BILL NUMBER: AB 1685 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 18, 2003
AMENDED IN SENATE JULY 16, 2003
AMENDED IN ASSEMBLY MAY 13, 2003
AMENDED IN ASSEMBLY APRIL 24, 2003
AMENDED IN ASSEMBLY APRIL 10, 2003
INTRODUCED BY Assembly Member Leno
(Coauthors: Assembly Members Hancock, Jackson, and Koretz)
FEBRUARY 21, 2003
An act to repeal and add Section 379.5 of the
An act to amend Section 353.2 of, and to add Section 379.6 to,
the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1685, as amended, Leno. Energy: self-generation incentive
program: peak reduction.
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. Existing law also
requires the commission, in consultation with those entities, to
adopt and implement a residential, commercial, and industrial peak
reduction program that encourages electric customers to reduce
electricity consumption during peak power periods.
Existing law defines "ultra-clean and low-emission distributed
generation" as an electric generation technology that produces zero
emissions during operation or that produces emissions that are equal
to or less than limits established by the State Air Resources Board,
if the electric generation technology commences operation between
January 1, 2003, and December 31, 2005.
This bill would repeal those provisions and would,
instead, require the commission, in consultation with the
Energy Commission, to administer , until January 1, 2008,
a self-generation incentive program for solar electricity
generation until January 1, 2008 distributed
generation resources in the same form that exists on January 1, 2004,
but would require that combustion-operated distributed generation
resources, commencing January 1, 2005, meet a NOx emission standard,
and commencing January 1, 2007, be an ultra-clean and low-emission
distributed generation to be eligible for incentive rebates under the
program.
The bill would revise the definition of an ultra-clean and
low-emission distributed generation to include electric generation
technologies that commence operation prior to December 31, 2008
.
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. The Legislature finds and declares each of the
following:
(a) Increasing California's reliance on renewable energy
resources, particularly solar , "ultra-clean," and "low-emission"
electricity generation, promotes stable electricity prices,
protects public health, improves environmental quality, stimulates
sustainable economic development, creates new employment
opportunities, and reduces reliance on imported fuels.
(b) The development of renewable energy resources, particularly
nonpolluting solar electricity generation, ameliorates air quality
problems throughout the state and improves public health by reducing
the burning of fossil fuels and the associated environmental impacts.
(c) The Self Generation Incentive Program administered by the
Public Utilities Commission and established pursuant to Section 379.5
(Decision 01-03-073, March 27, 2001), has been a critically
important subsidy for the growth of solar electricity generation in
California, but is set to expire at the end of 2004.
(d) The Legislature intends that the commission continue the Self
Generation Incentive Program in order to subsidize solar electricity
generation.
SEC. 2. Section 379.5 of the Public Utilities Code is repealed.
SEC. 2. Section 353.2 of the Public Utilities Code is amended to
read:
353.2. (a) As used in this article, "ultra-clean and low-emission
distributed generation" means any electric generation technology
that meets all both of the following
criteria:
(1) Commences initial operation between January 1, 2003, and
December 31, 2005 2008 .
(2) Produces zero emissions during its operation or produces
emissions during its operation that are equal to or less than the
2007 State Air Resources Board emission limits for distributed
generation, except that technologies operating by combustion must
operate in a combined heat and power application with a 60-percent
system efficiency on a higher heating value.
(b) In establishing rates and fees, the commission may consider
energy efficiency and emissions performance to encourage early
compliance with air quality standards established by the State Air
Resources Board for ultra-clean and low-emission distributed
generation.
SEC. 3. Section 379.5 379.6 is added
to the Public Utilities Code, to read:
379.5.
379.6. (a) The commission, in consultation with the State Energy
Resources Conservation and Development Commission, shall until
January 1, 2008, administer a self-generation incentive
program for solar electricity generation. 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 to meet an oxides of nitrogen (NOx)
emissions rate standard of 0.14 pounds per megawatthour to be
eligible for self-generation rebates.
(2) Commencing January 1, 2007, require all combustion-operated
distributed generation projects to be ultra-clean and low-emission
distributed generation, as defined in Section 353.2, to be eligible
for self-generation rebates.
(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.