Amended in Senate August 19, 2016

Amended in Senate June 2, 2016

Amended in Assembly April 14, 2016

Amended in Assembly April 5, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1923


Introduced by Assembly Member Wood

February 11, 2016


An act to amend Section 399.20 of the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

AB 1923, as amended, Wood. Bioenergy feed-in tariff.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law requires every electrical corporation to file with the commission a standard tariff for electricity generated by an electric generation facility, as defined, that qualifies for the tariff, is owned and operated by a retail customer of the electrical corporation, and is located within the service territory of, and developed to sell electricity to, the electrical corporation. The commission refers to this requirement as the renewable feed-in tariff. Existing law requires that, in order to qualify for the tariff, the electric generation facility: (1) have an effective capacity of not more than 3 megawatts, subject to the authority of the commission to reduce this megawatt limitation, (2) be interconnected and operate in parallel with the electric transmission and distribution grid, (3) be strategically located and interconnected to the electrical transmission and distribution system in a manner that optimizes the deliverability of electricity generated at the facility to load centers, and (4) meet the definition of an eligible renewable energy resource under the California Renewables Portfolio Standard Program. Existing law requires an electrical corporation to make the tariff available to the owner or operator of an electric generation facility within the service territory of the electrical corporation, upon request, on a first-come-first-served basis, until the electrical corporation meets its proportionate share of a statewide cap of 750 megawatts cumulative rated generation capacity served under the renewable feed-in tariff and a renewable feed-in tariff that is applicable to a local publicly owned electric utility. In addition to the 750 megawatt limitation, the renewable feed-in tariff requires the commission to direct the electrical corporations to collectively procure at least 250 megawatts of cumulative rated generating capacity from developers of bioenergy projects that commence operation on or after June 1, 2013 (bioenergy feed-in tariff). The commission is required to undertake specific steps to implement the bioenergy feed-in tariff requirement.

This billbegin delete wouldend deletebegin insert would, for the purposes of the bioenergy feed-in tariff, revise a generally applicable interconnection requirement for electric generation facilities, as specified. The bill would alsoend insert require the commission to direct the electrical corporations to authorize a bioenergy electric generation facility withbegin delete a nameplate generatingend deletebegin insert an effectiveend insert capacity of up to 5 megawatts to participate in the bioenergy feed-in tariff if the facility delivers no more than 3 megawatts to the grid at any time and complies with specified interconnection and payment requirements.

begin insert

This bill would incorporate additional changes to Section 399.20 of the Public Utilities Code proposed by AB 1612 and SB 840 that would become operative if this bill and one or both of those bills are enacted and this bill is chaptered last.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P2    1

SECTION 1.  

Section 399.20 of the Public Utilities Code is
2amended to read:

P3    1

399.20.  

(a) It is the policy of this state and the intent of the
2Legislature to encourage electrical generation from eligible
3renewable energy resources.

4(b) As used in this section, “electric generation facility” means
5an electric generation facility located within the service territory
6of, and developed to sell electricity to, an electrical corporation
7that meets all of the following criteria:

8(1) Has an effective capacity of not more than three megawatts,
9with the exception of those facilities participating in a tariff made
10available pursuant to paragraph (2) of subdivision (f).

11(2) Is interconnected and operates in parallel with the electrical
12transmission and distribution grid.

13(3) begin deleteIs end deletebegin insert(A)end insertbegin insertend insertbegin insertExcept as provided in subparagraph (B), is end insert
14strategically located and interconnected to the electrical
15transmission and distribution grid in a manner that optimizes the
16deliverability of electricity generated at the facility to load centers.

begin insert

17
(B) For purposes of paragraph (2) of subdivision (f), is
18strategically located and interconnected to the electrical
19transmission and distribution grid in a manner that optimizes the
20deliverability of electricity generated at the facility to load centers
21or that is interconnected to an existing transmission line.

end insert

22(4) Is an eligible renewable energy resource.

23(c) Every electrical corporation shall file with the commission
24a standard tariff for electricity purchased from an electric
25generation facility. The commission may modify or adjust the
26requirements of this section for any electrical corporation with less
27than 100,000 service connections, as individual circumstances
28merit.

29(d) (1) The tariff shall provide for payment for every
30kilowatthour of electricity purchased from an electric generation
31facility for a period of 10, 15, or 20 years, as authorized by the
32commission. The payment shall be the market price determined
33by the commission pursuant to paragraph (2) and shall include all
34current and anticipated environmental compliance costs, including,
35but not limited to, mitigation of emissions of greenhouse gases
36and air pollution offsets associated with the operation of new
37generating facilities in the local air pollution control or air quality
38management district where the electric generation facility is
39located.

P4    1(2) The commission shall establish a methodology to determine
2the market price of electricity for terms corresponding to the length
3of contracts with an electric generation facility, in consideration
4of the following:

5(A) The long-term market price of electricity for fixed price
6contracts, determined pursuant to an electrical corporation’s general
7 procurement activities as authorized by the commission.

8(B) The long-term ownership, operating, and fixed-price fuel
9costs associated with fixed-price electricity from new generating
10facilities.

11(C) The value of different electricity products including
12baseload, peaking, and as-available electricity.

13(3) The commission may adjust the payment rate to reflect the
14value of every kilowatthour of electricity generated on a
15time-of-delivery basis.

16(4) The commission shall ensure, with respect to rates and
17charges, that ratepayers that do not receive service pursuant to the
18tariff are indifferent to whether a ratepayer with an electric
19generation facility receives service pursuant to the tariff.

20(e) An electrical corporation shall provide expedited
21interconnection procedures to an electric generation facility located
22on a distribution circuit that generates electricity at a time and in
23a manner so as to offset the peak demand on the distribution circuit,
24if the electrical corporation determines that the electric generation
25facility will not adversely affect the distribution grid. The
26commission shall consider and may establish a value for an electric
27generation facility located on a distribution circuit that generates
28electricity at a time and in a manner so as to offset the peak demand
29on the distribution circuit.

30(f) (1) An electrical corporation shall make the tariff available
31to the owner or operator of an electric generation facility within
32the service territory of the electrical corporation, upon request, on
33a first-come-first-served basis, until the electrical corporation meets
34its proportionate share of a statewide cap of 750 megawatts
35cumulative rated generation capacity served under this section and
36Section 399.32. The proportionate share shall be calculated based
37on the ratio of the electrical corporation’s peak demand compared
38to the total statewide peak demand.

39(2) By June 1, 2013, the commission shall, in addition to the
40750 megawatts identified in paragraph (1), direct the electrical
P5    1corporations to collectively procure at least 250 megawatts of
2cumulative rated generating capacity from developers of bioenergy
3projects that commence operation on or after June 1, 2013. The
4commission shall, for each electrical corporation, allocate shares
5of the additional 250 megawatts based on the ratio of each electrical
6corporation’s peak demand compared to the total statewide peak
7demand. In implementing this paragraph, the commission shall do
8all of the following:

9(A) Allocate the 250 megawatts identified in this paragraph
10among the electrical corporations based on the following
11categories:

12(i) For biogas from wastewater treatment, municipal organic
13waste diversion, food processing, and codigestion, 110 megawatts.

14(ii) For dairy and other agricultural bioenergy, 90 megawatts.

15(iii) For bioenergy using byproducts of sustainable forest
16management, 50 megawatts. Allocations under this category shall
17be determined based on the proportion of bioenergy that sustainable
18forest management providers derive from sustainable forest
19management in fire threat treatment areas, as designated by the
20Department of Forestry and Fire Protection.

21(B) Direct the electrical corporations to develop standard
22contract terms and conditions that reflect the operational
23characteristics of the projects, and to provide a streamlined
24contracting process.

25(C) Coordinate, to the maximum extent feasible, any incentive
26or subsidy programs for bioenergy with the agencies listed in
27subparagraph (A) of paragraph (3) in order to provide maximum
28benefits to ratepayers and to ensure that incentives are used to
29reduce contract prices.

30(D) The commission shall encourage gas and electrical
31corporations to develop and offer programs and services to facilitate
32development of in-state biogas for a broad range of purposes.

33(E) Direct the electrical corporations to authorize a bioenergy
34electric generation facility withbegin delete a nameplate generatingend deletebegin insert an effectiveend insert
35 capacity of up to five megawatts to participate in the tariff made
36available pursuant to this paragraph, if it meets the following
37conditions:

38(i) It delivers no more than three megawatts to the grid at any
39time.

P6    1(ii) It complies with the electrical corporation’s Electric Rule
221 tariff or other distribution access tariff.

begin delete

3(iii)

end delete

4begin insert(F)end insert Payment is made pursuant to paragraph (1) of subdivision
5(d) and no payment is made for any electricity delivered to the
6grid in excess of three megawatts at any time.

7(3) (A) The commission, in consultation with the State Energy
8Resources Conservation and Development Commission, the State
9Air Resources Board, the Department of Forestry and Fire
10Protection, the Department of Food and Agriculture, and the
11Department of Resources Recycling and Recovery, may review
12the allocations of the 250 additional megawatts identified in
13paragraph (2) to determine if those allocations are appropriate.

14(B) If the commission finds that the allocations of the 250
15additional megawatts identified in paragraph (2) are not
16appropriate, the commission may reallocate the 250 megawatts
17 among the categories established in subparagraph (A) of paragraph
18(2).

19(4) For the purposes of this subdivision, “bioenergy” means
20biogas and biomass.

21(g) The electrical corporation may make the terms of the tariff
22available to owners and operators of an electric generation facility
23in the form of a standard contract subject to commission approval.

24(h) Every kilowatthour of electricity purchased from an electric
25generation facility shall count toward meeting the electrical
26corporation’s renewables portfolio standard annual procurement
27targets for purposes of paragraph (1) of subdivision (b) of Section
28399.15.

29(i) The physical generating capacity of an electric generation
30facility shall count toward the electrical corporation’s resource
31adequacy requirement for purposes of Section 380.

32(j) (1) The commission shall establish performance standards
33for any electric generation facility that has a capacity greater than
34one megawatt to ensure that those facilities are constructed,
35 operated, and maintained to generate the expected annual net
36production of electricity and do not impact system reliability.

37(2) The commission may reduce the three megawatt capacity
38limitation of paragraph (1) of subdivision (b) if the commission
39finds that a reduced capacity limitation is necessary to maintain
P7    1system reliability within that electrical corporation’s service
2territory.

3(k) (1) Any owner or operator of an electric generation facility
4that received ratepayer-funded incentives in accordance with
5Section 379.6 of this code, or with Section 25782 of the Public
6Resources Code, and participated in a net metering program
7pursuant to Sections 2827, 2827.9, and 2827.10 of this code prior
8to January 1, 2010, shall be eligible for a tariff or standard contract
9filed by an electrical corporation pursuant to this section.

10(2) In establishing the tariffs or standard contracts pursuant to
11this section, the commission shall consider ratepayer-funded
12incentive payments previously received by the generation facility
13pursuant to Section 379.6 of this code or Section 25782 of the
14Public Resources Code. The commission shall require
15reimbursement of any funds received from these incentive
16programs to an electric generation facility, in order for that facility
17to be eligible for a tariff or standard contract filed by an electrical
18corporation pursuant to this section, unless the commission
19determines ratepayers have received sufficient value from the
20incentives provided to the facility based on how long the project
21has been in operation and the amount of renewable electricity
22previously generated by the facility.

23(3) A customer that receives service under a tariff or contract
24approved by the commission pursuant to this section is not eligible
25to participate in any net metering program.

26(l) An owner or operator of an electric generation facility
27electing to receive service under a tariff or contract approved by
28the commission shall continue to receive service under the tariff
29or contract until either of the following occurs:

30(1) The owner or operator of an electric generation facility no
31longer meets the eligibility requirements for receiving service
32pursuant to the tariff or contract.

33(2) The period of service established by the commission pursuant
34to subdivision (d) is completed.

35(m) Within 10 days of receipt of a request for a tariff pursuant
36to this section from an owner or operator of an electric generation
37facility, the electrical corporation that receives the request shall
38post a copy of the request on its Internet Web site. The information
39posted on the Internet Web site shall include the name of the city
40in which the facility is located, but information that is proprietary
P8    1and confidential, including, but not limited to, address information
2beyond the name of the city in which the facility is located, shall
3be redacted.

4(n) An electrical corporation may deny a tariff request pursuant
5to this section if the electrical corporation makes any of the
6following findings:

7(1) The electric generation facility does not meet the
8requirements of this section.

9(2) The transmission or distribution grid that would serve as the
10point of interconnection is inadequate.

11(3) The electric generation facility does not meet all applicable
12state and local laws and building standards and utility
13interconnection requirements.

14(4) The aggregate of all electric generating facilities on a
15distribution circuit would adversely impact utility operation and
16load restoration efforts of the distribution system.

17(o) Upon receiving a notice of denial from an electrical
18corporation, the owner or operator of the electric generation facility
19denied a tariff pursuant to this section shall have the right to appeal
20that decision to the commission.

21(p) In order to ensure the safety and reliability of electric
22generation facilities, the owner of an electric generation facility
23receiving a tariff pursuant to this section shall provide an inspection
24and maintenance report to the electrical corporation at least once
25every other year. The inspection and maintenance report shall be
26prepared at the owner’s or operator’s expense by a
27California-licensed contractor who is not the owner or operator of
28the electric generation facility. A California-licensed electrician
29shall perform the inspection of the electrical portion of the
30generation facility.

31(q) The contract between the electric generation facility
32receiving the tariff and the electrical corporation shall contain
33provisions that ensure that construction of the electric generating
34facility complies with all applicable state and local laws and
35building standards, and utility interconnection requirements.

36(r) (1) All construction and installation of facilities of the
37electrical corporation, including at the point of the output meter
38or at the transmission or distribution grid, shall be performed only
39by that electrical corporation.

P9    1(2) All interconnection facilities installed on the electrical
2corporation’s side of the transfer point for electricity between the
3electrical corporation and the electrical conductors of the electric
4generation facility shall be owned, operated, and maintained only
5by the electrical corporation. The ownership, installation, operation,
6reading, and testing of revenue metering equipment for electric
7generating facilities shall only be performed by the electrical
8corporation.

9begin insert

begin insertSEC. 1.5.end insert  

end insert

begin insertSection 399.20 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is
10amended to read:end insert

11

399.20.  

(a) It is the policy of this state and the intent of the
12Legislature to encourage electrical generation from eligible
13renewable energy resources.

14(b) As used in this section, “electric generation facility” means
15an electric generation facility located within the service territory
16of, and developed to sell electricity to, an electrical corporation
17that meets all of the following criteria:

18(1) Has an effective capacity of not more than threebegin delete megawatts.end delete
19
begin insert megawatts, with the exception of those facilities participating in
20a tariff made available pursuant to paragraph (2) of subdivision
21(f).end insert

22(2) Is interconnected and operates in parallel with the electrical
23transmission and distribution grid.

24(3) begin deleteIs end deletebegin insert(A)end insertbegin insertend insertbegin insertExcept as provided in subparagraph (B), is end insert
25strategically located and interconnected to the electrical
26transmission and distribution grid in a manner that optimizes the
27deliverability of electricity generated at the facility to load centers.

begin insert

28
(B) For purposes of paragraph (2) of subdivision (f), is
29strategically located and interconnected to the electrical
30transmission and distribution grid in a manner that optimizes the
31deliverability of electricity generated at the facility to load centers
32or is interconnected to an existing transmission line.

end insert

33(4) Is an eligible renewable energy resource.

34(c) Every electrical corporation shall file with the commission
35a standard tariff for electricity purchased from an electric
36generation facility. The commission may modify or adjust the
37requirements of this section for any electrical corporation with less
38than 100,000 service connections, as individual circumstances
39merit.

P10   1(d) (1) The tariff shall provide for payment for every
2kilowatthour of electricity purchased from an electric generation
3facility for a period of 10, 15, or 20 years, as authorized by the
4commission. The payment shall be the market price determined
5by the commission pursuant to paragraph (2) and shall include all
6current and anticipated environmental compliance costs, including,
7but not limited to, mitigation of emissions of greenhouse gases
8and air pollution offsets associated with the operation of new
9generating facilities in the local air pollution control or air quality
10management district where the electric generation facility is
11located.

12(2) The commission shall establish a methodology to determine
13the market price of electricity for terms corresponding to the length
14of contracts with an electric generation facility, in consideration
15of the following:

16(A) The long-term market price of electricity for fixed price
17contracts, determined pursuant to an electrical corporation’s general
18procurement activities as authorized by the commission.

19(B) The long-term ownership, operating, and fixed-price fuel
20costs associated with fixed-price electricity from new generating
21facilities.

22(C) The value of different electricity products including
23baseload, peaking, and as-available electricity.

24(3) The commission may adjust the payment rate to reflect the
25value of every kilowatthour of electricity generated on a
26time-of-delivery basis.

27(4) The commission shall ensure, with respect to rates and
28charges, that ratepayers that do not receive service pursuant to the
29tariff are indifferent to whether a ratepayer with an electric
30generation facility receives service pursuant to the tariff.

31(e) An electrical corporation shall provide expedited
32 interconnection procedures to an electric generation facility located
33on a distribution circuit that generates electricity at a time and in
34a manner so as to offset the peak demand on the distribution circuit,
35if the electrical corporation determines that the electric generation
36facility will not adversely affect the distribution grid. The
37commission shall consider and may establish a value for an electric
38generation facility located on a distribution circuit that generates
39electricity at a time and in a manner so as to offset the peak demand
40on the distribution circuit.

P11   1(f) (1) An electrical corporation shall make the tariff available
2to the owner or operator of an electric generation facility within
3the service territory of the electrical corporation, upon request, on
4a first-come-first-served basis, until the electrical corporation meets
5its proportionate share of a statewide cap of 750 megawatts
6cumulative rated generation capacity served under this section and
7Sectionbegin delete 387.6.end deletebegin insert 399.32.end insert The proportionate share shall be calculated
8based on the ratio of the electrical corporation’s peak demand
9compared to the total statewide peak demand.

10(2) By June 1, 2013, the commission shall, in addition to the
11750 megawatts identified in paragraph (1), direct the electrical
12corporations to collectively procure at least 250 megawatts of
13cumulative rated generating capacity from developers of bioenergy
14projects that commence operation on or after June 1, 2013. The
15commission shall, for each electrical corporation, allocate shares
16of the additional 250 megawatts based on the ratio of each electrical
17corporation’s peak demand compared to the total statewide peak
18demand. In implementing this paragraph, the commission shall do
19all of the following:

20(A) Allocate the 250 megawatts identified in this paragraph
21among the electrical corporations based on the following
22categories:

23(i) For biogas from wastewater treatment, municipal organic
24waste diversion, food processing, and codigestion, 110 megawatts.

25(ii) For dairy and other agricultural bioenergy, 90 megawatts.

26(iii) For bioenergy using byproducts of sustainable forest
27management, 50 megawatts. Allocations under this category shall
28be determined based on the proportion of bioenergy that sustainable
29forest management providers derive from sustainable forest
30management in fire threat treatment areas, as designated by the
31Department of Forestry and Fire Protection.

32(B) Direct the electrical corporations to develop standard
33contract terms and conditions that reflect the operational
34characteristics of the projects, and to provide a streamlined
35contracting process.

36(C) Coordinate, to the maximum extent feasible, any incentive
37or subsidy programs for bioenergy with the agencies listed in
38subparagraph (A) of paragraph (3) in order to provide maximum
39benefits to ratepayers and to ensure that incentives are used to
40reduce contract prices.

P12   1(D) The commission shall encourage gas and electrical
2corporations to develop and offer programs and services to facilitate
3development of in-state biogas for a broad range of purposes.

begin insert

4
(E) Direct the electrical corporations to authorize a bioenergy
5electric generation facility with an effective capacity of up to five
6megawatts to participate in the tariff made available pursuant to
7this paragraph, if it meets the following conditions:

end insert
begin insert

8
(i) It delivers no more than three megawatts to the grid at any
9time.

end insert
begin insert

10
(ii) It complies with the electrical corporation’s Electric Rule
1121 tariff or other distribution access tariff.

end insert
begin insert

12
(F) Payment is made pursuant to paragraph (1) of subdivision
13(d) and no payment is made for any electricity delivered to the
14grid in excess of three megawatts at any time.

end insert

15(3) (A) The commission, in consultation with the State Energy
16Resources Conservation and Development Commission, the State
17 Air Resources Board, the Department of Forestry and Fire
18Protection, the Department of Food and Agriculture, and the
19Department of Resources Recycling and Recovery, may review
20the allocations of the 250 additional megawatts identified in
21paragraph (2) to determine if those allocations are appropriate.

22(B) If the commission finds that the allocations of the 250
23additional megawatts identified in paragraph (2) are not
24appropriate, the commission may reallocate the 250 megawatts
25among the categories established in subparagraph (A) of paragraph
26(2).

begin insert

27
(4) (A) A project identified in clause (iii) of subparagraph (A)
28of paragraph (2) is eligible, in regards to interconnection, for the
29tariff established to implement paragraph (2) or to participate in
30any program or auction established to implement paragraph (2),
31if it meets at least one of the following requirements:

end insert
begin insert

32
(i) The project is already interconnected.

end insert
begin insert

33
(ii) The project has been found to be eligible for interconnection
34pursuant to the fast track process under the relevant tariff.

end insert
begin insert

35
(iii) A system impact study or other interconnection study has
36been completed for the project under the relevant tariff, and there
37was no determination in the study that, with the identified
38interconnection upgrades, if any, a condition specified in
39paragraph (2), (3), or (4) of subdivision (n) would exist. Such a
P13   1project is not required to have a pending, active interconnection
2application to be eligible.

end insert
begin insert

3
(B) For a project meeting the eligibility requirements pursuant
4to clause (iii) of subparagraph (A) of this paragraph, both of the
5following apply:

end insert
begin insert

6
(i) The project is hereby deemed to be able to interconnect
7within the required time limits for the purpose of determining
8eligibility for the tariff.

end insert
begin insert

9
(ii) The project shall submit a new application for
10interconnection within 30 days of execution of a standard contract
11pursuant to the tariff if it does not have a pending, active
12interconnection application or a completed interconnection. For
13those projects, the time to achieve commercial operation shall
14begin to run from the date when the new system impact study or
15other interconnection study is completed rather than from the date
16of execution of the standard contract.

end insert
begin delete

17(4)

end delete

18begin insert(5)end insert For the purposes of this subdivision, “bioenergy” means
19biogas and biomass.

20(g) The electrical corporation may make the terms of the tariff
21available to owners and operators of an electric generation facility
22in the form of a standard contract subject to commission approval.

23(h) Every kilowatthour of electricity purchased from an electric
24generation facility shall count toward meeting the electrical
25corporation’s renewables portfolio standard annual procurement
26targets for purposes of paragraph (1) of subdivision (b) of Section
27399.15.

28(i) The physical generating capacity of an electric generation
29facility shall count toward the electrical corporation’s resource
30adequacy requirement for purposes of Section 380.

31(j) (1) The commission shall establish performance standards
32for any electric generation facility that has a capacity greater than
33one megawatt to ensure that those facilities are constructed,
34operated, and maintained to generate the expected annual net
35production of electricity and do not impact system reliability.

36(2) The commission may reduce the three megawatt capacity
37limitation of paragraph (1) of subdivision (b) if the commission
38finds that a reduced capacity limitation is necessary to maintain
39system reliability within that electrical corporation’s service
40 territory.

P14   1(k) (1) Any owner or operator of an electric generation facility
2that received ratepayer-funded incentives in accordance with
3Section 379.6 of this code, or with Section 25782 of the Public
4Resources Code, and participated in a net metering program
5pursuant to Sections 2827, 2827.9, and 2827.10 of this code prior
6to January 1, 2010, shall be eligible for a tariff or standard contract
7filed by an electrical corporation pursuant to this section.

8(2) In establishing the tariffs or standard contracts pursuant to
9this section, the commission shall consider ratepayer-funded
10incentive payments previously received by the generation facility
11pursuant to Section 379.6 of this code or Section 25782 of the
12Public Resources Code. The commission shall require
13reimbursement of any funds received from these incentive
14programs to an electric generation facility, in order for that facility
15to be eligible for a tariff or standard contract filed by an electrical
16corporation pursuant to this section, unless the commission
17determines ratepayers have received sufficient value from the
18incentives provided to the facility based on how long the project
19has been in operation and the amount of renewable electricity
20previously generated by the facility.

21(3) A customer that receives service under a tariff or contract
22approved by the commission pursuant to this section is not eligible
23to participate in any net metering program.

24(l) An owner or operator of an electric generation facility
25electing to receive service under a tariff or contract approved by
26the commission shall continue to receive service under the tariff
27or contract until either of the following occurs:

28(1) The owner or operator of an electric generation facility no
29longer meets the eligibility requirements for receiving service
30pursuant to the tariff or contract.

31(2) The period of service established by the commission pursuant
32to subdivision (d) is completed.

33(m) Within 10 days of receipt of a request for a tariff pursuant
34to this section from an owner or operator of an electric generation
35facility, the electrical corporation that receives the request shall
36post a copy of the request on its Internet Web site. The information
37posted on the Internet Web site shall include the name of the city
38in which the facility is located, but information that is proprietary
39and confidential, including, but not limited to, address information
P15   1beyond the name of the city in which the facility is located, shall
2be redacted.

3(n) An electrical corporation may deny a tariff request pursuant
4to this section if the electrical corporation makes any of the
5following findings:

6(1) The electric generation facility does not meet the
7requirements of this section.

8(2) The transmission or distribution grid that would serve as the
9point of interconnection is inadequate.

10(3) The electric generation facility does not meet all applicable
11state and local laws and building standards and utility
12interconnection requirements.

13(4) The aggregate of all electric generating facilities on a
14distribution circuit would adversely impact utility operation and
15load restoration efforts of the distribution system.

16(o) Upon receiving a notice of denial from an electrical
17 corporation, the owner or operator of the electric generation facility
18denied a tariff pursuant to this section shall have the right to appeal
19that decision to the commission.

20(p) In order to ensure the safety and reliability of electric
21generation facilities, the owner of an electric generation facility
22receiving a tariff pursuant to this section shall provide an inspection
23and maintenance report to the electrical corporation at least once
24every other year. The inspection and maintenance report shall be
25prepared at the owner’s or operator’s expense by a
26California-licensed contractor who is not the owner or operator of
27the electric generation facility. A California-licensed electrician
28shall perform the inspection of the electrical portion of the
29generation facility.

30(q) The contract between the electric generation facility
31receiving the tariff and the electrical corporation shall contain
32provisions that ensure that construction of the electric generating
33facility complies with all applicable state and local laws and
34building standards, and utility interconnection requirements.

35(r) (1) All construction and installation of facilities of the
36electrical corporation, including at the point of the output meter
37or at the transmission or distribution grid, shall be performed only
38by that electrical corporation.

39(2) All interconnection facilities installed on the electrical
40corporation’s side of the transfer point for electricity between the
P16   1electrical corporation and the electrical conductors of the electric
2generation facility shall be owned, operated, and maintained only
3by the electrical corporation. The ownership, installation, operation,
4reading, and testing of revenue metering equipment for electric
5generating facilities shall only be performed by the electrical
6corporation.

7begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

Section 1.5 of this bill incorporates amendments to
8Section 399.20 of the Public Utilities Code proposed by this bill,
9Assembly Bill 1612, and Senate Bill 840. It shall only become
10operative if (1) this bill and Assembly Bill 1612 or Senate Bill 840,
11or both of those bills, are enacted and become effective on or
12before January 1, 2017, (2) Assembly Bill 1612, Senate Bill 840,
13or both, as enacted, amend Section 399.20 of the Public Utilities
14Code, and (3) this bill is enacted last of these bills that amend
15Section 399.20 of the Public Utilities Code, in which case Section
16399.20 of the Public Utilities Code, as amended by Assembly Bill
171612 or Senate Bill 840, shall remain operative only until the
18operative date of this bill, at which time Section 1.5 of this bill
19shall become operative, and Section 1 of this bill shall not become
20operative.

end insert


O

    95