BILL ANALYSIS
AB 2228
Page 1
Date of Hearing: May 15, 2002
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Darrell Steinberg, Chair
AB 2228 (Negrete-McLeod) - As Amended: May 9, 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
electrical corporation who uses a biogas electrical generating
facility, with a system capacity of one megawatt (MW) or less,
that produces electricity by manure methane production or as a
byproduct of the anaerobic digestion of bio-solids and animal
wastes, and is intended primarily to offset part or all of the
customer's own electrical requirements.
2)Requires the electrical corporations to file with the Public
Utilities Commission a net energy metering tariff for program
participants.
3)Relieves the electrical corporations from providing net
metering services in the pilot program once the combined total
biogas generation provided by the eligible biogas
customer-generators in their service territory equals 5 MW.
FISCAL EFFECT
Minor absorbable special fund costs for the PUC to review
tariffs developed pursuant to the pilot program.
COMMENTS
Background and Purpose . Chapter 369, Statutes of 1995 (SB 656,
AB 2228
Page 2
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