BILL NUMBER: AB 1214 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 28, 2003
INTRODUCED BY Assembly Member Firebaugh
(Coauthor: Assembly Member Levine)
FEBRUARY 21, 2003
An act to add and repeal Section 2827.10 of the Public Utilities
Code, relating to energy resources.
LEGISLATIVE COUNSEL'S DIGEST
AB 1214, as amended, Firebaugh. Net energy metering: fuel cell
customer-generators.
(1) Existing law, until January 1, 2006, requires electrical
corporations, as defined, to provide eligible biogas digester
customer-generators, as defined, with net energy metering, as
defined, under a pilot program.
This bill, until January 1, 2009, would require every electrical
corporation, as defined, to provide net energy metering, as defined,
for eligible fuel cell customer-generators, as defined, until the
total cumulative rated generating capacity used by the eligible fuel
cell customer-generators equals 75 megawatts within the service
territory of the electrical corporation. The bill would prohibit the
combined statewide cumulative rated generating capacity used by the
eligible fuel cell customer-generators in the service territories of
all electrical corporations from exceeding 350 megawatts. Because a
violation of these provisions would be a crime under existing law,
this bill, by establishing a new crime, would impose a state-mandated
local program.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2827.10 is added to the Public Utilities Code,
to read:
2827.10. (a) The Legislature finds and declares both of the
following:
(1) A program to provide net energy metering for eligible fuel
cell customer-generators is one way to encourage substantial private
investment in these energy resources, stimulate in-state economic
growth, reduce demand for electricity during peak consumption
periods, help stabilize California's energy supply infrastructure,
enhance the continued diversification of California's energy resource
mix, and reduce interconnection and administrative costs for
electricity suppliers.
(2) The net energy metering program authorized pursuant to this
section for eligible fuel cell 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 terms have the
following meanings:
(1) "Electrical corporation" means an electrical corporation, as
defined in Section 218.
(2) "Eligible fuel cell electrical generating facility" means a
facility that includes the following:
(A) Integrated powerplant systems containing a stack, tubular
array, or other functionally similar configuration used to
electrochemically convert fuel to electric energy.
(B) An inverter or fuel processing system where necessary.
(C) Other plant equipment, including heat recovery equipment,
necessary to support the plant's operation or its energy conversion.
(3) "Eligible stationary fuel cell customer-generator" means a
customer of an electrical corporation that meets all the following
criteria:
(A) Uses a fuel cell 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 while
the grid is operational or in a grid independent mode when the grid
is nonoperational, and is sized to offset part or all of the eligible
fuel cell customer-generator's own electrical requirements.
(B) Is the recipient of local, state, or federal funds, or who
self-finances projects designed to encourage the development of
eligible fuel cell electrical generating facilities.
(C) Uses technology that meets the definition of an "ultra-clean
and low-emission distributed generation" in subdivision (a) of
Section 353.2.
(D) The facility, at time of installation, is located in a
community with the most significant exposure to air contaminants or
localized air contaminants, or both, including, but not limited to,
communities of minority populations or low-income populations, or
both.
(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 fuel cell
customer-generator and sent to the electric grid 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. If the existing electrical meter of an eligible fuel
cell customer-generator is not capable of measuring the flow of
electricity in two directions, the eligible fuel cell
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 time-of-use meter.
(c) Every electrical corporation shall, not later than March 1,
2004, file with the commission a standard tariff providing for net
energy metering for eligible fuel cell customer-generators,
consistent with this section. Every electrical corporation shall
make this tariff available to eligible fuel cell customer-generators
upon request, on a first-come-first-served basis, until the total
cumulative rated generating capacity used by the eligible fuel cell
customer-generators equals 75 megawatts within the service territory
of the electrical corporation. The combined statewide cumulative
rated generating capacity used by the eligible fuel cell
customer-generators in the service territories of all electrical
corporations in the state may not exceed 350 megawatts.
(d) Except as set forth in subdivision (e), 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 customer would be assigned if the
customer was not an eligible fuel cell customer-generator. Any new
or additional demand charge, standby charge, customer charge, minimum
monthly charge, interconnection charge, or other charge that would
increase an eligible fuel cell customer-generator's costs beyond
those of other customers in the rate class to which the eligible fuel
cell customer-generator would otherwise be assigned are contrary to
the intent of the Legislature in enacting the act adding
this section, and may 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 sent to the electric grid.
(f) This section shall remain in effect only until January 1, 2009,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2009, deletes or extends that date.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.