Amended in Senate September 4, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1530


Introduced bybegin delete Committee on Veterans Affairsend deletebegin insert Assembly Members Levine and Gordonend insert

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(Principal coauthors: Assembly Members Gatto, Irwin, and Low)

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(Principal coauthor: Senator Hill)

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(Coauthors: Assembly Members Bonilla, Obernolte, and Mullin)

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March 18, 2015


begin deleteAn act to amend Section 2695.5 of the Penal Code, relating to veterans. end deletebegin insertAn act to add Section 354 to the Public Utilities Code, relating to electricity.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1530, as amended, begin deleteCommittee on Veterans Affairsend delete begin insertLevineend insert. begin deleteVeterans: service advocate: correctional facilities. end deletebegin insertElectricity: distributed generation.end insert

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Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. Existing law authorizes the Public Utilities Commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the Public Utilities Commission to require each electrical corporation under the operational control of the Independent System Operator as of January 1, 2001, to modify tariffs so that all customers that install new distributed energy resources, as defined, in accordance with specified criteria are served under rates, rules, and requirements identical to those of a customer within the same rate schedule that does not use distributed energy resources, and to withdraw any provisions in otherwise applicable tariffs that activate other tariffs, rates, or rules if a customer uses distributed energy resources. Existing law provides, notwithstanding these requirements, that a customer that installs new distributed energy resources not be exempted from (1) reasonable interconnection charges, (2) charges imposed pursuant to the Reliable Electric Service Investment Act, and (3) charges imposed to repay the Department of Water Resources for electricity procurement expenses incurred in response to the electricity crisis of 2000-01. Existing law requires the Public Utilities Commission, in establishing the rates applicable to customers that install new distributed energy resources, to create a firewall that segregates distribution cost recovery so that any net costs, taking into account the actual costs and benefits of distributed energy resources, proportional to each customer class, as determined by the Public Utilities Commission, resulting from the tariff modifications granted to members of each customer class may be recovered only from that class.

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This bill would require the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission and the State Air Resources Board, to promote the deployment of clean distributed energy resources, as defined, in order to provide a stable and reliable supply of electricity. The bill would require the Public Utilities Commission to prioritize deployment of smart grids, microgrids, and reliable energy resources that reduce emissions of greenhouse gases to promote specified benefits. The bill would, to the extent authorized by federal law, require the Public Utilities Commission, by July 1, 2016, to do both of the following for those electrical corporation customers that install clean distributed energy resources after January 1, 2016: (1) require each electrical corporation to collect all applicable nonbypassable charges fixed, implemented, administered, or imposed by the Public Utilities Commission based only on the actual metered consumption of electricity delivered to the customer through the electrical corporation’s transmission or distribution system, which charges are to be at the same rate per kilowatthour as paid by other customers that do not employ a clean distributed energy resource, and (2) calculate a reserve capacity for standby service, if applicable, based on the capacity needed by an electrical corporation to serve a customer’s electrical demand during an outage of the clean distributed energy resource providing electric service for that customer. The bill would require each electrical corporation to identify the total amount of nonbypassable charges that would be collected each year from customers served by clean distributed energy resources installed after January 1, 2016, based on gross consumption without any adjustment for the generation of the clean distributed energy resources. The bill would require that this total amount be fully recovered from customers in the same customer class as those customers served by clean distributed energy resources installed after January 1, 2016, and would prohibit any amount from being shifted to any other customer class. The bill would require a customer served by a clean distributed energy resource to provide relevant data to the Public Utilities Commission and the State Air Resources Board annually. The bill would provide that the facility is subject to onsite inspection to verify equipment operation and performance, including capacity, thermal output, and usage, to verify applicable criteria air pollutant and greenhouse gases emissions performance. The bill would require the Public Utilities Commission to suspend the eligibility of new customers to receive service pursuant to the rate program established pursuant to the bill on December 31, 2020.

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Existing law requires the State Air Resources Board to adopt greenhouse gas emissions limits and emissions reduction measures by regulation to achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions in furtherance of achieving the statewide greenhouse gas emissions limit.

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The bill would require the State Air Resources Board, in consultation with the State Energy Resources Conservation and Development Commission, to establish a schedule of annual greenhouse gas emissions reduction standards that certain facilities must meet, in addition to other criteria, to be included as a clean distributed energy resource for the purposes of the bill, not later than March 31, 2016. The bill would require the schedule to be updated every three years, with applicable standards for each intervening year.

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Existing law requires the State Energy Resources Conservation and Development Commission, beginning November 1, 2003, and every 2 years thereafter, to adopt an integrated energy policy report which includes an overview of major energy trends and issues facing the state, including supply, demand, pricing, reliability, efficiency, and impacts on public health and safety, the economy, resources, and the environment.

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The bill would require the State Energy Resources Conservation and Development Commission, in consultation with the Public Utilities Commission, to report on the impacts of the rate program established pursuant to the bill in the integrated energy policy report to be filed on or before November 1, 2017, and November 1, 2019.

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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.

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Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.

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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.

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

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Existing law establishes the Department of Corrections and Rehabilitation to oversee the state prison system. Under existing law, the department is required to develop guidance policies relative to the release of veterans who are inmates with the intent to assist veterans who are inmates in pursuing claims for federal veterans’ benefits, or in establishing rights to any other privilege, preference, care, or compensation provided under federal or state law because of honorable service in the military.

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Existing law authorizes a veterans service organization to volunteer to serve as a veterans service advocate at each facility that is under the jurisdiction of the department. Under existing law, the advocate is authorized to develop a veterans economic recidivism prevention plan for each inmate who is a veteran. Existing law defines “veteran” for these purposes as a person who has been discharged from the United States Army, United States Navy, United States Air Force, United States Marine Corps, United States Coast Guard, the Merchant Marine, or the American Red Cross.

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This bill would revise the definition of “veteran” for the purposes described above by deleting the reference to the American Red Cross and including a person who has been discharged from the National Guard of any state.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

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

P5    1begin insert

begin insertSECTION 1.end insert  

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begin insertSection 354 is added to the end insertbegin insertPublic Utilities Codeend insertbegin insert,
2to read:end insert

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3

begin insert354.end insert  

(a) As used in this section, “clean distributed energy
4resource” means a facility that is located on the customer’s
5premises and generates electricity, or electricity and useful heat,
6where the electricity generated is used for a purpose described in
7paragraph (1) or (2) of subdivision (b) of Section 218, and that
8meets, as determined for each year of eligibility based on the then
9current criteria, either of the following requirements:

10(1) It meets all of the following criteria:

11(A) Meets or exceeds the greenhouse gas emissions reduction
12standards established pursuant to subdivision (b).

13(B) Complies with the oxides of nitrogen (NOx) emissions
14standards adopted by the State Air Resources Board pursuant to
15the distributed generation certification program requirements (17
16Cal. Code Regs. 94203).

17(C) Has a nameplate rated generation capacity of 15 megawatts
18or less.

19(D) Is sized to meet the electrical demand of, or use the available
20waste heat of, the customer that will be served by the facility.

21(2) It meets all of the following criteria:

22(A) Is an eligible renewable energy resource, pursuant to the
23California Renewables Portfolio Standard Program (Article 16
24(commencing with Section 399.11)).

25(B) Has a nameplate rated generation capacity of 15 megawatts
26or less.

27(C) Is sized to meet the electrical demand of the customer that
28will be served by the facility.

29(D) Will not otherwise be addressed in the commission’s
30implementation of Section 769 or 2827.1.

31(b) (1) The State Air Resources Board, in consultation with the
32 Energy Commission, shall establish a schedule of annual
33greenhouse gas emissions reduction standards for a clean
34distributed energy resource, for the purpose of paragraph (1) of
35subdivision (a), not later than March 31, 2016, and shall update
36the schedule every three years, with applicable standards for each
37intervening year.

P6    1(2) The greenhouse gas emissions reduction standards shall
2ensure that each eligible clean distributed energy resource, for
3the purpose of paragraph (1) of subdivision (a), reduces
4greenhouse gas emissions compared to the electrical grid
5resources, including renewable resources, that the clean distributed
6energy resource displaces, accounting for both procurement and
7operation of the electrical grid.

8(c) (1) In order to promote a modern electrical grid that
9provides a stable and reliable supply of electricity, the commission,
10in consultation with the Energy Commission and State Air
11Resources Board, shall promote the deployment of clean distributed
12energy resources.

13(2) The commission shall prioritize deployment of smart grids,
14microgrids, and reliable energy resources that reduce emissions
15of greenhouse gases to promote the following cobenefits:

16(A) Deployment of innovative technologies in California
17communities, especially disadvantaged communities.

18(B) Reduction of the use of water to generate electricity to assist
19with the drought.

20(C) Assistance to the state in reaching its State Implementation
21Plan goals for clean air.

22(d) To the extent authorized by federal law, by July 1, 2016, the
23commission shall require each electrical corporation to do the
24following for customers served by clean distributed energy
25resources installed after January 1, 2016:

26(1) Collect all applicable nonbypassable charges fixed,
27implemented, administered, or imposed by the commission based
28only on the actual metered consumption of electricity delivered to
29the customer through the electrical corporation’s transmission or
30distribution system. All charges shall be at the same rate per
31kilowatthour as paid by other customers that do not employ a clean
32distributed energy resource under the electrical corporation’s
33applicable rate schedule.

34(2) Identify the total amount of nonbypassable charges that
35would be collected each year from customers served by clean
36distributed energy resources installed after January 1, 2016, based
37on gross consumption without any adjustment for the generation
38of the clean distributed energy resources. This total amount shall
39be fully recovered from customers in the same customer class as
40those customers served by clean distributed energy resources
P7    1installed after January 1, 2016, and no amount may be shifted to
2any other customer class.

3(3) (A) Calculate a reserve capacity for standby service, if
4applicable, based on the capacity needed by an electrical
5corporation to serve a customer’s electrical demand during an
6outage of the clean distributed energy resource providing electric
7service for that customer.

8(B) Initial reserve capacity shall be established by the customer
9for a minimum of 12 months based on the clean distributed energy
10resource generation technology’s historical operation, the number,
11size, and outage diversity of the clean distributed energy resource,
12and the annual average reduction of customer load that could
13occur during an outage.

14(C) If after the initial 12-month period, the electrical corporation
15reasonably determines that the reserve capacity does not reflect
16the customer’s actual standby demand, averaged over the previous
1712 months, the electrical corporation shall modify the reserve
18capacity once every 12 months to reflect the customer’s actual
19average annual reserve capacity based on the same criteria used
20to establish the initial reserve capacity. Calculation of actual
21average annual reserve capacity shall exclude the customer’s
22electrical demand served by the electrical corporation within 24
23hours following an outage of the clean distributed energy resource
24resulting from any event on the electrical corporation’s
25transmission or distribution grid that is outside of the customer’s
26control that requires the customer to reduce onsite generation.

27(e) A customer served by a clean distributed energy resource
28shall provide relevant data to the commission and the State Air
29Resources Board annually. The facility shall be subject to onsite
30inspection to verify equipment operation and performance,
31including capacity, thermal output, and usage, to verify applicable
32criteria for air pollutant and greenhouse gases emissions
33performance. Requests for relevant data shall occur no more than
34once per year.

35(f) (1) The Energy Commission, in consultation with the
36commission, shall report on the impacts of this section in the
37integrated energy policy report to be filed on or before November
381, 2017, and November 1, 2019.

P8    1(2) The report to be submitted pursuant to this subdivision shall
2be submitted in compliance with Section 9795 of the Government
3Code.

4(3) The requirement for submitting a report pursuant to this
5subdivision is inoperative on November 1, 2021, pursuant to
6Section 10231.5 of the Government Code.

7(g) The commission shall suspend the eligibility of new
8 customers to receive service pursuant to the rate program
9established pursuant to subdivision (d) on December 31, 2020.
10Customers that installed clean distributed energy resources after
11January 1, 2016, that became operational prior to suspension of
12eligibility pursuant to this subdivision and continue to generate
13electricity from their clean distributed energy resources after
14suspension shall continue to participate in the rate program
15established pursuant to subdivision (d) for the entire useful life of
16their clean distributed energy resource.

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17

begin insertSEC. 2.end insert  

No reimbursement is required by this act pursuant to
18Section 6 of Article XIII B of the California Constitution because
19the only costs that may be incurred by a local agency or school
20district will be incurred because this act creates a new crime or
21infraction, eliminates a crime or infraction, or changes the penalty
22for a crime or infraction, within the meaning of Section 17556 of
23the Government Code, or changes the definition of a crime within
24the meaning of Section 6 of Article XIII B of the California
25Constitution.

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26

SECTION 1.  

Section 2695.5 of the Penal Code is amended to
27read:

28

2695.5.  

For purposes of this article, the following definitions
29shall apply:

30(a) “Advocate” means a veterans service organization that is
31federally certified and has volunteered to serve as a veterans service
32advocate pursuant to this article.

33(b) “Veteran” means a person who has been discharged from
34the United States Army, United States Navy, United States Air
35Force, United States Marine Corps, United States Coast Guard,
36the National Guard of any state, or the Merchant Marine.

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