Amended in Assembly April 11, 2016

Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1979

Introduced by Assembly Member Bigelow

February 16, 2016

An act to amend Section begin delete 10631 of the Water Code, relating to water management. end delete begin insert 399.20 of the Public Utilities Code, relating to energy. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1979, as amended, Bigelow. begin delete Urban water management plans: projected use. end delete begin insert Renewable feed-in tariff: hydroelectric facilities. end insert

begin insert

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. 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. The commission refers to this requirement as the renewable feed-in tariff.

end insert begin insert

This bill would revise the requirement that an electric generation facility have an effective capacity of not more than 3 megawatts to additionally authorize a hydroelectric facility with a nameplate generating capacity of up to 5 megawatts to participate in the renewable feed-in tariff if the facility delivers no more than 3 megawatts to the grid in any hour and complies with specified interconnection and payment requirements.

end insert begin delete

Existing law, the Urban Water Management Planning Act, requires every urban water supplier to prepare and periodically update an urban water management plan for submission to the Department of Water Resources. A supplier is required to include in the plan, among other information, population and water use projections in 5-year increments to 20 years or as far as data is available. A supplier that relies upon a wholesale agency for water is also required to provide the wholesale agency with water use projections from that agency for that source of water in 5-year increments to 20 years or as far as data is available.

end delete begin delete

This bill would add 5 years to those planning periods by extending the periods from 20 to 25 years.

end delete

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 399.20 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

399.20.  

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

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

(1) Has an effective capacity of not more than three begin delete megawatts. end delete

begin insert megawatts or is a hydroelectric facility with a nameplate
generating capacity of up to five megawatts if the hydroelectric
facility meets the following conditions: end insert

begin insert

(A) It delivers no more than three megawatts to the grid in an
hour.

end insert begin insert

(B) It complies with the electrical corporation’s Electric Rule
21 tariff or other distribution access tariff.

end insert begin insert

(C) Payment is made pursuant to paragraph (1) of subdivision
(d) and no payment is made for any generation in excess of three
megawatts in any hour.

end insert

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

(3) Is strategically located and interconnected to the electrical
transmission and distribution grid in a manner that optimizes the
deliverability of electricity generated at the facility to load centers.

(4) Is an eligible renewable energy resource.

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

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

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

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

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

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

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

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

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

(f) (1) An electrical corporation shall 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 this section and
Section 387.6. The proportionate share shall be calculated based
on the ratio of the electrical corporation’s peak demand compared
to the total statewide peak demand.

(2) By June 1, 2013, the commission shall, in addition to the
750 megawatts identified in paragraph (1), 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. The
commission shall, for each electrical corporation, allocate shares
of the additional 250 megawatts based on the ratio of each electrical
corporation’s peak demand compared to the total statewide peak
demand. In implementing this paragraph, the commission shall do
all of the following:

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

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

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

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

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

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

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

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

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

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

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

(h) Every kilowatthour of electricity purchased from an electric
generation facility shall count toward meeting the electrical
corporation’s renewables portfolio standard annual procurement
targets for purposes of paragraph (1) of subdivision (b) of Section
399.15.

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

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

(2) The commission may reduce the three megawatt capacity
limitation of paragraph (1) of subdivision begin delete (b) end delete begin insert (b), but not the
limitation for a hydroelectric facility, end insert if the commission finds that
a reduced capacity limitation is necessary to maintain system
reliability within that electrical corporation’s service territory.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

begin delete

SECTION 1.  

Section 10631 of the Water Code is amended to
read:

10631.  

A plan shall be adopted in accordance with this chapter
that shall do all of the following:

(a) Describe the service area of the supplier, including current
and projected population, climate, and other demographic factors
affecting the supplier’s water management planning. The projected
population estimates shall be based upon data from the state,
regional, or local service agency population projections within the
service area of the urban water supplier and shall be in five-year
increments to 25 years or as far as data is available.

(b) Identify and quantify, to the extent practicable, the existing
and planned sources of water available to the supplier over the
same five-year increments described in subdivision (a). If
groundwater is identified as an existing or planned source of water
available to the supplier, all of the following information shall be
included in the plan:

(1) A copy of any groundwater management plan adopted by
the urban water supplier, including plans adopted pursuant to Part
2.75 (commencing with Section 10750), or any other specific
authorization for groundwater management.

(2) A description of any groundwater basin or basins from which
the urban water supplier pumps groundwater. For basins that a
court or the board has adjudicated the rights to pump groundwater,
a copy of the order or decree adopted by the court or the board and
a description of the amount of groundwater the urban water supplier
has the legal right to pump under the order or decree. For basins
that have not been adjudicated, information as to whether the
department has identified the basin or basins as overdrafted or has
projected that the basin will become overdrafted if present
management conditions continue, in the most current official
departmental bulletin that characterizes the condition of the
groundwater basin, and a detailed description of the efforts being
undertaken by the urban water supplier to eliminate the long-term
overdraft condition.

(3) A detailed description and analysis of the location, amount,
and sufficiency of groundwater pumped by the urban water supplier
for the past five years. The description and analysis shall be based
on information that is reasonably available, including, but not
limited to, historic use records.

(4) A detailed description and analysis of the amount and
location of groundwater that is projected to be pumped by the
urban water supplier. The description and analysis shall be based
on information that is reasonably available, including, but not
limited to, historic use records.

(c) (1) Describe the reliability of the water supply and
vulnerability to seasonal or climatic shortage, to the extent
practicable, and provide data for each of the following:

(A) An average water year.

(B) A single-dry water year.

(C) Multiple-dry water years.

(2) For any water source that may not be available at a consistent
level of use, given specific legal, environmental, water quality, or
climatic factors, describe plans to supplement or replace that source
with alternative sources or water demand management measures,
to the extent practicable.

(d) Describe the opportunities for exchanges or transfers of
water on a short-term or long-term basis.

(e) (1) Quantify, to the extent records are available, past and
current water use, over the same five-year increments described
in subdivision (a), and projected water use, identifying the uses
among water use sectors, including, but not necessarily limited to,
all of the following uses:

(A) Single-family residential.

(B) Multifamily.

(C) Commercial.

(D) Industrial.

(E) Institutional and governmental.

(F) Landscape.

(G) Sales to other agencies.

(H) Saline water intrusion barriers, groundwater recharge, or
conjunctive use, or any combination thereof.

(I) Agricultural.

(J) Distribution system water loss.

(2) The water use projections shall be in the same five-year
increments described in subdivision (a).

(3) (A) For the 2015 urban water management plan update, the
distribution system water loss shall be quantified for the most
recent 12-month period available. For all subsequent updates, the
distribution system water loss shall be quantified for each of the
five years preceding the plan update.

(B) The distribution system water loss quantification shall be
reported in accordance with a worksheet approved or developed
by the department through a public process. The water loss
quantification worksheet shall be based on the water system
balance methodology developed by the American Water Works
Association.

(4) (A) If available and applicable to an urban water supplier,
water use projections may display and account for the water savings
estimated to result from adopted codes, standards, ordinances, or
transportation and land use plans identified by the urban water
supplier, as applicable to the service area.

(B) To the extent that an urban water supplier reports the
information described in subparagraph (A), an urban water supplier
shall do both of the following:

(i) Provide citations of the various codes, standards, ordinances,
or transportation and land use plans utilized in making the
projections.

(ii) Indicate the extent that the water use projections consider
savings from codes, standards, ordinances, or transportation and
land use plans. Water use projections that do not account for these
water savings shall be noted of that fact.

(f) Provide a description of the supplier’s water demand
management measures. This description shall include all of the
following:

(1) (A) For an urban retail water supplier, as defined in Section
10608.12, a narrative description that addresses the nature and
extent of each water demand management measure implemented
over the past five years. The narrative shall describe the water
demand management measures that the supplier plans to implement
to achieve its water use targets pursuant to Section 10608.20.

(B) The narrative pursuant to this paragraph shall include
descriptions of the following water demand management measures:

(i) Water waste prevention ordinances.

(ii) Metering.

(iii) Conservation pricing.

(iv) Public education and outreach.

(v) Programs to assess and manage distribution system real loss.

(vi) Water conservation program coordination and staffing
support.

(vii) Other demand management measures that have a significant
impact on water use as measured in gallons per capita per day,
including innovative measures, if implemented.

(2) For an urban wholesale water supplier, as defined in Section
10608.12, a narrative description of the items in clauses (ii), (iv),
(vi), and (vii) of subparagraph (B) of paragraph (1), and a narrative
description of its distribution system asset management and
wholesale supplier assistance programs.

(g) Include a description of all water supply projects and water
supply programs that may be undertaken by the urban water
supplier to meet the total projected water use, as established
pursuant to subdivision (a) of Section 10635. The urban water
supplier shall include a detailed description of expected future
projects and programs that the urban water supplier may implement
to increase the amount of the water supply available to the urban
water supplier in average, single-dry, and multiple-dry water years.
The description shall identify specific projects and include a
description of the increase in water supply that is expected to be
available from each project. The description shall include an
estimate with regard to the implementation timeline for each project
or program.

(h) Describe the opportunities for development of desalinated
water, including, but not limited to, ocean water, brackish water,
and groundwater, as a long-term supply.

(i) For purposes of this part, urban water suppliers that are
members of the California Urban Water Conservation Council
shall be deemed in compliance with the requirements of subdivision
(f) by complying with all the provisions of the “Memorandum of
Understanding Regarding Urban Water Conservation in
California,” dated December 10, 2008, as it may be amended, and
by submitting the annual reports required by Section 6.2 of that
memorandum.

(j) An urban water supplier that relies upon a wholesale agency
for a source of water shall provide the wholesale agency with water
use projections from that agency for that source of water in
five-year increments to 25 years or as far as data is available. The
wholesale agency shall provide information to the urban water
supplier for inclusion in the urban water supplier’s plan that
identifies and quantifies, to the extent practicable, the existing and
planned sources of water as required by subdivision (b), available
from the wholesale agency to the urban water supplier over the
same five-year increments, and during various water-year types
in accordance with subdivision (c). An urban water supplier may
rely upon water supply information provided by the wholesale
agency in fulfilling the plan informational requirements of
subdivisions (b) and (c).

end delete