BILL ANALYSIS Ó SB 793 Page 1 SENATE THIRD READING SB 793 (Wolk) As Amended June 30, 2015 Majority vote SENATE VOTE: 23-13 ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Utilities |14-0 |Rendon, Patterson, | | | | |Achadjian, Bonilla, | | | | |Burke, Eggman, | | | | |Cristina Garcia, | | | | |Hadley, | | | | | | | | | | | | | | |Roger Hernández, | | | | |Obernolte, Quirk, | | | | |Santiago, Ting, | | | | |Williams | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |16-0 |Gomez, Bigelow, | | | | |Bloom, Bonta, | | | | |Calderon, Chang, | | | | |Daly, Eggman, | | SB 793 Page 2 | | |Gallagher, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | |Jones, Quirk, Rendon, | | | | |Wagner, Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: 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 also requires the California Public Utilities Commission (CPUC) to provide the customer with a nonbinding estimate of reasonably anticipated bill credits and charges for a period up to 20 years. EXISTING LAW: a)Requires participating IOUs to file applications to establish a voluntary GTSR Program in their service area. (Public Utilities Code Section 2831) b)Requires the CPUC to issue a decision on the IOU's voluntary GTSR Program applications by July 1, 2014. (Public Utilities Code Section 2831) c)Specifies GTSR program criteria related to maximum statewide program size, size of qualified facilities, location of facilities near customers, restrictions on market concentration, inclusion of disadvantaged communities, a 20 megawatts (MW) set aside within the GTSR program for the City of Davis, and restrictions to ensure that the costs of the SB 793 Page 3 program are not borne by non-participants. (Public Utilities Code Section 2833) d)Sunsets the statute January 1, 2019. (Public Utilities Code Section 2834) FISCAL EFFECT: According to the Assembly Appropriations Committee, ongoing annual costs of approximately $130,000 (Public Utilities Reimbursement Account) for the CPUC to estimate costs and credits over 20 years. COMMENTS: 1)Purpose. The GTSR program provides an option for households and 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. SB 793 Page 4 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 IOUs to purchase electricity from local renewable energy facilities up to a statewide limit of 600 megawatts 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 CPUC issued this decision on January 29, 2015, that allows customers to subscribe to the GTSR one year at a time.Analysis Prepared by: Sue Kateley / U. & C. / (916) 319-2083 FN: 0001444