Amended in Assembly September 6, 2013

Amended in Assembly September 3, 2013

Amended in Assembly August 6, 2013

Amended in Assembly June 15, 2013

Amended in Senate May 28, 2013

Amended in Senate May 24, 2013

Amended in Senate May 15, 2013

Amended in Senate May 8, 2013

Amended in Senate April 1, 2013

Senate BillNo. 43


Introduced by Senator Wolk

(Coauthors: Senators Corbett and Pavley)

(Coauthors: Assembly Members Levine, Skinner, and Williams)

December 11, 2012


An act to add and repeal Chapter 7.6 (commencing with Section 2831) of Part 2 of Division 1 of the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

SB 43, as amended, Wolk. Electricity: Green Tariff Shared Renewables Program.

(1) Under existing law, the Public Utilities Commission has regulatory jurisdiction over public utilities, including electrical corporations, as defined. 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 to receive a bill credit 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.

This bill would enact the Green Tariff Shared Renewables Program. The program would require a participating utility, defined as being an electrical corporation with 100,000 or more customers in California, to file with the commission an application requesting approval of a green tariff shared renewable program to implement a program enabling ratepayers to participate directly in offsite electrical generation facilities that use eligible renewable energy resources, consistent with certain legislative findings and statements of intent. The bill would require the commission, by July 1, 2014, to issue a decision concerning the participating utility’s application, determining whether to approve or disapprove the application, with or without modifications. The bill would require the commission, after notice and opportunity for public comment, to approve the application if the commission determines that the proposed program is reasonable and consistent with the legislative findings and statements of intent. The bill would require the commission to require that a participating utility’s green tariff shared renewables program be administered in accordance with specified provisions. The bill would repeal the program on January 1, 2019.

(2) Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because the provisions of the bill would require action by the commission to implement its requirements, a violation of these provisions would impose a state-mandated local program by expanding the definition of a crime.

(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

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

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

P3    1

SECTION 1.  

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

3 

4Chapter  7.6. Green Tariff Shared Renewables Program
5

 

6

2831.  

The Legislature finds and declares all of the following:

7(a) Building operational generating facilities that utilize sources
8of renewable energy within California, to supply the state’s demand
9for electricity, provides significant financial, health, environmental,
10and workforce benefits to the State of California.

11(b) The California Solar Initiative will achieve its goals, resulting
12in over 150,000 residential and commercial onsite installations of
13solar energy systems. However, the California Solar Initiative
14cannot reach all residents and businesses that want to participate
15and is limited to only solar energy systems and not other eligible
16renewable energy resources. A green tariff shared renewables
17program seeks to build on the success of the California Solar
18Initiative by expanding access to all eligible renewable energy
19resources to all ratepayers who are currently unable to access the
20benefits of onsite generation.

21(c) There is widespread interest from many large institutional
22customers, including schools, colleges, universities, local
23governments, businesses, and the military, for the development of
24generation facilities that are eligible renewable energy resources
25to serve more than 33 percent of their energy needs.

26(d) Public institutions will benefit from a green tariff shared
27renewables program’s enhanced flexibility to participate in shared
28generation facilities that are eligible renewable energy resources.

29(e) Building operational generating facilities that are eligible
30renewable energy resources creates jobs, reduces emissions of
31greenhouse gases, and promotes energy independence.

32(f) Many large energy users in California have pursued onsite
33electrical generation from eligible renewable energy resources,
34but cannot achieve their goals due to rooftop or land space
35limitations, or size limits on net energy metering. The enactment
36of this chapter will create a mechanism whereby institutional
37customers, such as military installations, universities, and local
38governments, as well as commercial customers and groups of
P4    1individuals, can meet their needs with electrical generation from
2eligible renewable energy resources.

3(g) It is the intent of the Legislature that a green tariff shared
4renewables program be implemented in such a manner that
5facilitates a large, sustainable market for offsite electrical
6generation from facilities that are eligible renewable energy
7 resources, while fairly compensating electrical corporations for
8the services they provide, without affecting nonparticipating
9ratepayers.

10(h) It is the further intent of the Legislature that a green tariff
11shared renewables program be implemented in a manner that
12ensures nonparticipating ratepayer indifference for the remaining
13bundled service, direct access, and community choice aggregation
14customers.

15

2831.5.  

(a) This chapter shall be known, and may be cited, as
16the Green Tariff Shared Renewables Program.

17(b) For purposes of this chapter, the following terms have the
18following meanings:

19(1) “Eligible renewable energy resource,” “renewable energy
20credit,” and “renewables portfolio standard” have the same meaning
21as those terms have for the California Renewables Portfolio
22Standard Program (Article 16 (commencing with Section 399.11)
23of Chapter 2.3 of Part 1).

24(2) “Participating utility” means an electrical corporation with
25100,000 or more customer accounts in California.

26

2832.  

(a) On or before March 1, 2014, a participating utility
27shall file with the commission an application requesting approval
28of a green tariff shared renewables program to implement a
29program that the utility determines is consistent with the legislative
30findings and statements of intent of Section 2831. Nothing in this
31chapter limits an electrical corporation with less than 100,000
32customer accounts in California from filing an application with
33the commission to administer a green tariff shared renewables
34program that is consistent with the legislative findings and
35statements of intent of Section 2831.

36(b) On or before July 1, 2014, the commission shall issue a
37decision on the participating utility’s application for a green tariff
38shared renewables program, determining whether to approve or
39disapprove it, with or without modifications.

P5    1(c) After notice and an opportunity for public comment, the
2commission shall approve an application by a participating utility
3for a green tariff shared renewables program if the commission
4determines that the program is reasonable and consistent with the
5legislative findings and statements of intent of Section 2831.

6(d) The requirements of this chapter shall not apply to an
7electrical corporation that, prior to May 1, 2013, filed an
8application with the commission to have a green tariff shared
9renewables program, or an equivalent program of whatever name,
10provided the commission approves the application with a
11determination that the program does not shift costs to
12nonparticipating customers and the application is consistent with
13this chapter. If the commission has approved a settlement
14agreement relative to parties contesting an application filed prior
15to May 1, 2013, the requirements of this section shall not apply if
16the commission, within a reasonable period of time, requires
17revisions to the previously approved settlement agreement that
18requires the program to be consistent with this chapter.

19

2833.  

(a) The commission shall require a green tariff shared
20renewables program to be administered by a participating utility
21in accordance with this section.

22(b) Generating facilities participating in a participating utility’s
23green tariff shared renewables program shall be eligible renewable
24energy resources with a nameplate rated generating capacity not
25exceeding 20 megawatts, except for those generating facilities
26reserved for location in areas identified by the California
27Environmental Protection Agency as the most impacted and
28disadvantaged communities pursuant to paragraph (1) of
29subdivision (d), which shall not exceed one megawatt nameplate
30rated generating capacity.

31(c) A participating utility shall use commission-approved tools
32and mechanisms to procure additional eligible renewable energy
33resources for the green tariff shared renewables program from
34electrical generation facilities that are in addition to those required
35by the California Renewables Portfolio Standard Program (Article
3616 (commencing with Section 399.11) of Chapter 2.3 of Part 1).
37For purposes of this subdivision, “commission-approved tools and
38mechanisms” means those procurement methods approved by the
39commission for an electrical corporation to procure eligible
40renewable energy resources for purposes of meeting the
P6    1procurement requirements of the California Renewables Portfolio
2Standard Program (Article 16 (commencing with Section 399.11)
3of Chapter 2.3 of Part 1).

4(d) A participating utility shall permit customers within the
5service territory of the utility to purchase electricity pursuant to
6 the tariff approved by the commission to implement the utility’s
7green tariff shared renewables program, until the utility meets its
8proportionate share of a statewide limitation of 600 megawatts of
9customer participation, measured by nameplate rated generating
10capacity. The proportionate share shall be calculated based on the
11ratio of each participating utility’s retail sales to total retail sales
12of electricity by all participating utilities. The commission may
13place other restrictions on purchases under a green tariff shared
14renewables program, including restricting participation to a certain
15level of capacity each year. The following restrictions shall apply
16to the statewide 600 megawatt limitation:

17(1) (A) One hundred megawatts shall be reserved for facilities
18that are no larger than one megawatt nameplate rated generating
19capacity and that are located in areas previously identified by the
20California Environmental Protection Agency as the most impacted
21and disadvantaged communities. These communities shall be
22identified by census tract, and shall be determined to be the most
23impacted 20 percent based on results from the best available
24cumulative impact screening methodology designed to identify
25each of the following:

26(i) Areas disproportionately affected by environmental pollution
27and other hazards that can lead to negative public health effects,
28exposure, or environmental degradation.

29(ii) Areas with socioeconomic vulnerability.

30(B) (1) For purposes of this paragraph, “previously identified”
31means identified prior to commencing construction of the facility.

32(2) Not less than 100 megawatts shall be reserved for
33participation by residential class customers.

34(3) Twenty megawatts shall be reserved for the City of Davis.

35(e) To the extent possible, a participating utility shall seek to
36procure eligible renewable energy resources that are located in
37reasonable proximity to enrolled participants.

38(f) A participating utility’s green tariff shared renewables
39program shall support diverse procurement and the goals of
40commission General Order 156.

P7    1(g) A participating utility’s green tariff shared renewables
2program shall not allow a customer to subscribe to more than 100
3percent of the customer’s electricity demand.

4(h) Except as authorized by this subdivision, a participating
5utility’s green tariff shared renewables program shall not allow a
6customer to subscribe to more than two megawatts of nameplate
7generating capacity. This limitation does not apply to a federal,
8state, or local government, school or school district, county office
9of education, the California Community Colleges, the California
10State University, or the University of California.

11(i) A participating utility’s green tariff shared renewables
12program shall not allow any single entity or its affiliates or
13subsidiaries to subscribe to more than 20 percent of any single
14calendar year’s total cumulative rated generating capacity.

15(j) To the extent possible, a participating utility shall actively
16market the utility’s green tariff shared renewables program to
17low-income and minority communities and customers.

18(k) Participating customers shall receive bill credits for the
19generation of a participating eligible renewable energy resource
20using the class average retail generation cost as established in the
21participating utility’s approved tariff for the class to which the
22participating customer belongs, plus a renewables adjustment value
23representing the difference between the time-of-delivery profile
24of the eligible renewable energy resource used to serve the
25participating customer and the class average time-of-delivery
26profile and the resource adequacy value, if any, of the resource
27contained in the utility’s green tariff shared renewables program.
28The renewables adjustment value applicable to a time-of-delivery
29profile of an eligible renewable energy resource shall be determined
30according to rules adopted by the commission. For these purposes,
31“time-of-delivery profile” refers to the daily generating pattern of
32a participating eligible renewable energy resource over time, the
33value of which is determined by comparing the generating pattern
34of that participating eligible renewable energy resource to the
35demand for electricity over time and other generating resources
36available to serve that demand.

37(l) Participating customers shall pay a renewable generation
38rate established by the commission, the administrative costs of the
39participating utility, and any other charges the commission
40determines are just and reasonable to fully cover the cost of
P8    1procuring a green tariff shared renewables program’s resources to
2serve a participating customer’s needs.

3(m) A participating customer’s rates shall be debited or credited
4with any other commission-approved costs or values applicable
5to the eligible renewable energy resources contained in a
6participating utility’s green tariff shared renewables program’s
7portfolio. These additional costs or values shall be applied to new
8customers when they initially subscribe after the cost or value has
9been approved by the commission.

10(n) Participating customers shall pay all otherwise applicable
11charges without modification.

12(o) A participating utility shall provide support for enhanced
13community renewables programs to facilitate development of
14eligible renewable energy resource projects located close to the
15source of demand.

16(p) The commission shall ensure that charges and credits
17associated with a participating utility’s green tariff shared
18renewables program are set in a manner that ensures nonparticipant
19ratepayer indifference for the remaining bundled service, direct
20access, and community choice aggregation customers and ensures
21that no costs are shifted from participating customers to
22nonparticipating ratepayers.

23(q) A participating utility shall track and account for all revenues
24and costs to ensure that the utility recovers the actual costs of the
25utility’s green tariff shared renewables program and that all costs
26and revenues are fully transparent and auditable.

27(r) Any renewable energy credits associated with electricity
28procured by a participating utility for the utility’s green tariff shared
29renewables program and utilized by a participating customer shall
30be retired by the participating utility on behalf of the participating
31customer. Those renewable energy credits shall not be further sold,
32transferred, or otherwise monetized for any purpose. Any
33 renewable energy credits associated with electricity procured by
34a participating utility for the shared renewable energy
35self-generation program, but not utilized by a participating
36customer, shall be counted toward meeting that participating
37utility’s renewables portfolio standard.

38(s) A participating utility shall, in the event of participant
39customer attrition or other causes that reduce customer participation
40or electrical demand below generation levels, apply the excess
P9    1generation from the eligible renewable energy resources procured
2through the utility’s green tariff shared renewables program to the
3utility’s renewable portfolio standard procurement obligations or
4bank the excess generation for future use to benefit all customers
5in accordance with the renewables portfolio standard banking and
6procurement rules approved by the commission.

7(t) In calculating its procurement requirements to meet the
8requirements of the California Renewables Portfolio Standard
9Program (Article 16 (commencing with Section 399.11) of Chapter
102.3 of Part 1), a participating utility may exclude from total retail
11sales the kilowatthours generated by an eligible renewable energy
12resource that is credited to a participating customer pursuant to
13the utility’s green tariff shared renewables program, commencing
14with the point in time at which the generating facility achieves
15commercial operation.

16(u) All renewable energy resources procured on behalf of
17participating customers in the participating utility’s green tariff
18shared renewables program shall comply with the State Air
19Resources Board’s Voluntary Renewable Electricity Program.
20California-eligible greenhouse gas allowances associated with
21these purchases shall be retired on behalf of participating customers
22as part of the board’s Voluntary Renewable Electricity Program.

23(v) A participating utility shall provide a municipality with
24aggregated consumption data for participating customers within
25the municipality’s jurisdiction to allow for reporting on progress
26toward climate action goals by the municipality. A participating
27utility shall also publicly disclose, on a geographic basis,
28consumption data and reductions in emissions of greenhouse gases
29achieved by participating customers in the utility’s green tariff
30shared renewables program, on an aggregated basis consistent with
31privacy protections as specified in Chapter 5 (commencing with
32Section 8380) of Division 4.1.

begin delete

33(w) Shareholders of a participating utility shall not be required
34to pay for any costs associated with the green tariff shared
35renewables program.

end delete
begin delete

36(x)

end delete

37begin insert(w)end insert Nothing in this section prohibits or restricts a community
38choice aggregator from offering its own voluntary renewable
39energy programs to participating customers of the community
40choice aggregation.

P10   1

2834.  

This chapter shall remain in effect only until January 1,
22019, and as of that date is repealed, unless a later enacted statute,
3that is enacted before January 1, 2019, deletes or extends that date.

4

SEC. 2.  

No reimbursement is required by this act pursuant to
5Section 6 of Article XIII B of the California Constitution because
6the only costs that may be incurred by a local agency or school
7district will be incurred because this act creates a new crime or
8infraction, eliminates a crime or infraction, or changes the penalty
9for a crime or infraction, within the meaning of Section 17556 of
10the Government Code, or changes the definition of a crime within
11the meaning of Section 6 of Article XIII B of the California
12Constitution.



O

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