BILL ANALYSIS �
SB 43
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Date of Hearing: August 14, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 43 (Wolk) - As Amended: August 6, 2013
Policy Committee: Utilities and
Commerce Vote: 11-1
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill establishes the Green Tariff Shared Renewables
Program, a statewide 600 Megawatt (MW) pilot program, to allow
the customers of investor-owned utilities to purchase a portion
of electricity from a renewable facility. Specifically, this
bill:
1)Requires an electrical corporation, with 100,000 or more
customer accounts in California,
to file an application with the Public Utilities Commission
(PUC) on or before March 1, 2014 requesting approval to
implement a green tariff shared renewables program consistent
with the stated findings and intent of the bill. Requires the
PUC to make a determination on the application by July 1,
2014.
2)Allows, but does not require, electrical corporations with
less than 100,000 customer accounts to file an application
with the PUC to administer a consistent program.
3)Exempts from the provisions of the bill, any electrical
corporation that, prior to May 1, 2013, applied to the PUC to
establish an equivalent program. Also exempts a settlement
agreement approved by the PUC relative to parties contesting
an application filed prior to May 1, 2013.
4)Requires the following of the 600 MW pilot project:
a) 100 MW reserved for facilities in areas
disproportionately impacted by environmental pollution or
SB 43
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socioeconomic vulnerability as identified by CalEPA.
b) Not less than 100 MW reserved for residential class
customers.
c) 20 MW reserved for the City of Davis.
5)Sunsets the program on January 1, 2019.
FISCAL EFFECT
Increased costs to the PUC of approximately $250,000 annually
from the Public Utilities Reimbursement Account (special fund)
to implement and evaluate the program.
COMMENTS
1)Purpose. This bill is intended to allow electricity customers
to serve their energy needs with a greater proportion of
renewable energy by creating an option to receive a portion of
their electrical usage from participating independent
renewable facilities. The customer would receive a credit on
their bill for the electricity received from a renewable
facility.
2)Background. In January 2012, San Diego Gas & Electric
(SDG&E) applied to the PUC for approval to administer a
community renewables program. This application is pending
before the PUC.
In April 2012, Pacific Gas & Electric (PG&E) also applied to
administer a community renewables program. A settlement on
this application was reached by PG&E and the
Sierra Club California, the National Asian American Coalition;
the Coalition of California Utility Employees, the Black
Economic Council, and the Latino Business Chamber of Greater
L.A.
The settlement establishes a 250 MW renewable procurement
program to allow customers to elect to receive 100% of their
power from renewable resources.
SB 43
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Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081