BILL NUMBER: SB 383 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 25, 2011
AMENDED IN SENATE MARCH 31, 2011
INTRODUCED BY Senator Wolk
FEBRUARY 15, 2011
An act to amend Section 2830 of, to amend the heading of
Chapter 7.5 (commencing with Section 2830) of Part 2 of Division 1
of, and to repeal Section 2826.5 of, the Public Utilities Code,
relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 383, as amended, Wolk. Local government renewable
energy self-generation program: Renewable energy
generation: private energy producers: PVUSA solar facility.
(1) Under existing law, the Public Utilities Commission has
regulatory jurisdiction over public utilities, including electrical
corporations, 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. The
Under existing law, the governing board of a local
publicly owned electric utility, as defined, generally has authority
over the activities of a local publicly owned electric utility.
Under existing law, the local government renewable
energy self-generation program authorizes a local government, as
defined, to receive a bill credit, as defined, to be applied to a
designated benefiting account for electricity exported to the
electrical grid by an eligible renewable generating facility, as
defined, and requires the commission to adopt a rate tariff for the
benefiting account. The program requires the local government or
campus and the electrical corporation to mutually agree upon a
benefiting account.
This bill would authorize the local government or campus to
designate the benefiting account.
The existing program requires that the benefiting account receives
service under a time-of-use rate schedule and requires that a bill
credit is to be calculated based upon the time-of-use electricity
generation component of the electricity usage charge of the
generating account, multiplied by the quantities of electricity
generated by an eligible renewable generating facility that are
exported to the grid during the corresponding time period.
This bill would delete the requirement that the benefiting account
receive service under a time-of-use rate schedule and require that
the bill credit be calculated based upon the bundled electricity rate
charged the benefiting account, with differing calculations
depending upon whether the benefiting account receives service
pursuant to a time-of-use rate schedule, a single bundled rate, or
fixed rates with different rates charged for different tiers of
usage. The bill would authorize a benefiting account that is a net
surplus customer-generator, as defined, to affirmatively elect to
receive net surplus electricity compensation, as defined.
This bill would recast the existing program as the off-site
renewable energy self-generation program and would apply the program
to both electrical corporations and local publicly owned electric
utilities. The bill would authorize the owner or operator of an
eligible renewable generating facility, as defined, to designate a
benefiting account within the service territory of either an
electrical corporation or a local publicly owned electric utility to
receive a bill credit based upon the quantity of electricity
generated by the eligible renewable generating facility, as
specified. The bill would require the owner or operator of the
eligible renewable generating facility to determine the percentage of
electricity generated by the renewable energy generating facility to
be assigned to the benefiting account.
The
(2) The existing program limits
the generating capacity of an eligible renewable generating facility
to no more than one megawatt and requires that the facility be owned
by, operated by, or be located on property under the control of the
local government or campus.
This bill would limit the generating capacity of an eligible
renewable generating facility to no more than 20 megawatts. The bill
would delete the requirement that the eligible renewable generating
facility be owned by, operated by, or be located on, property under
the control of the local government or campus , and would
instead require the facility to be located within the state. The bill
would add a requirement that the eligible renewable generating
facility be metered to allow calculation of the bill credit
based upon the time period during which the electricity is exported
to the grid, as defined .
The existing program provides that an electrical corporation is
not obligated to provide a bill credit to a benefiting account that
is not designated prior to the point in time that the combined
statewide cumulative rated generating capacity of all eligible
renewable generating facilities within the service territories of the
state's 3 largest electrical corporations reaches 250 megawatts.
This bill would delete this 250 megawatts limitation upon the
obligation of an electrical corporation to provide a bill credit.
By imposing new requirements on local publicly owned electric
utilities, which are entities of local government, in connection with
billing benefiting accounts under the off-site renewable energy
self-generation program, this bill would impose a state-mandated
local program.
(2)
(3) Existing law authorizes the City of Davis to
receive a bill credit, as defined, to a benefiting account, as
defined, for electricity supplied to the electrical grid by a
photovoltaic facility located within and partially owned by the city
(PVUSA solar facility) and requires the commission adopt a rate
tariff for the benefiting account. Existing law authorizes the peak
electricity generating capacity for the facility to be expanded, not
to exceed one megawatt.
This bill would repeal these provisions relating to the City of
Davis.
(4) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2826.5 of the Public Utilities Code is
repealed.
SEC. 2. The heading of Chapter 7.5 (commencing
with Section 2830) of Part 2 of Division 1 of the Public
Utilities Code is amended to read:
CHAPTER 7.5. LOCAL GOVERNMENT OFF-SITE
RENEWABLE ENERGY SELF-GENERATION PROGRAM
SEC. 2. SEC. 3. Section 2830 of the
Public Utilities Code is amended to read:
2830. (a) As used in this section, the following terms have the
following meanings:
(1) "Benefiting account" means an electricity account, or more
than one account, designated by a local government or campus
the owner or operator of an eligible renewable
generating facility to receive a bill credit pursuant to this
section. To be eligible to be designated as a "benefiting account,"
the account shall be for service to premises located within the
geographical boundaries of a local government or, for a
campus, within the geographical boundary of the city, county, or city
and county in which the campus is located. the
service territory of the electric distribution utility containing the
eligible renewable generating facility, or within the geographical
boundaries of a contiguous service territory of an electric
distribution utility if both of the electric distribution utilities
have an agreement enabling the connection of the benefiting account
to the eligible renewable generating facility.
(2) "Bill credit" means an amount of money credited to a
benefiting account that is calculated based upon the bundled
electricity rate charged the benefiting account by the electrical
corporation. time-of-use electricity generation
component of the electricity usage charge of the benefiting account
multiplied by the quantity of electricity generated by an eligible
renewable generating facility that is assigned to the
benefiting account pursuant to paragraph (1) of subdivision (b).
(A) If the benefiting account receives service pursuant to a
time-of-use rate, the amount of the bill credit is to be calculated
by measuring the amount of electricity exported to the electrical
grid by an eligible renewable generating facility multiplied by the
corresponding time-of-use electricity rate of the benefiting account.
(B) If the benefiting account receives service pursuant to a fixed
single rate, the credit shall be calculated by measuring the amount
of electricity exported to the electrical grid by an eligible
renewable generating facility multiplied by that rate.
(C) If the benefiting account receives service pursuant to fixed
rates, with different rates charged for different tiers of usage, the
bill credit will be at the first tier or baseline usage rate for
electricity exported to the electrical grid by an eligible renewable
generating facility, up to the baseline quantity of electricity for
that benefiting account. The bill credit for electricity exported to
the grid by an eligible renewable generating facility that is above
the baseline amount shall be calculated based upon the next lowest
tiered rate, up to that tier of usage, and then upon the next lowest
tiered rate, up to that tier of usage, until the bill credit reaches
100 percent of the bill to the benefiting account.
(D) Electricity is exported to the grid if it is generated by an
eligible renewable generating facility, is not utilized onsite by the
local government or campus, and the electricity flows through the
meter site and on to the electrical corporation's distribution or
transmission infrastructure.
(3) "Campus" means an individual community college campus,
individual California State University campus, or individual
University of California campus.
(3) "Electric distribution utility" means an electrical
corporation, as defined in Section 218, or a local publicly owned
electric utility, as defined in Section 224.3.
(4) "Eligible renewable generating facility" means a generation
facility that meets all of the following requirements:
(A) Has a generating capacity of no more than 20 megawatts.
(B) Is an eligible renewable energy resource, as defined in
Article 16 (commencing with Section 399.11) of Part 1.
(C) Is located within the geographical boundary of the local
government or, for a campus, within the geographical boundary of the
city or city and county, if the campus is located in an incorporated
area, or county, if the campus is located in an unincorporated area.
(C) Is located within the State of California.
(D) Is sized to offset all or part of the electrical load of the
benefiting account, or more than one account.
(5) "Generating account" means the time-of-use electric service
account of the local government or campus where the eligible
renewable generating facility is located.
(6) "Local government" means a city, county, whether general law
or chartered, city and county, special district, school district,
political subdivision, or other local public agency, but shall not
mean a joint powers authority, the state or any agency or department
of the state, other than an individual campus of the University of
California or the California State University.
(b) Subject to the limitation in subdivision (h), a local
government may elect to receive electric service pursuant to this
section, if all of the following conditions are met:
(1) The local government designates one or more benefiting
accounts to receive a bill credit.
(2) The benefiting account is the responsibility of, and serves
property that is owned, operated, or on property under the control of
the local government or campus.
(3) The electrical output of the eligible renewable generating
facility is metered for time of use to allow calculation of the bill
credit based upon when the electricity is exported to the grid.
(4) All costs associated with the metering requirements of
paragraphs (2) and (3) are the responsibility of the local
government.
(5) All costs associated with interconnection are the
responsibility of the holder of the benefiting account. For purposes
of this paragraph, "interconnection" has the same meaning as defined
in Section 2803, except that it applies to the interconnection of an
eligible renewable generating facility rather than the energy source
of a private energy producer.
(6) The owner of the eligible renewable generating facility does
not sell electricity exported to the electrical grid to a third
party.
(E) The electrical output of the facility is metered for time of
use to allow calculation of the bill credit based upon when the
electricity is exported to the grid.
(5) "Exported to the grid" means electricity is generated by an
eligible renewable generating facility, is not utilized onsite by the
owner or operator of the eligible renewable generating facility, and
flows through the meter site and on to the electric distribution
utility's distribution or transmission infrastructure.
(6) "Ratemaking authority" means, for an electrical corporation,
the commission, and for a local publicly owned electric utility, the
local elected body responsible for setting the rates of the local
publicly owned electric utility.
(b) An owner or operator of an eligible renewable generating
facility may designate a benefiting account to receive a bill credit
pursuant to this section, if all of the following conditions are met:
(1) The owner or operator of the eligible renewable generating
facility determines the percentage of electricity generated by the
eligible renewable generating facility that is assigned to the
benefiting account and transmits that information to the electric
distribution utility.
(2) The electrical output of the eligible renewable generating
facility is metered for time of use to allow calculation of the bill
credit based upon when the electricity is exported to the grid.
(3) All costs associated with interconnection are the
responsibility of the owner or operator of the eligible renewable
generating facility. For purposes of this paragraph, "interconnection"
has the same meaning as defined in Section 2803, except that it
applies to the interconnection of an eligible renewable generating
facility rather than the energy source of a private energy producer.
(7)
(4) All electricity exported to the grid by the
eligible renewable generating facility becomes the property of the
electrical corporation electric distribution
utility to which the facility is interconnected, but shall not
be counted toward the electrical corporation's
electric distribution utility's total retail sales for
purposes of Section 387 or Article 16 (commencing with
Section 399.11) of Chapter 2.3 of Part 1. Ownership of the renewable
energy credits, as defined in Section 399.12, shall be the same as
the ownership of the renewable energy credits associated
with electricity that is net metered pursuant to Section 2827.
eligible renewable generation facility.
(c) (1) Not more frequently than once every other
per month, and upon providing the
electrical corporation electric distribution utility
with notice pursuant to paragraph (2) with a minimum of 30 days'
notice, the local government or campus owner
or operator of the eligible renewable ge nerating
facility may elect to change, add, or remove a benefiting
account. Any credit resulting from the application of this
section earned prior to the change in a benefiting account that has
not been used as of the date of the change in the benefiting account
shall be applied, and may only be applied, to a benefiting account as
changed. If the owner of a benefiting account
transfers service to a new benefiting account, the electric
distribution utility shall transfer any credit remaining from the
previous account to the new account.
(2) Upon a change, addition, or removal of a designated benefiting
account, the local government or campus
owner or operator of the eligible renewable generating facility
shall determine the percentage of the electricity generated by the
eligible renewable generating facility and delivered to the grid that
shall be credited to each benefiting account and provide notice to
the electrical corporation electric
distribution utility of the percentage that is to be credited
to each benefiting account.
(d) (1) A benefiting account shall be billed
An electric distribution utility shall bill a benefiting account
for all electricity usage, and for each bill component, at the
rate schedule applicable to the benefiting account, including any
cost-responsibility surcharge or other cost recovery mechanism, as
determined by the commission, to reimburse the Department of Water
Resources for purchases of electricity, pursuant to Division 27
(commencing with Section 80000) of the Water Code.
(2) The bill shall then credit the designated benefiting
account by the amount of the bill credit subtract the
bill credit applicable to the benefiting account . The
generation component credited to the benefiting account may not
include the cost-responsibility surcharge or other cost recovery
mechanism, as determined by the commission, to reimburse the
Department of Water Resources for purchases of electricity, pursuant
to Division 27 (commencing with Section 80000) of the Water Code. The
electrical corporation electric distribution
utility shall ensure that the local government
owner or operator receives the full bill credit.
(3) If, during the billing cycle, the electricity usage
charges charge exceeds the bill credit, the
benefiting account shall be billed for the difference.
(4) If, during the billing cycle, the bill credit applied pursuant
to paragraph (2) exceeds the electricity usage charges, the
difference shall be carried forward as a financial credit to the next
billing cycle.
(5) After the electricity usage charge pursuant to paragraph (1)
and the credit pursuant to paragraph (2) are determined for the last
billing cycle of a 12-month period, any remaining bill credit
resulting from the application of this section shall be reset to
zero, and the owner of the eligible renewable generating
facility may elect to receive compensation pursuant to Section
399.20, for any electricity exported to the electrical grid that is
not credited to a benefiting account. zero.
(6) The electrical corporation shall inform the local government
or campus regarding the amount each benefiting account was credited
pursuant to this subdivision for electricity generated by the
eligible renewable generating facility and exported to the grid.
(7) The local government or campus may prepare a bill for the
holder of the benefiting account that is credited pursuant to this
subdivision, for electricity generated by the eligible renewable
generating facility and exported to the grid.
(e) The commission ratemaking authority
shall ensure that the transfer of a bill credit to a benefiting
account does not result in a shifting of costs to bundled service
subscribers. The costs associated with the transfer of a bill credit
shall include all billing-related expenses.
(f) A local government or campus The owner
or operator of an eligible renewable generating facility shall
provide the electrical corporation electric
distribution utility to which the eligible renewable generating
facility will be interconnected with not less than 60 days' notice
prior to the eligible renewable generating facility becoming
operational.
(g) The local government or campus may terminate its election
pursuant to subdivision (b), upon providing the electrical
corporation with a minimum of 60 days' notice. Should the electricity
generated by the eligible renewable generating facility be sold to a
third party, no further bill credit pursuant to subdivision (d) may
be earned. Only credit earned prior to that date shall be made to a
benefiting account.
(g) If the holder of the benefiting account sells or cancels its
interest in or contract with the owner or operator of the eligible
renewable generating facility, or sells the electricity generated by
the eligible renewable generating facility in a manner that is not
allowed by this section, upon the date of that event, no further bill
credit may be earned pursuant to subdivision (d), and only credit
earned prior to that date shall be made to the benefiting account.
(h) An electric distribution utility may have ownership of the
eligible renewable generating facilities within its service
territory, in an amount that is not greater than the sum of 50
percent plus 10 megawatts of the aggregate electrical capacity of all
eligible renewable generating facilities operating within the
service territory.
(i) This section applies to electrical corporations, as defined in
Section 218, and local publicly owned electric utilities, as defined
in Section 224.3.
SEC. 4. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act, within
the meaning of Section 17556 of the Government Code.
____ CORRECTIONS
Text--Page 7.
____