begin deleteCommittee on Budgetend delete . begin deleteBudget Act of 2016. end delete
This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2016.end delete
begin deleteno end delete.
State-mandated local program: no.
The people of the State of California do enact as follows:
(a) (1) It is the intent of the Legislature that the
4self-generation incentive program increase deployment of
5distributed generation and energy storage systems to facilitate the
6integration of those resources into the electrical grid, improve
7efficiency and reliability of the distribution and transmission
8system, and reduce emissions of greenhouse gases, peak demand,
9and ratepayer costs. It is the further intent of the Legislature that
10the commission, in future proceedings, provide for an equitable
11distribution of the costs and benefits of the program.
12(2) The commission, in consultation with the Energy
13Commission, may authorize the annual collection of not more than
14 the amount authorized for the self-generation incentive
15program in the 2008 calendar year, through December 31, 2019.
16The commission shall require the administration of the program
17for distributed energy resources originally established pursuant to
18Chapter 329 of the Statutes of 2000 until January 1, 2021. On
19January 1, 2021, the commission shall provide repayment of all
20unallocated funds collected pursuant to this section to reduce
22(3) The commission shall administer solar technologies
23separately, pursuant to the California Solar Initiative adopted by
24the commission in Decisions 05-12-044 and 06-01-024, as modified
25by Article 1 (commencing with Section 2851) of Chapter 9 of Part
262 of Division 1 of this code and Chapter 8.8 (commencing with
27Section 25780) of Division 15 of the Public Resources Code.
28(b) (1) Eligibility for incentives under the self-generation
29incentive program shall be limited to distributed energy resources
30that the commission, in consultation with the State Air Resources
31Board, determines will achieve reductions in emissions of
32greenhouse gases pursuant to the California Global Warming
33Solutions Act of 2006 (Division 25.5 (commencing with Section
3438500) of the Health and Safety Code).
35(2) On or before July 1, 2015, the commission shall update the
36factor for avoided greenhouse gas emissions based on the most
37recent data available to the State Air Resources Board for
38greenhouse gas emissions from electricity sales in the
P4 1self-generation incentive program administrators’ service areas as
2well as current estimates of greenhouse gas emissions over the
3useful life of the distributed energy resource, including
4consideration of the effects of the California Renewables Portfolio
6(c) Eligibility for the funding of any combustion-operated
7distributed generation projects using fossil fuel is subject to all of
8the following conditions:
9(1) An oxides of nitrogen (NOx) emissions rate standard of 0.07
10pounds per megawatthour and a minimum efficiency of 60 percent,
11or any other NOx emissions rate and minimum efficiency standard
12adopted by the State Air Resources Board. A minimum efficiency
13of 60 percent shall be measured as useful energy output divided
14by fuel input. The efficiency determination shall be based on 100
16(2) Combined heat and power units that meet the 60-percent
17efficiency standard may take a credit to meet the applicable NOx
18 emissions standard of 0.07 pounds per megawatthour. Credit shall
19be at the rate of one megawatthour for each 3,400,000 British
20thermal units (Btus) of heat recovered.
21(3) The customer receiving incentives shall adequately maintain
22and service the combined heat and power units so that during
23operation the system continues to meet or exceed the efficiency
24and emissions standards established pursuant to paragraphs (1)
26(4) Notwithstanding paragraph (1), a project that does not meet
27the applicable NOx emissions standard is eligible if it meets both
28of the following requirements:
29(A) The project operates solely on waste gas. The commission
30shall require a customer that applies for an incentive pursuant to
31this paragraph to provide an affidavit or other form of proof that
32specifies that the project shall be operated solely on waste gas.
33Incentives awarded pursuant to this paragraph shall be subject to
34refund and shall be refunded by the recipient to the extent the
35project does not operate on waste gas. As used in this paragraph,
36“waste gas” means natural gas that is generated as a byproduct of
37petroleum production operations and is not eligible for delivery
38to the utility pipeline system.
39(B) The air quality management district or air pollution control
40district, in issuing a permit to operate the project, determines that
P5 1operation of the project will produce an onsite net air emissions
2benefit compared to permitted onsite emissions if the project does
3not operate. The commission shall require the customer to secure
4the permit prior to receiving incentives.
5(d) In determining the eligibility for the self-generation incentive
6program, minimum system efficiency shall be determined either
7by calculating electrical and process heat efficiency as set forth in
8Section 216.6, or by calculating overall electrical efficiency.
9(e) Eligibility for incentives under the program shall be limited
10to distributed energy resource technologies that the commission
11determines meet all of the following requirements:
12(1) The distributed energy resource technology shifts onsite
13energy use to off-peak time periods or reduces demand from the
14grid by offsetting some or all of the customer’s onsite energy load,
15including, but not limited to, peak electric load.
16(2) The distributed energy resource technology is commercially
18(3) The distributed energy resource technology safely utilizes
19the existing transmission and distribution system.
20(4) The distributed energy resource technology improves air
21 quality by reducing criteria air pollutants.
22(f) Recipients of the self-generation incentive program funds
23shall provide relevant data to the commission and the State Air
24Resources Board, upon request, and shall be subject to onsite
25inspection to verify equipment operation and performance,
26including capacity, thermal output, and usage to verify criteria air
27pollutant and greenhouse gas emissions performance.
28(g) In administering the self-generation incentive program, the
29commission shall determine a capacity factor for each distributed
30generation system energy resource technology in the program.
31(h) (1) In administering the self-generation incentive program,
32the commission may adjust the amount of rebates and evaluate
33other public policy interests, including, but not limited to,
34ratepayers, energy efficiency, peak load reduction, load
35management, and environmental interests.
36(2) The commission shall consider the relative amount and the
37cost of greenhouse gas emissions reductions, peak demand
38reductions, system reliability benefits, and other measurable factors
39when allocating program funds between eligible technologies.
P6 1(i) The commission shall ensure that distributed generation
2resources are made available in the program for all ratepayers.
3(j) In administering the self-generation incentive program, the
4commission shall provide an additional incentive of 20 percent
5from existing program funds for the installation of eligible
6distributed generation resources manufactured in California.
7(k) The costs of the program adopted and implemented
8to this section shall not be recovered from customers participating
9in the California Alternate Rates for Energy (CARE) program.
10(l) The commission shall evaluate the overall success and impact
11of the self-generation incentive program based on the following
13(1) The amount of reductions of emissions of greenhouse gases.
14(2) The amount of reductions of emissions of criteria air
15pollutants measured in terms of avoided emissions and reductions
16of criteria air pollutants represented by emissions credits secured
17for project approval.
18(3) The amount of energy reductions measured in energy value.
19(4) The amount of reductions of customer peak demand.
20(5) The ratio of the electricity generated by distributed energy
21resource generation projects receiving incentives from the program
22to the electricity capable of being produced by those projects,
23commonly known as a capacity factor.
24(6) The value to the electrical transmission and distribution
25system measured in avoided costs of transmission and distribution
26upgrades and replacement.
27(7) The ability to improve onsite electricity reliability as
28compared to onsite electricity reliability before the self-generation
29incentive program technology was placed in service.
(a) As used in this section, the following terms have
33the following meanings:
34(1) “Electrical corporation” means an electrical corporation, as
35defined in Section 218.
36(2) “Eligible fuel cell electrical generating facility” means a
37facility that includes the following:
38(A) Integrated powerplant systems containing a stack, tubular
39array, or other functionally similar configuration used to
40electrochemically convert fuel to electricity.
P7 1(B) An inverter and fuel processing system where necessary.
2(C) Other plant
equipment, including heat recovery equipment,
3necessary to support the plant’s operation or its energy conversion.
4(3) (A) “Eligible fuel cell customer-generator” means a
5customer of an electrical corporation that meets all the following
7(i) Uses a fuel cell electrical generating facility with a
8 capacity of not more than
begin delete one megawattend delete that is
9located on or adjacent to the customer’s owned, leased, or rented
10premises, is interconnected and operates in parallel with the
11electrical grid while the grid is operational or in a grid independent
12mode when the grid is nonoperational, and is sized to offset part
13or all of the eligible fuel cell customer-generator’s own electrical
15(ii) Is the recipient of local, state, or federal funds, or who
16self-finances projects designed to encourage the development of
17eligible fuel cell electrical generating facilities.
18(iii) Uses technology the commission has determined will
19achieve reductions in emissions of greenhouse gases pursuant to
begin delete (b), and meets the emission requirements for eligibility
21for funding set forth in subdivision (c), of Section 379.6.end delete
27 For purposes of this paragraph, a person or entity is a
28customer of the electrical corporation if the customer is physically
29located within the service territory of the electrical corporation
30and receives bundled service, distribution service, or transmission
31service from the electrical corporation.
32(4) “Net energy metering” means measuring the difference
33between the electricity supplied through the electrical grid and the
34difference between the electricity generated by an eligible fuel cell
35electrical generating facility and fed back to the electrical grid over
36a 12-month period as described in subdivision (e). Net energy
37metering shall be accomplished using a time-of-use meter capable
38of registering the flow of electricity in two directions. If the existing
39electrical meter of an eligible fuel cell customer-generator is not
40capable of measuring the flow of electricity in two directions, the
P8 1eligible fuel cell customer-generator shall be responsible for all
2expenses involved in purchasing and installing a meter that is able
3to measure electricity flow in two directions. If an additional meter
4or meters are installed, the net energy metering calculation shall
5yield a result identical to that of a time-of-use meter.
21 (1) Every electrical corporation, not later than March 1,
222004, shall file with the commission a standard tariff providing
23for net energy metering for eligible fuel cell customer-generators,
24consistent with this section. Subject to the limitation in subdivision
begin delete (f),end delete every electrical corporation shall make this tariff
26to eligible fuel cell customer-generators upon request, on a
27first-come-first-served basis, until the total cumulative rated
28generating capacity of the eligible fuel cell electrical generating
29facilities receiving service pursuant to the
begin delete tariffend delete reaches a level
31equal to its proportionate share of a statewide limitation of 500
32megawatts cumulative rated generation capacity served under this
33section. The proportionate share shall be calculated based on the
34ratio of the electrical corporation’s peak demand compared to the
35total statewide peak demand.
36(2) To continue the growth of the market for onsite electrical
37generation using fuel cells, the commission may review and
38incrementally raise the limitation established in paragraph (1) on
39the total cumulative rated generating capacity of the eligible fuel
P9 1cell electrical generating facilities receiving service pursuant to
2the tariff in paragraph (1).
4 In determining the eligibility for the cumulative rated
5generating capacity within an electrical corporation’s service
6territory, preference shall be given to facilities that, at the time of
7installation, are located in a community with significant exposure
8to air contaminants or localized air contaminants, or both,
9including, but not limited to, communities of minority populations
10or low-income populations, or both, based on the ambient air
11quality standards established pursuant to Division 26 (commencing
12with Section 39000) of the Health and Safety Code.
14 (1) Each net energy metering contract or tariff shall be
15identical, with respect to rate structure, all retail rate components,
16and any monthly charges, to the contract or tariff to which the
17customer would be assigned if the customer was not an eligible
18fuel cell customer-generator. Any new or additional demand
19charge, standby charge, customer charge, minimum monthly
20charge, interconnection charge, or other charge that would increase
21an eligible fuel cell customer-generator’s costs beyond those of
22other customers in the rate class to which the eligible fuel cell
23customer-generator would otherwise be assigned are contrary to
24the intent of the Legislature in enacting this section, and shall not
25form a part of net energy metering tariffs.
26(2) The commission shall authorize an electrical corporation to
27charge a fuel cell customer-generator a fee based on the cost to
28the utility associated with providing interconnection inspection
29services for that fuel cell customer-generator.
31 The net metering calculation shall be made by measuring
32the difference between the electricity supplied to the eligible fuel
33cell customer-generator and the electricity generated by the eligible
34fuel cell customer-generator and fed back to the electrical grid
35over a 12-month period. The following rules shall apply to the
36annualized metering calculation:
37(1) The eligible fuel cell customer-generator shall, at the end
38of each 12-month period following the date of final interconnection
39of the eligible fuel cell electrical generating facility with an
40electrical corporation, and at each anniversary date thereafter, be
P10 1billed for electricity used during that period. The electrical
2corporation shall determine if the eligible fuel cell
3customer-generator was a net consumer or a net producer of
4electricity during that period. For purposes of determining if the
5eligible fuel cell customer-generator was a net consumer or a net
6producer of electricity during that period, the electrical corporation
7shall aggregate the electrical load of the meters located on the
8property where the eligible fuel cell electrical generating facility
9is located and on all property adjacent or contiguous to the property
10on which the facility is located, if those properties are solely
11owned, leased, or rented by the eligible fuel cell
12customer-generator. Each aggregated account shall be billed and
13measured according to a time-of-use rate schedule.
14(2) At the end of each 12-month period, where the
15supplied during the period by the electrical corporation exceeds
16the electricity generated by the eligible fuel cell customer-generator
17during that same period, the eligible fuel cell customer-generator
18is a net electricity consumer and the electrical corporation shall
19be owed compensation for the eligible fuel cell
20customer-generator’s net kilowatthour consumption over that same
21period. The compensation owed for the eligible fuel cell
22customer-generator’s consumption shall be calculated as follows:
23(A) The generation charges for any net monthly consumption
24of electricity shall be calculated according to the terms of the tariff
25to which the same customer would be assigned to or be eligible
26for if the customer was not an eligible fuel cell customer-generator.
27When the eligible fuel cell customer-generator is a net generator
28during any discrete time-of-use period, the net kilowatthours
29produced shall be valued at the same price per kilowatthour as the
30electrical corporation would charge for retail kilowatthour sales
31for generation, exclusive of any surcharges, during that same
32time-of-use period. If the eligible fuel cell customer-generator’s
33time-of-use electrical meter is unable to measure the flow of
34electricity in two directions, paragraph (4) of subdivision (a) shall
35apply. All other charges, other than generation charges, shall be
36calculated in accordance with the eligible fuel cell
37customer-generator’s applicable tariff and based on the total
38kilowatthours delivered by the electrical corporation to the eligible
39fuel cell customer-generator. To the extent that charges for
40transmission and distribution services are recovered through
P11 1demand charges in any particular month, no standby reservation
2charges shall apply in that monthly billing cycle.
3(B) The net balance of moneys owed shall be paid in accordance
4with the electrical corporation’s normal billing cycle.
5(3) At the end of each 12-month period, where the electricity
6generated by the eligible fuel cell customer-generator during the
712-month period exceeds the electricity supplied by the electrical
8corporation during that same period, the eligible fuel cell
9customer-generator is a net electricity producer and the electrical
10corporation shall retain any excess kilowatthours generated during
11the prior 12-month period. The eligible fuel cell customer-generator
12shall not be owed any compensation for those excess kilowatthours.
13(4) If an eligible fuel cell customer-generator terminates service
14with the electrical corporation, the electrical corporation shall
15reconcile the eligible fuel cell customer-generator’s consumption
16and production of electricity during any 12-month period.
18 A fuel cell electrical generating facility shall not be eligible
19for the tariff unless it commences operation
begin delete prior to January 1, unless a later enacted
21statute, that is chaptered
begin delete before January 1, 2017,end delete extends this eligibility commencement date.
23The tariff shall remain in effect for an eligible fuel cell electrical
24generating facility that commences operation pursuant to the tariff
begin delete prior to January 1, 2017.end delete A fuel
26cell customer-generator shall be eligible for the tariff established
27pursuant to this section only for the operating life of the eligible
28fuel cell electrical generating facility.
It is the intent of the Legislature to enact statutory
30changes relating to the 2016 Budget Act.
Corrected 8-23-16—See last page. 97