Bill Text: CA SB581 | 2009-2010 | Regular Session | Amended

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

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Bill Title: Hetch Hetchy Water and Power: renewable generation.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2009-10-11 - Chaptered by Secretary of State. Chapter 598, Statutes of 2009. [SB581 Detail]

Download: California-2009-SB581-Amended.html

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BILL NUMBER: SB 581	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 27, 2009
	AMENDED IN ASSEMBLY  JUNE 25, 2009
	AMENDED IN ASSEMBLY  JUNE 17, 2009
	AMENDED IN SENATE  MAY 14, 2009
	AMENDED IN SENATE  APRIL 28, 2009

INTRODUCED BY   Senator Leno

                        FEBRUARY 27, 2009

   An act to amend Section 2828 of the Public Utilities Code,
relating to electricity.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 581, as amended, Leno. Hetch Hetchy Water and Power: renewable
generation.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
as defined. Existing law authorizes the City and County of San
Francisco to elect to designate specific photovoltaic electricity
generation facilities meeting specified conditions as Hetch Hetchy
Water and Power (HHWP) at-site solar generation, as defined, and HHWP
remote solar generation, as defined. Existing law requires that upon
election and the filing and acceptance of an advice letter with the
commission establishing rates, Pacific Gas and Electric Company
(PG&E) is required on a monthly basis, to credit the City and County
of San Francisco for certain electricity generated and delivered to
the electric grid by HHWP at-site solar generation in accordance with
specified rate criteria. Existing law additionally authorizes the
City and County of San Francisco to elect to designate specific
photovoltaic electricity generation facilities as HHWP remote solar
generation to supply electricity to qualifying remote load by
designating those facilities to be served by HHWP remote solar
generation. Existing law requires that PG&E accept any electricity
exported to the grid by HHWP remote solar generation, up to the
amount of electricity contemporaneously being used by the qualifying
remote load, and treat the electricity accepted as behind the meter
generation that offsets the electrical usage of qualifying remote
load. Existing law requires that where the separate or remote sites
are outside the City and County of San Francisco, they be located
within 20 miles of the City and County of San Francisco or within 20
miles of an HHWP remote solar generation facility.
   This bill would authorize the City and County of San Francisco to
elect to designate specific renewable electricity generation
facilities, as defined, as HHWP at-site renewable generation and HHWP
remote renewable generation. The bill would authorize the City and
County of San Francisco to elect to designate specific renewable
electricity generation facilities or a portion of specific renewable
electricity generation facilities as HHWP remote renewable generation
to supply electricity to qualifying remote load by designating those
facilities to be served by HHWP remote renewable generation. The
bill would require that PG&E accept any electricity exported to the
grid by HHWP remote renewable generation, up to the amount of
electricity being used during the corresponding time period by the
qualifying remote load, and to treat the electricity accepted as
behind the meter generation that offsets the electrical usage of
qualifying remote load.
   The bill would declare that, due to the special circumstances
applicable only to HHWP renewable generation facilities, a general
statute cannot be made applicable within the meaning of Section 16 of
Article IV of the California Constitution, and the enactment of a
special statute is therefore necessary.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2828 of the Public Utilities Code is amended to
read:
   2828.  (a) As used in this section, the following terms have the
following meanings:
   (1) "Appropriate TOU tariff" means the Time-of-Use tariff that
would be applicable to the City and County of San Francisco account
at the renewable electricity generation facility site if the facility
at the site were a Pacific Gas and Electric Company bundled
customer, as determined by Pacific Gas and Electric Company.
   (2) "Environmental attributes" associated with the Hetch Hetchy
Water and Power (HHWP) at-site renewable generation and HHWP remote
renewable generation include, but are not limited to, the credits,
benefits, emissions reductions, environmental air quality credits,
and emissions reduction credits, offsets, and allowances, however
entitled, resulting from the avoidance of the emissions of any gas,
chemical, or other substance attributable to the Hetch Hetchy Water
and Power renewable electricity generation facility owned by the City
and County of San Francisco.
   (3) "HHWP at-site renewable generation" means the electricity
generated by renewable electricity generation facilities designated
by the City and County of San Francisco pursuant to subdivision (b).
   (4) "HHWP remote renewable generation" means the electricity
generated by renewable electricity generation facilities designated
by the City and County of San Francisco pursuant to subdivision (h),
to provide electricity to qualifying remote load.
   (5) "Interconnection Agreement" means the 1987 agreement between
Pacific Gas and Electric Company and the City and County of San
Francisco, as filed with and accepted by the Federal Energy
Regulatory Commission (FERC), and as amended from time to time with
FERC approval, which provides for rates for transmission,
distribution, and sales of supplemental electricity to the City and
County of San Francisco. Nothing in this section shall waive or
modify the rights of parties under the Interconnection Agreement or
the jurisdiction of the FERC over rates set forth in the
Interconnection Agreement.
   (6) "Qualifying remote load" means the electricity demand of the
City and County of San Francisco for load served under the
Interconnection Agreement, at sites that are separate from, and not
adjacent to, the sites where the renewable electricity generation
facility is located, and serviced through a meter or multiple meters
other than those serving the sites where the renewable electricity
generation facility is located. The separate or remote sites may be
designated by the City and County of San Francisco, both inside and
outside of the City and County of San Francisco. Where the separate
or remote sites are outside the City and County of San Francisco,
they shall be located  with   within  20
miles of the City and County of San Francisco or within 20 miles of a
HHWP remote renewable generation facility. There is no wattage limit
on qualifying remote load.
   (7) "Renewable electricity generation facility" means a facility
for the generation of electricity that satisfies both of the
following requirements: 
   (A) The facility meets the requirements for an "in-state renewable
electricity generation facility" specified in paragraph (1) of
subdivision (b) of Section 25741 of the Public Resources Code.
 
   (A) The facility uses biomass, solar thermal, photovoltaic, wind,
geothermal, fuel cells using renewable fuels, small hydroelectric
generation of 30 megawatts or less, digester gas, municipal solid
waste conversion, landfill gas, ocean wave, ocean thermal, or tidal
current, and any additions or enhancements to the facility using that
technology. 
   (B) The facility is owned, or under lease or contract to, the City
and County of San Francisco for at least a five-year term and for
the full output of electricity from the facility.
   (b) The City and County of San Francisco may elect to designate
specific renewable electricity generation facilities as HHWP at-site
renewable generation, if all of the following conditions are met:
   (1) Total peak generating capacity does not exceed 15 megawatts.
   (2) The renewable electricity generation facility utilizes a
meter, or multiple meters, capable of separately measuring
electricity flow in both directions. All meters shall provide
"time-of-use" measurement information. If the existing meter at the
site of the facility is not capable of providing time-of-use
information or is not capable of separately measuring total flow of
energy in both directions, the City and County of San Francisco is
responsible for all expenses involved in purchasing and installing a
meter or meters that are both capable of providing time-of-use
information and able to separately measure total electricity flow in
both directions.
   (3) The amount of all electricity delivered to the electric grid
by the designated HHWP at-site renewable generation is the property
of Pacific Gas and Electric Company.
   (4) The City and County of San Francisco does not sell electricity
delivered to the electric grid from the designated HHWP at-site
renewable generation to a third party.
   (c) For each site of a renewable electricity generation facility
that comprises the HHWP at-site renewable generation, Pacific Gas and
Electric Company shall identify the appropriate TOU tariff for that
site. Any electricity exported to the Pacific Gas and Electric
Company grid at that site that is not generated from HHWP remote
renewable generation pursuant to subdivision (h) shall, for each
time-of-use period, result in a monetary credit to be applied monthly
as a credit or offset against the invoice created pursuant to the
Interconnection Agreement and shall be valued at the generation
component of the appropriate TOU tariff. The commission shall
determine if it is appropriate to increase the credit to reflect any
additional value derived from the location or the environmental
attributes of, the designated HHWP at-site renewable generation.
   (d) Monthly charges and credit amounts for HHWP at-site renewable
generation are interim and subject to an accounting true-up,
consistent with commission policies and practices. The true-up shall
be performed annually or upon the termination, for any reason, of the
Interconnection Agreement. The true-up shall accomplish the
following:
   (1) If the total electricity delivered to the site by Pacific Gas
and Electric Company since the previous true-up equals or exceeds the
total electricity exported to the grid by the HHWP at-site renewable
generation facility at the site, the City and County of San
Francisco is a net electricity consumer at that site. For any HHWP
at-site renewable generation site where the City and County of San
Francisco is a net electricity consumer, a credit or offset shall be
applied to reduce the obligations of the City and County of San
Francisco to an invoice prepared pursuant to the Interconnection
Agreement. If there is no invoiced obligation to be reduced, there is
no applicable credit.
   (2) If the total electricity delivered to the site by Pacific Gas
and Electric Company since the previous true-up is less than the
total electricity exported to the grid by the HHWP at-site renewable
generation facility at the site, the City and County of San Francisco
is a net electricity producer at that site. For any HHWP at-site
renewable generation site where the City and County of San Francisco
is a net electricity producer, the City and County of San Francisco
shall receive no credit or offset for the electricity exported to the
grid in excess of the electricity delivered to the site from the
grid. For any site where the City and County of San Francisco is a
net electricity producer, the City and County of San Francisco shall
receive a credit or offset up to the amount of electricity delivered
to the site from the grid. The credit or offset shall be applied to
reduce the obligations of the City and County of San Francisco to an
invoice prepared pursuant to the Interconnection Agreement. If there
is no invoiced obligation to be reduced, there is no applicable
credit or offset. Pacific Gas and Electric Company shall use the
last-in, first-out method to determine what electricity delivered to
the grid from the site will not earn a credit or offset.
   (e) Pursuant to this section, the offset to charges under the
Interconnection Agreement is the medium to convey credits earned
under this section. Nothing in this section shall be construed to
affect in any way the rights and obligations of the City and County
of San Francisco and Pacific Gas and Electric Company under the
Interconnection Agreement. If the Interconnection Agreement
terminates, the City and County of San Francisco and Pacific Gas and
Electric Company shall develop an alternative mechanism to convey
credits earned under this section for HHWP at-site renewable
generation and for HHWP remote renewable generation, in a manner that
accomplishes the same result as that accomplished pursuant to the
Interconnection Agreement.
   (f) (1) Pacific Gas and Electric Company shall file an advice
letter with the commission, that complies with this section, not
later than 10 days after the City and County of San Francisco first
designates the specific renewable electricity generation facilities
that will comprise HHWP at-site renewable generation.
   (2) The commission, within 30 days of the date of filing of the
advice letter, shall approve the advice letter or specify conforming
changes to be made by Pacific Gas and Electric Company to be filed in
an amended advice letter within 30 days.
   (g) The City and County of San Francisco may terminate its
election pursuant to subdivisions (b), (c), (d), and (h), upon
providing Pacific Gas and Electric Company with a minimum of 60 days'
written notice.
   (h) (1) The City and County of San Francisco may elect to
designate specific renewable electricity generation facilities or a
portion of specific renewable electricity generation facilities as
HHWP remote renewable generation and may use HHWP remote renewable
generation to supply electricity to specific facilities designated as
qualifying remote load up to the amount of electricity being used by
the qualifying remote load.
   (2) The City and County of San Francisco shall receive no credit
or offset for the electricity exported to the grid from HHWP remote
renewable generation, in excess of the electricity delivered from the
grid to qualifying remote load.
   (3) Pacific Gas and Electric Company shall accept any electricity
exported to the grid as HHWP remote renewable generation, up to the
amount of electricity being used during the corresponding time period
by the qualifying remote load, and treat the electricity accepted as
behind the meter generation that offsets the electrical usage of
qualifying remote load. Additional rates may apply pursuant to
paragraph (6).
   (4) The City and County of San Francisco shall be responsible for
scheduling the electricity exported to the grid from HHWP remote
renewable generation.
   (5) Both HHWP remote renewable generation sites and qualifying
remote load sites shall have meters capable of measuring exports and
usage of electricity that will support determination of credits or
offsets pursuant to paragraph (2). The City and County of San
Francisco shall be responsible for the costs of the meters required
pursuant to this section.
   (6) To compensate Pacific Gas and Electric Company for the use of
its facilities, the City and County of San Francisco shall pay
applicable distribution rates, transmission rates, or distribution
and transmission rates, at rate levels determined by the
Interconnection Agreement, for all energy delivered to qualifying
remote load that comes from HHWP remote renewable generation. When
HHWP remote renewable generation and the qualifying remote load it
serves are located within the City and County of San Francisco and
are interconnected at distribution voltage, the applicable rate for
delivery of energy from HHWP remote renewable generation shall be
reduced as negotiated pursuant to the Interconnection Agreement.
   (7) The appropriate regulatory agency shall ensure that the
delivery of electricity by HHWP remote renewable generation to
qualifying remote load, and the granting of offsets to the City and
County of San Francisco pursuant to this subdivision, do not result
in a shifting of costs to bundled service customers, either
immediately or over time.
   (i) Hetch Hetchy Water and Power shall reimburse Pacific Gas and
Electric Company for its reasonable study costs associated with HHWP
remote and at-site renewable generation to address interconnection,
consistent with applicable regulatory rules, and impacts upon the
electric system resulting from the HHWP remote and at-site renewable
generation. If the studies identify improvements necessary for the
protection of the Pacific Gas and Electric Company electric system,
for the protection of its employees, or to ensure reliable delivery
of the electricity generated by the HHWP remote and at-site renewable
generation facility to qualifying remote load, Hetch Hetchy Water
and Power shall pay the reasonable costs of the improvements if it
elects to designate the HHWP remote and at-site renewable generation
facility to provide electricity for qualifying remote load.
   (j) The interconnection of HHWP at-site renewable generation and
HHWP remote renewable generation will be accomplished through one or
more generator interconnection agreements pursuant to applicable
regulatory rules and generator interconnection procedures.
   (k) The City and County of San Francisco shall own the
environmental attributes associated with the electricity delivered to
the electric grid by HHWP at-site renewable generation and HHWP
remote renewable generation unless it contracts otherwise.
  SEC. 2.  The Legislature finds and declares that, because of the
unique circumstances applicable only to Hetch Hetchy Water and Power
renewable generation of electricity, a statute of general
applicability cannot be enacted within the meaning of subdivision (b)
of Section 16 of Article IV of the California Constitution.
Therefore, this special statute is necessary.