BILL NUMBER: AB 1284	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Leslie

                        FEBRUARY 21, 2003

   An act to amend Section 353.1 of the Public Utilities Code,
relating to energy resources.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1284, as introduced, Leslie.  Distributed energy resources.
   (1) Existing law requires the Public Utilities Commission to
require each electrical corporation under the operational control of
the Independent System Operator as of January 1, 2001, to modify its
tariffs so that all customers installing new distributed energy
resources 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.  Existing law
subjects customers with distributed energy resources to a real-time
pricing program adopted by the commission.  Existing law defines
"distributed energy resources" to mean any electric generation
technology that meets certain criteria, including having commenced
initial operation between May 1, 2001, and June 1, 2003.
   This bill would modify that initial operation criterion to include
any electric generation technology having commenced initial
operation between May 1, 2001, and June 1, 2005.  Because a violation
of a rule or order of the commission is a crime under existing law,
this bill, by expanding the scope of commission regulation, would
change the definition of a crime, thereby imposing 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 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   2005  , 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.
  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.