BILL ANALYSIS
AB 2228
Page 1
Date of Hearing: May 8, 2002
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Darrell Steinberg, Chair
AB 2228 (Negrete-McLeod) - As Amended: April 23, 2002
Policy Committee: Utilities and
Commerce Vote: 16-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill establishes a pilot program, until January 2006, for
entities producing energy using biogas digester energy systems
to participate in utility net metering programs. Specifically,
this bill:
1)Defines an eligible customer-generator as a customer of an
electric service provider (ESP) who uses a biogas electrical
generating facility, with a system capacity of one megawatt
(MW) or less, located on the customer's premises, is
interconnected and operates in parallel with the electric
grid, and is intended primarily to offset part or all of the
customer's own electrical requirements.
2)Requires program participants to abide by the terms and
conditions contained within the applicable net energy metering
contract or tariff.
3)Relieves ESP, from providing net metering services in the
pilot program once the combined total biogas generation
provided by the eligible biogas customer-generators in the
ESP's service territory equals 10 megawatts, but also limits
the total megawatts under the program for all ESPs to 15
megawatts.
FISCAL EFFECT
Minor absorbable special fund costs for the PUC to review any
tariffs developed by the ESPs for a customer-generator using
biogas electrical generation under the pilot program.
AB 2228
Page 2
COMMENTS
Background and Purpose . Chapter 369, Statutes of 1995 (SB 656,
Alquist), required electric utilities to buy back any
electricity generated by a customer-owned solar electric system.
This buy-back program is known as "net metering" because the
net electricity generated by a customer is credited against
electricity consumed. Chapter 855, Statutes of 1998 (AB 1755,
Keeley), clarified the definition of net energy metering and
expanded the eligibility for net energy metering. Chapter 1043,
Statutes of 2000 (AB 918, Keeley), and Chapter 8, Statutes of
2001 (AB 29X1, Kehoe), modified the net metering program, adding
temporary provisions to expand eligible customer classes to
include all commercial, industrial and agricultural customers,
and increased the allowable facility size to 1 MW.
Under the existing net metering program, projects up to 1 MW are
net metering-eligible through the end of this year, at which
time the maximum size of a project eligible for net metering
will be only 10 kilowatts. This bill allows agricultural biogas
digester-generator projects up to 1 MW in size through 2005 as a
pilot project.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081