Senate BillNo. 1305


Introduced by Senator Morrell

February 19, 2016


An act to repeal Section 379.8 of the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

SB 1305, as introduced, Morrell. Advanced electrical distributed generation technology.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. The existing definition of an electrical corporation excludes a corporation or person employing cogeneration, as defined, or producing electricity from other than a conventional power source for certain purposes. Existing law places certain limitations upon gas rates and surcharges charged cogenerators. Existing law prohibits placing alternative fuel capability requirements upon gas customers that use gas for purposes of cogeneration.

Existing law authorizes the commission and the State Air Resources Board to treat advanced electrical distributed generation technology, as defined, as cogeneration, and makes the existing limitations upon gas rates and surcharges charged to cogenerators applicable to an advanced electrical distributed generation technology. Existing law also makes the prohibition upon placing alternative fuel capability requirements upon gas customers that use gas for purposes of cogeneration applicable to a generator using advanced electrical distributed generation technology. These provisions do not apply to an advanced electrical distributed generation technology that is first operational at a site on and after January 1, 2016.

This bill would delete those provisions relating to advanced electrical distributed generation technology.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 379.8 of the Public Utilities Code is
2repealed.

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379.8.  

(a) As used in this section, “advanced electrical
4distributed generation technology” means any electrical distributed
5generation technology that generates useful electricity and meets
6all of the following conditions:

7(1) The emissions standards adopted by the State Air Resources
8Board pursuant to the distributed generation certification program
9requirements of Article 3 (commencing with Section 94200) of
10Subchapter 8 of Chapter 1 of Division 3 of Title 17 of the
11California Code of Regulations.

12(2) Produces de minimis emissions of sulfur oxides and nitrogen
13oxides.

14(3) Meets the greenhouse gases emission performance standard
15established by the commission pursuant to Section 8341.

16(4) Has a total electrical efficiency of not less than 45 percent.
17If legislation is enacted that increases the 42.5 percent efficiency
18described in subdivision (b) of Section 216.6 above 45 percent,
19the commission may adjust the electrical efficiency standard
20described in this paragraph to ensure that this electrical efficiency
21standard meets or exceeds the standard enacted for the purposes
22of subdivision (b) of Section 216.6.

23(5) Is sized to meet the generator’s onsite electrical demand.

24(6) Has parallel operation to the electrical distribution grid.

25(7) Utilizes renewable or nonrenewable fuel.

26(b) (1) An advanced electrical distributed generation technology
27shall qualify for the rate established by the commission pursuant
28to Section 454.4.

29(2) The limitation in subdivision (b) of Section 6352 upon the
30assessment of surcharges for gas used to generate electricity by a
31nonutility facility applies to an advanced electrical distributed
32generation technology.

P3    1(3) The limitation in Section 2773.5 upon imposing alternative
2fuel capability requirements upon gas customers that use gas for
3purposes of cogeneration applies to an advanced electrical
4distributed generation technology.

5(c) The commission or State Air Resources Board may, in
6furtherance of the state’s goals for achieving cost-effective
7reductions in emissions of greenhouse gases, meeting resource
8adequacy requirements, or meeting the renewables portfolio
9standard, treat advanced electrical distributed generation technology
10as cogeneration.

11(d) Subdivisions (b) and (c) do not apply to an advanced
12electrical distributed generation technology that is first operational
13at a site on and after January 1, 2016.

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