BILL NUMBER: SB 383 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 11, 2011
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. An act relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 383, as amended, Wolk. Renewable energy generation:
private energy producers: PVUSA solar facility.
energy.
Existing law expresses the intent of the Legislature, in
establishing the California Renewables Portfolio Standard Program,
that the amount of electricity generated per year from eligible
renewable energy resources be increased to an amount that equals at
least 20% of the total electricity sold to retail customers in
California per year by December 31, 2010.
This bill would express the intent of the Legislature to enact
legislation to stimulate the development of eligible renewable energy
resources, as defined for purposes of the program, by allowing local
governments, businesses, residents, and schools to invest in
cost-effective, clean, and renewable energy and to create local jobs.
(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. 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.
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 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.
(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.
(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
no . State-mandated local program: yes
no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature to
enact legislation to stimulate the development of eligible renewable
energy resources, as defined in Article 16 (commencing with Section
399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public
Utilities Code, by allowing local governments, businesses, residents,
and schools to invest in cost-effective, clean, and renewable energy
and to create local jobs.
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. OFF-SITE RENEWABLE ENERGY SELF-GENERATION PROGRAM
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 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 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 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).
(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 State of California.
(D) Is sized to offset all or part of the electrical load of the
benefiting account, or more than one account.
(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.
(4) All electricity exported to the grid by the eligible renewable
generating facility becomes the property of the electric
distribution utility to which the facility is interconnected, but
shall not be counted toward the 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 eligible renewable generation facility.
(c) (1) Not more frequently than once per month, and upon
providing the electric distribution utility with notice pursuant to
paragraph (2) with a minimum of 30 days' notice, the owner or
operator of the eligible renewable generating facility may elect to
change, add, or remove a benefiting account. 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 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 electric distribution utility of the percentage that is
to be credited to each benefiting account.
(d) (1) 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 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 electric distribution utility shall ensure
that the owner or operator receives the full bill credit.
(3) If, during the billing cycle, the electricity usage 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.
(e) The 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) The owner or operator of an eligible renewable generating
facility shall provide the 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) 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.