BILL NUMBER: AB 1684 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JANUARY 16, 2004
AMENDED IN ASSEMBLY JANUARY 14, 2004
AMENDED IN ASSEMBLY JANUARY 5, 2004
INTRODUCED BY Assembly Members Leno and Oropeza
FEBRUARY 21, 2003
An act to add Section 379.6 to amend
Section 379.6 of the Public Utilities Code, relating to energy
resources.
LEGISLATIVE COUNSEL'S DIGEST
AB 1684, as amended, Leno. Distributed generation resources.
Existing law requires the Public Utilities Commission on or before
March 7, 2001, and in consultation with the Independent System
Operator, to take certain actions, including, in consultation with
the State Energy Resources Conservation and Development Commission
(Energy Commission), adopting energy conservation demand-side
management and other initiatives in order to reduce demand for
electricity and reduce load during peak demand periods, including,
but not limited to, differential incentives for renewable or
superclean distributed generation resources. Pursuant to this
requirement, the commission has developed a self-generation incentive
program to encourage customers of electrical corporations to install
distributed generation that operates on renewable fuel or
contributes to system reliability.
This bill would require the commission, in consultation with the
State Energy Resources Conservation and Development Commission,
Existing law requires the commission, in consultation with the
Energy Commission, to administer, until January 1, 2008, a
self-generation incentive program for distributed generation
resources in the same form that exists on January 1, 2004.
The bill would require This program requires that
combustion-operated distributed generation using nonrenewable
fuel, in order to be eligible for incentive rebates, commencing
January 1, 2005, meet a certain NOx emission standard or
operate solely on certain natural gas and provide a net air emissions
benefit. And, and commencing January 1, 2007,
meet a more stringent NOx emission standard and a minimum efficiency
standard or operate solely on certain natural gas and
provide a net air emissions benefit. The bill would establish,
. This existing program establishes,
as of January 1, 2007, a credit for combined heat and power units
that meet a certain efficiency standard.
This bill would expand the self-generation incentive program to
make eligible for incentive rebates, a combustion-operated
distributed generation project that operates solely on natural gas
that is not eligible for delivery to the utility pipeline system,
provided certain air emissions benefits are achieved from the
project.
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 379.6 is added to the Public Utilities Code, to
read:
379.6. (a) The commission, in consultation with the State Energy
Resources Conservation and Development Commission, shall administer,
until January 1, 2008, a self-generation incentive program for
distributed generation resources in the same form as exists on
January 1, 2004.
(b) Notwithstanding subdivision (a), the self-generation incentive
program shall do all of the following:
(1) Commencing January 1, 2005, require all combustion-operated
distributed generation projects using fossil fuels to do either of
the following to be eligible for self-generation rebates under the
level 3 incentive category for nonrenewables, as established by the
commission in Decision 01-03-073, dated March 27, 2001:
(A) Meet an oxides of nitrogen (NOx) emissions rate standard of
0.14 pounds per megawatthour.
(B) Operate solely on natural gas that is not eligible for
delivery to the utility pipeline system, and demonstrate that the
project will provide a net air emissions benefit to the facilities'
operations, which benefit shall be certified by the air quality
management district or air pollution control district.
(2) Commencing January 1, 2007, require all combustion-operated
distributed generation projects using fossil fuels to do either of
the following to be eligible for self-generation rebates under the
level 3 incentive category for nonrenewables, as established by the
commission in Decision 01-03-073, dated March 27, 2001:
(A) Meet an oxides of nitrogen (NOx) emissions rate standard of
0.07 pounds per megawatthour and a minimum efficiency of 60 percent.
A minimum efficiency of 60 percent shall be measured as useful
energy output divided by fuel input. The efficiency determination
shall be based on 100 percent load. Combined heat and power units
that meet the 60 percent efficiency standard may take a credit to
meet the applicable oxides of nitrogen (NOx) emission standard of
0.14 pounds per megawatthour or 0.07 pounds per megawatthour. Credit
shall be at the rate of one megawatthour for each 3.4 million
British Thermal Units (BTUs) of heat recovered.
(B) Operate solely on natural gas that is not eligible for
delivery to the utility pipeline system, and demonstrate that the
project will provide a net air emissions benefit to the facilities'
operations, which benefit shall be certified by the air quality
management district or air pollution control district.
(3) Provide the commission with flexibility in administering the
self-generation incentive program, including, but not limited to,
flexibility with regard to the amount of rebates, inclusion of other
ultra clean and low emission distributed generation technologies, and
evaluation of other public policy interests, including, but not
limited to, ratepayers, and energy efficiency and environmental
interests.
SECTION 1. Section 379.6 of the Public Utilities Code is amended
to read:
379.6. (a) The commission, in consultation with the State Energy
Resources Conservation and Development Commission, shall
administer, until January 1, 2008, administer
a self-generation incentive program for distributed
generation resources, in the same form as exists on January 1, 2004.
(b) Notwithstanding subdivision (a), the self-generation incentive
program shall do all of the following:
(1) Commencing January 1, 2005, require all combustion-operated
distributed generation projects using fossil fuels to meet
an oxides of nitrogen (NOx) emissions rate standard of 0.14 pounds
per megawatthour to be eligible for self-generation rebates
do either of the following to be eligible for self-generation
rebates under the level 3 incentive category for nonrenewables, as
established by the commission in Decision 01-03-073, dated March 27,
2001:
(A) Meet an oxides of nitrogen (NOx) emissions rate standard of
0.14 pounds per megawatthour.
(B) Operate solely on natural gas that is not eligible for
delivery to the utility pipeline system, and demonstrate that the
project will provide a net air emissions benefit to the facilities'
operations, which benefit shall be certified by the air quality
management district or air pollution control district .
(2) Commencing January 1, 2007, require all combustion-operated
distributed generation projects using fossil fuels to meet
do either of the following to be eligible for
self-generation rebates under the level 3 incentive category for
nonrenewables, as established by the commission in Decision
01-03-073, dated March 27, 2001:
(A) Meet an oxides of nitrogen (NOx) emissions rate standard
of 0.07 pounds per megawatthour and a minimum efficiency of 60
percent , to be eligible for self-generation rebates
. A minimum efficiency of 60 percent shall be measured as
useful energy output divided by fuel input. The efficiency
determination shall be based on 100 percent load.
(3) Combined heat and power units that meet the 60
percent efficiency standard may take a credit to meet the applicable
oxides of nitrogren nitrogen (NOx)
emission standard of 0.14 pounds per megawatthour or 0.07 pounds per
megawatthour. Credit shall be at the rate of one megawatthour for
each 3.4 million British Thermal Units (BTUs) of heat recovered.
(4)
(B) Operate solely on natural gas that is not eligible for
delivery to the utility pipeline system, and demonstrate that the
project will provide a net air emissions benefit to the facilities'
operations, which benefit shall be certified by the air quality
management district or air pollution control district.
(3) Provide the commission with flexibility in administering
the self-generation incentive program, including, but not limited
to, flexibility with regard to the amount of rebates, inclusion of
other ultra clean and low emission distributed generation
technologies, and evaluation of other public policy interests,
including, but not limited to, ratepayers, and energy efficiency and
environmental interests.