BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1773


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          Date of Hearing:  May 4, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          1773 (Obernolte) - As Amended April 13, 2016


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          |Policy       |Utilities and Commerce         |Vote:|15 - 0       |
          |Committee:   |                               |     |             |
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          |-------------+-------------------------------+-----+-------------|
          |             |Local Government               |     |9 - 0        |
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          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  








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            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. 










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          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.










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          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081