BILL ANALYSIS
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THIRD READING
Bill No: AB 1214
Author: Firebaugh (D)
Amended: 7/15/03 in Senate
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 7-0, 7/8/03
AYES: Bowen, Alarcon, Battin, Dunn, McClintock, Murray,
Vasconcellos
NO VOTE RECORDED: Morrow, Sher
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 76-0, 5/15/03 (Passed on Consent) - See
last page for vote
SUBJECT : Net energy metering: fuel cell
customer-generators
SOURCE : California Cast Metals Association
DIGEST : This bill requires electrical corporations to
provide net energy metering to fuel cell customer
generators, as specified.
ANALYSIS : Current law requires electric corporations to
buy the electricity generated by customers using biogas
digester-powered generators. That electricity is sold back
to the electric corporation at the generation rate which
the electric corporation charges its customers. This
program is limited to 5 megawatts (Mw) of customer
generation in each investor-owned utility's (IOUs)
CONTINUED
AB 1214
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territory and sunsets on January 1, 2006.
This bill requires electric corporations to buy electricity
generated by customers using fuel cell-powered generators.
That electricity is sold back to the electric corporation
at the retail rate which the electric corporation charges
its customers. This program is limited to 45 Mw of
customer generation in each large IOU's territory and 22.5
Mw in small IOU territory, with a maximum per project limit
of 1 Mw. This program sunsets on January 1, 2006.
Background
Fuel cells are relatively new power generation devices
which convert renewable and non-renewable energy (e.g.
hydrogen gas and natural gas) into electricity through an
electrochemical reaction. Since there is no combustion,
the process is nearly pollution-free, though the carbon
dioxide byproduct is a greenhouse gas. The state has
recognized the potential of fuel cells to replace internal
combustion engines in automobiles through the creation of a
public/private partnership known as the California Fuel
Cell Partnership.
The California Public Utilities Commission (CPUC) has
established a program to subsidize the cost of
customer-owned generation, including fuel cell generation.
This program is funded at $125 million a year for four
years through electric rates. Fuel cell generation is
eligible for a subsidy of up to $4.50/watt, with a limit of
50 percent of the installed cost. Electricity produced by
customer-owned fuel cells is also exempt from all exit
fees, including Department of Water Resources (DWR)
charges.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/20/03)
California Cast Metals Association (source)
California Coalition of Fuel Cell Manufacturers
California Solar Energy Industries Association (if amended)
City of San Diego
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Clean Power Campaign
East Bay Municipal Utility District
Environment California
FuelCell Energy
Sierra Club California
Viron Energy Services
OPPOSITION : (Verified 8/20/03)
Southern California Edison Company
ASSEMBLY FLOOR :
AYES: Aghazarian, Bates, Benoit, Berg, Bermudez, Bogh,
Calderon, Canciamilla, Chan, Chavez, Chu, Cogdill, Cohn,
Corbett, Correa, Cox, Diaz, Dutra, Dutton, Dymally,
Firebaugh, Frommer, Garcia, Goldberg, Hancock, Harman,
Haynes, Jerome Horton, Shirley Horton, Houston, Jackson,
Keene, Kehoe, Koretz, La Malfa, La Suer, Laird, Leno,
Leslie, Levine, Lieber, Liu, Longville, Lowenthal,
Maddox, Maldonado, Matthews, Maze, McCarthy, Montanez,
Mountjoy, Mullin, Nakanishi, Nation, Negrete McLeod,
Nunez, Oropeza, Pacheco, Parra, Pavley, Plescia, Reyes,
Richman, Ridley-Thomas, Runner, Salinas, Samuelian,
Simitian, Spitzer, Steinberg, Strickland, Vargas,
Wiggins, Wolk, Wyland, Yee
NC:nl 8/20/03 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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