BILL ANALYSIS �
AB 1302
Page 1
Date of Hearing: May 18, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1302 (Williams) - As Amended: May 10, 2011
Policy Committee: UtilitiesVote:9-2
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires electrical utilities to designate areas
within their service areas as optimal for deployment of
distributed generation (DG). Specifically, this bill:
1)Requires the California Energy Commission (CEC), in
consultation with the Public Utilities Commission (PUC), to
develop guidelines for investor-owned electrical utilities
(IOUs) and publicly-owned electrical utilities (POUs) having
at least 75,000 retail customers to identify and designate
zones for optimal deployment of distributed generation (DG).
2)Requires, by December 31, 2012, that the IOUs provide the CEC,
the PUC and the Independent System Operator (ISO) and the POUs
provide the CEC and the ISO with information specified per
(2), and requires the CEC to review and approve or indicate
needed revisions to the information provided.
3)Requires the CEC, if an IOU or POU does not provide the above
information by the deadline, to itself designate the DG zones
and charge the IOU or POU a fee to cover the CEC's costs for
this work.
4)Requires the IOUs and POUs, upon approval by the CEC per (3),
to periodically update DG zones, provide this information to
the CEC, and post the information on the IOU/POU website.
5)Requires state agencies to give priority for approval of DG
projects proposed with a zone designated by the above process.
FISCAL EFFECT
AB 1302
Page 2
1)The Energy Commission would require two positions at a cost of
$210,000 to facilitate coordination with the IOUs and the POUs
to develop guidelines, review, approve or provide
recommendations to their proposed DG optimal designation
zones, and to ensure that this information is publicly posted
on each utility's website. �Energy Resources Programs Account]
2)The PUC would require one senior analyst position at special
fund cost of $115,000 to consult with the CEC in developing
the guidelines. �Public Utilities Reimbursement Account]
COMMENTS
1)Purpose . Distributed generation refers to electric generation
facilities located close to the point of electricity
consumption. DG can be renewable energy (such as solar or
wind), fuel cells powered by natural gas or biogas. These
projects usually do not require large amounts of land and most
can be co-located on existing developed property (such as a
parking lot or building roof). DG systems connect to the
electricity grid via the local transmission or distribution
system, and can be constructed in a manner that either allows
all of the power to be sent to the electricity grid or to
first serve on-site electricity needs and send only excess
electricity to the grid. The author argues that the State must
have an understanding of the optimal areas for distributed
generation in California within areas served by investor owned
utilities and public utilities.
2)Opposition . PG&E indicates that electrical distribution
systems are dynamic; systems change, new devices and new loads
are added, and different types and sizes of DG are
incorporated. In addition, they point out that DG technologies
themselves create unknown variables, such as whether they are
mechanical or inverter based systems, how they potentially
interact with each other and the existing electrical system.
Since that the electric grid is an "ever-changing" system,
PG&E questions whether the maps will ultimately be useful.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081