BILL NUMBER: AB 721 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Bradford
FEBRUARY 17, 2011
An act to amend Section 399.12 of the Public Utilities Code,
relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 721, as introduced, Bradford. Renewable energy resources: solar
energy systems.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
as defined. The Public Utilities Act imposes various duties and
responsibilities on the commission with respect to the purchase of
electricity and requires the commission to review and adopt a
procurement plan and a renewable energy procurement plan for each
electrical corporation pursuant to the California Renewables
Portfolio Standard Program. The renewables portfolio standard program
requires that a retail seller of electricity purchase a specified
minimum percentage of electricity generated by eligible renewable
energy resources, as defined, in any given year as a specified
percentage of total kilowatthours sold to retail end-use customers
each calendar year. Existing law defines "renewable energy credit" to
mean a certificate of proof associated with the generation of
electricity from an eligible renewable energy resource, issued
through a specified accounting system, that one unit of electricity
was generated and delivered by an eligible renewable energy resource.
This bill would expand the definition of an eligible renewable
energy resource to include a facility that generates, or a renewable
energy credit associated with the generation of, electricity from an
eligible solar energy system that receives monetary incentives
pursuant to specified law.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 399.12 of the Public Utilities Code is amended
to read:
399.12. For purposes of this article, the following terms have
the following meanings:
(a) "Conduit hydroelectric facility" means a facility for the
generation of electricity that uses only the hydroelectric potential
of an existing pipe, ditch, flume, siphon, tunnel, canal, or other
manmade conduit that is operated to distribute water for a beneficial
use.
(b) "Delivered" and "delivery" have the same meaning as provided
in subdivision (a) of Section 25741 of the Public Resources Code.
(c) "Eligible renewable energy resource" means an
either of the following:
(1) An electrical generating
facility that meets the definition of an "in-state renewable
electricity generation facility" in Section 25741 of the Public
Resources Code, subject to the following limitations:
(1) (A)
(A) (i) An existing
small hydroelectric generation facility of 30 megawatts or less shall
be eligible only if a retail seller or local publicly owned electric
utility owned or procured the electricity from the facility as of
December 31, 2005. A new hydroelectric facility is not an eligible
renewable energy resource if it will cause an adverse impact on
instream beneficial uses or cause a change in the volume or timing of
streamflow.
(B)
(ii) Notwithstanding subparagraph (A)
clause (i) , a conduit hydroelectric facility of
30 megawatts or less that commenced operation before January 1,
2006, is an eligible renewable energy resource. A conduit
hydroelectric facility of 30 megawatts or less that commences
operation after December 31, 2005, is an eligible renewable energy
resource so long as it does not cause an adverse impact on instream
beneficial uses or cause a change in the volume or timing of
streamflow.
(2)
(B) A facility engaged in the combustion of municipal
solid waste shall not be considered an eligible renewable energy
resource unless it is located in Stanislaus County and was
operational prior to September 26, 1996.
(2) A facility that generates, or a renewable energy credit
associated with the generation of, electricity from an eligible solar
energy system that receives monetary incentives pursuant to Article
1 (commencing with Section 2851) of Chapter 9 of Part 2.
(d) "Procure" means to acquire through ownership or contract. For
purposes of meeting the renewables portfolio standard procurement
requirements, a retail seller or local publicly owned electric
utility may procure either delivered electricity generated by an
eligible renewable energy resource that it owns or for which it has
entered into an electricity purchase agreement. Nothing in this
article is intended to imply that the purchase of electricity from
third parties in a wholesale transaction is the preferred method of
fulfilling a retail seller's obligation to comply with this article
or the obligation of a local publicly owned electric utility to meet
its renewables portfolio standard implemented pursuant to Section
387.
(e) (1) "Renewable energy credit" means a certificate of proof
associated with the generation of electricity from an eligible
renewable energy resource, issued through the accounting system
established by the Energy Commission pursuant to Section 399.13, that
one unit of electricity was generated and delivered by an eligible
renewable energy resource.
(2) "Renewable energy credit" includes all renewable and
environmental attributes associated with the production of
electricity from the eligible renewable energy resource, except for
an emissions reduction credit issued pursuant to Section 40709 of the
Health and Safety Code and any credits or payments associated with
the reduction of solid waste and treatment benefits created by the
utilization of biomass or biogas fuels.
(3) No electricity Electricity
generated by an eligible renewable energy resource attributable to
the use of nonrenewable fuels, beyond a de minimis quantity used to
generate electricity in the same process through which the facility
converts renewable fuel to electricity, shall not result
in the creation of a renewable energy credit. The Energy Commission
shall set the de minimis quantity of nonrenewable fuels for each
renewable energy technology at a level of no more than 2 percent of
the total quantity of fuel used by the technology to generate
electricity. The Energy Commission may adjust the de minimis quantity
for an individual facility, up to a maximum of 5 percent, if it
finds that all of the following conditions are met:
(A) The facility demonstrates that the higher quantity of
nonrenewable fuel will lead to an increase in generation from the
eligible renewable energy facility that is significantly greater than
generation from the nonrenewable fuel alone.
(B) The facility demonstrates that the higher quantity of
nonrenewable fuels will reduce the variability of its electrical
output in a manner that results in net environmental benefits to the
state.
(C) The higher quantity of nonrenewable fuel is limited to either
natural gas or hydrogen derived by reformation of a fossil fuel.
(f) "Renewables portfolio standard" means the specified percentage
of electricity generated by eligible renewable energy resources that
a retail seller is required to procure pursuant to this article or
the obligation of a local publicly owned electric utility to meet its
renewables portfolio standard implemented pursuant to Section 387.
(g) "Retail seller" means an entity engaged in the retail sale of
electricity to end-use customers located within the state, including
any of the following:
(1) An electrical corporation, as defined in Section 218.
(2) A community choice aggregator. The commission shall institute
a rulemaking to determine the manner in which a community choice
aggregator will participate in the renewables portfolio standard
program subject to the same terms and conditions applicable to an
electrical corporation.
(3) An electric service provider, as defined in Section 218.3, for
all sales of electricity to customers beginning January 1, 2006. The
commission shall institute a rulemaking to determine the manner in
which electric service providers will participate in the renewables
portfolio standard program. The electric service provider shall be
subject to the same terms and conditions applicable to an electrical
corporation pursuant to this article. Nothing in this paragraph shall
impair a contract entered into between an electric service provider
and a retail customer prior to the suspension of direct access by the
commission pursuant to Section 80110 of the Water Code.
(4) "Retail seller" does not include any of the following:
(A) A corporation or person employing cogeneration technology or
producing electricity consistent with subdivision (b) of Section 218.
(B) The Department of Water Resources acting in its capacity
pursuant to Division 27 (commencing with Section 80000) of the Water
Code.
(C) A local publicly owned electric utility.