Bill Text: CA AB1139 | 2021-2022 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Net energy metering.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Failed) 2022-02-01 - Died on inactive file. [AB1139 Detail]
Download: California-2021-AB1139-Amended.html
Bill Title: Net energy metering.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Failed) 2022-02-01 - Died on inactive file. [AB1139 Detail]
Download: California-2021-AB1139-Amended.html
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May 11, 2021 |
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CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Assembly Bill
No. 1139
| Introduced by Assembly Members Lorena Gonzalez and Carrillo (Principal coauthor: Assembly Member Quirk) |
February 18, 2021 |
An act to amend Section 2827.1 of, and to add Sections 913.13 and 2827.2 to, the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1139, as amended, Lorena Gonzalez.
Net energy metering.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law requires every electric utility, defined to include electrical corporations, local publicly owned electric utilities, and electrical cooperatives, to develop a standard contract or tariff for net energy metering, as defined, for generation by a renewable electrical generation facility, as defined, and to make this contract or tariff available to eligible customer-generators, as defined, upon request on a first-come-first-served basis until the time that the total rated generating capacity used by eligible customer generators exceeds 5% of the electric utility’s aggregate customer peak demand. For a large electrical corporation, as defined, existing law requires the commission to have developed a 2nd standard contract or tariff to provide
net energy metering to additional eligible customer-generators in the electrical corporation’s service territory and imposes no limitation on the number of new eligible customer-generators entitled to receive service pursuant to this 2nd standard contract or tariff. Existing law requires the commission to ensure that the 2nd standard contract or tariff made available to eligible customer-generators by large electrical corporations ensures that customer-sited renewable distributed generation continues to grow sustainably. Existing law requires the commission, in developing this standard contract or tariff, to include specific alternatives designed for growth among residential customers in disadvantaged communities.
This bill would require the commission, no later than February 1, 2022, to develop a replacement for the 2nd standard contract or tariff, which may include net energy metering, for an eligible customer-generator with a renewable electrical generation
facility that is a customer of a large electrical corporation, and would require that large electrical corporations offer the standard contract or tariff to eligible customer-generators beginning no later than December 31, 2023. The bill would eliminate the requirement that the large electrical corporation tariff or contract ensure that customer-sited renewable distributed generation continues to grow sustainably. The bill would require that a customer-generator of a large electrical corporation that receives service pursuant to the existing statutory net energy metering tariffs be transferred to the replacement tariff no later than 5 years from the date that customer first received service pursuant to those tariffs, except that an eligible customer-generator participating in the California Alternate Rates for Energy program would have to be transferred to the new tariff no later than 10 years from the date that customer
first received service pursuant to those tariffs.
If the commission fails to adopt a replacement net energy metering tariff for large electrical corporations by February 1, 2022, this bill would require the commission to develop a successor net energy metering tariff for large electrical corporations, to take effect no later than December 31, 2023, that does specified things, including having interconnection fees and monthly fixed charges based on the cost to interconnect and serve the eligible customer-generator and crediting the eligible customer-generator for any electricity exported to the electrical grid at a rate equal to the hourly wholesale market rate applicable at the time of the export and at the location of the eligible customer-generator. The bill would require that a customer-generator of a large electrical corporation that receives service pursuant to the existing statutory net energy metering tariffs be transferred to the successor tariff no later
than 5 years from the date that customer first received service pursuant to those existing tariffs, except that an eligible customer-generator participating in the California Alternate Rates for Energy program would have to be transferred to the successor tariff no later than 10 years from the date that customer first received service pursuant to those existing tariffs.
Existing law requires the PUC to submit various reports to the Legislature, as specified.
This bill would require the PUC to annually report to the Legislature, by June 30, on progress made to grow use of distributed energy resources among residential customers in disadvantaged communities.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is
a crime.
Because certain provisions of the bill would require an order, decision, rule, direction, demand, or requirement of the commission to implement, this bill would impose a state-mandated local program by creating new 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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 913.13 is added to the Public Utilities Code, to read:913.13.
The commission shall annually report, to be included in the assessment required by Section 913.7, on progress made to grow use of distributed energy resources among residential customers in disadvantaged communities.SEC. 2.
Section 2827.1 of the Public Utilities Code is amended to read:2827.1.
(a) For purposes of this section, “eligible customer-generator,” “large electrical corporation,” and “renewable electrical generation facility” have the same meanings as defined in Section 2827.(b) Notwithstanding any other law, the commission shall develop a standard contract or tariff, which may include net energy metering, for eligible customer-generators with a renewable electrical generation facility that is a customer of a large electrical corporation no later than February 1, 2022. A large electrical corporation shall offer the standard contract or tariff to an eligible customer-generator beginning no later than December 31, 2023. The commission may
revise the standard contract or tariff as appropriate to achieve the objectives of this section. In developing the standard contract or tariff, the commission shall do all of the following:
(1) Ensure specific alternatives designed for growth among residential customers in disadvantaged communities.
(2) Establish terms of service and billing rules for eligible customer-generators.
(3) Ensure that the standard contract or tariff made available to eligible customer-generators is based on the costs and benefits of the renewable electrical generation facility.
(4) Ensure that the total benefits of the standard contract or tariff to all customers and the
electrical system are approximately equal to the total costs.
(5) Allow projects greater than one megawatt that do not have significant impact on the distribution grid to be built to the size of the onsite load if the projects with a capacity of more than one megawatt are subject to reasonable interconnection charges established pursuant to the commission’s Electric Rule 21 and applicable state and federal requirements.
(6) Determine which rates and tariffs are applicable to customer generators only during a rulemaking proceeding. Any fixed charges for residential customer generators that differ from the fixed charges allowed pursuant to subdivision (f) of Section 739.9 shall be authorized only in a rulemaking proceeding involving every large electrical corporation. The
commission shall ensure customer generators are provided electric service at rates that are just and reasonable.
(c) All new eligible customer-generators of a large electrical corporation shall be subject to the standard contract or tariff developed by the commission and any rules, terms, and rates developed pursuant to subdivision (b) by no later than December 31, 2023. There shall be no limitation on the amount of generating capacity or number of new eligible customer-generators entitled to receive service pursuant to the standard contract or tariff.
(d) (1) For purposes of this subdivision, the following terms have the following meanings:
(A) “Prior tariff” means a net
energy metering tariff approved by the commission pursuant to either Section 2827 or this section as it read prior to the addition of this subdivision.
(B) “Replacement tariff” means the contract or tariff that the commission is required to develop and adopt for large electrical corporations by February 1, 2022, pursuant to subdivision (b).
(2) An eligible customer-generator of a large electrical corporation receiving service pursuant to a prior tariff shall be transferred to receive service pursuant to the replacement tariff no later than five years from the date that customer first received service pursuant to the prior tariff, except that an eligible customer-generator participating in the California Alternate Rates for Energy program shall be transferred to the replacement tariff no later than
10 years from the date that customer first received service pursuant to the prior tariff.
(e) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of any renewable electrical generation facility after December 31, 2023, that is to receive service pursuant to the replacement tariff, shall constitute a public works project for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code. For purposes of this subdivision, “replacement tariff” has the same meaning as defined in subdivision (d).
SEC. 3.
Section 2827.2 is added to the Public Utilities Code, to read:2827.2.
(a) For purposes of this section, the following terms have the following meanings:(1) “Eligible customer-generator,” “large electrical corporation,” and “renewable electrical generation facility” have the same meanings as defined in Section 2827.
(2) “Prior tariff” means a net energy metering tariff approved by the commission pursuant to either Section 2827 or 2728.1 as it read on December 31, 2021.
(3) “Replacement tariff” means the contract or tariff that the commission is required to develop and adopt for large electrical corporations by
February 1, 2022, pursuant to subdivision (b) of Section 2827.1.
(b) If the commission fails to adopt a replacement tariff for large electrical corporations by February 1, 2022, the commission shall develop a net energy metering tariff for large electrical corporations, to take effect no later than December 31, 2023, that does all of the following:
(1) Cost-effectively achieves the policy goals and objectives of the state described in Sections 454.51, 454.52, and 454.53, and includes specific alternatives designed for growth among residential customers in disadvantaged communities.
(2) Is based on the costs and benefits of the renewable electrical generation facility for nonparticipating ratepayers.
(3) Ensures that the nonparticipating ratepayer benefits of the standard contract or tariff exceeds or is approximately equal to the benefits to participating eligible customer-generators.
(4) Has interconnection fees and monthly fixed charges based on the cost to interconnect and serve the eligible customer-generator.
(5) Credits the eligible customer-generator for any electricity exported to the electrical grid at a rate equal to the hourly wholesale market rate applicable at the time of the export and at the location of the eligible customer-generator.
(c) An eligible customer-generator of a large electrical corporation receiving service pursuant to a prior tariff
shall be transferred to receive service pursuant to the tariff adopted pursuant to subdivision (b) no later than 5 years from the date that customer first received service pursuant to the prior tariff, except that an eligible customer-generator participating in the
California Alternate Rates for Energy program shall be transferred to the tariff adopted pursuant to subdivision (b) no later than 10 years from the date that customer first received service pursuant to the prior tariff.
(d) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of any renewable electrical generation facility after December 31, 2023, that is to receive service pursuant to the tariff adopted pursuant to subdivision (b), shall constitute a public works project for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.
SEC. 4.
(a) For purposes of this section, the following terms have the following meanings:(1) “Prior tariff” means a net energy metering tariff approved by the Public Utilities Commission pursuant to Section 2827.1 of the Public Utilities Code, as it read prior to the operative date of this section.
(2) “Replacement tariff” means the contract or tariff that the Public Utilities Commission is required to develop and adopt for large electrical corporations by February 1, 2022, pursuant to subdivision (b) of Section 2827.1 of, or the tariff developed pursuant to Section
2827.2 of, the Public Utilities Code.
(b) Until a replacement tariff is adopted and takes effect, all prior tariffs adopted by the Public Utilities Commission shall remain in operation.
