BILL NUMBER: AB 2228 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 19, 2002
AMENDED IN ASSEMBLY MAY 9, 2002
AMENDED IN ASSEMBLY APRIL 23, 2002
AMENDED IN ASSEMBLY APRIL 11, 2002
INTRODUCED BY Assembly Member Negrete McLeod
FEBRUARY 20, 2002
An act to add and repeal Section 2827.9 of the Public Utilities
Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 2228, as amended, Negrete McLeod. Public utilities: net
energy metering.
Under existing law, electric service providers, as defined, are
required to provide eligible customer-generators with net energy
metering, as defined.
This bill would require electrical corporations, as defined, to
provide eligible biogas digester customer-generators with net energy
metering under a pilot program. The bill would define an "eligible
biogas digester customer generator",
generator," in part, as a customer of an electrical corporation
that uses a biogas digester electrical generating facility, as
defined, with a certain capacity that is located on or adjacent to
the customer's premises, is interconnected and operates in parallel
with the electric grid, and is sized to offset part or all of the
customer's own electrical requirements and that receives certain
funding. The bill would prescribe conditions under which these
customers may participate in the pilot program established by the
bill.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2827.9 is added to the Public Utilities Code,
to read:
2827.9. (a) (1) The Legislature finds and declares that a pilot
program to provide net energy metering for eligible dairy biogas
digester customer-generators would enhance the continued
diversification of California's energy resource mix and would
encourage the installation of livestock air emission controls that
the State Air Resources Board believes may produce multiple
environmental benefits.
(2) The Legislature further finds and declares that the net energy
metering pilot program authorized pursuant to this section for
eligible biogas digester customer-generators, which nets out
generation charges against generation charges on a time of use basis,
furthers the intent of Chapter 7 of the Statutes of 2001, First
Extraordinary Session, by facilitating the implementation of energy
efficiency programs in order to reduce consumption of energy, reduce
the costs associated with energy demand, and achieve a reduction in
peak electricity demand.
(b) As used in this section, the following definitions apply:
(1) " Electrical corporation" means an electrical corporation, as
defined in Section 218.
(2) (A) "Eligible biogas digester customer-generator" means a
customer of an electrical corporation that meets both of the
following criteria:
(i) Uses a biogas digester electrical generating facility with a
capacity of not more than one megawatt that is located on or adjacent
to the customer's owned, leased, or rented premises, is
interconnected and operates in parallel with the electric grid, and
is sized to offset part or all of the eligible biogas digester
customer-generator's own electrical requirements.
(ii) Is the recipient of local, state, or federal funds, or who
self-finances pilot projects designed to encourage the development of
eligible biogas digester electrical generating
facilities.
(3) "Eligible biogas digester electrical generating facility"
means a generating facility used to produce electricity by either a
manure methane production project or as a byproduct of the anaerobic
digestion of bio-solids and animal waste.
(4) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the difference
between the electricity generated by an eligible biogas digester
customer-generator and fed back to the electric grid over a
monthly 12-month period as described in
subdivision (e). Net energy metering shall be accomplished using a
time of use meter capable of registering the flow of electricity in
two directions. An additional meter or meters to monitor the flow of
electricity in each direction may be installed with the consent of
the eligible biogas digester customer-generator, at the expense of
the electrical corporation , and the additional metering
shall be used only to provide the information necessary to accurately
bill or credit the eligible biogas digester customer-generator
pursuant to subdivision (e), or to collect biogas electric generating
system performance information for research purposes. If the
existing electrical meter of an eligible biogas digester
customer-generator is not capable of measuring the flow of
electricity in two directions, the eligible biogas digester
customer-generator shall be responsible for all expenses involved in
purchasing and installing a meter that is able to measure electricity
flow in two directions. If an additional meter or meters are
installed, the net energy metering calculation shall yield a result
identical to that of a single time of use
meter.
(c) Every electrical corporation shall, not later than 60 days
from the effective date of this section, file with the commission a
standard tariff providing for net energy metering for eligible biogas
digester customer-generators, consistent with this section. Every
electrical corporation shall make this tariff available to eligible
biogas digester customer-generators upon request, on a first come,
first serve basis, until the total cumulative rated generating
capacity used by the eligible biogas digester customer-generators
equals 5 megawatts within the service territory of the electrical
corporation. The combined statewide cumulative rated generating
capacity used by the eligible biogas digester customer-generators in
the service territories of all three electrical corporations in the
state may not exceed 15 megawatts.
(d) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate
components, and any monthly charges, to the contract or tariff to
which the same customer would be assigned if the customer was not an
eligible biogas digester customer-generator. The charges for all
retail rate components for eligible biogas digester
customer-generators shall be based exclusively on the eligible biogas
digester customer-generator's net kilowatthour consumption over a
monthly 12-month period. Any new or
additional demand charge, standby charge, customer charge, minimum
monthly charge, interconnection charge, or other charge that would
increase an eligible biogas digester customer-generator's costs
beyond those of other customers in the rate class to which the
eligible biogas digester customer-generator would otherwise be
assigned are contrary to the intent of this legislation, and shall
not form a part of net energy metering tariffs.
(e) The net energy metering calculation shall be made by measuring
the difference between the electricity supplied to the eligible
customer-generator and the electricity generated by the eligible
customer-generator and fed back to the electric grid over a
monthly 12-month period. The following rules
shall apply to the monthly period annualized
metering calculation:
(1) The eligible biogas digester customer-generator shall, at the
end of each monthly 12-month period
following the date of final interconnection of the eligible biogas
digester customer-generator's system with an electrical corporation,
and at the end of each monthly billing cycle
each anniversary date thereafter, be billed for electricity
used during that period. The electrical corporation shall determine
if the eligible biogas digester customer-generator was a net consumer
or a net producer of electricity during that period. For
purposes of determining if the biogas digester customer-generator was
a net consumer or a net producer of electricity during that period,
the electrical corporation shall aggregate the electrical load of a
dairy operation, including, but not limited to, the electrical load
attributable to milking operations, milk refrigeration, and water
pumping.
(2) At the end of each monthly 12-month
period, where the electricity supplied during the period by the
electrical corporation exceeds the electricity generated by the
eligible biogas digester customer-generator during that same period,
the eligible biogas digester customer-generator is a net electricity
consumer and the electrical corporation shall be owed compensation
for the eligible biogas digester customer-generator's net
kilowatthour consumption over that same period. The compensation
owed for the eligible biogas digester customer-generator's
consumption shall be calculated as follows:
(A) The generation charges for any net monthly consumption of
electricity shall be calculated according to the terms of the tariff
to which the same customer would be assigned to or be eligible for if
the customer was not an eligible biogas digester customer-generator.
When those eligible biogas digester customer-generators are net
generators during any discrete time of use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electrical corporation would charge for retail
kilowatthour sales for generation during that same time of use
period. If the eligible biogas digester customer-generator's
time-of-use electrical meter is unable to measure the flow of
electricity in two directions, paragraph (4) of subdivision (b) shall
apply. All other charges, other than generation charges, shall be
calculated in accordance with the eligible biogas digester
customer-generator's applicable tariff and based on the total
killowatthours delivered by the electrical corporation to the
eligible biogas digester customer-generator. To the extent that
charges for transmission and distribution services are recovered
through demand charges, no standby charges shall apply.
(B) The net balance of moneys owed shall be paid in accordance
with the electrical corporation's normal billing cycle.
(3) At the end of each monthly 12-month
period, where the electricity generated by the eligible biogas
digester customer-generator during the monthly
12-month period exceeds the electricity supplied by the
electrical corporation during that same period, the eligible biogas
digester customer-generator is a net electricity producer and the
electrical corporation shall retain any excess kilowatthours
generated during the prior monthly 12-month
period. The eligible biogas digester customer-generator shall
not be owed any compensation for those excess kilowatthours .
(4) If an eligible biogas digester customer-generator terminates
service with the electrical corporation, the electrical corporation
shall reconcile the eligible biogas digester customer-generator's
consumption and production of electricity during any monthly
12-month period.
(f) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
that date.