Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2584

Introduced by Assembly Member Nestande

February 21, 2014

An act to amend Section begin delete 399.11 end delete begin insert 2827.8 end insert of the Public Utilities Code, relating to begin delete energy. end delete begin insert electricity. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2584, as amended, Nestande. Energy: California Renewables Portfolio Standard Program.

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Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined, while local publicly owned electric utilities, as defined, are under the direction of their governing board. Existing law relative to private energy producers requires every electric utility, as defined, to develop a standard contract or tariff providing for net energy metering, as defined, and to make this contract or tariff available to eligible customer generators, as defined, upon request for generation by a renewable electrical generation facility, as defined. Existing law authorizes a local publicly owned electric utility to elect to instead offer co-energy metering, which uses a generation-to-generation energy and time-of-use credit formula, as specified.

end insert begin insert

Existing law establishes separate requirements for wind energy co-metering that provides a credit against the generation component of an electricity bill of an electric utility for those eligible customer-generators utilizing a wind energy project with a generating capacity greater than 50 kilowatts, but not exceeding one megawatt, unless approved by the electric utility.

end insert begin insert

This bill would provide that, for a United States Department of Defense installation, wind energy co-metering is available if the generating capacity does not exceed 1.5 megawatts.

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Existing law requires the Public Utilities Commission to review and adopt a renewable energy procurement plan for each electrical corporation, as defined, pursuant to the California Renewables Portfolio Standard Program.

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This bill would make technical and nonsubstantive changes to the program’s legislative findings and declarations.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 2827.8 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

2827.8.  

Notwithstanding any other provisions of this article,
the following provisions apply to an eligible customer-generator
utilizing wind energy co-metering with a capacity of more than
50 kilowatts, but not exceeding one megawatt begin insert , or for a end insert begin insert United
States Department of Defense installation, not exceeding 1.5
megawatts end insert , unless approved by the electric begin delete service provider end delete begin insert utility end insert .

(a) The eligible customer-generator shall be required to utilize
a meter, or multiple meters, capable of separately measuring
electricity flow in both directions. Nothing in this section precludes
the use of advanced metering infrastructure devices. All meters
shall provide “time-of-use” measurements of electricity flow, and
the customer shall take service on a time-of-use rate schedule. If
the existing meter of the eligible customer-generator is not a
time-of-use meter or is not capable of measuring total flow of
energy in both directions, the eligible customer-generator is
responsible for all expenses involved in purchasing and installing
a meter that is both time-of-use and able to measure total electricity
flow in both directions. This subdivision shall not restrict the ability
of an eligible customer-generator to utilize any economic incentives
provided by a government agency or the electric begin delete service provider end delete
begin insert utility end insert to reduce its costs for purchasing and installing a time-of-use
meter.

(b) The consumption of electricity from the electric begin delete service
provider end delete begin insert utility end insert for wind energy co-metering by an eligible
customer-generator shall be priced in accordance with the standard
rate charged to the eligible customer-generator in accordance with
the rate structure to which the customer would be assigned if the
customer did not use an eligible wind electrical generating facility.
The generation of electricity provided to the electric begin delete service
provider end delete begin insert utility end insert shall result in a credit to the eligible
customer-generator and shall be priced in accordance with the
generation component, excluding surcharges to cover the purchase
of power by the Department of Water Resources, established under
the applicable structure to which the customer would be assigned
if the customer did not use an eligible wind electrical generating
facility.

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SECTION 1.  

Section 399.11 of the Public Utilities Code is
amended to read:

399.11.  

The Legislature finds and declares all of the following:

(a) To attain a target of generating 20 percent of total retail sales
of electricity in California from eligible renewable energy resources
by December 31, 2013, and 33 percent by December 31, 2020, it
is the intent of the Legislature that the commission and the Energy
Commission implement the California Renewables Portfolio
Standard Program described in this article.

(b) Achieving the renewables portfolio standard through the
procurement of various electricity products from eligible renewable
energy resources is intended to provide unique benefits to
California, including all of the following, each of which
independently justifies the program:

(1) Displacing fossil fuel consumption within the state.

(2) Adding new electrical generating facilities in the
transmission network within the Western Electricity Coordinating
Council service area.

(3) Reducing air pollution in the state.

(4) Meeting the state’s climate change goals by reducing
emissions of greenhouse gases associated with electrical generation.

(5) Promoting stable retail rates for electric service.

(6) Meeting the state’s need for a diversified and balanced
energy generation portfolio.

(7) Assistance with meeting the state’s resource adequacy
requirements.

(8) Contributing to the safe and reliable operation of the
electrical grid, including providing predictable electrical supply,
voltage support, lower line losses, and congestion relief.

(9) Implementing the state’s transmission and land use planning
activities related to development of eligible renewable energy
resources.

(c) The California Renewables Portfolio Standard Program is
intended to complement the Renewable Energy Resources Program
administered by the Energy Commission and established pursuant
to Chapter 8.6 (commencing with Section 25740) of Division 15
of the Public Resources Code.

(d) New and modified electric transmission facilities may be
necessary to facilitate the state achieving its renewables portfolio
standard targets.

(e) (1) Supplying electricity to California end-use customers
that is generated by eligible renewable energy resources is
necessary to improve California’s air quality and public health,
and the commission shall ensure rates are just and reasonable, and
are not significantly affected by the procurement requirements of
this article. This electricity may be generated anywhere in the
interconnected grid that includes many states, and areas of both
Canada and Mexico.

(2) This article requires generating resources located outside of
California that are able to supply that electricity to California
end-use customers to be treated identically to generating resources
located within the state, without discrimination.

(3) California electrical corporations have already executed,
and the commission has approved, power purchase agreements
with eligible renewable energy resources located outside of
California that will supply electricity to California end-use
customers. These resources will fully count toward meeting the
renewables portfolio standard procurement requirements. In
addition, there are nearly 7,000 megawatts of additional proposed
renewable energy resources located outside of California that are
awaiting interconnection approval from the Independent System
Operator. All of these resources, if procured, will count as eligible
renewable energy resources that satisfy the portfolio content
requirements of paragraph (1) of subdivision (c) of Section 399.16.

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