Bill Text: CA AB1150 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Self-generation incentive program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2011-09-22 - Chaptered by Secretary of State - Chapter 310, Statutes of 2011. [AB1150 Detail]

Download: California-2011-AB1150-Amended.html

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BILL NUMBER: AB 1150	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 29, 2011

INTRODUCED BY   Assembly Member V. Manuel Pérez

                        FEBRUARY 18, 2011

   An act to amend Section 379.6 of the Public Utilities Code,
relating to electricity.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1150, as amended, V. Manuel Pérez. Self-generation incentive
program.
   Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations, as defined. Existing law requires the PUC, in
consultation with the State Energy Resources Conservation and
Development Commission (Energy Commission), to administer, until
January 1, 2016, a self-generation incentive program (SGIP) for
distributed generation resources and to separately administer solar
technologies pursuant to the California Solar Initiative. The PUC may
authorize electrical corporations to annually collect not more than
the amount authorized for the SGIP in the 2008 calendar year through
December 31, 2011.
   This bill would extend the authority of the PUC to authorize
electrical corporations to continue making the annual collections
through December 31, 2016, and would authorize the PUC, in
consultation with the Energy Commission, to continue to administer
the program until January 1, 2018.
   Existing law limits eligibility for incentives to distributed
energy resources that the PUC, in consultation with the State Air
Resources Board (state board), determines will achieve reductions in
emissions of greenhouse gases pursuant to the California Global
Warming Solutions Act of 2006.
   This bill would require that not less than 50% of the available
incentives be awarded to  distributed energy resources that
the commission, in consultation with the state board, determines
create zero emissions of greenhouse gases where the electricity is
generated or stored. The bill would require that projects in which
biogas or landfill gas is captured, treated, and converted to
electricity onsite shall have priority over directed biogas projects
and would authorize the commission to restrict eligibility to onsite
projects   "Category A" projects, as defined, and
require that not more than 50% of the available incentive be awarded
to "Category B" projects, as defined. The bill would r  
equire the commission to restrict biogas and landfill gas project
eligibility to those projects in which the gas is captured, treated,
and converted to electricity onsite, as defined  . The bill
would, absent an order of the commission, prohibit an electrical
corporation or third-party administrator from accepting an
application or reservation for incentive funding submitted by any
 single distributed energy technology provider, any 
distributed energy resource owner, or affiliates of an owner, for an
amount in excess of $25,000,000 in any calendar year. The bill would,
absent an order of the commission, prohibit an electrical
corporation or third-party administrator from making incentive
payments on account of any distributed energy resource in an amount
greater than $2.50 per watt.
   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 the program that is extended under the provisions of this
bill are within the act and a decision or order of the commission
implements the program requirements, a violation of these provisions
would impose a state-mandated local program by expanding the
definition of a crime.
   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 379.6 of the Public Utilities Code is amended
to read:
   379.6.  (a) (1)  The   It is the intent of
the Legislature that the self-generation incentive program should
increase deployment of distributed renewable generation and storage
systems to facilitate integration of those resources into the
electrical grid, improve efficiency and reliability of the
distribution and transmission system, and reduce emissions of
greenhouse gases, peak demand, and ratepayer costs. 
    (2)    The  commission, in
consultation with the Energy Commission, may authorize the annual
collection of not more than the  greater of (A) the  amount
authorized for the self-generation incentive program in the 2008
calendar year, through December 31, 2016  , or (B) eighty-three
million dollars ($83,000,000) in each calendar year, which the
commission may increase on an annual basis in an appropriate amount
consistent with, but not limited to, the annual rate of inflation
 . The commission shall require the administration of the
program for distributed energy resources originally established
pursuant to Chapter 329 of the Statutes of 2000 until January 1,
2018. On January 1, 2018, the commission shall provide repayment of
all unallocated funds collected pursuant to this section to reduce
ratepayer costs. 
   (2) 
    (3)  The commission shall administer solar technologies
separately, pursuant to the California Solar Initiative adopted by
the commission in Decisions 05-12-044 and 06-01-024, as modified by
Article 1 (commencing with Section 2851) of Chapter 9 of Part 2 of
this code, and Chapter 8.8 (commencing with Section 25780) of
Division 15 of the Public Resources Code.
   (b) Eligibility for incentives under the program shall be limited
to distributed energy resources that the commission, in consultation
with the State Air Resources Board, determines will achieve 
overall system  reductions in emissions of greenhouse gases
pursuant to the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code). The moneys collected and made available for incentives
pursuant to the program shall be allocated as follows:
   (1) Not less than 50 percent of the moneys made available for
incentives shall be awarded to  distributed energy resources
that the commission, in consultation with the State Air Resources
Board, determines create zero emissions of greenhouse gases where the
electricity is generated or stored. 
    (2)     With respect to
the remaining moneys made available for incentives, projects in
which biogas or landfill gas is captured, treated, and converted to
electricity onsite shall have priority over directed biogas projects.
The commission may   "Category A" projects. A "Category
A" project is either (A) onsite distributed energy storage systems,
or (B) onsite distributed generation projects that meet the
requirements to be an eligible renewable energy resource pursuant to
Article 16 (commencing with Section 399.11), that generate zero
emissions onsite when generating electricity, including wind energy
systems.  
   (2) (A) Not more than 50 percent of the moneys made available for
incentives may be awarded to "Category B" projects. A "Category B"
project includes all distributed generation technologies that the
commission determines are eligible for funding pursuant to the
self-generation incentive program, including a standalone distributed
energy storage system not included at a "Category A" project. 
    (B)     To the extent "Category B" funds
are made available for incentives for fuel cell projects, the
commission shall  restrict biogas and landfill gas project
eligibility to those projects in which the gas is captured, treated,
and converted to electricity onsite.  For purposes of this
subparagraph, "onsite" means those projects where biogas collection,
treatment, and conversion to electricity occur on the same or
contiguous land parcels.  
   (3) Moneys from "Category A" and "Category B" projects shall not
be transferred from one category to the other. 
   (c) Eligibility for the funding of any combustion-operated
distributed generation projects using fossil fuel is subject to all
of the following conditions:
   (1)  An oxides of nitrogen (NOx) emissions rate standard of 0.07
pounds per megawatthour and a minimum efficiency of 60 percent, or
any other NOx emissions rate and minimum efficiency standard adopted
by the State Air Resources Board. A minimum efficiency of 60 percent
shall be measured as useful energy output divided by fuel input. The
efficiency determination shall be based on 100 percent load.
   (2) Combined heat and power units that meet the 60-percent
efficiency standard may take a credit to meet the applicable NOx
emissions standard of 0.07 pounds per megawatthour. Credit shall be
at the rate of one megawatthour for each 3.4 million British thermal
units (Btus) of heat recovered.
   (3) The customer receiving incentives shall adequately maintain
and service the combined heat and power units so that during
operation, the system continues to meet or exceed the efficiency and
emissions standards established pursuant to paragraphs (1) and (2).
   (4) Notwithstanding paragraph (1), a project that does not meet
the applicable NOx emissions standard is eligible if it meets both of
the following requirements:
   (A) The project operates solely on waste gas. The commission shall
require a customer that applies for an incentive pursuant to this
paragraph to provide an affidavit or other form of proof, that
specifies that the project shall be operated solely on waste gas.
Incentives awarded pursuant to this paragraph shall be subject to
refund and shall be refunded by the recipient to the extent the
project does not operate on waste gas. As used in this paragraph,
"waste gas" means natural gas that is generated as a byproduct of
petroleum production operations and is not eligible for delivery to
the utility pipeline system.
   (B) The air quality management district or air pollution control
district, in issuing a permit to operate the project, determines that
operation of the project will produce an onsite net air emissions
benefit, compared to permitted onsite emissions if the project does
not operate. The commission shall require the customer to secure the
permit prior to receiving incentives.
   (d) In determining the eligibility for the self-generation
incentive program, minimum system efficiency shall be determined
either by calculating electrical and process heat efficiency as set
forth in Section 216.6, or by calculating overall electrical
efficiency.
   (e) (1) Except as herein provided in this subdivision, in
administering the self-generation incentive program, the commission
may adjust the amount of rebates and evaluate other public policy
interests, including, but not limited to, ratepayers, and energy
efficiency, peak load reduction, load management, and environmental
interests.
   (2) Absent an express order of the commission, an electrical
corporation or third-party administrator shall not accept an
application or reservation for incentive funding submitted by any
 single distributed energy technology provider, any 
distributed energy resource owner, or affiliates of an owner, for an
amount in excess of twenty-five million dollars ($25,000,000) in any
calendar year. Except in the case of fraud, applications or
reservations for funds submitted by a  single distributed energy
technology provider, a  distributed energy resource owner, or
affiliates of the owner, that have been withdrawn, rejected, or
expired shall not be counted in calculating whether the
twenty-five-million-dollar ($25,000,000) limit has been exceeded.
   (3) Absent an express order of the commission, an electrical
corporation or third-party administrator shall not make incentive
payments on account of any distributed energy resource  ,
including any biogas fuel cell and California supplier added
incentive,  in an amount greater than two dollars and fifty
cents ($2.50) per watt. 
   (4) For distributed energy resources that the commission
determines meet the requirements of paragraph (2) of subdivision (b),
the commission shall authorize an electrical corporation or
third-party administrator to make incentive payments at the rate of
two dollars ($2) per watt. 
   (f) The commission shall ensure that distributed generation
resources are made available in the program for all ratepayers.
   (g) (1) In administering the self-generation incentive program,
the commission shall provide an additional incentive of 20 percent
from existing program funds for the installation of eligible
distributed generation resources from a California supplier.
   (2) "California supplier" as used in this subdivision means any
sole proprietorship, partnership, joint venture, corporation, or
other business entity that manufactures eligible distributed
generation resources in California and that meets either of the
following criteria:
   (A) The owners or policymaking officers are domiciled in
California and the permanent principal office, or place of business
from which the supplier's trade is directed or managed, is located in
California.
   (B) A business or corporation, including those owned by, or under
common control of, a corporation, that meets all of the following
criteria continuously during the five years prior to providing
eligible distributed generation resources to a self-generation
incentive program recipient:
   (i) Owns and operates a manufacturing facility located in
California that builds or manufactures eligible distributed
generation resources.
   (ii) Is licensed by the state to conduct business within the
state.
   (iii) Employs California residents for work within the state.
   (3) For purposes of qualifying as a California supplier, a
distribution or sales management office or facility does not qualify
as a manufacturing facility.
   (h) The costs of the program adopted and implemented pursuant to
this section shall not be recovered from customers participating in
the California Alternate Rates for Energy (CARE) program.
  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.