Bill Text: CA SB43 | 2013-2014 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Electricity: Green Tariff Shared Renewables Program.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Passed) 2013-09-28 - Chaptered by Secretary of State. Chapter 413, Statutes of 2013. [SB43 Detail]
Download: California-2013-SB43-Amended.html
Bill Title: Electricity: Green Tariff Shared Renewables Program.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Passed) 2013-09-28 - Chaptered by Secretary of State. Chapter 413, Statutes of 2013. [SB43 Detail]
Download: California-2013-SB43-Amended.html
BILL NUMBER: SB 43 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 15, 2013
AMENDED IN SENATE MAY 28, 2013
AMENDED IN SENATE MAY 24, 2013
AMENDED IN SENATE MAY 15, 2013
AMENDED IN SENATE MAY 8, 2013
AMENDED IN SENATE APRIL 1, 2013
INTRODUCED BY Senator Wolk
(Coauthors: Senators Corbett and Pavley)
(Coauthors: Assembly Members Levine, Skinner, and Williams)
DECEMBER 11, 2012
An act to amend Section 25100 of the Corporations Code, and to
amend Sections 216, 218, and 365.1 of, and to add and repeal Chapter
7.6 (commencing with Section 2831) of Part 2 of Division 1 of, the
Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 43, as amended, Wolk. Shared Renewable Energy Self-Generation
Program.
(1) Under existing law, the Public Utilities Commission has
regulatory jurisdiction over public utilities, including electrical
corporations, as defined. Existing law authorizes the commission to
fix the rates and charges for every public utility, and requires that
those rates and charges be just and reasonable. Under existing law,
the local government renewable energy self-generation program
authorizes a local government to receive a bill credit to be applied
to a designated benefiting account for electricity exported to the
electrical grid by an eligible renewable generating facility, as
defined, and requires the commission to adopt a rate tariff for the
benefiting account.
This bill would enact the Shared Renewable Energy Self-Generation
Program. The program would authorize a retail customer of an
electrical corporation to acquire an interest, as defined, in a
shared renewable energy facility, as defined, for the purpose of
receiving a bill credit to offset all or a portion of the customer's
electricity usage, consistent with specified requirements. The bill
would repeal the program on January 1, 2019.
The bill would provide that any corporation or person engaged
directly or indirectly in developing, owning, producing, delivering,
participating in, or selling interests in, a shared renewable energy
facility is not a public utility or electrical corporation solely by
reason of engaging in any of those activities.
(2) 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 the bill would require action by the
commission to implement its requirements, a violation of these
provisions would impose a state-mandated local program by expanding
the definition of a crime.
(3) 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 25100 of the Corporations Code is amended to
read:
25100. The following securities are exempted from Sections 25110,
25120, and 25130:
(a) Any security (including a revenue obligation) issued or
guaranteed by the United States, any state, any city, county, city
and county, public district, public authority, public corporation,
public entity, or political subdivision of a state or any agency or
corporate or other instrumentality of any one or more of the
foregoing; or any certificate of deposit for any of the foregoing.
(b) Any security issued or guaranteed by Canada, any Canadian
province, any political subdivision or municipality of that province,
or by any other foreign government with which the United States
currently maintains diplomatic relations, if the security is
recognized as a valid obligation by the issuer or guarantor; or any
certificate of deposit for any of the foregoing.
(c) Any security issued or guaranteed by and representing an
interest in or a direct obligation of a national bank or a bank or
trust company incorporated under the laws of this state, and any
security issued by a bank to one or more other banks and representing
an interest in an asset of the issuing bank.
(d) Any security issued or guaranteed by a federal savings
association or federal savings bank or federal land bank or joint
land bank or national farm loan association or by any savings
association, as defined in subdivision (a) of Section 5102 of the
Financial Code, which is subject to the supervision and regulation of
the Commissioner of Financial Institutions of this state.
(e) Any security (other than an interest in all or portions of a
parcel or parcels of real property which are subdivided land or a
subdivision or in a real estate development), the issuance of which
is subject to authorization by the Insurance Commissioner, the Public
Utilities Commission, or the Real Estate Commissioner of this state.
(f) Any security consisting of any interest in all or portions of
a parcel or parcels of real property which are subdivided lands or a
subdivision or in a real estate development; provided that the
exemption in this subdivision shall not be applicable to: (1) any
investment contract sold or offered for sale with, or as part of,
that interest, or (2) any person engaged in the business of selling,
distributing, or supplying water for irrigation purposes or domestic
use that is not a public utility except that the exemption is
applicable to any security of a mutual water company (other than an
investment contract as described in paragraph (1)) offered or sold in
connection with subdivided lands pursuant to Chapter 2 (commencing
with Section 14310) of Part 7 of Division 3 of Title 1.
(g) Any mutual capital certificates or savings accounts, as
defined in the Savings Association Law, issued by a savings
association, as defined by subdivision (a) of Section 5102 of the
Financial Code, and holding a license or certificate of authority
then in force from the Commissioner of Financial Institutions of this
state.
(h) Any security issued or guaranteed by any federal credit union,
or by any credit union organized and supervised, or regulated, under
the Credit Union Law.
(i) Any security issued or guaranteed by any railroad, other
common carrier, public utility, or public utility holding company
which is (1) subject to the jurisdiction of the Interstate Commerce
Commission or its successor or (2) a holding company registered with
the United States Securities and Exchange Commission under the Public
Utility Holding Company Act of 1935 or a subsidiary of that company
within the meaning of that act or (3) regulated in respect of the
issuance or guarantee of the security by a governmental authority of
the United States, of any state, of Canada or of any Canadian
province; and the security is subject to registration with or
authorization of issuance by that authority.
(j) Any security (except evidences of indebtedness, whether
interest bearing or not) of an issuer (1) organized exclusively for
educational, benevolent, fraternal, religious, charitable, social, or
reformatory purposes and not for pecuniary profit, if no part of the
net earnings of the issuer inures to the benefit of any private
shareholder or individual, or (2) organized as a chamber of commerce
or trade or professional association. The fact that amounts received
from memberships or dues or both will or may be used to construct or
otherwise acquire facilities for use by members of the nonprofit
organization does not disqualify the organization for this exemption.
This exemption does not apply to the securities of any nonprofit
organization if any promoter thereof expects or intends to make a
profit directly or indirectly from any business or activity
associated with the organization or operation of that nonprofit
organization or from remuneration received from that nonprofit
organization.
(k) Any agreement, commonly known as a "life income contract," of
an issuer (1) organized exclusively for educational, benevolent,
fraternal, religious, charitable, social, or reformatory purposes and
not for pecuniary profit and (2) which the commissioner designates
by rule or order, with a donor in consideration of a donation of
property to that issuer and providing for the payment to the donor or
persons designated by him or her of income or specified periodic
payments from the donated property or other property for the life of
the donor or those other persons.
( l ) Any note, draft, bill of exchange, or banker's
acceptance which is freely transferable and of prime quality, arises
out of a current transaction or the proceeds of which have been or
are to be used for current transactions, and which evidences an
obligation to pay cash within nine months of the date of issuance,
exclusive of days of grace, or any renewal of that paper which is
likewise limited, or any guarantee of that paper or of that renewal,
provided that the paper is not offered to the public in amounts of
less than twenty-five thousand dollars ($25,000) in the aggregate to
any one purchaser. In addition, the commissioner may, by rule or
order, exempt any issuer of any notes, drafts, bills of exchange or
banker's acceptances from qualification of those securities when the
commissioner finds that the qualification is not necessary or
appropriate in the public interest or for the protection of
investors.
(m) Any security issued by any corporation organized and existing
under the provisions of Chapter 1 (commencing with Section 54001) of
Division 20 of the Food and Agricultural Code.
(n) Any beneficial interest in an employees' pension,
profit-sharing, stock bonus or similar benefit plan which meets the
requirements for qualification under Section 401 of the federal
Internal Revenue Code or any statute amendatory thereof or
supplementary thereto. A determination letter from the Internal
Revenue Service stating that an employees' pension, profit-sharing,
stock bonus or similar benefit plan meets those requirements shall be
conclusive evidence that the plan is an employees' pension,
profit-sharing, stock bonus or similar benefit plan within the
meaning of the first sentence of this subdivision until the date the
determination letter is revoked in writing by the Internal Revenue
Service, regardless of whether or not the revocation is retroactive.
(o) Any security listed or approved for listing upon notice of
issuance on a national securities exchange, if the exchange has been
certified by rule or order of the commissioner and any warrant or
right to purchase or subscribe to the security. The exemption
afforded by this subdivision does not apply to securities listed or
approved for listing upon notice of issuance on a national securities
exchange, in a rollup transaction unless the rollup transaction is
an eligible rollup transaction as defined in Section 25014.7.
That certification of any exchange shall be made by the
commissioner upon the written request of the exchange if the
commissioner finds that the exchange, in acting on applications for
listing of common stock, substantially applies the minimum standards
set forth in either subparagraph (A) or (B) of paragraph (1), and, in
considering suspension or removal from listing, substantially
applies each of the criteria set forth in paragraph (2).
(1) Listing standards:
(A) (i) Shareholders' equity of at least four million dollars
($4,000,000).
(ii) Pretax income of at least seven hundred fifty thousand
dollars ($750,000) in the issuer's last fiscal year or in two of its
last three fiscal years.
(iii) Minimum public distribution of 500,000 shares (exclusive of
the holdings of officers, directors, controlling shareholders, and
other concentrated or family holdings), together with a minimum of
800 public holders or minimum public distribution of 1,000,000 shares
together with a minimum of 400 public holders. The exchange may also
consider the listing of a company's securities if the company has a
minimum of 500,000 shares publicly held, a minimum of 400
shareholders and daily trading volume in the issue has been
approximately 2,000 shares or more for the six months preceding the
date of application. In evaluating the suitability of an issue for
listing under this trading provision, the exchange shall review the
nature and frequency of that activity and any other factors as it may
determine to be relevant in ascertaining whether the issue is
suitable for trading. A security that trades infrequently shall not
be considered for listing under this paragraph even though average
daily volume amounts to 2,000 shares per day or more.
Companies whose securities are concentrated in a limited
geographical area, or whose securities are largely held in block by
institutional investors, normally may not be considered eligible for
listing unless the public distribution appreciably exceeds 500,000
shares.
(iv) Minimum price of three dollars ($3) per share for a
reasonable period of time prior to the filing of a listing
application; provided, however, in certain instances an exchange may
favorably consider listing an issue selling for less than three
dollars ($3) per share after considering all pertinent factors,
including market conditions in general, whether historically the
issue has sold above three dollars ($3) per share, the applicant's
capitalization, and the number of outstanding and publicly held
shares of the issue.
(v) An aggregate market value for publicly held shares of at least
three million dollars ($3,000,000).
(B) (i) Shareholders' equity of at least four million dollars
($4,000,000).
(ii) Minimum public distribution set forth in clause (iii) of
subparagraph (A) of paragraph (1).
(iii) Operating history of at least three years.
(iv) An aggregate market value for publicly held shares of at
least fifteen million dollars ($15,000,000).
(2) Criteria for consideration of suspension or removal from
listing:
(A) If a company that (i) has shareholders' equity of less than
one million dollars ($1,000,000) has sustained net losses in each of
its two most recent fiscal years, or (ii) has net tangible assets of
less than three million dollars ($3,000,000) and has sustained net
losses in three of its four most recent fiscal years.
(B) If the number of shares publicly held (excluding the holdings
of officers, directors, controlling shareholders and other
concentrated or family holdings) is less than 150,000.
(C) If the total number of shareholders is less than 400 or if the
number of shareholders of lots of 100 shares or more is less than
300.
(D) If the aggregate market value of shares publicly held is less
than seven hundred fifty thousand dollars ($750,000).
(E) If shares of common stock sell at a price of less than three
dollars ($3) per share for a substantial period of time and the
issuer shall fail to effectuate a reverse stock split of the shares
within a reasonable period of time after being requested by the
exchange to take that action.
A national securities exchange, certified by rule or order of the
commissioner under this subdivision, shall file annual reports when
requested to do so by the commissioner. The annual reports shall
contain, by issuer: the variances granted to an exchange's listing
standards, including variances from corporate governance and voting
rights' standards, for any security of that issuer; the reasons for
the variances; a discussion of the review procedure instituted by the
exchange to determine the effect of the variances on investors and
whether the variances should be continued; and any other information
that the commissioner deems relevant. The purpose of these reports is
to assist the commissioner in determining whether the quantitative
and qualitative requirements of this subdivision are substantially
being met by the exchange in general or with regard to any particular
security.
The commissioner after appropriate notice and opportunity for
hearing in accordance with the provisions of the Administrative
Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code) may, in his or her
discretion, by rule or order, decertify any exchange previously
certified that ceases substantially to apply the minimum standards or
criteria as set forth in paragraphs (1) and (2).
A rule or order of certification shall conclusively establish that
any security listed or approved for listing upon notice of issuance
on any exchange named in a rule or order of certification, and any
warrant or right to purchase or subscribe to that security, is exempt
under this subdivision until the adoption by the commissioner of any
rule or order decertifying the exchange.
(p) A promissory note secured by a lien on real property, which is
neither one of a series of notes of equal priority secured by
interests in the same real property nor a note in which beneficial
interests are sold to more than one person or entity.
(q) Any unincorporated interindemnity or reciprocal or
interinsurance contract, that qualifies under the provisions of
Section 1280.7 of the Insurance Code, between members of a
cooperative corporation, organized and operating under Part 2
(commencing with Section 12200) of Division 3 of Title 1, and whose
members consist only of physicians and surgeons licensed in
California, which contracts indemnify solely in respect to medical
malpractice claims against the members, and which do not collect in
advance of loss any moneys other than contributions by each member to
a collective reserve trust fund or for necessary expenses of
administration.
(1) Whenever it appears to the commissioner that any person has
engaged or is about to engage in any act or practice constituting a
violation of any provision of Section 1280.7 of the Insurance Code,
the commissioner may, in the commissioner's discretion, bring an
action in the name of the people of the State of California in the
superior court to enjoin the acts or practices or to enforce
compliance with Section 1280.7 of the Insurance Code. Upon a proper
showing a permanent or preliminary injunction, a restraining order,
or a writ of mandate shall be granted and a receiver or conservator
may be appointed for the defendant or the defendant's assets.
(2) The commissioner may, in the commissioner's discretion, (A)
make public or private investigations within or outside of this state
as the commissioner deems necessary to determine whether any person
has violated or is about to violate any provision of Section 1280.7
of the Insurance Code or to aid in the enforcement of Section 1280.7
of the Insurance Code, and (B) publish information concerning the
violation of Section 1280.7 of the Insurance Code.
(3) For the purpose of any investigation or proceeding under this
section, the commissioner or any officer designated by the
commissioner may administer oaths and affirmations, subpoena
witnesses, compel their attendance, take evidence, and require the
production of any books, papers, correspondence, memoranda,
agreements, or other documents or records which the commissioner
deems relevant or material to the inquiry.
(4) In case of contumacy by, or refusal to obey a subpoena issued
to, any person, the superior court, upon application by the
commissioner, may issue to the person an order requiring the person
to appear before the commissioner, or the officer designated by the
commissioner, to produce documentary evidence, if so ordered, or to
give evidence touching the matter under investigation or in question.
Failure to obey the order of the court may be punished by the court
as a contempt.
(5) No person is excused from attending or testifying or from
producing any document or record before the commissioner or in
obedience to the subpoena of the commissioner or any officer
designated by the commissioner, or in any proceeding instituted by
the commissioner, on the ground that the testimony or evidence
(documentary or otherwise), required of the person may tend to
incriminate the person or subject the person to a penalty or
forfeiture, but no individual may be prosecuted or subjected to any
penalty or forfeiture for or on account of any transaction, matter,
or thing concerning which the person is compelled, after validly
claiming the privilege against self-incrimination, to testify or
produce evidence (documentary or otherwise), except that the
individual testifying is not exempt from prosecution and punishment
for perjury or contempt committed in testifying.
(6) The cost of any review, examination, audit, or investigation
made by the commissioner under Section 1280.7 of the Insurance Code
shall be paid to the commissioner by the person subject to the
review, examination, audit, or investigation, and the commissioner
may maintain an action for the recovery of these costs in any court
of competent jurisdiction. In determining the cost, the commissioner
may use the actual amount of the salary or other compensation paid to
the persons making the review, examination, audit, or investigation
plus the actual amount of expenses including overhead reasonably
incurred in the performance of the work.
The recoverable cost of each review, examination, audit, or
investigation made by the commissioner under Section 1280.7 of the
Insurance Code shall not exceed twenty-five thousand dollars
($25,000), except that costs exceeding twenty-five thousand dollars
($25,000) shall be recoverable if the costs are necessary to prevent
a violation of any provision of Section 1280.7 of the Insurance Code.
(r) Any shares or memberships issued by any corporation organized
and existing pursuant to the provisions of Part 2 (commencing with
Section 12200) of Division 3 of Title 1, provided the aggregate
investment of any shareholder or member in shares or memberships sold
pursuant to this subdivision does not exceed three hundred dollars
($300). This exemption does not apply to the shares or memberships of
that corporation if any promoter thereof expects or intends to make
a profit directly or indirectly from any business or activity
associated with the corporation or the operation of the corporation
or from remuneration, other than reasonable salary, received from the
corporation. This exemption does not apply to nonvoting shares or
memberships of that corporation issued to any person who does not
possess, and who will not acquire in connection with the issuance of
nonvoting shares or memberships, voting power (Section 12253) in the
corporation. This exemption also does not apply to shares or
memberships issued by a nonprofit cooperative corporation organized
to facilitate the creation of an unincorporated interindemnity
arrangement that provides indemnification for medical malpractice to
its physician and surgeon members as set forth in subdivision (q).
(s) Any security consisting of or representing an interest in a
pool of mortgage loans that meets each of the following requirements:
(1) The pool consists of whole mortgage loans or participation
interests in those loans, which loans were originated or acquired in
the ordinary course of business by a national bank or federal savings
association or federal savings bank having its principal office in
this state, by a bank incorporated under the laws of this state or by
a savings association as defined in subdivision (a) of Section 5102
of the Financial Code and which is subject to the supervision and
regulation of the Commissioner of Financial Institutions, and each of
which at the time of transfer to the pool is an authorized
investment for the originating or acquiring institution.
(2) The pool of mortgage loans is held in trust by a trustee which
is a financial institution specified in paragraph (1) as trustee or
otherwise.
(3) The loans are serviced by a financial institution specified in
paragraph (1).
(4) The security is not offered in amounts of less than
twenty-five thousand dollars ($25,000) in the aggregate to any one
purchaser.
(5) The security is offered pursuant to a registration under the
federal Securities Act of 1933, or pursuant to an exemption under
Regulation A under that act, or in the opinion of counsel for the
issuer, is offered pursuant to an exemption under Section 4(2) of
that act.
(t) (1) Any security issued or guaranteed by and representing an
interest in or a direct obligation of an industrial loan company
incorporated under the laws of the state and authorized by the
Commissioner of Financial Institutions to engage in industrial loan
business.
(2) Any investment certificate in or issued by any industrial loan
company that is organized under the laws of a state of the United
States other than this state, that is insured by the Federal Deposit
Insurance Corporation, and that maintains a branch office in this
state.
(u) (1) Any right to a bill credit or interest of a participant in
a shared renewable energy facility pursuant to Chapter 7.5
(commencing with Section 2830) of Part 2 of Division 1 of the Public
Utilities Code.
(2) This subdivision shall become inoperative on January 1, 2019.
SEC. 2. Section 216 of the Public Utilities Code is amended to
read:
216. (a) "Public utility" includes every common carrier, toll
bridge corporation, pipeline corporation, gas corporation, electrical
corporation, telephone corporation, telegraph corporation, water
corporation, sewer system corporation, and heat corporation, where
the service is performed for, or the commodity is delivered to, the
public or any portion thereof.
(b) Whenever any common carrier, toll bridge corporation, pipeline
corporation, gas corporation, electrical corporation, telephone
corporation, telegraph corporation, water corporation, sewer system
corporation, or heat corporation performs a service for, or delivers
a commodity to, the public or any portion thereof for which any
compensation or payment whatsoever is received, that common carrier,
toll bridge corporation, pipeline corporation, gas corporation,
electrical corporation, telephone corporation, telegraph corporation,
water corporation, sewer system corporation, or heat corporation, is
a public utility subject to the jurisdiction, control, and
regulation of the commission and the provisions of this part.
(c) When any person or corporation performs any service for, or
delivers any commodity to, any person, private corporation,
municipality, or other political subdivision of the state, that in
turn either directly or indirectly, mediately or immediately,
performs that service for, or delivers that commodity to, the public
or any portion thereof, that person or corporation is a public
utility subject to the jurisdiction, control, and regulation of the
commission and the provisions of this part.
(d) Ownership or operation of a facility that employs cogeneration
technology or produces power from other than a conventional power
source or the ownership or operation of a facility which employs
landfill gas technology does not make a corporation or person a
public utility within the meaning of this section solely because of
the ownership or operation of that facility.
(e) Any corporation or person engaged directly or indirectly in
developing, producing, transmitting, distributing, delivering, or
selling any form of heat derived from geothermal or solar resources
or from cogeneration technology to any privately owned or publicly
owned public utility, or to the public or any portion thereof, is not
a public utility within the meaning of this section solely by reason
of engaging in any of those activities.
(f) The ownership or operation of a facility that sells compressed
natural gas at retail to the public for use only as a motor vehicle
fuel, and the selling of compressed natural gas at retail from that
facility to the public for use only as a motor vehicle fuel, does not
make the corporation or person a public utility within the meaning
of this section solely because of that ownership, operation, or sale.
(g) Ownership or operation of a facility that is an exempt
wholesale generator, as defined in the Public Utility Holding Company
Act of 2005 (42 U.S.C. Sec. 16451(6)), does not make a corporation
or person a public utility within the meaning of this section, solely
due to the ownership or operation of that facility.
(h) The ownership, control, operation, or management of an
electric plant used for direct transactions or participation directly
or indirectly in direct transactions, as permitted by subdivision
(b) of Section 365, sales into a market established and operated by
the Independent System Operator or any other wholesale electricity
market, or the use or sale as permitted under subdivisions (b) to
(d), inclusive, of Section 218, shall not make a corporation or
person a public utility within the meaning of this section solely
because of that ownership, participation, or sale.
(i) The ownership, control, operation, or management of a facility
that supplies electricity to the public only for use to charge light
duty plug-in electric vehicles does not make the corporation or
person a public utility within the meaning of this section solely
because of that ownership, control, operation, or management. For
purposes of this subdivision, "light duty plug-in electric vehicles"
includes light duty battery electric and plug-in hybrid electric
vehicles. This subdivision does not affect the commission's authority
under Section 454 or 740.2 or any other applicable statute.
(j) (1) A corporation or person engaged directly or indirectly in
developing, owning, producing, delivering, participating in, or
selling interests in a shared renewable energy facility, pursuant to
Chapter 7.5 (commencing with Section 2830) of Part
2, is not a public utility within the meaning
of this section solely by reason of engaging in any of those
activities.
(2) This subdivision shall become inoperative on January 1, 2019.
SEC. 3. Section 218 of the Public Utilities Code is amended to
read:
218. (a) "Electrical corporation" includes every corporation or
person owning, controlling, operating, or managing any electric plant
for compensation within this state, except where electricity is
generated on or distributed by the producer through private property
solely for its own use or the use of its tenants and not for sale or
transmission to others.
(b) "Electrical corporation" does not include a corporation or
person employing cogeneration technology or producing power from
other than a conventional power source for the generation of
electricity solely for any one or more of the following purposes:
(1) Its own use or the use of its tenants.
(2) The use of or sale to not more than two other corporations or
persons solely for use on the real property on which the electricity
is generated or on real property immediately adjacent thereto, unless
there is an intervening public street constituting the boundary
between the real property on which the electricity is generated and
the immediately adjacent property and one or more of the following
applies:
(A) The real property on which the electricity is generated and
the immediately adjacent real property is not under common ownership
or control, or that common ownership or control was gained solely for
purposes of sale of the electricity so generated and not for other
business purposes.
(B) The useful thermal output of the facility generating the
electricity is not used on the immediately adjacent property for
petroleum production or refining.
(C) The electricity furnished to the immediately adjacent property
is not utilized by a subsidiary or affiliate of the corporation or
person generating the electricity.
(3) Sale or transmission to an electrical corporation or state or
local public agency, but not for sale or transmission to others,
unless the corporation or person is otherwise an electrical
corporation.
(c) "Electrical corporation" does not include a corporation or
person employing landfill gas technology for the generation of
electricity for any one or more of the following purposes:
(1) Its own use or the use of not more than two of its tenants
located on the real property on which the electricity is generated.
(2) The use of or sale to not more than two other corporations or
persons solely for use on the real property on which the electricity
is generated.
(3) Sale or transmission to an electrical corporation or state or
local public agency.
(d) "Electrical corporation" does not include a corporation or
person employing digester gas technology for the generation of
electricity for any one or more of the following purposes:
(1) Its own use or the use of not more than two of its tenants
located on the real property on which the electricity is generated.
(2) The use of or sale to not more than two other corporations or
persons solely for use on the real property on which the electricity
is generated.
(3) Sale or transmission to an electrical corporation or state or
local public agency, if the sale or transmission of the electricity
service to a retail customer is provided through the transmission
system of the existing local publicly owned electric utility or
electrical corporation of that retail customer.
(e) "Electrical corporation" does not include an independent solar
energy producer, as defined in Article 3 (commencing with Section
2868) of Chapter 9 of Part 2.
(f) The amendments made to this section at the 1987 portion of the
1987-88 Regular Session of the Legislature do not apply to any
corporation or person employing cogeneration technology or producing
power from other than a conventional power source for the generation
of electricity that physically produced electricity prior to January
1, 1989, and furnished that electricity to immediately adjacent real
property for use thereon prior to January 1, 1989.
(g) (1) A corporation or person engaged directly or indirectly in
developing, owning, producing, delivering, participating in, or
selling interests in a shared renewable energy facility, pursuant to
Chapter 7.5 (commencing with Section 2830) of Part 2, is not an
electrical corporation within the meaning of this section solely by
reason of engaging in any of those activities.
(2) This subdivision shall become inoperative on January 1, 2019.
SEC. 4. Section 365.1 of the Public Utilities Code is amended to
read:
365.1. (a) (1) Except as expressly authorized by this section,
and subject to the limitations in subdivisions (b) and (c), the right
of retail end-use customers pursuant to this chapter to acquire
service from other providers is suspended until the Legislature, by
statute, lifts the suspension or otherwise authorizes direct
transactions.
(2) For purposes of this section, "other provider" means any
person, corporation, or other entity that is authorized to provide
electric service within the service territory of an electrical
corporation pursuant to this chapter, and includes an aggregator,
broker, or marketer, as defined in Section 331, and an electric
service provider, as defined in Section 218.3.
(3) "Other provider" does not include a community choice
aggregator, as defined in Section 331.1, and the limitations in this
section do not apply to the sale of electricity by "other providers"
to a community choice aggregator for resale to community choice
aggregation electricity consumers pursuant to Section 366.2.
(4) (A) "Other provider" does not include a "provider" as defined
in subdivision (j) of Section 2832 or any corporation or person
engaged directly or indirectly in developing, owning, producing,
delivering, participating in, or selling interests in a shared
renewable energy facility, pursuant to Chapter 7.5 (commencing with
Section 2830) of Part 2, solely by reason of engaging in any of those
activities.
(B) This paragraph shall become inoperative on January 1, 2019.
(b) The commission shall allow individual retail nonresidential
end-use customers to acquire electric service from other providers in
each electrical corporation's distribution service territory, up to
a maximum allowable total kilowatthours annual limit. The maximum
allowable annual limit shall be established by the commission for
each electrical corporation at the maximum total kilowatthours
supplied by all other providers to distribution customers of that
electrical corporation during any sequential 12-month period between
April 1, 1998, and the effective date of this section. Within six
months of the effective date of this section, or by July 1, 2010,
whichever is sooner, the commission shall adopt and implement a
reopening schedule that commences immediately and will phase in the
allowable amount of increased kilowatthours over a period of not less
than three years, and not more than five years, raising the
allowable limit of kilowatthours supplied by other providers in each
electrical corporation's distribution service territory from the
number of kilowatthours provided by other providers as of the
effective date of this section, to the maximum allowable annual limit
for that electrical corporation's distribution service territory.
The commission shall review and, if appropriate, modify its currently
effective rules governing direct transactions, but that review shall
not delay the start of the phase-in schedule.
(c) Once the commission has authorized additional direct
transactions pursuant to subdivision (b), it shall do both of the
following:
(1) Ensure that other providers are subject to the same
requirements that are applicable to the state's three largest
electrical corporations under any programs or rules adopted by the
commission to implement the resource adequacy provisions of Section
380, the renewables portfolio standard provisions of Article 16
(commencing with Section 399.11), and the requirements for the
electricity sector adopted by the State Air Resources Board pursuant
to the California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code). This
requirement applies notwithstanding any prior decision of the
commission to the contrary.
(2) (A) Ensure that, in the event that the commission authorizes,
in the situation of a contract with a third party, or orders, in the
situation of utility-owned generation, an electrical corporation to
obtain generation resources that the commission determines are needed
to meet system or local area reliability needs for the benefit of
all customers in the electrical corporation's distribution service
territory, the net capacity costs of those generation resources are
allocated on a fully nonbypassable basis consistent with departing
load provisions as determined by the commission, to all of the
following:
(i) Bundled service customers of the electrical corporation.
(ii) Customers that purchase electricity through a direct
transaction with other providers.
(iii) Customers of community choice aggregators.
(B) If the commission authorizes or orders an electrical
corporation to obtain generation resources pursuant to subparagraph
(A), the commission shall ensure that those resources meet a system
or local reliability need in a manner that benefits all customers of
the electrical corporation. The commission shall allocate the costs
of those generation resources to ratepayers in a manner that is fair
and equitable to all customers, whether they receive electric service
from the electrical corporation, a community choice aggregator, or
an electric service provider.
(C) The resource adequacy benefits of generation resources
acquired by an electrical corporation pursuant to subparagraph (A)
shall be allocated to all customers who pay their net capacity costs.
Net capacity costs shall be determined by subtracting the energy and
ancillary services value of the resource from the total costs paid
by the electrical corporation pursuant to a contract with a third
party or the annual revenue requirement for the resource if the
electrical corporation directly owns the resource. An energy auction
shall not be required as a condition for applying this allocation,
but may be allowed as a means to establish the energy and ancillary
services value of the resource for purposes of determining the net
costs of capacity to be recovered from customers pursuant to this
paragraph, and the allocation of the net capacity costs of contracts
with third parties shall be allowed for the terms of those contracts.
(D) It is the intent of the Legislature, in enacting this
paragraph, to provide additional guidance to the commission with
respect to the implementation of subdivision (g) of Section 380, as
well as to ensure that the customers to whom the net costs and
benefits of capacity are allocated are not required to pay for the
cost of electricity they do not consume.
(d) (1) If the commission approves a centralized resource adequacy
mechanism pursuant to subdivisions (h) and (i) of Section 380, upon
the implementation of the centralized resource adequacy mechanism the
requirements of paragraph (2) of subdivision (c) shall be suspended.
If the commission later orders that electrical corporations cease
procuring capacity through a centralized resource adequacy mechanism,
the requirements of paragraph (2) of subdivision (c) shall again
apply.
(2) If the use of a centralized resource adequacy mechanism is
authorized by the commission and has been implemented as set forth in
paragraph (1), the net capacity costs of generation resources that
the commission determines are required to meet urgent system or
urgent local grid reliability needs, and that the commission
authorizes to be procured outside of the Section 380 or Section 454.5
processes, shall be recovered according to the provisions of
paragraph (2) of subdivision (c).
(3) Nothing in this subdivision supplants the resource adequacy
requirements of Section 380 or the resource procurement procedures
established in Section 454.5.
(e) The commission may report to the Legislature on the efficacy
of authorizing individual retail end-use residential customers to
enter into direct transactions, including appropriate consumer
protections.
SEC. 5. Chapter 7.6 (commencing with Section 2831) is added to
Part 2 of Division 1 of the Public Utilities Code, to read:
CHAPTER 7.6. SHARED RENEWABLE ENERGY SELF-GENERATION PROGRAM
2831. The Legislature finds and declares all of the following:
(a) The creation of renewable energy within California provides
significant financial, health, environmental, and workforce benefits
to the State of California.
(b) The California Solar Initiative has been extremely successful,
resulting in over 140,000 residential and commercial onsite
installations of solar energy systems. However, it cannot reach all
residents and businesses that want to participate and is limited to
solar energy. The Shared Renewable Energy Self-Generation Program
seeks to build on this success by expanding access to renewable
energy resources to all ratepayers that are currently unable to
access the benefits of onsite generation, without shifting costs to
nonparticipants.
(c) The Governor has proposed the Clean Energy Jobs Plan, calling
for the development of 20,000 megawatts of generation from renewable
energy resources by 2020. There is widespread interest from many
large institutional customers, including schools, colleges,
universities, local governments, businesses, and the military, for
development of renewable generation facilities to serve more than 33
percent of their energy needs. For these reasons, the Legislature
agrees that the Governor's Clean Energy Jobs Plan represents a
desired policy direction for the state.
(d) Properly designed, shared renewable energy programs can
provide access and cost savings to underserved communities, such as
low- to moderate-income residents, and residential and commercial
renters, without shifting costs to nonparticipants.
(e) Public institutions will benefit from the Shared Renewable
Energy Self-Generation Program's enhanced flexibility to participate
in shared renewable energy facilities. Electricity usage is one of
the most significant cost pressures facing public institutions at a
time when they have been forced to cut essential programs, increase
classroom sizes, and lay off teachers. Schools may use the savings
for restoring funds for salaries, facility maintenance, and other
budgetary needs.
(f) Shared renewable energy self-generation creates jobs, reduces
emissions of greenhouse gases, and promotes energy independence.
(g) Many large energy users in California have pursued onsite
renewable energy generation, but cannot achieve their goals due to
rooftop or land space limitations, or size limits on net metering.
The enactment of this chapter will create a mechanism whereby
institutional customers such as military installations, universities,
and local governments, as well as commercial customers and groups of
individuals, can efficiently invest in generating electricity from
renewable generation.
(h) Therefore, it is the intent of the Legislature that this
program be implemented in such a manner as to create a large,
sustainable market for the purchase of an interest in offsite
renewable generation, while fairly compensating electrical
corporations for the services they provide.
(i) It is the further intent of the Legislature to preserve a
thriving natural environment and to ensure that projects developed
under the Shared Renewable Energy Self-Generation Program are subject
to environmental protection best practices afforded under California
law and policies.
2832. As used in this chapter, the following terms have the
following meanings:
(a) "Benefiting account" means one or more electricity accounts
designated to receive a bill credit pursuant to Section 2833 and
mutually agreed upon by the facility provider and an electrical
corporation.
(b) "Bill credit" means an amount of money credited each month, or
in an otherwise applicable billing period, to one or more benefiting
accounts based on the amount of the electrical output of a shared
renewable energy facility that is assigned to the account pursuant to
the methodology described in Section 2833.
(c) "Default load aggregation point price" means a
commission-determined day-ahead price for electricity.
(d) "Energy component" means the generation portion of a customer'
s otherwise applicable tariff and any other portion of the customer's
charges that the commission determines may be appropriate to offset
without resulting in a net cost shift to nonparticipants.
(e) "Facility rate" means the per kilowatthour rate assigned to
each facility built under the program, used to calculate the bill
credit pursuant to the method described in paragraphs (1) and (2) of
subdivision (b) of Section 2833.
(f)
(e) "Interest" means a direct or indirect ownership,
lease, subscription, or financing interest in a shared renewable
energy facility that enables the participant to receive a bill credit
for a retail account with the electrical corporation.
(g)
(f) "Local government" means a city, county, city and
county, special district, school district, public water district,
public irrigation district, county office of education, political
subdivision, or other local governmental entity. For the purposes of
this chapter, "water district" has the same meaning as defined in
Section 20200 of the Water Code, and "irrigation district" means an
entity formed pursuant to the Irrigation District Law set forth in
Division 11 (commencing with Section 20500) of the Water Code.
(h)
(g) "Participant" means a retail customer of an
electrical corporation that owns, leases, finances, or subscribes to
an interest in a shared renewable energy facility and who has
designated at least one of its own retail accounts as a benefiting
account to which the interest shall be attributed.
(i)
(h) "Participant account" means a retail customer
account with an electrical corporation to which a participant's
interest in a shared renewable energy facility shall be attributed.
(j)
(i) "Provider" means any entity whose purpose is to
beneficially own or operate a shared renewable energy facility for
the participants or owners of that facility, or to market an interest
in the facility.
(k)
(j) "Program" means the Shared Renewable Energy
Self-Generation Program established pursuant to this chapter.
(l)
(k) "Project" means the cumulative activities to build
and make operational a shared renewable energy facility.
(m)
(l) "Renewable energy credit" has the same meaning as
defined in Section 399.12.
(n)
(m) "Shared renewable energy facility" means a facility
for the generation of electricity that meets all of the following
requirements:
(1) Has a nameplate generating capacity of no more than 20
megawatts of alternating current.
(2) Is an eligible renewable energy resource pursuant to the
California Renewables Portfolio Standard Program (Article 16
(commencing with Section 399.11) of Chapter 2.3 of Part 1).
(3) Has its electrical output measured by a production meter owned
by the electrical corporation, that meets the tariff requirements of
the electrical corporation and the Independent System Operator, and
that independently measures the electricity delivered to the grid by
the facility.
(4) Is located within the service territory of a California
electrical corporation.
(5) Has been interconnected with the electrical grid in compliance
with the tariffs of the applicable interconnection authority.
(6) Is either the PVUSA facility, meaning the photovoltaic
electricity generation facility selected by the City of Davis and
located at 24662 County Road, Davis, California, or is a newly
constructed renewable energy facility constructed pursuant to this
chapter, beginning commercial operation on or after June 1, 2014.
(7) The provider has, where applicable, complied with all program
rules and written notice procedures that may be required by the
commission.
2833. (a) (1) A retail customer of an electrical corporation
having 100,000 or more service connections within the state may
acquire an interest in a shared renewable energy facility for the
purpose of becoming a participant and shall designate one or more
benefiting accounts to which the interest shall be attributed.
(2) To be eligible to be designated as a benefiting account, the
account shall be for service to premises located within the
geographical boundaries of the service territory of the electrical
corporation containing the shared renewable energy facility.
(3) The participating customer's bill credit may be used to offset
all or a portion of the energy component of that customer's
electrical service, as provided in this chapter and in accordance
with those rules that the commission may adopt.
(4) A participant shall not acquire an interest in a shared
renewable energy facility that represents more than two megawatts of
generating capacity or the equivalent amount, as denominated in
kilowatthours of energy. This limitation does not apply to a federal,
state, or local government, school, school district, county office
of education, the California Community Colleges, the California State
University, or the University of California.
(b) The commission shall establish a facility rate for all shared
renewable energy facilities, as follows:
(1) The commission shall undertake a comprehensive analysis of the
costs and benefits associated with shared renewable energy
generation to determine the value of electricity generated by shared
renewable energy facilities for the purpose of setting a facility
rate. The commission shall determine the valuation methodology after
notice and an opportunity to comment. The commission shall ensure
that the valuation methodology does not result in a net cost shift to
nonparticipants. No later than December 31, 2014, the commission
shall publish facility rates for shared renewable energy facilities,
differentiated by resource type, as appropriate.
(2) The facility rate shall be set annually as a price per
kilowatthour of electricity and shall be applied at the time the
provider receives an award of capacity. Once established, a facility
rate shall be applicable to that facility for the operational life of
the facility.
(3) The commission shall publish tariffs applicable to all
participants per electrical corporation, as necessary, no later than
90 days following the publication of the facility rates.
(4) Any subsequent facility or a subsequent expansion of a
facility placed in service on or after the initial award of rated
generating capacity pursuant to paragraph (2) that results in an
increase in the facility's capacity to produce electricity shall be
subject to the facility rate in effect on the date the provider
applied for an award of rated generating capacity for the subsequent
facility or increase in the facility's capacity.
(5)
(b) The electrical corporation shall assign a monthly
bill credit equal to the facility class
average retail generation rate for each kilowatthour of energy
received to the benefiting account, as directed by the
provider account plus any differences between the time
-of -day profile of the renewable resources
for which the participating customer subscribes and the class average
time -of -day profile . The bill credit
shall be applied to the energy component of the benefiting account.
(c) (1) The commission may revise the methodology for calculating
facility rates at any time that it concludes that the existing
mechanism does not provide program participants with the fair value
of electricity and other benefits produced by the shared renewable
energy facility or overvalues the benefits to nonparticipating
customers of the electrical corporation for the electricity generated
by a shared renewable energy facility, if this revision does not
result in a cost shift to nonparticipants. Any revision to the
methodology for calculating the facility rate shall apply to all new
program capacity.
(2) By September 1, 2014, and annually by each September 1
thereafter, the commission shall review the progress toward meeting
the program goals for the most impacted and disadvantaged
communities, and may adjust the facility rate, or facility rates, and
rules for projects located in the most impacted and disadvantaged
communities if it determines that an adjustment is necessary to
achieve the goals and to provide equitable access to the benefits of
the program, if these adjustments do not result in a cost shift to
nonparticipants.
(3)
(c) (1) Any renewable energy
credits associated with an interest shall be retired by either the
provider or electrical corporation, as they may agree, on behalf of
the participant or transferred to the Western Renewable Energy
Generation Information System account of that participant, for the
purpose of demonstrating the purchase of renewable energy. Those
renewable energy credits shall not be further sold, transferred, or
otherwise monetized by a party for any purpose. Renewable energy
credits associated with electricity paid for by the electrical
corporation shall be counted toward meeting that electrical
corporation's renewables portfolio standard. For purposes of this
subdivision, "renewable energy credit" and "renewables portfolio
standard" have the same meanings as defined in Section 399.12.
(4)
(2) For energy that is unallocated to a benefiting
account during the previous billing period, the recipient electrical
corporation shall pay the provider the current default load
aggregation point price plus the renewable energy credit value and
receive any renewable energy credits associated with that energy.
(d)
(1) A pilot program of 500 megawatts of alternating current rated
nameplate generating capacity of shared renewable energy facilities
shall be made available during the 18-month period beginning March 1,
2015, and ending July 1, 2016. Each electrical corporation's
proportionate share of the program's total capacity shall be
calculated based on the ratio of the electrical corporation's peak
demand compared to the total statewide peak demand.
(2) On or before March 1, 2015, each electrical corporation shall
submit a proposal to the commission for how to allocate the initial
available capacity. Within 60 days of receipt of these proposals, the
commission shall adopt rules for the allocation of the initial
available capacity amongst the electrical corporations and to
establish a transparent process for evaluating and ranking
applications for shared renewable energy facility projects and
awarding the initial capacity to those projects.
(3) Of the initial pilot program capacity:
(A) Twenty percent shall be reserved for projects of a size no
greater than one megawatt of alternating current, constructed in
areas previously identified by the California Environmental
Protection Agency as the most impacted and disadvantaged communities
for opportunities related to this chapter. These communities shall be
identified as census tracts that are identified within the top 20
percent of results from the best available cumulative impact
screening methodology by considering the following categories:
(i) Areas disproportionately affected by environmental pollution
and other hazards that can lead to negative public health effects,
exposure, or environmental degradation.
(ii) Areas with socioeconomic vulnerability.
(B) Twenty percent shall be reserved for initial subscription by
residential customers.
(C) (i) The commission, when determining facility rates, may
adjust the rates for those participants receiving a bill credit for
the generation by a shared renewable energy facility described in
subparagraph (A), until the total cumulative nameplate generating
capacity of those facilities reaches 100 megawatts of alternating
current, provided that any cost shift associated with an adjusted
facility rate impacts only other program participants.
(ii) The commission, when determining facility rates, may adjust
the rates for residential customers until the total cumulative
interests of residential customers reaches 100 megawatts of
alternating current rated nameplate generating capacity, provided
that any cost shift associated with an adjusted facility rate impacts
only other program participants.
(e) The commission shall determine the manner in which the
capacity under the program shall be allocated and the contracting
mechanisms between, and procedures regarding, providers and
electrical corporations.
(4)
(f) (1) The electrical
corporation shall ensure that no single entity or its affiliates or
subsidiaries is awarded more than 20 percent of any single calendar
year's total cumulative rated generating capacity made available
pursuant to this program.
(5)
(2) The commission shall maintain a public database
that includes all of the following:
(A) All projects that have been approved for participation in the
pilot program, their size, and where the projects are connecting to
the transmission or distribution system.
(B) The nameplate generating capacity of those projects located in
environmental justice areas described in subparagraph (A) of
paragraph (3) of subdivision (d).
(C) The facility rates for shared renewable energy facilities that
have achieved commercial operation.
(D)
(C) The proportion of shared renewable energy
facilities subscribed to by residential customers.
(E)
(D) Any other data relative to the program that the
commission considers suitable for disclosure to the public.
(f)
(g) (1) Once the initial 500 megawatts of cumulative
rated generating capacity has been awarded for shared renewable
energy facility projects, the commission shall evaluate the
functioning of the program.
(2) By January 1, 2016, the commission shall conclude an
evaluation of the program to date, to determine if the goals of the
program are being met, including, but not limited to, the goals of
increasing access to renewable power and ensuring nonparticipant
ratepayer indifference.
(3) The commission may evaluate the program at any time, either on
its own motion or upon the motion of an interested party, and may
modify or adopt any rules it determines to be necessary or convenient
to ensure that program goals can be met provided that the
program modifications and rules do not result in a shifting of costs
to nonparticipating ratepayers. The commission shall ensure that the
charges and credits associated with this program shall be structured
to ensure nonparticipating ratepayer indifference for the remaining
bundled service, direct access, and community choice aggregation
customers and that no costs are shifted from participating customers
to nonparticipating ratepayers .
(4) An electrical corporation shall comply with the requirements
applicable to protection of the right to commercial free speech
described in Commission Decision 10-05-050 as applied to the
development, sale of subscriptions, and operation of shared renewable
energy facilities. Shared renewable energy facilities may file a
complaint with the commission for violation of this paragraph.
(5) If requested by a city, county, or city and county, an
electrical corporation shall annually provide the city, county, or
city and county with the annual total generation of each shared
renewable energy facility in that local jurisdiction and the annual
aggregated total generation, by fuel type, allocated to benefiting
accounts in that local jurisdiction from all shared renewable energy
facilities, regardless of their location. The benefiting account data
shall be aggregated in a manner determined by the commission to
protect customer privacy and to provide a city, county, or city and
county with the information necessary to calculate greenhouse gas
emissions from energy consumption within its jurisdiction supplied by
shared renewable energy facilities. The commission may develop
alternative methods to enable the sharing of annual total generation
information.
(g)
(h) (1) The tariff applicable to a participant shall
remain the same, with respect to rate structure, all retail rate
components, and any monthly charges, to the charges that the
participant would be assigned if the participant did not receive a
bill credit, except that the tariff may also reflect the
cost and benefit components and summary used to determine the bill
credit assigned to the participant credit .
(2) Prior to the sale or resale of an interest in a shared
renewable energy facility, the provider or the participant, or both,
shall provide a disclosure to the potential participant that, at a
minimum, includes all of the following:
(A) A good faith estimate of the annual kilowatthours to be
delivered by the shared renewable energy facility based on the size
of the interest.
(B) A plain language explanation of the terms under which the bill
credits will be calculated.
(C) A plain language explanation of the contract provisions
regulating the disposition or transfer of the interest.
(D) A plain language explanation of the costs and benefits to the
potential participant based on its current usage and applicable
tariff, for the term of the proposed contract.
(3) The commission shall determine the manner in which customer
accounts are to be credited for energy provided under the program,
including, but not limited to, how production is counted and
assigned, the entry and exits of accounts from the program, and the
disposition of excess credits received.
(4) A provider shall execute all necessary interconnection
agreements, participation, and surplus sale agreements with the
electrical corporation and the Independent System Operator on a
schedule required by those entities.
(5) Unless the electrical corporation will be registering
renewable energy credits on behalf of the participant, the provider
shall establish an account and register the shared renewable energy
facility with the Western Renewable Energy Generation Information
System or its successor.
(6) The provider's interconnection process and cost allocation for
facilities built under this section shall be determined by
applicable rules for interconnection established by the commission
and the Independent System Operator.
(7) The commission shall not regulate the prices paid by the
participant for an interest in a shared renewable energy facility,
but may enforce the required disclosures, and may establish rules
applicable to providers to ensure consumer protection. Any interested
person or corporation may file a complaint with the commission
contending that a provider or electrical corporation is not complying
with any requirement of this chapter and seek an order of the
commission to enforce the requirements of this chapter and to take
whatever steps are necessary to ensure consumer protection and
compliance with the requirements of this chapter.
(h)
(i) (1) The commission shall determine the manner in
which customers are billed and receive credits under the program. The
electrical corporation may petition the commission to incorporate in
its bill those charges by the provider to participants, provided
that the electrical corporation recovers all incremental costs of
providing that service and provided that the provider elects to use
this service.
(2) Unsubscribed delivered electricity shall be sold to the
electrical corporation at the default load aggregation point price
plus the renewable energy credit value. The electrical corporation
shall receive credit under the California Renewables Portfolio
Standard Program (Article 16 (commencing with Section 399.11) of
Chapter 2.3 of Part 1) for all delivered electricity purchased
pursuant to this subparagraph, without the need for further
qualifying action.
(3) The electrical corporation shall charge the participant for
service under each benefiting account at the electrical corporation's
otherwise applicable tariff.
(4) The electrical corporation shall provide the participant with
a bill credit based on the allocated share of delivered electricity
and shall collect revenue from the participant commensurate with the
participant's contract with the provider.
(5) The electrical corporation, within 60 days, shall remit to the
participant organization the revenue collected from participants
through billings pursuant to paragraph (4).
(6) Nothing in paragraphs (2), (3), (4), and (5) requires a
particular bill format or the inclusion of any specific separate
billing line items.
(7) The commission shall, by January 1, 2015, determine whether
customers participating in direct transactions may receive bill
credits equivalent to what would be provided to bundled electric
service customers of a participating electrical corporation pursuant
to this chapter, and, if so, shall implement rules and procedures for
enabling those transactions. These particular transactions may
include those with an electric service provider that does not provide
distribution services and, customers receiving electric service
through a community choice aggregation program.
(i)
(j) (1) To ensure the maximum systemic benefit from
shared renewable energy facilities under this chapter, electrical
corporations shall provide to the commission, prior to the release of
capacity, maps indicating locations in their service territory where
the addition of capacity would reduce line loss, lower transmission
capacity constraints, and defer or avoid transmission and
distribution network upgrades and construction. The commission may
adopt guidance in determining criteria for the awarding of capacity
in a manner as to reflect these benefits. The commission shall also
ensure that projects being awarded capacity under the program are
subject to protections consistent with those afforded under the
California Renewables Portfolio Standard Program (Article 16
(commencing with Section 399.11) of Chapter 2.3 of Part 1).
(2) (A) The commission shall ensure full and
timely recovery of all reasonable costs incurred by an electrical
corporation to implement the program, including reasonable expenses
for changes to its billing system and handling of collections, and
shall determine the appropriate method of allocating those costs. The
commission shall approve a memorandum account to track billing
system and implementation costs, as well as revenue from provider
project applications, and may not direct an electrical corporation to
conduct any billing system work prior to approval of the memorandum
account.
(B) Participating customers shall pay the administrative costs of
the electrical corporation to implement the shared renewable
self-generation program consistent with other existing similar
voluntary optional rate schedules.
(3) In calculating its procurement requirements to meet the
requirements of the California Renewables Portfolio Standard Program
(Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part
1), an electrical corporation may exclude from total retail sales the
kilowatthours generated by a shared renewable energy facility
commencing with the point in time at which the facility achieves
commercial operation.
(4) The local and system resource adequacy value attributable to a
shared renewable energy facility, as determined by the commission
pursuant to Section 380, shall be assigned to the electrical
corporation to which the facility is interconnected.
2834. This chapter shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
SEC. 6. 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.
