BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 793  


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          Date of Hearing:   July 15, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 793  
          (Wolk) - As Amended June 30, 2015


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:


          This bill requires an investor-owned utility (IOU) participating  
          in a Green Tariff Shared Renewables Program (GTSR) to permit a  
          participating customer to subscribe to the program.  This bill  








                                                                     SB 793  


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          also requires the Public Utilities Commission (PUC) to provide  
          the customer with a nonbinding estimate of reasonably  
          anticipated bill credits and charges for a period up to 20  
          years.


          FISCAL EFFECT:


          Ongoing annual costs of approximately $130,000 (Public Utilities  
          Reimbursement Account) for the PUC to estimate costs and credits  
          over 20 years.


          COMMENTS:  


          1)Purpose.  The GTSR program provides an option for  
            approximately 75% of households and 70% of businesses who  
            cannot participate in rooftop solar programs because they rent  
            their homes or places of business, do not have strong enough  
            credit, or own a roof that is too small or does not receive  
            enough sunlight.  According to the author, the PUC rules  
            currently prevent customers from subscribing to their  
            utility's GTSR program for a term of more than one year, a  
            limitation that was not required nor contemplated in the  
            enabling legislation.  Because utility bill credits and  
            charges can fluctuate year to year, this one-year maximum  
            limitation prevents a customer from reasonably predicting  
            their rate associated with subscribing to GTSR beyond the  
            current year.  


            This limitation is likely to significantly reduce program  
            uptake, especially for customers who are considering making a  
            long-term agreement with a specific renewable energy developer  
            within the Enhanced Community Renewables portion of the GTSR  
            programs.  This bill provides customers with information  
            necessary to make long-term decisions.








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          2)Background.  In 2013, the Legislature passed SB 43 (Wolk)  
            Chapter 413, Statutes of 2013, which created the GTSR Pilot  
            Program, to allow electrical customers of investor-owned  
            utilities (IOUs) to purchase electricity from local renewable  
            energy facilities up to a statewide limit of 600 megawatts  
            (MV) proportionately distributed among the IOUs. The goal of  
            the GTSR program is to allow customers to access renewable  
            energy resources even if they are unable to have the benefits  
            of onsite generation. The PUC issued this decision on January  
            29, 2015 that allows customers to subscribe to the GTSR one  
          year at a time.


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