Bill Text: CA SB1374 | 2023-2024 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Net energy metering.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Enrolled) 2024-08-30 - Assembly amendments concurred in. (Ayes 27. Noes 9.) Ordered to engrossing and enrolling. [SB1374 Detail]
Download: California-2023-SB1374-Amended.html
Bill Title: Net energy metering.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Enrolled) 2024-08-30 - Assembly amendments concurred in. (Ayes 27. Noes 9.) Ordered to engrossing and enrolling. [SB1374 Detail]
Download: California-2023-SB1374-Amended.html
Amended
IN
Senate
March 18, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1374
Introduced by Senator Becker |
February 16, 2024 |
An act to amend Section 2827.1 of the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1374, as amended, Becker.
Net energy metering.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires the commission to develop a standard contract or tariff, which may include net energy metering, for eligible customer-generators, as defined, with a renewable electrical generation facility, as defined, that is a customer of a large electrical corporation. Existing law requires, in developing the standard contract or tariff for large electrical corporations, the commission to take specified actions.
This bill would require, no later than July 1, 2025, the commission to ensure that any contract or tariff established by the commission pursuant to the above described provisions for renewable electrical generation facilities configured to serve either multiple customers with meters on a single
property, or multiple meters of a single customer on a property or a set of contiguous properties owned, leased, or rented by the customer, meets certain requirements, including that the eligible customer-generators may are authorized to elect to aggregate the electrical load, as specified.
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 provisions of this bill would be a part of the act and
a violation of a commission action implementing its this bill’s requirements would be a crime, this 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.
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 December 31, 2015. The commission may develop the standard contract or tariff before December 31, 2015, and may require a large electrical corporation that has reached the net energy metering program limit of subparagraph
(B) of paragraph (4) of subdivision (c) of Section 2827 to offer the standard contract or tariff to eligible customer-generators. A large electrical corporation shall offer the standard contract or tariff to an eligible customer-generator beginning July 1, 2017, or before that date if ordered to do so by the commission because it has reached the net energy metering program limit of subparagraph (B) of paragraph (4) of subdivision (c) of Section 2827. 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 that the standard contract or tariff made available to eligible customer-generators ensures that customer-sited renewable distributed generation continues to grow
sustainably and include 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) Establish a transition period during which eligible customer-generators taking service under a net energy metering tariff or contract before July 1, 2017, or until the electrical corporation reaches its net energy metering program limit pursuant to subparagraph (B) of paragraph (4) of subdivision (c) of Section 2827, whichever is earlier, shall be eligible to continue service under the previously applicable net energy metering tariff for a length of time to be determined by the commission by March 31, 2014. Any rules adopted by the commission shall consider a reasonable expected payback period based on the
year the customer initially took service under the tariff or contract authorized by Section 2827.
(7) The commission shall 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 (e) 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
electrical service at rates that are just and reasonable.
(c) Beginning July 1, 2017, or when ordered to do so by the commission because the large electrical corporation has reached its capacity limitation of subparagraph (B) of paragraph (4) of subdivision (c) of Section 2827, all new eligible customer-generators shall be subject to the standard contract or tariff developed by the commission and any rules, terms, and rates developed pursuant to subdivision (b). 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 after July 1, 2017. An eligible customer-generator that has received service under a net energy metering standard contract or tariff pursuant to Section 2827 that is no longer eligible to
receive service shall be eligible to receive service pursuant to the standard contract or tariff developed by the commission pursuant to this section.
(d) (1) No later than July 1, 2025, the commission shall ensure that any contract or tariff established by the commission pursuant to this section for renewable electrical generation facilities configured to serve either multiple customers with meters on a single property, or multiple meters of a single customer on a property or a set of contiguous properties owned, leased, or rented by the customer, meets both all of the following requirements:
(A) The eligible customer-generators may elect to aggregate the electrical load of the meters located on the property or set of contiguous properties to determine onsite consumption from the renewable electrical generation facility.
(B) The eligible customer-generators shall determine the percentage of the total generation to be allocated to each account on the property or set of contiguous properties. Each
(C) Each account’s portion of the generation shall be subtracted from that account’s consumption in each 15-minute period for billing
purposes. Customers
(D) Customers shall be compensated at no less than utility avoided cost for generation in excess of consumption. The intervals shall be tallied within a monthly billing period.
(2) For purposes of this subdivision, parcels that are divided by a street, highway, waterway, or public thoroughfare are considered contiguous, provided that they are
otherwise contiguous.