BILL NUMBER: AB 1771 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 19, 2012
INTRODUCED BY Assembly Member Valadao
FEBRUARY 17, 2012
An act to amend Section 399.12 of, and to repeal Section 399.12.5
of, the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1771, as amended, Valadao. Renewable energy resources:
hydroelectric generation.
Existing law establishes the California renewables portfolio
standard program, which requires the Public Utilities Commission to
implement annual procurement targets for the procurement of eligible
renewable energy resources, as defined, for all retail sellers, as
defined, to achieve the targets and goals of the program. The
existing definition of an eligible renewable energy resource includes
small hydroelectric generation facilities of 30 megawatts or less
that meet specified criteria.
This bill would revise the definition of an eligible renewable
energy resource for the purposes of the California renewables
portfolio standard program to include a hydroelectric generation
facility of any size, as specified. The bill would also
specified, and make conforming changes.
These provisions would become operative 6 months after the date that
a certain report is submitted by the State Energy Resources
Conservation and Development Commission to the Legislature.
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) "Balancing authority" means the responsible entity that
integrates resource plans ahead of time, maintains load-interchange
generation balance within a balancing authority area, and supports
interconnection frequency in real time.
(c) "Balancing authority area" means the collection of generation,
transmission, and loads within the metered boundaries of the area
within which the balancing authority maintains the electrical
load-resource balance.
(d) "California balancing authority" is a balancing authority with
control over a balancing authority area primarily located in this
state and operating for retail sellers and local publicly owned
electric utilities subject to the requirements of this article and
includes the Independent System Operator (ISO) and a local publicly
owned electric utility operating a transmission grid that is not
under the operational control of the ISO. A California balancing
authority is responsible for the operation of the transmission grid
within its metered boundaries which may not be limited by the
political boundaries of the State of California.
(e) (1) Except as otherwise provided in paragraph (3) or (4),
"eligible renewable energy resource" means an electrical generating
facility that meets the definition of an a "renewable electrical
generation facility" in Section 25741 of the Public Resources Code.
(2) A facility approved by the governing board of a local publicly
owned electric utility prior to June 1, 2010, for procurement to
satisfy renewable energy procurement obligations adopted pursuant to
former Section 387, shall be certified as an eligible renewable
energy resource by the Energy Commission pursuant to this article, if
the facility is a "renewable electrical generation facility" as
defined in Section 25741 of the Public Resources Code.
(3) A hydroelectric generation facility of any size is an eligible
renewable energy resource if the facility satisfies one of the
requirements in paragraph (2) of subdivision (b)
(a) of Section 25741 of the Public Resources Code.
(4) 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.
(f) "Procure" means to acquire through ownership or contract.
(g) "Procurement entity" means any person or corporation
authorized by the commission to enter into contracts to procure
eligible renewable energy resources on behalf of customers of a
retail seller pursuant to subdivision (f) of Section 399.13.
(h) (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 399.25, 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) (A) An 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:
(i) 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.
(ii) 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.
(iii) The higher quantity of nonrenewable fuel is limited to
either natural gas or hydrogen derived by reformation of a fossil
fuel.
(B) (i) Electricity generated by a small hydroelectric generation
facility shall not result in the creation of a renewable energy
credit unless the facility meets the requirements of clause (ii).
(ii) 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 procured the electricity from the
facility as of December 31, 2005. A small hydroelectric generation
unit with a nameplate capacity not exceeding 40 megawatts that is
operated as part of a water supply or conveyance system is an
eligible renewable energy resource if the retail seller or local
publicly owned electric utility procured the electricity from the
facility as of December 31, 2005. A new hydroelectric facility that
commences generation of electricity after December 31, 2005, 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.
(C) (i) Electricity generated by a conduit hydroelectric
generation facility shall not result in the creation of a renewable
energy credit unless the facility meets the requirements of clause
(ii).
(ii) Notwithstanding clause (ii) of subparagraph (B), 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.
(D) Electricity generated by a facility engaged in the combustion
of municipal solid waste shall not result in the creation of a
renewable energy credit unless the facility meets the requirements of
paragraph (4) of subdivision (e).
(i) "Renewables portfolio standard" means the specified percentage
of electricity generated by eligible renewable energy resources that
a retail seller or a local publicly owned electric utility is
required to procure pursuant to this article.
(j) "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. This paragraph does not 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.
(k) "WECC" means the Western Electricity Coordinating Council of
the North American Electric Reliability Corporation, or a successor
to either corporation.
SEC. 2. Section 399.12.5 of the Public Utilities Code is repealed.
SEC. 3. The provisions of this act shall become
operative six months after the date that a report is submitted by the
State Energy Resources Conservation and Development Commission
to the Legislature pursuant to Section 25741.5 of the Public
Resources Code.