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

California Assembly Bill 1150 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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
BILL NUMBER: AB 1150	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 25, 2011
	AMENDED IN ASSEMBLY  MARCH 29, 2011

INTRODUCED BY   Assembly Member V. Manuel P�rez

                        FEBRUARY 18, 2011

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


	LEGISLATIVE COUNSEL'S DIGEST

F   AB 1150, as amended, V. Manuel P�rez. 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   expand  the
authority of the PUC to authorize electrical corporations to continue
making the annual collections  through December 31, 2016
  , as provided  , and would  authorize
  require  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 "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 require
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   3rd-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   the
technology provider  , for an amount in excess of 
$25,000,000 in any calendar year   25% of the amount
collected from ratepayers in any calendar year pursuant to the SGIP
 . The bill would, absent an order of the commission, prohibit
an electrical corporation or  third-party  
3rd-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:
F  SECTION 1.  Section 379.6 of the Public Utilities Code is amended
to read:
   379.6.  (a) (1) It is the intent of the Legislature that the
self-generation incentive program should increase deployment of
distributed  renewable generation and  
generation and distributed  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.   and reduce 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.
   (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:
  Code).  
   (1) Not less than 50 percent of the moneys made available for
incentives shall be awarded to "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
Fthe 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
  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, 
job development, technology competitiveness, maximizing fund
development across all technologies, localized energy generation
deployment, protection of  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.  
   (2) Absent an express order of the commission, an electrical
corporation or third-party administrator shall not accept
applications or reservations for incentive funding submitted by a
single distributed energy technology provider or affiliates of the
technology provider that in the aggregate exceed 25 percent of the
amount collected from ratepayers in any calendar year pursuant to the
self-generation incentive program. Except in the case of fraud,
applications or reservations for funds submitted by a single
distributed energy technology provider or affiliates of the
technology provider that have been withdrawn, rejected, or expired in
the same calendar year shall not be counted in determining whether
the limit imposed by this paragraph 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.
   (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
FCalifornia.   (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.