BILL NUMBER: AB 2307	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Kehoe

                        FEBRUARY 21, 2002

   An act to amend Section 353.1 of the Public Utilities Code,
relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2307, as introduced, Kehoe.  Electrical corporations:
distributed energy resources.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations.
The commission must require every electrical corporation under the
operational control of the Independent System Operator as of January
1, 2001, to modify its tariffs so that customers that install
distributed energy resources, as defined, are served under rates,
rules, and requirements identical to those of a customer within the
same rate schedule that does not use distributed energy resources,
and to withdraw any provisions in otherwise applicable tariffs that
activate other tariffs, rates, or rules if a customer uses
distributed energy resources.  "Distributed energy resources" are
defined as any electric generation technology that (a) commences
initial operation between May 1, 2001, and June 1, 2003, except that
gas-fired distributed energy resources that are not operated in a
combined heat and power application must commence operation no later
than September 1, 2002, (b) is located within a single facility, (c)
is 5 megawatts or smaller, (d) serves onsite loads or over-the-fence
transactions, (e) is powered by any fuel other than diesel, and (f)
complies with emission standards and guidance adopted by the State
Air Resources Board.
   This bill would revise the definition of "distributed energy
resources" to include technology commencing operation between May 1,
2001, and June 1, 2006, except as exempted under existing law.
   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 353.1 of the Public Utilities Code is amended
to read:
   353.1.  As used in this article, "distributed energy resources"
means any electric generation technology that meets all of the
following criteria:
   (a) Commences initial operation between May 1, 2001, and June 1,
 2003   2006  , except that gas-fired
distributed energy resources that are not operated in a combined heat
and power application must commence operation no later than
September 1, 2002.
   (b) Is located within a single facility.
   (c) Is five megawatts or smaller in aggregate capacity.
   (d) Serves onsite loads or over-the-fence transactions allowed
under Sections 216 and 218.
   (e) Is powered by any fuel other than diesel.
   (f) Complies with emission standards and guidance adopted by the
State Air Resources Board pursuant to Sections 41514.9 and 41514.10
of the Health and Safety Code.  Prior to the adoption of those
standards and guidance, for the purpose of this article, distributed
energy resources shall meet emissions levels equivalent to nine parts
per million oxides of nitrogen, or the equivalent standard taking
into account efficiency as determined by the State Air Resources
Board, averaged over a three-hour period, or best available control
technology for the applicable air district, whichever is lower,
except for distributed generation units that displace and therefore
significantly reduce emissions from natural gas flares or reinjection
compressors, as determined by the State Air Resources Control Board.
  These units shall comply with the applicable best available control
technology as determined by the air pollution control district or
air quality management district in which they are located.