BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 793


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          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,         |                    |








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          |                |     |Gallagher,            |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |Jones, Quirk, Rendon, |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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          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  








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            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.









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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 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