BILL ANALYSIS �
SB 43
Page 1
SENATE THIRD READING
SB 43 (Wolk)
As Amended September 6, 2013
Majority vote
SENATE VOTE : 27-9
UTILITIES & COMMERCE 11-1 APPROPRIATIONS
13-1
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|Ayes:|Bradford, Bonilla, |Ayes:|Gatto, Bocanegra, |
| |Buchanan, Fong, Garcia, | |Bradford, |
| |Gorell, Roger Hern�ndez, | |Ian Calderon, Campos, |
| |Quirk, Rendon, Skinner, | |Eggman, Gomez, Hall, |
| |Williams | |Holden, Linder, Pan, |
| | | |Quirk, Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Patterson |Nays:|Donnelly |
| | | | |
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SUMMARY : Establishes, until January 1, 2019, a Green Tariff Shared
Renewables Program (Program) to allow investor-owned utilities
(IOUs) to administer a program that allows utility customers to
voluntarily purchase electricity from renewable energy facilities.
Specifically, this bill :
a)Establishes a 600 Megawatt (MW) pilot program until July 1, 2016,
for a Green Tariff Shared Renewables Program to allow customers of
IOUs to purchase electricity from renewable energy facilities and
specifies program implementation requirements with respect to
valuing bill credits and how the renewable attributes are counted
in the State's Renewable Portfolio Standard program.
b)Allocates 100 MWs to residential customers and 100 MWs for one MW
facilities located in the disadvantaged communities.
c)Allocates 20 MWs to the City of Davis.
d)Requires that the cost of the program be paid by the program
participants and establishes transparency requirements for
expenditures and revenues.
e)Specifies that costs for this program shall not be paid by
SB 43
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non-participating ratepayers.
f)Specifies that IOU shareholders are not required to pay for costs
associated with this program.
g)Specifies that Community Choice Aggregators may voluntarily offer
a similar program.
h)Sunsets the provisions of this bill on January 1, 2019.
FISCAL EFFECT : According to the Assembly Appropriations Committee,
increased costs to the Public Utilities Commission (PUC) of
approximately $250,000 from the Public Utilities Reimbursement
Account (special fund) to implement and evaluate the program.
COMMENTS :
1)Author's statement . "While rooftop solar is a strong and growing
business in California, at least 75% of households cannot
participate because they are renters and don't own their roofs,
they do not have strong enough credit, or their roof is too small
or doesn't receive enough sunlight. The same is true of most
businesses, 70% of whom rent or lease their facilities. Despite
their inability to utilize renewable energy, these utility
customers continue to pay into solar and renewable programs that
fail to benefit them. Additionally, programs (Multi-family
Affordable Solar Housing (MASH), Single-family Affordable Solar
Homes (SASH), Solar Share, etc.) designed to benefit low-income or
rental utility customers by providing them the opportunity to
utilize renewable energy either have no room for new participants
or fail to provide consumers with access to affordable renewable
energy.
"Moreover, programs set up to offer schools and local governments
an avenue to invest in off-site renewable energy have proven
uneconomical, with too many barriers preventing projects from
penciling out. SB 43 will allow all California households and
businesses the ability to voluntarily buy up to 100% renewable
power from a shared facility in their utility's territory and
receive a credit on their current utility bill. SB 43 is not
limited to solar but rather applies to any new renewable facility
up to 20MW in size.
2)Similar programs pending approval at PUC . Two utilities have
filed applications for approval of similar programs at the PUC:
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a) In January 2012 San Diego Gas and Electric (SDG&E) applied
to PUC for approval to administer a community renewables
program. This application is pending at PUC.
b) In April 2012, Pacific Gas and Electric (PG&E) applied to
PUC for approval to administer a Green Tariff Program. In
April 2013, Sierra Club California, the National Asian American
Coalition, the Coalition Of California Utility Employees, PG&E
Company, the Black Economic Council, the Latino Business
Chamber of Greater L.A., the California Clean Energy Committee,
and The Utility Reform Network (TURN) reached a settlement on
the PG&E application. The settlement would provide for a 250
MW program that would procure power from new renewable
facilities and provide 100% renewable power to customers who
voluntarily elect to participate. The amounts paid by the
customers would be the actual cost of the new renewable
generation. Customers who do not elect to participate would pay
no costs for this program.
1)Related legislation .
a) SB 383 (Wolk) of 2011 was amended to address a subject
unrelated to community renewables.
b) SB 843 (Wolk) of 2012 died in the Assembly.
c) AB 1014 (Williams) of 2013 was held in the Senate Rules
Committee.
d) AB 1295 (Roger Hern�ndez) of 2013is pending the in Senate
Energy, Utilities, and Communications Committee.
Analysis Prepared by : Susan Kateley / U. & C. / (916) 319-2083
FN: 0002447