Bill Text: CA SB43 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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

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BILL NUMBER: SB 43	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  SEPTEMBER 6, 2013
	AMENDED IN ASSEMBLY  SEPTEMBER 3, 2013
	AMENDED IN ASSEMBLY  AUGUST 6, 2013
	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 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. Electricity: Green Tariff Shared
Renewables 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 Green Tariff Shared Renewables Program.
The program would require a participating utility, defined as being
an electrical corporation with 100,000 or more customers in
California, to file with the commission an application requesting
approval of a green tariff shared renewable program to implement a
program enabling ratepayers to participate directly in offsite
electrical generation facilities that use eligible renewable energy
resources, consistent with certain legislative findings and
statements of intent. The bill would require the commission, by July
1, 2014, to issue a decision concerning the participating utility's
application, determining whether to approve or disapprove the
application, with or without modifications. The bill would require
the commission, after notice and opportunity for public comment, to
approve the application if the commission determines that the
proposed program is reasonable and consistent with the legislative
findings and statements of intent. The bill would require the
commission to require that a participating utility's green tariff
shared renewables program be administered in accordance with
specified provisions. The bill would repeal the program on January 1,
2019.
   (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.  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.  GREEN TARIFF SHARED RENEWABLES PROGRAM


   2831.  The Legislature finds and declares all of the following:
   (a) Building operational generating facilities that utilize
sources of renewable energy within California, to supply the state's
demand for electricity, provides significant financial, health,
environmental, and workforce benefits to the State of California.
   (b) The California Solar Initiative will achieve its goals,
resulting in over 150,000 residential and commercial onsite
installations of solar energy systems. However, the California Solar
Initiative cannot reach all residents and businesses that want to
participate and is limited to only solar energy systems and not other
eligible renewable energy resources. A green tariff shared
renewables program seeks to build on the success of the California
Solar Initiative by expanding access to all eligible renewable energy
resources to all ratepayers who are currently unable to access the
benefits of onsite generation.
   (c) There is widespread interest from many large institutional
customers, including schools, colleges, universities, local
governments, businesses, and the military, for the development of
generation facilities that are eligible renewable energy resources to
serve more than 33 percent of their energy needs.
   (d) Public institutions will benefit from a green tariff shared
renewables program's enhanced flexibility to participate in shared
generation facilities that are eligible renewable energy resources.
   (e) Building operational generating facilities that are eligible
renewable energy resources creates jobs, reduces emissions of
greenhouse gases, and promotes energy independence.
   (f) Many large energy users in California have pursued onsite
electrical generation from eligible renewable energy resources, but
cannot achieve their goals due to rooftop or land space limitations,
or size limits on net energy 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 meet their
needs with electrical generation from eligible renewable energy
resources.
   (g) It is the intent of the Legislature that a green tariff shared
renewables program be implemented in such a manner that facilitates
a large, sustainable market for offsite electrical generation from
facilities that are eligible renewable energy resources, while fairly
compensating electrical corporations for the services they provide,
without affecting nonparticipating ratepayers.
   (h) It is the further intent of the Legislature that a green
tariff shared renewables program be implemented in a manner that
ensures nonparticipating ratepayer indifference for the remaining
bundled service, direct access, and community choice aggregation
customers.
   2831.5.  (a) This chapter shall be known, and may be cited, as the
Green Tariff Shared Renewables Program.
   (b) For purposes of this chapter, the following terms have the
following meanings:
   (1) "Eligible renewable energy resource," "renewable energy
credit," and "renewables portfolio standard" have the same meaning as
those terms have for the California Renewables Portfolio Standard
Program (Article 16 (commencing with Section 399.11) of Chapter 2.3
of Part 1).
   (2) "Participating utility" means an electrical corporation with
100,000 or more customer accounts in California.
   2832.  (a) On or before March 1, 2014, a participating utility
shall file with the commission an application requesting approval of
a green tariff shared renewables program to implement a program that
the utility determines is consistent with the legislative findings
and statements of intent of Section 2831. Nothing in this chapter
limits an electrical corporation with less than 100,000 customer
accounts in California from filing an application with the commission
to administer a green tariff shared renewables program that is
consistent with the legislative findings and statements of intent of
Section 2831.
   (b) On or before July 1, 2014, the commission shall issue a
decision on the participating utility's application for a green
tariff shared renewables program, determining whether to approve or
disapprove it, with or without modifications.
   (c) After notice and an opportunity for public comment, the
commission shall approve an application by a participating utility
for a green tariff shared renewables program if the commission
determines that the program is reasonable and consistent with the
legislative findings and statements of intent of Section 2831.
   (d) The requirements of this chapter shall not apply to an
electrical corporation that, prior to May 1, 2013, filed an
application with the commission to have a green tariff shared
renewables program, or an equivalent program of whatever name,
provided the commission approves the application with a determination
that the program does not shift costs to nonparticipating customers
and the application is consistent with this chapter. If the
commission has approved a settlement agreement relative to parties
contesting an application filed prior to May 1, 2013, the
requirements of this section shall not apply if the commission,
within a reasonable period of time, requires revisions to the
previously approved settlement agreement that requires the program to
be consistent with this chapter.
   2833.  (a) The commission shall require a green tariff shared
renewables program to be administered by a participating utility in
accordance with this section.
   (b) Generating facilities participating in a participating utility'
s green tariff shared renewables program shall be eligible renewable
energy resources with a nameplate rated generating capacity not
exceeding 20 megawatts, except for those generating facilities
reserved for location in areas identified by the California
Environmental Protection Agency as the most impacted and
disadvantaged communities pursuant to paragraph (1) of subdivision
(d), which shall not exceed one megawatt nameplate rated generating
capacity.
   (c) A participating utility shall use commission-approved tools
and mechanisms to procure additional eligible renewable energy
resources for the green tariff shared renewables program from
electrical generation facilities that are in addition to those
required by the California Renewables Portfolio Standard Program
(Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part
1). For purposes of this subdivision, "commission-approved tools and
mechanisms" means those procurement methods approved by the
commission for an electrical corporation to procure eligible
renewable energy resources for purposes of meeting the procurement
requirements of the California Renewables Portfolio Standard Program
(Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part
1).
   (d) A participating utility shall permit customers within the
service territory of the utility to purchase electricity pursuant to
the tariff approved by the commission to implement the utility's
green tariff shared renewables program, until the utility meets its
proportionate share of a statewide limitation of 600 megawatts of
customer participation, measured by nameplate rated generating
capacity. The proportionate share shall be calculated based on the
ratio of each participating utility's retail sales to total retail
sales of electricity by all participating utilities. The commission
may place other restrictions on purchases under a green tariff shared
renewables program, including restricting participation to a certain
level of capacity each year. The following restrictions shall apply
to the statewide 600 megawatt limitation:
   (1) (A) One hundred megawatts shall be reserved for facilities
that are no larger than one megawatt nameplate rated generating
capacity and that are located in areas previously identified by the
California Environmental Protection Agency as the most impacted and
disadvantaged communities. These communities shall be identified by
census tract, and shall be determined to be the most impacted 20
percent based on results from the best available cumulative impact
screening methodology designed to identify each of the following:
   (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) (1) For purposes of this paragraph, "previously identified"
means identified prior to commencing construction of the facility.
   (2) Not less than 100 megawatts shall be reserved for
participation by residential class customers.
   (3) Twenty megawatts shall be reserved for the City of Davis.
   (e) To the extent possible, a participating utility shall seek to
procure eligible renewable energy resources that are located in
reasonable proximity to enrolled participants.
   (f) A participating utility's green tariff shared renewables
program shall support diverse procurement and the goals of commission
General Order 156.
   (g) A participating utility's green tariff shared renewables
program shall not allow a customer to subscribe to more than 100
percent of the customer's electricity demand.
   (h) Except as authorized by this subdivision, a participating
utility's green tariff shared renewables program shall not allow a
customer to subscribe to more than two megawatts of nameplate
generating capacity. This limitation does not apply to a federal,
state, or local government, school or school district, county office
of education, the California Community Colleges, the California State
University, or the University of California.
   (i) A participating utility's green tariff shared renewables
program shall not allow any single entity or its affiliates or
subsidiaries to subscribe to more than 20 percent of any single
calendar year's total cumulative rated generating capacity.
   (j) To the extent possible, a participating utility shall actively
market the utility's green tariff shared renewables program to
low-income and minority communities and customers.
   (k) Participating customers shall receive bill credits for the
generation of a participating eligible renewable energy resource
using the class average retail generation cost as established in the
participating utility's approved tariff for the class to which the
participating customer belongs, plus a renewables adjustment value
representing the difference between the time-of-delivery profile of
the eligible renewable energy resource used to serve the
participating customer and the class average time-of-delivery profile
and the resource adequacy value, if any, of the resource contained
in the utility's green tariff shared renewables program. The
renewables adjustment value applicable to a time-of-delivery profile
of an eligible renewable energy resource shall be determined
according to rules adopted by the commission. For these purposes,
"time-of-delivery profile" refers to the daily generating pattern of
a participating eligible renewable energy resource over time, the
value of which is determined by comparing the generating pattern of
that participating eligible renewable energy resource to the demand
for electricity over time and other generating resources available to
serve that demand.
   (l) Participating customers shall pay a renewable generation rate
established by the commission, the administrative costs of the
participating utility, and any other charges the commission
determines are just and reasonable to fully cover the cost of
procuring a green tariff shared renewables program's resources to
serve a participating customer's needs.
   (m) A participating customer's rates shall be debited or credited
with any other commission-approved costs or values applicable to the
eligible renewable energy resources contained in a participating
utility's green tariff shared renewables program's portfolio. These
additional costs or values shall be applied to new customers when
they initially subscribe after the cost or value has been approved by
the commission.
   (n) Participating customers shall pay all otherwise applicable
charges without modification.
   (o) A participating utility shall provide support for enhanced
community renewables programs to facilitate development of eligible
renewable energy resource projects located close to the source of
demand.
   (p) The commission shall ensure that charges and credits
associated with a participating utility's green tariff shared
renewables program are set in a manner that ensures nonparticipant
ratepayer indifference for the remaining bundled service, direct
access, and community choice aggregation customers and ensures that
no costs are shifted from participating customers to nonparticipating
ratepayers.
   (q) A participating utility shall track and account for all
revenues and costs to ensure that the utility recovers the actual
costs of the utility's green tariff shared renewables program and
that all costs and revenues are fully transparent and auditable.
   (r) Any renewable energy credits associated with electricity
procured by a participating utility for the utility's green tariff
shared renewables program and utilized by a participating customer
shall be retired by the participating utility on behalf of the
participating customer. Those renewable energy credits shall not be
further sold, transferred, or otherwise monetized for any purpose.
Any renewable energy credits associated with electricity procured by
a participating utility for the shared renewable energy
self-generation program, but not utilized by a participating
customer, shall be counted toward meeting that participating utility'
s renewables portfolio standard.
   (s) A participating utility shall, in the event of participant
customer attrition or other causes that reduce customer participation
or electrical demand below generation levels, apply the excess
generation from the eligible renewable energy resources procured
through the utility's green tariff shared renewables program to the
utility's renewable portfolio standard procurement obligations or
bank the excess generation for future use to benefit all customers in
accordance with the renewables portfolio standard banking and
procurement rules approved by the commission.
   (t) 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), a participating utility may exclude from total retail sales the
kilowatthours generated by an eligible renewable energy resource that
is credited to a participating customer pursuant to the utility's
green tariff shared renewables program, commencing with the point in
time at which the generating facility achieves commercial operation.
   (u) All renewable energy resources procured on behalf of
participating customers in the participating utility's green tariff
shared renewables program shall comply with the State Air Resources
Board's Voluntary Renewable Electricity Program. California-eligible
greenhouse gas allowances associated with these purchases shall be
retired on behalf of participating customers as part of the board's
Voluntary Renewable Electricity Program.
   (v) A participating utility shall provide a municipality with
aggregated consumption data for participating customers within the
municipality's jurisdiction to allow for reporting on progress toward
climate action goals by the municipality. A participating utility
shall also publicly disclose, on a geographic basis, consumption data
and reductions in emissions of greenhouse gases achieved by
participating customers in the utility's green tariff shared
renewables program, on an aggregated basis consistent with privacy
protections as specified in Chapter 5 (commencing with Section 8380)
of Division 4.1. 
   (w) Shareholders of a participating utility shall not be required
to pay for any costs associated with the green tariff shared
renewables program.  
   (x) 
    (w)  Nothing in this section prohibits or restricts a
community choice aggregator from offering its own voluntary renewable
energy programs to participating customers of the community choice
aggregation.
   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. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.