BILL ANALYSIS Ó AB 1773 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1773 (Obernolte) - As Amended April 13, 2016 ----------------------------------------------------------------- |Policy |Utilities and Commerce |Vote:|15 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Local Government | |9 - 0 | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill allows specified joint powers authorities to participate in the Renewable Energy Self-Generation Bill Credit Transfer (RES-BCT) program. Specifically, this bill: 1)Expands the definition of "local government" to include joint powers authorities (JPAs) with public agency members located AB 1773 Page 2 within the same county and same electrical corporation service territory. 2)Excludes a JPA from participating in the RES-BCT program, if its public agency members are located in different counties or different electrical corporation service territories. Also excludes JPAs if their membership includes the federal government, any federal department or agency, the State of California or another state, or any department or agency of this state or another state. 3)Expands the definition of "benefitting account" to include specified accounts within a JPA and establishes eligibility conditions. FISCAL EFFECT: Minor, if any additional state costs. COMMENTS: 1)Purpose. According to the author, JPAs were explicitly prohibited from participating in the program, regardless of their geographic scope. Organizations like the Victor Valley Wastewater Reclamation Authority that operate within the bounds of a local government entity are prohibited from participating based on their status as a JPA. While participation in the program has grown, there is still a fair amount of room available under the cap of the program. This bill authorizes a limited expansion of the RES-BCT program to allow specified JPAs to participate. AB 1773 Page 3 2)Background. AB 2466 (Laird), Chapter 540, Statutes of 2008, established the RES-BCT program to allow a local government agency to operate a small renewable electricity generating facility in one location and have the utility credit the electricity produced against the electricity consumed at another location located within the local government boundaries. Under the RES-BCT program, local governments such as cities and counties, school districts, special districts, political subdivisions, and public agencies may participate, as well as individual college campuses. In addition, the program prohibits shifting costs to bundled service subscribers. In 2011, no local governments were participating in the RES-BCT program in any of the three investor-owned utility (IOU) territories. The Legislature passed AB 512 (Gordon), Chapter 478, Statutes of 2011, to increase the maximum size for eligible renewable energy generation from 1 MW to 5 MW. The three investor-owned utilities (IOUs) are required offer contracts to local governments under the RES-BCT program until the combined statewide cumulative generating capacity of all eligible renewable facilities within their service territories reaches 250 megawatts (MW). According to the most recent available data, the statewide cumulative amount of energy generated within the RES-BCT program is now 50 MW, which leaves 200 MW available under the total statewide program capacity. AB 1773 Page 4 Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081