BILL NUMBER: AB 2573 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 3, 2006
INTRODUCED BY Assembly Member Leno
FEBRUARY 23, 2006
An act to amend Section 2828 of the Public Utilities Code,
relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
AB 2573, as amended, Leno Electricity: Hetch Hetchy Water and
Power solar generation.
(1) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical
corporations. Existing law authorizes the City and County of San
Francisco to elect to designate specific photovoltaic generation
facilities meeting specified conditions as Hetch Hetchy Water and
Power (HHWP) solar generation facilities, and upon election and the
filing and acceptance of an advice letter with the commission
establishing rates, Pacific Gas and Electric Company (PG&E) is
required on a monthly basis, to credit the City and County of San
Francisco for the certain electricity generated and delivered to the
electric grid in accordance with specified rate criteria. Existing
law provides that the HHWP photovoltaic electricity generation
facilities may not exceed 5 megawatts of peak generation capacity in
total. Existing law provides that no single photovoltaic generation
project may exceed one megawatt of peak generation capacity. Existing
law provides that where, after a true-up process is completed, the
total electricity delivered to the site by PG&E is less than the
total electricity delivered to the grid by the HHWP photovoltaic
facility at the site, the City and County of San Francisco is a net
energy producer at that site and receives no credit or offset for the
excess electricity exported to the grid from the site.
This bill would provide that the authorize
2 different HHWP photovoltaic electricity generation
facilities mechanisms. The existing authorization, as
modified, would apply to HHWP at-site solar generation, as
defined. The bill would provide that HHWP at-site solar generation
may not, exclusive of qualifying remote new load, as defined,
exceed 25 15 megawatts of peak
generation capacity in total. The bill would additionally
authorize the City and County of San Francisco to use HHWP
remote solar generation , as defined, to supply
electricity to qualifying remote new load by designating those
facilities to be served by HHWP remote solar generation.
The bill would delete the provision that no single photovoltaic
generation project may exceed one megawatt of peak generation
capacity. The bill would require that in calculating the
charge and credits for electricity usage, that PG&E
treat accept any electricity exported
to the grid by HHWP remote solar generation , up to
the amount of electricity contemporaneously being used by the
qualifying remote new load, and to treat the electricity accepted
as behind the meter generation that offsets the electrical
usage of qualifying remote new load.
Existing law provides that if the City and County of San Francisco
engages in retail sales to customers within the service territory of
PG&E, the above described provisions relative to HHWP solar
generation become inoperative.
This bill would delete this provision.
(2) The bill would declare that, due to the special circumstances
applicable only to HHWP solar generation facilities, a general
statute cannot be made applicable within the meaning of Section 16 of
Article IV of the California Constitution, and the enactment of a
special statute is therefore necessary.
(3) Under existing law, a violation of the Public Utilities Act, a
filed tariff, or an order of the commission is a crime.
Because the provisions of this bill would require the filing of a
new tariff, the bill would impose a state-mandated local program by
creating a new crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2828 of the Public Utilities Code is amended to
read:
2828. (a) As used in this section, the following terms have the
following meanings:
(1) "Environmental attributes" associated with the Hetch Hetchy
Water and Power (HHWP) at-site solar generation and HHWP remote
solar generation include, but are not limited to, the credits,
benefits, emissions reductions, environmental air quality credits,
and emissions reduction credits, offsets, and allowances, however
entitled, resulting from the avoidance of the emission of any gas,
chemical, or other substance attributable to the Hetch Hetchy Water
and Power photovoltaic electricity generation facility owned by the
City and County of San Francisco.
(2) "HHWP at-site solar generation" means the
electricity generated by Hetch Hetchy Water and Power photovoltaic
electricity generation facilities owned by the City and County of San
Francisco, designated by the City and County of San Francisco
pursuant to subdivision (b) and, exclusive of qualifying
remote new load, does not to exceed twenty-five megawatts of peak
generation capacity in total. There is no wattage limit on qualifying
remote new load. (b).
(3) "HHWP remote solar generation" means the electricity generated
by Hetch Hetchy Water and Power photovoltaic electricity generation
facilities owned by the City and County of San Francisco, designated
by the City and County of San Francisco pursuant to subdivision (h),
to provide electricity to qualifying remote new load.
(3)
(4) "Interconnection Agreement" means the 1987
agreement between Pacific Gas and Electric Company and the City and
County of San Francisco, as filed with and accepted by the Federal
Energy Regulatory Commission (FERC), and as amended from time to time
with FERC approval, which provides for rates for transmission,
distribution, and sales of supplemental electricity to the City and
County of San Francisco. Nothing in this section shall waive or
modify the rights of parties under the Interconnection Agreement or
the jurisdiction of the FERC over rates set forth in the
Interconnection Agreement.
(4)
(5) "Appropriate TOU tariff" means the Time-of-Use
tariff that would be applicable to the City and County of San
Francisco account at the photovoltaic project site if the facility at
the site were a Pacific Gas and Electric Company bundled customer,
as determined by Pacific Gas and Electric Company.
(5)
(6) "Qualifying remote new load" means electricity
demand of the City and County of San Francisco for public purposes
pursuant to the Raker Act (Public Law 63-41, 38 Stat. 412), at a site
that is separate from, and not adjacent to, the site where the
photovoltaic project is located, and serviced through a meter or
multiple meters other than those serving the site where the
photovoltaic project is located. The separate or remote site may be
designated by the City and County of San Francisco, both inside and
outside of the City and County of San Francisco, at a facility that
begins operations after January 1, 2006. There is no wattage
limit on qualifying remote new load.
(b) The City and County of San Francisco may elect to designate
specific photovoltaic electricity generation facilities as HHWP
at-site solar generation, if all of the following conditions
are met:
(1) Total peak generating capacity does not exceed 15 megawatts.
(1)
(2) The photovoltaic project utilizes a meter, or
multiple meters, capable of separately measuring electricity flow in
both directions. All meters shall provide "time-of-use" measurement
information. If the existing meter at the site of the photovoltaic
project is not capable of providing time-of-use information or is not
capable of separately measuring total flow of energy in both
directions, the City and County of San Francisco is responsible for
all expenses involved in purchasing and installing a meter or meters
that are both capable of providing time-of-use information and able
to separately measure total electricity flow in both directions.
(2)
(3) The amount of all electricity delivered to the
electric grid by the designated HHWP at-site solar
generation is the property of Pacific Gas and Electric Company.
(3)
(4) The City and County of San Francisco does not sell
electricity delivered to the electric grid from the designated HHWP
at -site solar generation to a third party.
(4) Ownership and use of the environmental attributes associated
with the electricity delivered to the electric grid by HHWP solar
generation shall be determined by the commission in accordance with
Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1.
(c) For each site of a photovoltaic project that comprises the
HHWP at-site solar generation, Pacific Gas and Electric
Company shall identify the appropriate TOU tariff for that site. Any
electricity exported to the Pacific Gas and Electric Company grid at
that site that is not offset by qualifying remote new load
served by the City and County of San Francisco
generated from HHWP remote solar generation pursuant to
subdivision (h) shall, for each time-of-use period, result in a
monetary credit to be applied monthly as a credit or offset against
the invoice created pursuant to the Interconnection Agreement and
shall be valued at the generation component of the appropriate TOU
tariff. The commission shall determine if it is appropriate to
increase the credit to reflect any additional value derived from the
location or the environmental attributes of, the designated HHWP
at-site solar generation.
(d) Monthly charges and credit amounts for HHWP at-site solar
generation are interim and subject to an accounting true-up,
consistent with commission policies and practices. The true-up shall
be performed annually or upon the termination, for any reason, of the
Interconnection Agreement. The true-up shall accomplish the
following:
(1) If the total electricity delivered to the site by Pacific Gas
and Electric Company since the previous true-up equals or exceeds the
total electricity exported to the grid by the Hetch Hetchy
photovoltaic electricity generation HHWP at-site solar
generation facility at the site, the City and County of San
Francisco is a net electricity consumer at that site. For any
HHWP at-site solar generation site where the City and County of
San Francisco is a net electricity consumer, a credit or offset
shall be applied to reduce the obligations of the City and County of
San Francisco to an invoice prepared pursuant to the Interconnection
Agreement. If there is no invoiced obligation to be reduced, there is
no applicable credit.
(2) If the total electricity delivered to the site by Pacific Gas
and Electric Company since the previous true-up is less than the
total electricity exported to the grid by the Hetch Hetchy
photovoltaic electricity generation HHWP at-site solar
generation facility at the site, the City and County of San
Francisco is a net electricity producer at that site. For any
HHWP at-site solar generation site where the City and County of
San Francisco is a net electricity producer, the City and County of
San Francisco shall receive no credit or offset for the electricity
exported to the grid in excess of the electricity delivered to the
site from the grid. For any site where the City and County of San
Francisco is a net electricity producer, the City and County of San
Francisco shall receive a credit or offset up to the amount of
electricity delivered to the site from the grid. The credit or offset
shall be applied to reduce the obligations of the City and County of
San Francisco to an invoice prepared pursuant to the Interconnection
Agreement. If there is no invoiced obligation to be reduced, there
is no applicable credit or offset. Pacific Gas and Electric Company
shall use the last-in, first-out method to determine what electricity
delivered to the grid from the site will not earn a credit or
offset.
(e) Pursuant to this section, the offset to charges under the
Interconnection Agreement is the medium to convey credits earned
under this section. Nothing in this section shall be construed to
affect in any way the rights and obligations of the City and County
of San Francisco and Pacific Gas and Electric Company under the
Interconnection Agreement. If the Interconnection Agreement
terminates, the City and County of San Francisco and Pacific Gas and
Electric Company shall develop an alternative mechanism to convey
credits earned under this section, in a manner that accomplishes the
same result as that accomplished pursuant to the Interconnection
Agreement.
(f) (1) Pacific Gas and Electric Company
shall file an advice letter with the commission, that complies with
this section, not later than 10 days after the City and County of San
Francisco first designates the specific generation facilities that
will comprise HHWP solar generation. The
at-site solar generation.
(2) The commission, within 30
days of the date of filing of the advice letter, shall approve the
advice letter or specify conforming changes to be made by Pacific Gas
and Electric Company to be filed in an amended advice letter within
30 days.
(g) The City and County of San Francisco may terminate its
election pursuant to subdivisions (b), (c), and (d), upon providing
Pacific Gas and Electric Company with a minimum of 60 days' written
notice.
(h) The City and County of San Francisco may use HHWP solar
generation to supply electricity to qualifying remote new load by
designating those facilities to be served by HHWP solar generation.
In determining the monthly charges and credit amounts pursuant to
subdivisions (c) and (d), Pacific Gas and
(h) (1) The City and County of San Francisco may elect to
designate specific photovoltaic electricity generation facilities as
HHWP remote solar generation and may use HHWP remote solar generation
to supply electricity to facilities designated as qualifying remote
new load up to the amount of electricity being used by the qualifying
remote new load.
(2) The City and County of San Francisco shall receive no credit
or offset for the electricity exported to the grid from HHWP remote
solar generation, in excess of the electricity delivered from the
grid to qualifying remote new load.
(3) Pacific Gas and Electric
Company shall treat accept any
electricity exported to the grid by HHWP solar generation
remote solar generation, up to the amount of
electricity contemporaneously being used by the qualifying remote new
load, and treat the electricity accepted as behind the meter
generation that offsets the electrical usage of qualifying remote new
load.
(4) The appropriate regulatory agency shall ensure that the
delivery of electricity by HHWP remote solar generation to qualifying
remote new load, and the granting of offsets to the City and County
of San Francisco pursuant to this subdivision, does not result in a
shifting of costs to bundled service customers, either immediately or
over time.
(i) Hetch Hetchy Water and Power shall reimburse Pacific Gas and
Electric Company for its reasonable study costs associated with HHWP
remote solar generation to address interconnection, consistent with
Rule 21, and impacts upon the distribution system resulting from the
HHWP remote solar generation. If the studies identify improvements
necessary for the protection of the Pacific Gas and Electric Company
distribution system, for the protection of its employees, or to
ensure reliable delivery of the electricity generated by the HHWP
remote solar generation facility to qualifying remote new load, Hetch
Hetchy Water and Power shall pay the reasonable costs of the
improvements if it elects to designate the HHWP remote solar
generation facility to provide electricity for qualifying remote new
load. For purposes of this subdivision, "Rule 21" means the
Interconnection Standards for distributed generation adopted by the
commission in Decision 00-11-001 and Decision 00-12-037, as modified
by the commission and implemented in commission-authorized tariff
Rule 21.
(j) Ownership and use of the environmental attributes associated
with the electricity delivered to the electric grid by HHWP at-site
solar generation and HHWP remote solar generation shall be determined
by the commission in accordance with Article 16 (commencing with
Section 399.11) of Chapter 2.3 of Part 1.
SEC. 2. The Legislature finds and declares that, because of the
unique circumstances applicable only to Hetch Hetchy Water and Power
solar generation of electricity, a statute of general applicability
cannot be enacted within the meaning of subdivision (b) of Section 16
of Article IV of the California Constitution. Therefore, this
special statute is necessary.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.