BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1935
                                                                  Page  1

          Date of Hearing:   May 21, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     AB 1935 (Campos) - As Amended:  May 6, 2013 

          Policy Committee:                              Natural  
          ResourcesVote:9-0
                        Utilities and Commerce                       13-0

          Urgency:     No                   State Mandated Local Program:   
          No     Reimbursable:              

           SUMMARY  

          This bill revises the scope of an existing Public Utilities  
          Commission (PUC) biennial report on the electricity grid impacts  
          of distributed generation (DG) to focus on clean distributed  
          energy resources.   This bill defines "clean distributed energy  
          resources" as any of the following: 

          1)A clean energy generating technology that meets all of the  
            following criteria:

             a)   Produces electricity, or electricity and useful heat. 
             b)   Has a greenhouse gas (GHG) emissions factor, including,  
               when applicable, credit for waste heat recovery and savings  
               on transmission and distribution losses, that is less than  
               or equal to the emission factor for electricity developed  
               by the Air Resources Board (ARB) in the AB 32 scoping plan.
             c)   Has an oxide of nitrogen (NOx) emissions rate,  
               including, when applicable, credit for waste heat recovery,  
               that is less than or equal to the NOx emission limit set by  
               ARB in its DG certification regulation. 
             d)   Has a nameplate rated generation capacity of 20 or less  
               megawatts (MW). 

          1)An eligible renewable energy resource, as defined in Section  
            399.12, that uses organic waste or biogas as its fuel and has  
            a nameplate generation capacity of 20 or less MW. 

          2)A demand response that provides reliability benefits, complies  
            with existing law, and supports the state's renewable energy  
            goals as specified. 








                                                                  AB 1935
                                                                  Page  2


          3)An energy storage technology that stores energy from a clean  
            energy generating technology or renewable energy resource as  
            specified.

           FISCAL EFFECT  

          Increased costs to the PUC in the range of $150,000 to expand  
          the scope of its existing report. 

           COMMENTS  

           1)Purpose.   According to the author, because there are so many  
            types of new clean distributed resources being developed and  
            deployed in California today, it makes sense for the PUC's  
            report on  report to use a technology-neutral, attribute-based  
            definition to guide the report's findings

           2)Background.   AB 578 (Blakeslee), Chapter 627, Statutes of  
            2008, requires the Public Utilities Commission (PUC) to study  
            and report to the Legislature and Governor on the impacts of  
            DG on the state's distribution and transmission grid.  AB 578  
            requires the study to evaluate specified issues related to  
            interconnection and operation of DG.  

            The PUC has hired consulting firms to prepare two "DG impacts"  
            reports since AB 578 was enacted.  The most recent report,  
            "Biennial Report on Impacts of Distributed Generation,"  
            prepared by Black & Veatch, was published by the PUC in May  
            2013.  

           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081