BILL ANALYSIS Ó
AB 1979
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1979 (Bigelow) - As Amended April 26, 2016
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|Policy |Utilities and Commerce |Vote:|14 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the California Public Utilities Commission
(PUC) to direct electrical corporations to authorize a
hydroelectric generation facility with a nameplate (total
possible output) generating capacity of up to 5 MW to
participate in the feed-in tariff, if the facility delivers no
more than 3 MW to the grid at any time and complies with
specified interconnection and payment requirements.
FISCAL EFFECT:
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One-time, short-term increased PUC workload absorbable within
existing resources. However, this increased workload may
potentially delay implementation of other RPS programs and
policies.
COMMENTS:
1)Purpose. According to the author, the feed-in tariff program
has proven to be underutilized, especially with baseload power
like small hydropower. There are only about 14 small
hydropower facilities throughout California that have a
nameplate value between 3-5MW, are certified renewable, and
that might otherwise be eligible for the renewable Feed-In
Tariff (FIT).
By narrowly expanding eligibility for the FIT program, some of
these facilities will be able to participate as long as they
commit to generating less than 3 MW. According to the author,
this will provide an essential lifeline for some of these
small hydropower companies
2)Background. A FIT is a contract that provides a guaranteed
fixed payment for the energy produced. All investor-owned
utilities (IOUs) and publicly owned utilities (POUs) that
serve more than 75,000 retail customers are required to
develop a standard contract or tariff available for renewable
energy facilities up to 3 MWs capped at 750 MWs statewide.
Existing law limits hydroelectric facility eligibility to
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projects with an effective capacity of not more than three
megawatts. The PUC, in Decision 12-05-035, stated that this
capacity shall be determined by the "nameplate" - the metal
plate attached to a generator by the manufacturer listing
model number and other details. If a hydroelectric generator
has a nameplate of over three MW it is prohibited from
participating in the FIT even if generator will never actually
run above the three MW threshold.
This bill limits this provision to single hydroelectric
facilities that are eligible under the Renewable Portfolios
Standard (RPS) and are not under a long-term contract prior to
January 1, 2017.
3)Similar Legislation. AB 1923 (Wood) expands the 3MW limit for
biomass facilities. This bill passed this Committee and is
pending on the Assembly floor.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081