BILL NUMBER: AB 796 CHAPTERED
BILL TEXT
CHAPTER 617
FILED WITH SECRETARY OF STATE OCTOBER 7, 2013
APPROVED BY GOVERNOR OCTOBER 7, 2013
PASSED THE SENATE SEPTEMBER 6, 2013
PASSED THE ASSEMBLY SEPTEMBER 12, 2013
AMENDED IN SENATE AUGUST 26, 2013
AMENDED IN SENATE AUGUST 22, 2013
AMENDED IN ASSEMBLY APRIL 10, 2013
INTRODUCED BY Assembly Member Muratsuchi
(Principal coauthor: Senator Corbett)
FEBRUARY 21, 2013
An act to amend Section 379.8 of the Public Utilities Code,
relating to electricity, and declaring the urgency thereof, to take
effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 796, Muratsuchi. Advanced electrical distributed generation
technology.
Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, including electrical
corporations, as defined. The existing definition of an electrical
corporation excludes a corporation or person employing cogeneration,
as defined, technology or producing electricity from other than a
conventional power source for certain purposes. Existing law places
certain limitations upon gas rates and surcharges charged
cogenerators. Existing law prohibits placing alternative fuel
capability requirements upon gas customers that use gas for purposes
of cogeneration.
Existing law authorizes the commission and the State Air Resources
Board to treat advanced electrical distributed generation
technology, as defined, as cogeneration, and makes certain existing
limitations upon gas rates and surcharges charged cogenerators
applicable to an advanced electrical distributed generation
technology. Existing law makes the prohibition upon placing
alternative fuel capability requirements upon gas customers that use
gas for purposes of cogeneration applicable to a generator using
advanced electrical distributed generation technology. These
provisions do not apply to an advanced electrical distributed
generation technology that is first operational at a site on and
after January 1, 2014.
This bill would make the above-described authority, limitations,
and prohibitions inapplicable to an advanced electrical distributed
generation technology that is first operational at a site on and
after January 1, 2016, rather than January 1, 2014.
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 379.8 of the Public Utilities Code is amended
to read:
379.8. (a) As used in this section, "advanced electrical
distributed generation technology" means any electric distributed
generation technology that generates useful electricity and meets all
of the following conditions:
(1) The emissions standards adopted by the State Air Resources
Board pursuant to the distributed generation certification program
requirements of Article 3 (commencing with Section 94200) of
Subchapter 8 of Chapter 1 of Division 3 of Title 17 of the California
Code of Regulations.
(2) Produces de minimis emissions of sulfur oxides and nitrogen
oxides.
(3) Meets the greenhouse gases emission performance standard
established by the commission pursuant to Section 8341.
(4) Has a total electrical efficiency of not less than 45 percent.
If legislation is enacted that increases the 42.5 percent efficiency
described in subdivision (b) of Section 216.6 above 45 percent, the
commission may adjust the electrical efficiency standard described in
this paragraph to ensure that this electrical efficiency standard
meets or exceeds the standard enacted for the purposes of subdivision
(b) of Section 216.6.
(5) Is sized to meet the generator's onsite electrical demand.
(6) Has parallel operation to the electrical distribution grid.
(7) Utilizes renewable or nonrenewable fuel.
(b) (1) An advanced electrical distributed generation technology
shall qualify for the rate established by the commission pursuant to
Section 454.4.
(2) The limitation in subdivision (b) of Section 6352 upon the
assessment of surcharges for gas used to generate electricity by a
nonutility facility applies to an advanced electrical distributed
generation technology.
(3) The limitation in Section 2773.5 upon imposing alternative
fuel capability requirements upon gas customers that use gas for
purposes of cogeneration applies to an advanced electrical
distributed generation technology.
(c) The commission or State Air Resources Board may, in
furtherance of the state's goals for achieving cost-effective
reductions in emissions of greenhouse gases, meeting resource
adequacy requirements, or meeting the renewables portfolio standard,
treat advanced electrical distributed generation technology as
cogeneration.
(d) Subdivisions (b) and (c) do not apply to an advanced
electrical distributed generation technology that is first
operational at a site on and after January 1, 2016.
SEC. 2. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
The current policies prohibiting the placement of alternative fuel
capability requirements upon, and placing limitations upon gas rates
and surcharges charged to, a generator using advanced electrical
distributed generation technology will not apply unless the
distributed generation facility is operational at the site before
January 1, 2014. If these policies are allowed to sunset at the end
of this year, it will hinder the deployment of clean energy
generation technologies throughout the state by increasing the cost
of advanced electrical distributed generation projects and creating
uncertainty in the market. These technologies are necessary because
they move the state closer to its environmental and energy goals and
have the additional benefit of being much better for air quality than
traditional sources of electrical generation. Therefore, it is
necessary to the health and safety of the state that this act take
effect immediately.