BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2228|
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THIRD READING
Bill No: AB 2228
Author: Negrete McLeod (D)
Amended: 8/5/02 in Senate
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 8-0, 6/25/02
AYES: Bowen, Morrow, Alarcon, Battin, Dunn, Murray, Sher,
Vasconcellos
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 75-0, 5/23/02 - See last page for vote
SUBJECT : Public utilities: net energy metering
SOURCE : Inland Empire Utilities Agency
DIGEST : 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.
ANALYSIS : Current law requires all investor-owned
electric utilities (IOUs) to credit all electricity
generated by a customer-owned solar or wind system against
the customer's usage of electricity sold by the utility, a
procedure known as "net metering".
This bill creates a pilot net metering program for
customer-owned electric generation projects fueled by
manure methane production that are less than one megawatt
CONTINUED
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(mw, which is equal to 1000 kw). The net metered customer
must employ a time-of-use meter to value both their
production and consumption of electricity, and only gets
credit at the generation rate. The maximum amount of
generation capacity allowed under this pilot is five mw per
utility and bills will be issued annually.
This bill sunsets its provisions on January 1, 2006.
Background
In 1995, the Legislature passed SB 656 (Alquist), Chapter
369, Statutes of 1995, which required all electric
utilities to buy back any electricity generated by a
customer-owned solar and wind systems system. This
buy-back program is known as "net metering" because the
electricity purchases of the customer are netted against
the electricity generated by the customer's solar electric
system. The generated electricity spins the meter
backward, making it equivalent to the customer using less
electricity. Thirty-five states have net metering
programs today with the maximum size of the net metered
system limited to 100 kw.
The manure methane production facilities described by this
bill generate fuel through the breakdown of animal wastes,
primarily in dairies. The manure is collected and stored
in ponds or digesters where it decomposes or is "digested",
releasing methane. The methane is collected and used to
fuel a combustion engine or turbine which then produces
electricity.
Last year in SB 5X (Sher), Chapter 7, Statutes of the First
Extraordinary Session of 2001, the Legislature appropriated
$10 million to be used for grants for encouraging manure
methane power projects of the capital cost for such
projects. The California Energy Commission program
mandated by the bill provides 50 percent of the capital
cost for such projects.
Supporters of this bill believe manure methane production
provides benefits that go beyond simply generating
electricity. They note that manure can contaminate
groundwater and pollute the air with ammonia, methane, and
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particulate matter. Digester gas technologies are becoming
operational. A manure methane production facility in
Chino, which opened in June, will be able to process 225
tons of manure daily, producing 500 kilowatts (kw) of
electricity which will be used to power the digester and
partially power a water desalination plant.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/13/02)
Inland Empire Utilities Agency (source)
Association of California Water Agencies
Chino Basin Watermaster
Pacific Gas and Electric Company (if amended)
Southern California Edison
Western United Dairymen
OPPOSITION : (Verified 8/13/02)
California Solar Energy Industries Association
ASSEMBLY FLOOR
AYES: Aanestad, Alquist, Aroner, Ashburn, Bates, Bogh,
Calderon, Bill Campbell, John Campbell, Canciamilla,
Cardenas, Cardoza, Chan, Chavez, Cogdill, Cohn, Corbett,
Correa, Cox, Daucher, Diaz, Dickerson, Dutra, Firebaugh,
Florez, Frommer, Goldberg, Harman, Havice, Hertzberg,
Hollingsworth, Horton, Jackson, Keeley, Kehoe, Kelley,
Koretz, La Suer, Leach, Leonard, Leslie, Liu, Longville,
Lowenthal, Maddox, Maldonado, Matthews, Migden, Mountjoy,
Nakano, Nation, Negrete McLeod, Oropeza, Robert Pacheco,
Rod Pacheco, Papan, Pavley, Pescetti, Reyes, Richman,
Runner, Salinas, Shelley, Simitian, Steinberg,
Strickland, Strom-Martin, Thomson, Vargas, Wayne,
Wiggins, Wright, Wyland, Wyman, Wesson
NC:kb 8/14/02 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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