BILL NUMBER: AB 1214 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 18, 2003
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
225 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
electricity generated by an eligible customer-generator against
electricity supplied through the electric grid to that
customer-generator 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 and 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 single 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
225 megawatts.
(d) Except as set forth in subdivision (e), each
In determining the eligibility for the cumulative
rated generating capacity within an electrical service area,
preference shall be given to facilities which, at the time of
installation, are located in a community with 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, based on the ambient air quality standards
established pursuant to Section 39607 of the Health and Safety Code.
(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)
(f) For each billing period, the compensation owed to the
electrical corporation for the eligible fuel cell customer-generators
net consumption during any time or use period shall be calculated
according to the terms of the contract or tariff to which the same
customer would be assigned to or be eligible for if the customer was
not an eligible fuel cell customer-generator. When those same
customer-generators are net generators during any discrete time of
use period, the net kilowatthours produced shall be valued and
credited to the eligible fuel cell customer-generator at the same
price per kilowatthour as the electrical corporation would charge for
retail kilowatthour sales during that same time of use period. Net
metering calculations shall be made on a monthly basis.
(g) 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.