BILL NUMBER: AB 2649 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 30, 2014
AMENDED IN SENATE JUNE 12, 2014
AMENDED IN ASSEMBLY MAY 28, 2014
AMENDED IN ASSEMBLY MAY 6, 2014
AMENDED IN ASSEMBLY APRIL 21, 2014
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Members Mullin, V. Manuel Pérez, and Gorell
(Coauthors: Assembly Members Allen, Atkins, Maienschein, Skinner,
Ting, Wieckowski, and Williams)
(Coauthors: Senators Block, Correa, DeSaulnier, Fuller, Hill,
Roth, and Vidak)
FEBRUARY 21, 2014
An act to add Article 9.5 (commencing with Section 389)
to Chapter 2.3 of Part 1 of Division 1 of Section 2817
to the Public Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 2649, as amended, Mullin. Public utilities: federal
facilities: electrical charges. military
installations: independent generation facilities.
Existing law vests the Public Utilities Commission with regulatory
authority over public utilities, including electrical corporations.
Pursuant to its existing authority, the commission issued Electrical
Rule 21 establishing operational and metering requirements for a
generation facility to be connected to an electrical corporation's
distribution system.
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. The existing definition of an
eligible customer-generator requires that the generating facility use
a renewable source of energy, as specified, and have a generating
capacity of not more than one megawatt. Existing law requires that
every electric utility ensure that requests for an interconnection
agreement from an eligible customer-generator are processed in a time
period not to exceed 30 working days from the date it receives a
completed application form from the eligible customer-generator for
an interconnection agreement.
This bill would require the commission to determine criteria that
would allow an independent generation facility, as defined, to apply
for interconnection to the utility electric distribution grid under
the fast track review process, as defined under Rule 21.
Under existing law, a violation of an order, rule, direction,
demand, or requirement of the commission is a crime.
Because a failure of an electric utility to process an
interconnection request from an independent generation facility
pursuant to Rule 21 would be a crime, this bill would impose a
state-mandated local program.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
as defined. Existing law relative to restructuring of the electrical
services industry requires the commission to establish an effective
mechanism that ensures the recovery of certain uneconomic costs for
generation-related assets and obligations incurred by electrical
corporations in the transition to the restructured market
(competition transition charges) and other specified nonbypassable
charges. Existing law requires the commission to approve and
establish standby charges and to review and adjust the standby
charges to encourage the utilization of electricity generated from
other than conventional power sources.
This bill would require the commission, on or before April 1,
2015, to require an electrical corporation to calculate the standby
charges for military bases and facilities and privatized military
housing, as specified. The bill would require the commission to
require the electrical corporations to implement the above provision
through advice letters submitted before April 1, 2015. The bill would
require that activities undertaken on facility premises that reduce
demand for an electrical corporation's supplied electricity not be
subject to specified charges that would increase th e facilities'
costs beyond those of other customers within the rate class to which
the facilities would be assigned if those activities were not
undertaken.
Under existing law, a violation of the Public Utilities Act or an
order or direction of the commission is a crime.
This bill would be part of the act and an order or other action of
the commission would be required to implement the bill. Because a
violation of this bill or an order or other action of the commission
implementing those provisions would be a crime, this bill would
thereby impose a state-mandated local program by creating new crimes
and by expanding the definition of existing crimes.
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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2817 is added to the
Public Utilities Code , to read:
2817. (a) For the purposes of this section, the following terms
mean the following:
(1) "Independent generation facility" is a renewable generation
resource as defined by Section 25741 of the Public Resources Code
located behind a single meter on a military installation that, as an
individual unit or in aggregate, does not export electricity to the
electric distribution grid in California.
(2) "Military installation" means Beale Air Force Base, Camp
Parks, Camp Pendleton, China Lake Naval Air Weapons Station, Defense
Distribution Depot San Joaquin, Edwards Air Force Base, Fort Hunter
Liggett, Fort Irwin, Los Angeles Air Force Base, Marine Corps
Logistics Base Barstow, Marine Corps Recruit Depot San Diego, March
Air Reserve Base, Marine Corps Air Station Miramar, Marine Corps
Mountain Warfare Training Center, Naval Air Facility El Centro, Naval
Air Station Lemoore, Naval Base Coronado, Naval Base Point Loma,
Naval Base San Diego, Naval Base Ventura County, Naval Postgraduate
School, Presidio of Monterey, Travis Air Force Base, Twentynine Palms
Marine Corps Air Ground Combat Center, United States Army Recruiting
Command Fresno Battalion, United States Army Recruiting Command Los
Angeles Battalion, United States Army Recruiting Command Sacramento
Battalion, United States Army Recruiting Command Southern California
Battalion, or Vandenberg Air Force Base.
(b) By April 1, 2015, the commission shall determine criteria that
would allow an independent generation facility to apply for
interconnection to the utility distribution grid under the fast track
review process described in Rule 21 tariffs, Section F.
(c) The criteria determined pursuant to subdivision (b) shall
remain in effect until changed by future commission action or until
the commission approves a standard contract or tariff pursuant to
Section 2827.1 for an independent generation facility.
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.
SECTION 1. Article 9.5 (commencing with Section
389) is added to Chapter 2.3 of Part 1 of Division 1 of the Public
Utilities Code, to read:
Article 9.5. Federal Facilities
389. The Legislature finds and declares all of the following:
(a) The United States Department of Defense provides national
defense and global security that benefits Californians and California'
s economy.
(b) The United States Department of Defense facilities located in
California provide more than seventy billion dollars
($70,000,000,000) in direct spending and 300,000 jobs in California.
(c) The United States Department of Defense is working to achieve
energy efficiency and renewable energy goals to meet both
presidential and departmental directives.
(d) The amount of electricity that the United States Department of
Defense facilities located in California seek to generate on their
own premises will serve their own electricity needs and will not
export electricity.
(e) Military bases approximate small cities in electrical load,
diversity of land uses, and size.
(f) Given the crucial contribution of our military, California
should assist military facilities in California in achieving their
energy independence goals.
(g) The military owns and maintains its electric distribution
system. Generation serving the military's own electricity load
without export should not require upgrades to this distribution
system. Even if upgrades are necessary, the military, not the
ratepayers, will bear these costs.
(h) At the request of the Governor and the electrical
corporations, military bases have historically demonstrated their
commitment and ability to provide demand reduction management at
times of grid emergencies.
(i) Development of additional energy facilities on military bases
and military family housing will create opportunities for jobs for
veterans at a time when many California service members are
reentering the workforce and can provide skilled workers. Established
programs, such as "Helmets to Hardhats," also provide valuable and
needed transition from the battlefield to the civilian community.
389.3. (a) For the purposes of this article, the following shall
apply:
(1) "Facilities" means either of the following:
(A) Military bases and facilities.
(B) Privatized military housing.
(2) "Independent generation facility" means an electrical
generation installation located on a facility that is interconnected
and operated in parallel with an electrical corporation's
distribution system, sized to offset part or all of the facility's
own electrical requirements, and that contains equipment to prevent
the export of electricity to the interconnected electrical
corporation's distribution system.
(3) "Military bases and facilities" mean those establishments
under the jurisdiction of the United States Army, United States Air
Force, United States Navy, United States Marine Corps, or the United
States Coast Guard.
(4) "Privatized military housing" means housing facilities managed
by a private entity for the purpose of providing housing to active
duty service members and their family members that are not
individually metered for purposes of calculating electricity charges
paid to an electrical corporation.
(5) "Standby demand" means the entire reserved capacity needed to
serve the electrical load of a facility that is regularly served by
the facility's independent generation facility when that generation
facility experiences a partial or complete outage.
(b) To the extent authorized by federal law, an operator of an
independent generation facility shall notify the electrical
corporation pursuant to subdivision (b) of Section 119085 of the
Health and Safety Code.
(c) Notwithstanding the limitation on the maximum generation
capacity imposed pursuant to Section 2827, an electrical corporation
shall use the interconnection process specified in subdivision (e) or
(j) of Section 2827 and any commission order or rule implementing
that provision for a facility with an independent generation
facility.
(d) On or before April 1, 2015, and to the extent authorized by
federal law, the commission shall, for a facility, do both of the
following:
(1) (A) Require an electrical corporation to calculate the standby
charge for a facility that is currently subject to a standby charge
based on the facility's standby demand. The standby demand shall be
designated by the facility and remain at that level for a minimum of
12 months unless the electrical corporation determines that the
standby demand needs to be adjusted to meet the actual demand.
(B) Upon an electrical corporation's determination that the
facility's designated standby demand is too low and does not reflect
the actual level of needed reserved capacity, over any 15-minute
period or through onsite verification, the electrical corporation
shall increase the standby demand to reflect the actual needed
reserve capacity.
(C) Upon an electrical corporation's determination that the
facility's designated standby demand is too high, over any 15-minute
period or through onsite verification, the electrical corporation
shall decrease the standby demand to reflect the actual needed
reserve capacity.
(D) If the standby demand is adjusted by the electrical
corporation, another adjustment in the standby demand shall not be
made for 12 months from the adjustment unless there are permanent or
material changes to an independent generation on, or additional wide
pendant generation has been installed at, the facility.
(E) To the extent authorized by federal law, a facility shall
notify the electrical corporation of permanent or material changes in
the size, type, and operations of the facility for future
adjustments to the standby demand.
(2) Require electrical corporations to implement the provisions of
this subdivision through advice letters submitted prior to April 1,
2015.
(e) Any activities undertaken on a facility's premises that reduce
demand for an electrical corporation's supplied electricity, such as
energy efficiency, load reduction, or independent generation are not
subject to charges assessed on electricity delivered from the
electrical corporation's distribution system or other charges of any
kind that would increase the facility's costs beyond those of other
customers in the rate class to which the facility would otherwise be
assigned if the activity was not undertaken at the facility.
389.5. Notwithstanding this article, facilities, at their sole
discretion, may develop eligible energy generation projects pursuant
to applicable rules and tariffs.
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.