BILL NUMBER: AB 1113 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 25, 2011
INTRODUCED BY Assembly Member Galgiani
FEBRUARY 18, 2011
An act to amend Section 33082 of the Food and
Agricultural Code, relating to milk and milk products.
An act to amend Section 2827.9 of the Public Utilities Code,
relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1113, as amended, Galgiani. Milk and milk products.
Energy: agricultural byproducts.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, as defined. Existing law authorizes
the commission to fix the rates and charges for every public
utility, and requires that those rates and charges be just and
reasonable. Under existing law, electric utilities, as defined, are
required to provide eligible customer-generators with net energy
metering, as defined. Under existing law, electrical corporations are
required to provide eligible biogas digester customer-generators,
that commence operation by December 31, 2009, with net energy
metering, as defined, under a pilot program.
This bill would replace the existing pilot program for eligible
biogas digester customer-generators with a net energy metering
program for eligible customer-generators, as defined, that use
agricultural residues, animal wastes, or animal renderings to
generate electricity and that meet certain requirements.
Existing law requires the Secretary of Food and Agriculture to
supervise the operation of all approved milk inspection services, as
specified, and the regulations which are adopted by him or her.
This bill would make a technical, nonsubstantive change to that
provision.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2827.9 of the Public
Utilities Code is amended to read:
2827.9. (a) (1) The Legislature finds and declares that a
pilot program to provide net energy metering for
eligible biogas digester customer-generators would
enhance the continued diversification of California's energy
resource mix and would encourage the installation of livestock air
emission controls that the State Air Resources Board believes may
produce multiple environmental benefits.
(2) The Legislature further finds and declares that the net energy
metering pilot program authorized pursuant to
this section for eligible biogas digester
customer-generators, which nets out generation charges against
generation charges on a time-of-use basis, furthers the intent of
Chapter 7 of the Statutes of 2001, First Extraordinary Session, by
facilitating the implementation of energy efficiency programs in
order to reduce consumption of energy, reduce the costs associated
with energy demand, and achieve a reduction in peak electricity
demand.
(b) As used in this section, the following definitions apply:
(1) "Electrical corporation" means an electrical corporation, as
defined in Section 218.
(2) (A) "Eligible biogas digester
customer-generator" means a customer of an electrical corporation
that meets both of the following criteria:
(i) Uses a biogas digester an eligible
electrical generating facility with a capacity of not more than
one megawatt that is located on or adjacent to the customer's owned,
leased, or rented premises, is interconnected and operates in
parallel with the electric grid, and is sized to offset part or all
of the eligible biogas digester customer-generator'
s own electrical requirements.
(ii) Is the recipient of local, state, or federal funds, or who
self-finances pilot projects designed to encourage the development of
eligible biogas digester electrical generating
facilities.
(B) Notwithstanding subparagraph (A), up to three large
biogas digester electrical generating facilities with a
generating capacity of more than one megawatt and not more than 10
megawatts, otherwise meeting the criteria of this section, shall be
eligible for participation in the pilot program.
(3) "Eligible biogas digester electrical
generating facility" means a generating facility used to
produce electricity by either a manure methane production project or
as a byproduct of the anaerobic digestion of biosolids and animal
waste any facility that produces electricity using (A)
agricultural residues, including orchard trimmings and rice straw,
(B) animal wastes, including manure and poultry litter, or
(C) animal renderings, that does not use municipal solid waste and
produces no hazardous waste or discharge to surface or ground waters
of the state .
(4) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the difference
between the electricity generated by an eligible biogas
digester customer-generator and fed back to the electric
grid over a 12-month period as described in subdivision (e). Net
energy metering shall be accomplished using a time-of-use meter
capable of registering the flow of electricity in two directions. If
the existing electrical meter of an eligible biogas digester
customer-generator is not capable of measuring the flow of
electricity in two directions, the eligible biogas digester
customer-generator shall be responsible for all expenses
involved in purchasing and installing a meter that is able to measure
electricity flow in two directions. If an additional meter or meters
are installed, the net energy metering calculation shall yield a
result identical to that of a time-of-use meter.
(c) Every electrical corporation shall file with the commission a
standard tariff providing for net energy metering for eligible
biogas digester customer-generators, consistent
with this section. Every electrical corporation shall make this
tariff available to eligible biogas digester
customer-generators upon request, on a first-come-first-served basis,
until the combined statewide cumulative rated generating capacity
used by the eligible biogas digester
customer-generators in the service territories of the three largest
electrical corporations in the state reaches 50 megawatts.
An eligible biogas digester 70 megawatts for eligible
electrical generating facilities. An eligible
customer-generator shall be eligible for the tariff for the life of
the eligible biogas digester electrical generating
facility.
(d) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate
components, and any monthly charges, to the contract or tariff to
which the same customer would be assigned if the customer was not an
eligible biogas digester customer-generator,
except as set forth in subdivision (e). Any new or additional demand
charge, standby charge, customer charge, minimum monthly charge,
interconnection charge, or other charge that would increase an
eligible biogas digester customer-generator's
costs beyond those of other customers in the rate class to which the
eligible biogas digester customer-generator would
otherwise be assigned are contrary to the intent of this legislation,
and shall not form a part of net energy metering tariffs.
(e) The net energy metering calculation shall be made by measuring
the difference between the electricity supplied to the eligible
customer-generator and the electricity generated by the eligible
customer-generator and fed back to the electric grid over a 12-month
period. The following rules shall apply to the annualized metering
calculation:
(1) The eligible biogas digester
customer-generator shall, at the end of each 12-month period
following the date of final interconnection of the eligible
biogas digester customer-generator's system electrical
generating facility with an electrical corporation, and at
each anniversary date thereafter, be billed for electricity used
during that period. The electrical corporation shall determine if the
eligible biogas digester customer-generator was a
net consumer or a net producer of electricity during that period.
For purposes of determining if the biogas digester
eligible customer-generator was a net consumer or a net
producer of electricity during that period, the electrical
corporation shall aggregate the electrical load of a dairy
an agricultural operation under the same
ownership, including, but not limited to, the electrical load
attributable to milking operations, milk refrigeration
operating the agricultural production facility ,
and water pumping located on property adjacent or contiguous to the
dairy property on which the
eligible electrical generating facility is loc ated
. Each aggregated account shall be billed and measured according to
a time-of-use rate schedule.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electrical corporation exceeds the
electricity generated by the eligible biogas digester
customer-generator during that same period, the eligible
biogas digester customer-generator is a net
electricity consumer and the electrical corporation shall be owed
compensation for the eligible biogas digester
customer-generator's net kilowatthour consumption over that same
period. The compensation owed for the eligible biogas
digester customer-generator's consumption shall be
calculated as follows:
(A) The generation charges for any net monthly consumption of
electricity shall be calculated according to the terms of the tariff
to which the same customer would be assigned to or be eligible for if
the customer was not an eligible biogas digester
customer-generator. When those eligible biogas digester
customer-generators are net generators during any discrete
time-of-use period, the net kilowatthours produced shall be valued at
the same price per kilowatthour as the electrical corporation would
charge for retail kilowatthour sales for generation, exclusive of any
surcharges, during that same time-of-use period. If the eligible
biogas digester customer-generator's time-of-use
electrical meter is unable to measure the flow of electricity in two
directions, paragraph (4) of subdivision (b) shall apply. All other
charges, other than generation charges, shall be calculated in
accordance with the eligible biogas digester
customer-generator's applicable tariff and based on the total
killowatthours delivered by the electrical corporation to the
eligible biogas digester customer-generator. To
the extent that charges for transmission and distribution services
are recovered through demand charges in any particular month, no
standby reservation charges shall apply in that monthly billing
cycle.
(B) The net balance of moneys owed shall be paid in accordance
with the electrical corporation's normal billing cycle.
(3) At the end of each 12-month period, where the electricity
generated by the eligible biogas digester
customer-generator during the 12-month period exceeds the electricity
supplied by the electrical corporation during that same period, the
eligible biogas digester customer-generator is a
net electricity producer and the electrical corporation shall retain
any excess kilowatthours generated during the prior 12-month period.
The eligible biogas digester customer-generator
shall not be owed any compensation for those excess kilowatthours.
(4) If an eligible biogas digester
customer-generator terminates service with the electrical
corporation, the electrical corporation shall reconcile the eligible
biogas digester customer-generator's consumption
and production of electricity during any 12-month period.
(f) No biogas digester eligible
electrical generating facility shall be eligible for participation in
the tariff established pursuant to this section, that has not
commenced operation by December 31, 2009. A biogas
An eligible digester
customer-generator shall be eligible for the tariff established
pursuant to this section, only for the operating life of the eligible
biogas digester electrical generating facility.
(g) No biogas digester electrical generating
facility that is subject to the best available control technology
(BACT) requirements shall be eligible for participation in the tariff
pursuant to this section unless the biogas digester
electrical generating facility has installed the best
available control technology as required by the regional
applicable air pollution control district
or air quality management district at the time of installation
to ensure the maximum feasible reductions in toxic and criteria
pollutants.
(h) On or before December 31, 2008, the commission, in
collaboration with the State Air Resources Board, shall report to the
Legislature all of the following information:
(1) The impact of the pilot program on
emissions of air pollutants.
(2) The impact of the pilot program on the
reliability of the transmission and distribution grid.
(3) The impact of the pilot program on
ratepayers.
SECTION 1. Section 33082 of the Food and
Agricultural Code is amended to read:
33082. The secretary shall supervise the operation of all
approved milk inspection services in the enforcement of this division
and the regulations which are adopted by him or her.