California Legislature—2013–14 Regular Session

Assembly Bill No. 1935

Introduced by Assembly Member Campos

February 19, 2014

An act to amend Section 769 of the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL’S DIGEST

AB 1935, as introduced, Campos. Electricity: clean distributed energy technologies.

Existing law requires each electrical corporation, no later than July 1, 2015, to submit to the Public Utilities Commission a distribution resources plan proposal to identify the optimal locations for the deployment of distributed resources. Existing law defines the term “distributed resources.” Existing law requires the commission to review and approve the plan.

This bill would revise the definition of “distributed resources” to include clean distributed energy technology, as defined.

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 769 of the Public Utilities Code is
amended to read:

769.  

(a) For purposes of this section, begin delete “distributed end delete begin insert the following
terms have the following meanings: end insert

begin insert

(1) “Clean distributed energy technology” means any of the
following:

end insert begin insert

(A) An energy generation technology that meets all of the
following criteria:

end insert begin insert

(i) Converts an energy resource into electricity or heat.

end insert begin insert

(ii) Meets or exceeds the emission factor for electricity
developed by the State Air Resources Board in the scoping plan
adopted pursuant to Section 38561 of the Health and Safety Code.

end insert begin insert

(iii) Meets or exceeds the oxides of nitrogen emissions rate
standard set forth in Section 94203 of Title 17 of the California
Code of Regulations.

end insert begin insert

(iv) Has a nameplate rated generation capacity of 20 or less
megawatts.

end insert begin insert

(B) A conversion technology that meets all of the following
criteria:

end insert begin insert

(i) (I) Converts organic waste into a useful energy resource.

end insert begin insert

(II) For the purposes of this clause, “organic waste” means
waste consisting of organic matter, as defined by the Department
of Resources Recycling and Recovery pursuant to Division 30
(commencing with Section 40000) of the Public Resources Code,
that is a byproduct of another process that would normally be
emitted or transported to the environment.

end insert begin insert

(ii) Meets or exceeds the oxides of nitrogen emissions rate
standard set forth in Section 94203 of Title 17 of the California
Code of Regulations.

end insert begin insert

(iii) Has a nameplate rated generation capacity of 20 or less
megawatts.

end insert

begin insert (2) end insert begin insert   end insert begin insert “Distributed end insert resources” means distributed renewable
generation resources, begin insert clean distributed energy technology, end insert energy
efficiency, energy storage, electric vehicles, and demand response
technologies.

begin insert

(3) “Energy resource” means a gas, liquid, or solid that can
be converted into mechanical work, electricity, or heat.

end insert

(b) Not later than July 1, 2015, each electrical corporation shall
submit to the commission a distribution resources plan proposal
to identify optimal locations for the deployment of distributed
resources. Each proposal shall do all of the following:

(1) Evaluate locational benefits and costs of distributed resources
located on the distribution system. This evaluation shall be based
on reductions or increases in local generation capacity needs,
avoided or increased investments in distribution infrastructure,
safety benefits, reliability benefits, and any other savings the
distributed resources provides to the electric grid or costs to
ratepayers of the electrical corporation.

(2) Propose or identify standard tariffs, contracts, or other
mechanisms for the deployment of cost-effective distributed
resources that satisfy distribution planning objectives.

(3) Propose cost-effective methods of effectively coordinating
existing commission-approved programs, incentives, and tariffs
to maximize the locational benefits and minimize the incremental
costs of distributed resources.

(4) Identify any additional utility spending necessary to integrate
cost-effective distributed resources into distribution planning
consistent with the goal of yielding net benefits to ratepayers.

(5) Identify barriers to the deployment of distributed resources,
including, but not limited to, safety standards related to technology
or operation of the distribution circuit in a manner that ensures
reliable service.

(c) The commission shall review each distribution resources
plan proposal submitted by an electrical corporation and approve,
or modify and approve, a distribution resources plan for the
corporation. The commission may modify any plan as appropriate
to minimize overall system costs and maximize ratepayer benefit
from investments in distributed resources.

(d)  begin delete Any end delete begin insert An end insert electrical corporation spending on distribution
infrastructure necessary to accomplish the distribution resources
plan shall be proposed and considered as part of the next general
rate case for the corporation. The commission may approve
proposed spending if it concludes that ratepayers would realize
net benefits and the associated costs are just and reasonable. The
commission may also adopt criteria, benchmarks, and
accountability mechanisms to evaluate the success of any
investment authorized pursuant to a distribution resources plan.