity flow,
and the customer shall take service on a time-of-use rate schedule.
If the existing meter of the eligible customer-generator is not a
time-of-use meter or is not capable of measuring total flow of energy
in both directions, the eligible customer-generator is responsible
for all expenses involved in purchasing and installing a meter that
is both time-of-use and able to measure total electricity flow in
both directions. This subdivision shall not restrict the ability of
an eligible customer-generator to utilize any economic incentives
provided by a government agency or the electric service
provider utility to reduce its costs for
purchasing and installing a time-of-use meter.
(b) The consumption of electricity from the electric
service provider utility for wind energy
co-metering by an eligible customer-generator shall be priced in
accordance with the standard rate charged to the eligible
customer-generator in accordance with the rate structure to which the
customer would be assigned if the customer did not use an eligible
wind electrical generating facility. The generation of electricity
provided to the electric service provider
utility shall result in a credit to the eligible
customer-generator and shall be priced in accordance with the
generation component, excluding surcharges to cover the purchase of
power by the Department of Water Resources, established under the
applicable structure to which the customer would be assigned if the
customer did not use an eligible wind electrical generating facility.
SECTION 1. Section 399.11 of the Public
Utilities Code is amended to read:
399.11. The Legislature finds and declares all of the following:
(a) To attain a target of generating 20 percent of total retail
sales of electricity in California from eligible renewable energy
resources by December 31, 2013, and 33 percent by December 31, 2020,
it is the intent of the Legislature that the commission and the
Energy Commission implement the California Renewables Portfolio
Standard Program described in this article.
(b) Achieving the renewables portfolio standard through the
procurement of various electricity products from eligible renewable
energy resources is intended to provide unique benefits to
California, including all of the following, each of which
independently justifies the program:
(1) Displacing fossil fuel consumption within the state.
(2) Adding new electrical generating facilities in the
transmission network within the Western Electricity Coordinating
Council service area.
(3) Reducing air pollution in the state.
(4) Meeting the state's climate change goals by reducing emissions
of greenhouse gases associated with electrical generation.
(5) Promoting stable retail rates for electric service.
(6) Meeting the state's need for a diversified and balanced energy
generation portfolio.
(7) Assistance with meeting the state's resource adequacy
requirements.
(8) Contributing to the safe and reliable operation of the
electrical grid, including providing predictable electrical supply,
voltage support, lower line losses, and congestion relief.
(9) Implementing the state's transmission and land use planning
activities related to development of eligible renewable energy
resources.
(c) The California Renewables Portfolio Standard Program is
intended to complement the Renewable Energy Resources Program
administered by the Energy Commission and established pursuant to
Chapter 8.6 (commencing with Section 25740) of Division 15 of the
Public Resources Code.
(d) New and modified electric transmission facilities may be
necessary to facilitate the state achieving its renewables portfolio
standard targets.
(e) (1) Supplying electricity to California end-use customers that
is generated by eligible renewable energy resources is necessary to
improve California's air quality and public health, and the
commission shall ensure rates are just and reasonable, and are not
significantly affected by the procurement requirements of this
article. This electricity may be generated anywhere in the
interconnected grid that includes many states, and areas of both
Canada and Mexico.
(2) This article requires generating resources located outside of
California that are able to supply that electricity to California
end-use customers to be treated identically to generating resources
located within the state, without discrimination.
(3) California electrical corporations have already executed, and
the commission has approved, power purchase agreements with eligible
renewable energy resources located outside of California that will
supply electricity to California end-use customers. These resources
will fully count toward meeting the renewables portfolio standard
procurement requirements. In addition, there are nearly 7,000
megawatts of additional proposed renewable energy resources located
outside of California that are awaiting interconnection approval from
the Independent System Operator. All of these resources, if
procured, will count as eligible renewable energy resources that
satisfy the portfolio content requirements of paragraph (1) of
subdivision (c) of Section 399.16.