BILL ANALYSIS
AB 1023
Page 1
Date of Hearing: April 27, 2009
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Nancy Skinner, Chair
AB 1023 (Ruskin) - As Amended: April 2, 2009
SUBJECT : Renewable energy resources
SUMMARY : Expands a feed-in tariff program for eligible
renewable electric generation to make it available to facilities
up to 10-15 megawatts in size.
EXISTING LAW requires investor-owned utilities (IOUs) to
purchase all electricity from an eligible renewable generating
facility that is no larger than 1.5 megawatts at a market price
determined by the Public Utilities Commission (PUC) pursuant to
the RPS. Facilities are eligible until 500 megawatts is
produced statewide.
THIS BILL increases the facility size limit to 10 megawatts and
authorizes the PUC to increase it up to 15 megawatts.
FISCAL EFFECT : Unknown
COMMENTS :
1)Background. Utility customers may develop small renewable
generators which are eligible renewable energy resources under
the RPS. It is possible for customers to sell surplus
electricity from these generators to IOUs pursuant to
individually negotiated contracts, but it is more convenient
to sell these small amounts of electricity under
predetermined, standard contract prices and other terms. To
facilitate this, the Legislature has enacted several different
statutes over the last several years that apply to particular
customers and technologies. For example, various forms of
"net-metering" programs have been enacted for solar
photovoltaic, wind, and manure methane generators, plus
special statutes for other renewable energy facilities.
Currently, IOUs are required to purchase qualifying renewable
energy from facilities up to 1.5 megawatts at a PUC-determined
market price and assured these purchases count toward their
RPS obligations. The total amount of energy that may
participate in this "feed-in tariff" program is capped at 500
AB 1023
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megawatts. The PUC is considering expanding the feed-in
tariff program to facilities up to 10 megawatts and creating a
standard offer contract for facilities between 10 and 20
megawatts. This bill substantially expands the existing
statutory program by increasing the project size limits, but
retaining the statewide cap.
2)Related Legislation. AB 1106 (Fuentes), pending in this
Committee, also expands the existing feed-in tariff program.
The two bills contain similar conditions, but AB 1106
eliminates the 500 megawatt statewide cap, increases the
individual facility size limit to 20 megawatts, and requires
the PUC to develop feed-in tariffs for facilities over 20
megawatts.
AB 1023
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REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916)
319-2092