BILL NUMBER: AB 1979 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 11, 2016
AMENDED IN ASSEMBLY MARCH 17, 2016
INTRODUCED BY Assembly Member Bigelow
FEBRUARY 16, 2016
An act to amend Section 10631 of the Water Code, relating
to water management. 399.20 of the Public Utilities
Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1979, as amended, Bigelow. Urban water management
plans: projected use. Renewable feed-in tariff:
hydroelectric facilities.
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.
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.
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.
This bill would add 5 years to those planning periods by extending
the periods from 20 to 25 years.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 399.20 of the Public
Utilities Code is amended to read:
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
megawatts. megawatts or is a hydroelectric facility
with a nameplate generating capacity of up to five
megawatts if the hydroelectric facility meets the following
conditions:
(A) It delivers no more than three megawatts to the grid in an
hour.
(B) It complies with the electrical corporation's Electric Rule 21
tariff or other distribution access tariff.
(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.
(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 (b)
(b), but not the limitation for a hydroelectric facility, 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.
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).