BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2649 (Mullin) - Public utilities: military installations:  
          independent generation facilities.
          
          Amended: June 30, 2014          Policy Vote: EU&C 10-0
          Urgency: No                     Mandate: Yes (see staff comment)
          Hearing Date: August 4, 2014                      Consultant:  
          Marie Liu     
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: AB 2649 would require the California Public  
          Utilities Commission (CPUC) to determine criteria, by April 1,  
          2015, that would allow certain renewable generation resources on  
          specified military installations to apply for expedited review  
          of its interconnection application.

          Fiscal Impact: One-time costs of $216,000 from the Public  
          Utilities Reimbursement Account (special) for additional staff  
          time to develop the required criteria.

          Background: Electric Rule 21 of the CPUC establishes  
          distribution interconnection rules for net metering, nonexport  
          self-generation, and wholesale distribution access tariff. All  
          customer generators, except those eligible for NEM, that  
          interconnect to the distribution grid, regardless of whether or  
          not the generator would be exporting to the grid, require an  
          interconnection application and $800 application fee. Non-export  
          generators are eligible for a "Fast Track" review, which does  
          not require an application fee, but if the application does not  
          pass the Fast Track review, the IOU may require a supplemental  
          review and a review fee of $2,500.

          Proposed Law: This bill would require the CPUC to determine  
          criteria that would allow an independent generation facility to  
          apply for interconnection under the Fast Track review process. 

          An "independent generation facility" would be defined as a  
          renewable generation resource on specified military  
          installations that does not export electricity to the California  
          electrical distribution grid. 









          AB 2649 (Mullin)
          Page 1


          Staff Comments: The development of a new interconnection Fast  
          Track process as required by this bill would not necessarily  
          necessitate a new proceeding because the criteria might be able  
          to be developed within an existing open proceeding regarding  
          interconnection (R 11-09-011). However, the CPUC would still  
          incur one-time costs of $216,000 of additional staff time to  
          perform the necessary work within the existing proceeding.

          Because existing law makes a violation of a CPUC order, rule,  
          direction, demand, or requirement a crime, this bill creates  
          state-mandated local program by creating a new CPUC requirement.  
          However, under the state constitution, costs associated with the  
          creation or modification of a crime is not reimbursable.