BILL NUMBER: SB 297 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 14, 2011
AMENDED IN SENATE MARCH 17, 2011
INTRODUCED BY Senator Cannella
( Coauthor: Senator La Malfa
)
( Coauthor: Assembly Member
Olsen )
FEBRUARY 14, 2011
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
SB 297, as amended, Cannella. Renewable energyresources:
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 to include a hydroelectric generation facility of any
size, and remove other restrictions regarding which hydroelectric
generation facilities meet the definition of an eligible renewable
energy resource. The bill would also make conforming changes.
This bill would incorporate certain changes in Section 399.12 of
the Public Utilities Code, proposed by SB 2 of the First
Extraordinary Session, to be operative only if SB 2 and this bill are
both chaptered and become effective on or before January 1, 2012,
and this bill is chaptered last.
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) (1) Except as otherwise provided in paragraph (2) or (3),
"eligible renewable energy resource" means an electrical generating
facility that meets the definition of an "in-state renewable
electricity generation facility" in Section 25741 of the Public
Resources Code.
(2) A hydroelectric generation facility of any size, including a
conduit hydroelectric facility, is an eligible renewable energy
resource, if the facility meets the criteria in paragraph (2) of
subdivision (b) of Section 25741.
(3) 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.
(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) 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. 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.
SEC. 1.5. 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) "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.
(b) "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.
(c) "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.
(a)
(d) "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
(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 "in-state renewable
electricity a "renewable electrical generation
facility" in Section 25741 of the Public Resources Code ,
subject to the following limitations: .
(1) (A) 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) Notwithstanding subparagraph (A), 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) 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, including a
conduit hydroelectric facility, is an eligible renewable energy
resource, if the facility meets the criteria in paragraph (2) of
subdivision (b) of Section 25741.
(2)
(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.
(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.
(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.
(e)
(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
399.13 399.25 , 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) No (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:
(A)
(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.
(B)
(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.
(C)
(iii) The higher quantity of nonrenewable fuel is
limited to either natural gas or hydrogen derived by reformation of a
fossil fuel.
(B) 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 (2) of subdivision (e).
(f)
(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 or the obligation of a local publicly owned electric
utility to meet its renewables portfolio standard implemented
pursuant to Section 387 .
(g)
(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. Nothing in this
This paragraph shall 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. Section 1.5 of this bill incorporates
amendments to Section 399.12 of the Public Utilities Code proposed by
this bill and SB 2 of the First Extraordinary Session. It shall only
become operative if (1) both bills are enacted and become effective
on or before January 1, 2012, (2) each bill amends Section 399.12 of
the Public Utilities Code, and (3) this bill is enacted after SB 2 of
the First Extraordinary Session, in which case Section 399.12 of the
Public Utilities Code, as amended by SB 2 of the First Extraordinary
Session, shall remain operative only until the operative date of
this bill, at which time Section 1.5 of this bill shall become
operative, and Section 1 of this bill shall not become operative.