Bill Text: CA AB2109 | 2023-2024 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Electricity: surcharge exemption: industrial process heat recovery.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Enrolled) 2024-08-28 - Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0.). [AB2109 Detail]
Download: California-2023-AB2109-Introduced.html
Bill Title: Electricity: surcharge exemption: industrial process heat recovery.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Enrolled) 2024-08-28 - Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0.). [AB2109 Detail]
Download: California-2023-AB2109-Introduced.html
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 2109
Introduced by Assembly Member Juan Carrillo |
February 05, 2024 |
An act to amend Section 371 of, and to add Section 451.7 to, the Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
AB 2109, as introduced, Juan Carrillo.
Electricity: surcharge exemption: industrial process heat recovery.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law, except as provided, requires certain uneconomic costs to be applied to each customer based on the amount of electricity purchased by that customer from an electrical corporation or alternate supplier of electricity, subject to changes in usage occurring in the normal course of business. Under existing law, changes in usage occurring in the normal course of business are those resulting from, among other things, the enhancement or increased efficiency of equipment.
This bill would specify that the enhancement or increased efficiency of equipment occurring in the normal course of business includes industrial process heat recovery technology that meets prescribed requirements. The bill would prohibit
nonbypassable or departing load surcharges from applying to a reduction in kilowatt-hours of electricity that an electrical corporation customer consumes from the electrical grid in a metered interval due to industrial process heat recovery technology that meets prescribed requirements.
Under existing law, a violation of the Public Utilities Act, or of an order, decision, rule, direction, demand, or requirement of the Public Utilities Commission is a crime. Because this bill would be a part of the act, and because a violation of a commission action implementing its requirements would be a crime, the bill would impose a state-mandated local program.
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.
The Legislature finds and declares all of the following:(a) Industrial energy efficiency can reduce consumption from the electrical grid and improve grid reliability.
(b) Industrial decarbonization is critical to achieving the state’s climate goals.
(c) Increased efficiency of equipment is a key component of the state’s climate strategy.
(d) Capturing and reusing industrial process heat improves the efficiency of industrial processes.
(e) The state encourages industrial customers
to adopt efficiency improvements in their normal course of business.
(f) Industrial competitiveness is essential to the state economy and necessary to avoid emissions leakage.
(g) Industrial process heat recovery is a proven energy efficiency process at manufacturing facilities around the world.
(h) Departing load and nonbypassable surcharges create an economic barrier to the installation of industrial process heat recovery energy efficiency technologies in the state.
SEC. 2.
Section 371 of the Public Utilities Code is amended to read:371.
(a) Except as provided in Sections 372 and 374, the uneconomic costs provided in Sections 367, 368, 375, and 376 shall be applied to each customer based on the amount of electricity purchased by the customer from an electrical corporation or alternate supplier of electricity, subject to changes in usage occurring in the normal course of business.(b) Changes in usage occurring in the normal course of business are those resulting from changes in business cycles, termination of operations, departure from the utility service territory, weather, reduced production, modifications to production equipment or operations, changes in production or manufacturing processes, fuel switching, including installation of fuel cells pending a contrary determination by the Energy
Commission, enhancement or increased efficiency of equipment or performance of existing self-cogeneration equipment, replacement of existing cogeneration equipment with new power generation equipment of similar size as described in paragraph (1) of subdivision (a) of Section 372, installation of demand-side management equipment or facilities, energy conservation efforts, or other similar factors.
(c) Nothing in this section shall be interpreted to This section does not exempt or alter the obligation of a customer to comply with Chapter 5 (commencing with Section 119075) of Part 15 of Division 104 of the Health and Safety Code. Nothing in this section shall be construed as a limitation on
This section does not limit the ability of residential customers to alter their pattern of electricity purchases by activities on the customer side of the meter.
(d) Enhancement or increased efficiency of equipment, as described in subdivision (b), shall include industrial process heat recovery technology that meets the requirements of Section 451.7.
SEC. 3.
Section 451.7 is added to the Public Utilities Code, to read:451.7.
(a) Nonbypassable or departing load surcharges shall not apply to a reduction in kilowatt-hours of electricity that an electrical corporation customer consumes from the electrical grid in a metered interval due to industrial process heat recovery technology.(b) In order to receive the exemption pursuant to subdivision (a), the industrial process heat recovery technology shall meet all of the following requirements:
(1) The industrial process heat recovered to produce electricity is integral to the industrial process.
(2) The industrial process heat recovered to produce electricity is created by the industrial
process.
(3) No supplemental firing or fuel use occurs to increase or to stabilize the steam’s temperature.
(4) The electricity generated by the industrial process heat recovery technology has zero marginal greenhouse gas emissions associated with it.
(5) The electricity generated by the industrial process heat recovery technology is fully self-consumed onsite during a manufacturing process.
(6) The electricity generated by the industrial process heat recovery technology is not exported to the electrical grid for sale into the wholesale market.
(7) The electricity generated by the industrial process heat recovery technology does not exceed 25 percent of the installing customer’s peak
electrical load at the time of installation.
(8) The industrial process heat recovery technology has a minimum name plate rating of 500 kilowatts.
(9) The industrial process heat recovery technology is installed on or after January 1, 2024.
(c) For purposes of this section, the following definitions apply:
(1) “Industrial process heat recovery” means a process that captures and reuses heat that would otherwise not be used, without any additional fuel input or supplemental firing, thereby reducing the electrical consumption of the industrial process.
(2) “Reduction” means the a reduction from the baseline electrical load of the industrial process before installation of the industrial
process heat recovery technology.