BILL NUMBER: AB 2573 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 28, 2006
AMENDED IN SENATE AUGUST 10, 2006
AMENDED IN SENATE AUGUST 7, 2006
AMENDED IN ASSEMBLY MAY 22, 2006
AMENDED IN ASSEMBLY MAY 10, 2006
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 electricity
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 certain electricity generated and delivered to
the electric grid by HHWP solar generation in accordance with
specified rate criteria. Existing law provides that the HHWP solar
generation 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
electricity generation 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 authorize 2 different HHWP photovoltaic
electricity generation 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 load, as defined, exceed 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 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 PG&E 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 load, and to treat the electricity accepted as
behind the meter generation that offsets the electrical usage of
qualifying remote load. The bill would make the City and County of
San Francisco responsible for scheduling the electricity exported to
the grid from HHWP remote solar generation. The bill would require
that HHWP remote solar generation sites and qualifying remote load
sites have meters capable of measuring exports and usage of
electricity sufficient to determine credits or offsets and would make
the City and County of San Francisco responsible for the cost of
those meters. The bill would require that the appropriate regulatory
agency ensure that the delivery of electricity by HHWP remote solar
generation to qualifying remote load, and the granting of offsets to
the City and County of San Francisco, not result in a shifting of
costs to bundled service customers.
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) "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 electricity generation project
facility site if the facility at the site were a Pacific
Gas and Electric Company bundled customer, as determined by Pacific
Gas and Electric Company.
(2) "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 emissions 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.
(3) "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).
(4) "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 load.
(5) "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.
(6) "Qualifying remote load" means the 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
load served under the Interconnection Agreement, at
sites that are separate from, and not adjacent to, the
site sites where the photovoltaic
project electricity generation facility is
located, and serviced through a meter or multiple meters other than
those serving the site sites where the
photovoltaic project electricity generation
facility is located. The separate or remote site
sites may be designated by the City and County
of San Francisco, both inside and outside of the City and County of
San Francisco. Where the separate or remote site is
sites are outside of the City and County of San
Francisco, it they shall be located
within 20 miles of the City and County of San Francisco or within 20
miles of a HHWP remote solar generation facility. There is no wattage
limit on qualifying remote 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.
(2) The photovoltaic project electricity
generation facility 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
facility 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.
(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.
(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.
(c) For each site of a photovoltaic electricity generation
project facility 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 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 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 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 photovoltaic electricity generation
facilities that will comprise HHWP 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)
(d), and (h) , upon providing Pacific Gas and
Electric Company with a minimum of 60 days' written notice.
(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 specific facilities designated
as qualifying remote load up to the amount of electricity being used
by the qualifying remote 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 load.
(3) Pacific Gas and Electric Company shall 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 load, and treat the electricity accepted as behind the meter
generation that offsets the electrical usage of qualifying remote
load. Additional rates may apply pursuant to paragraph (6).
(4) The City and County of San Francisco shall be responsible for
scheduling the electricity exported to the grid from HHWP remote
solar generation.
(5) Both HHWP remote solar generation sites and qualifying remote
load sites shall have meters capable of measuring exports and usage
of electricity that will support determination of credits or offsets
pursuant to paragraph (2). The City and County of San Francisco shall
be responsible for the costs of the meters required pursuant to this
section.
(6) To compensate Pacific Gas & and
Electric Company for the use of its distribution
facilities, the City and County of San Francisco shall pay applicable
distribution rates, transmission rates, or distribution and
transmission rates, as at rate levels
determined by the Interconnection Agreement, for all energy delivered
to qualifying remote load that comes from HHWP remote solar
generation. When a remote solar generation facility is
directly interconnected to a transmission line, applicable
transmission rates as determined by the Interconnection Agreement
shall apply. When a remote solar generation facility is not directly
interconnected to a transmission line, no transmission rates shall
apply. When a remote solar generation facility is directly
interconnected to a distribution line, applicable distribution rates
as determined by the Interconnection Agreement shall apply.
When HHWP remote solar generation and the qualifying remote
load it serves are located within the City and County of San
Francisco and are interconnected at distribution voltage, the
applicable rate for delivery of energy from HHWP remote so
lar generation shall be reduced as negotiated pursuant to the
Interconnection Agreement.
(7) The appropriate regulatory agency shall ensure that the
delivery of electricity by HHWP remote solar generation to qualifying
remote load, and the granting of offsets to the City and County of
San Francisco pursuant to this subdivision, do 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
applicable regulatory rules, and impacts upon the electric
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
electric 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 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
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.
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