BILL NUMBER: SB 682 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 11, 2011
INTRODUCED BY Senator Calderon
FEBRUARY 18, 2011
An act to add Article 2 (commencing with Section 2848) to
Chapter 8 of Part 2 of Division 1 of the Public Utilities Code,
relating to energy. An act to add Section 39619.9 to
the Health and Safety Code , relating to electricity
generation.
LEGISLATIVE COUNSEL'S DIGEST
SB 682, as amended, Calderon. Energy: clean distributed
generation units: oil and gas extraction. Electricity
generation: emissions.
The California Global Warming Solutions Act of 2006 designates the
State Air Resources Board as the state agency charged with
monitoring and regulating sources of emissions of greenhouse gases.
This bill would require the state board, by April 1, 2012, to
assess the extent and magnitude of potential greenhouse gas emission
reductions associated with using waste or stranded gas for
electricity generation.
(1) The Waste Heat and Carbon Emissions Reduction Act authorizes
the Public Utilities Commission (PUC) to require an electrical
corporation to purchase excess electricity, as defined, from an
eligible customer-generator. The act defines "eligible
customer-generator" as a customer of an electrical corporation that
uses a combined heat and power system, as defined, with a generating
capacity of not more than 20 megawatts, that first commences
operation on or after January 1, 2008, and uses a time-of-use meter
capable of registering the flow of electricity in 2 directions.
This bill would require the PUC to require an electrical
corporation to purchase excess electricity from a customer of an
electrical corporation that uses a microturbine or a fuel cell
meeting specified requirements that runs off of waste or stranded gas
associated with the extraction of oil or gas and has a time-of-use
meter capable of registering the flow of electricity in 2 directions.
Because a violation of an order or decision of the commission
implementing its requirements would be a crime, the bill would impose
a state-mandated local program by creating a new crime.
(2) 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: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 39619.9 is added to the
Health and Safety Code , to read:
39619.9. (a) By April 1, 2012, the state board shall assess the
extent and magnitude of potential greenhouse gas emission reductions
associated with using waste or stranded gas for electricity
generation.
(b) The assessment shall include both of the following:
(1) An estimate of the cost per ton of avoided carbon dioxide
emissions resulting from the generation of electricity using waste or
stranded gas, given reasonable assumptions about both the generation
technology and configuration used to produce electricity from waste
or stranded gas.
(2) The efficiency of the electricity generation that waste or
stranded gas electricity generation would displace.
SECTION 1. Article 2 (commencing with Section
2848) is added to Chapter 8 of Part 2 of Division 1 of the Public
Utilities Code, to read:
Article 2. Clean Distributed Generation Units
2848. (a) As used in this article:
(1) "Eligible customer-generator" means a customer of an
electrical corporation that meets both of the following requirements:
(A) Uses a microturbine or a fuel cell that meets the following
requirements:
(i) If a microturbine, the microturbine is certified as meeting
air pollution standards consistent with the guidance given by the
State Air Resources Board pursuant to Section 41514.10 of the Health
and Safety Code.
(ii) The microturbine or fuel cell runs off of waste or stranded
gas associated with the extraction of oil or gas.
(iii) The microturbine or fuel cell has a generating capacity of
not more than one megawatt.
(B) Uses a time-of-use meter capable of registering the flow of
electricity in two directions. If the existing electrical meter of an
eligible customer-generator is not capable of measuring the flow of
electricity in two directions, the eligible customer-generator shall
be responsible for all expenses involved in purchasing and installing
a meter that is able to measure electricity flow in two directions.
If an additional meter or meters are installed, the electricity flow
calculations shall yield a result identical to that of a time-of-use
meter.
(2) "Excess electricity" means the net electricity exported to the
electrical grid, generated by a microturbine or fuel cell that meets
the requirements of subparagraph (A) of paragraph (1).
(b) The commission shall require an electrical corporation to
purchase excess electricity from an eligible customer-generator. The
commission may establish a maximum kilowatthours limitation on the
amount of excess electricity that an electrical corporation is
required to purchase if the commission finds that the anticipated
excess electricity generated has an adverse effect on long-term
resource planning or reliable operation of the grid. The commission
shall establish, in consultation with the Independent System
Operator, tariff provisions that facilitate both this section and the
reliable operation of the grid.
(c) (1) Every electrical corporation shall file with the
commission a standard tariff for the purchase of excess electricity
from an eligible customer-generator pursuant to this article.
(2) The tariff shall provide for payment for every kilowatthour
delivered to the electrical grid by the microturbine or fuel cell at
a price determined by the commission.
(3) The tariff shall include flexible rates with options for
different durations, not to exceed 10 years, and fixed or variable
rates relative to the cost of natural gas.
(4) The commission shall ensure that ratepayers that are not
eligible customer-generators are held indifferent to the existence of
this tariff.
(d) The commission, in reviewing the tariff filed by an electrical
corporation, shall establish time-of-delivery rates that encourage
demand management and net generation of electricity during periods of
peak system demand.
(e) Every electrical corporation shall make the tariff available
to eligible customer-generators within the service territory of the
electrical corporation, upon request. An electrical corporation may
make the terms of the tariff available to an eligible customer in the
form of a standard contract.
SEC. 2. No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.