BILL NUMBER: AB 2593	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Calderon

                        FEBRUARY 20, 2004

   An act to amend Section 379.6 of the Public Utilities Code,
relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2593, as introduced, Calderon.  Self-generation incentive
program.
   Existing law requires the Public Utilities Commission, in
consultation with the State Energy Resources Conservation and
Development Commission (Energy Commission), to administer, until
January 1, 2008, a self-generation incentive program for distributed
generation resources in the same form that existed on January 1,
2004, except as specified.
   This bill would require the commission, in any year that it
determines that the self-generation incentive program has sufficient
funds available to meet the reasonable anticipated demand for
incentives for that year, to suspend for the year any further
collection of funds from ratepayers to support the program.
   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 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 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.
   (2) Commencing January 1, 2007, require all combustion-operated
distributed generation projects using fossil fuels to 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 (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) 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.  
   (c) Notwithstanding subdivision (a), in any year that the
commission determines that the self-generation incentive program has
sufficient funds available to meet the reasonable anticipated demand
for incentives for that year, the commission shall suspend for the
year any further collection of funds from ratepayers to support the
program.