BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 32|
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UNFINISHED BUSINESS
Bill No: SB 32
Author: Negrete McLeod (D)
Amended: 8/31/09 in Assembly
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 10-0, 4/21/09
AYES: Padilla, Calderon, Corbett, Cox, Kehoe, Lowenthal,
Simitian, Strickland, Wiggins, Wright
NO VOTE RECORDED: Benoit
SENATE APPROPRIATIONS COMMITTEE : 11-0, 5/28/09
AYES: Kehoe, Cox, Corbett, Denham, DeSaulnier, Hancock,
Leno, Oropeza, Runner, Wyland, Yee
NO VOTE RECORDED: Walters, Wolk
SENATE FLOOR : 34-0, 6/3/09
AYES: Aanestad, Alquist, Ashburn, Calderon, Cogdill,
Corbett, Correa, Cox, Denham, DeSaulnier, Ducheny,
Dutton, Florez, Hancock, Harman, Hollingsworth, Huff,
Kehoe, Leno, Liu, Lowenthal, Maldonado, Negrete McLeod,
Oropeza, Pavley, Romero, Simitian, Steinberg, Strickland,
Wiggins, Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Benoit, Cedillo, Padilla, Runner,
Walters, Vacancy
ASSEMBLY FLOOR : Not relevant
SUBJECT : Renewable electric generation facilities
SOURCE : California Solar Energy Industries Association
CONTINUED
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DIGEST : This bill requires the California Public
Utilities Commission (CPUC) to increase the 1.5 megawatts
feed-in tariff to three megawatts and delete the
requirement that the generation facility be located on
property owned or under the control of the generator. The
CPUC is authorized to adjust payments to reflect the value
of the electricity and other factors. This bill makes
other related changes.
Assembly Amendment made clarifying changes to implement the
bill's provisions.
ANALYSIS : A feed-in tariff (FIT) is a process for small,
renewable generators e.g., rooftop solar, to sell power to
a utility at predefined terms and conditions, without
contract negotiations. For investor owned utilities
(IOUs), the FIT operates as a "must take" contract in its
renewable portfolio. That is, if the power is generated,
the IOU must take it. FITs are available for systems sized
up to 1.5 megawatts for 10, 15, or 20 year contract
periods.
This bill:
1.Expands the current FIT program by requiring investor
owned utilities (IOUs) to purchase all electricity
produced by eligible renewable generation that is less
than three megawatts (MWs) in size and is located within
the service territory of that IOU.
2.Provides that the price paid by IOU for electricity
purchased under this program shall be a price determined
by the CPUC that reflects the cost of fossil fuel
generation in the state and the value of environmental
compliance costs.
3.Provides that the price paid by IOUs for electricity
from an eligible facility shall be set so that
ratepayers that do not receive the payments under this
program are indifferent to the tariff rate paid to the
generators.
4.Requires an IOU to provide expedited interconnection
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procedures to eligible generation facilities that are
located on a distribution circuit that generates
electricity at a time and in a manner so as to offset
peak demand on the distribution circuit.
5.Provides that no electric utility is required to offer
additional FITs once the utility meets its proportionate
share of a statewide total capacity cap of 750 MWs is
reached or until each utility has reached the caps on
above market cost under the California Renewables
Portfolio Standard (RPS).
6.Provides that each kilowatt hour (kWh) purchased from
the electric generation facility shall count toward IOUs
RPS obligations.
7.Authorizes CPUC to reduce the maximize size of eligible
resources in this program if CPUC finds that the
reduction is necessary to maintain system reliability.
8.Provides that a customer who receives a ratepayer-funded
incentive for the renewable generation facility prior to
January 1, 2010, shall be eligible to participate in FIT
program if the customer reimburse ratepayers for the
cost of the incentives he or she received prior to 2010.
9.Requires all publicly owned electric utilities (POUs)
that serve more than 75,000 customers to create a
program to purchase all electricity produced by eligible
renewable generation that is less than three MWs.
10.Makes legislative findings.
In addition, the CPUC is required to review and approve
FITs on an ongoing basis for the duration of the program.
In consultation with the Independent System Operator, the
CPUC will be required to examine the impact on the
transmission and distribution grid and any effects on
ratepayers resulting from electric generation facilities
operating pursuant to a tariff or contract approved by the
CPUC pursuant to this bill. The CPUC will also be required
to establish performance standards for any electrical
facility with capacity greater than 1 megawatt to ensure
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those facilities generate expected annual net production
and do not impact system reliability.
Requires the CPUC to not order or otherwise require an
electrical corporation to implement a must-buy renewable
feed-in tariff except as required by this bill or as
otherwise expressly authorized by statute.
Comments
The author's office opines that California is missing
opportunities to expand the use of solar PV because
excellent sites (e.g. warehouses, public storage,
agricultural sites) with space and interest in installing
solar energy equipment cannot use solar because they cannot
participate in either the CSI incentive program or the RPS
solicitation program. This is particularly important
because it means missed opportunities to develop
distributed generation within the communities where
electricity is needed. This further increases the State's
reliance on an electricity transmission and distribution
system that is already congested. The author's office
further opines that current law does not recognize the
value that these sites can contribute to increasing
renewable energy generation in state, reducing transmission
congestion, peak electricity demand, and greenhouse gas
emissions or development of the market for renewable energy
technologies.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 9/11/09)
California Solar Energy Industries Association (source)
Agricultural Energy Consumers Association
Alliance of Western Milk Producers
California Farm Bureau Federation
California Feed and Grain Association
California State Association of Electrical Workers
Coalition of Utility Employees
Inland Empire Utilities Agency
Pacific Egg and Poultry Association
South Coast Air Quality Management District
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Western United Dairymen
OPPOSITION : (Verified 9/11/09)
Southern California Public Power Authoroty
ARGUMENTS IN SUPPORT :
DLW:do 9/11/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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