BILL NUMBER: AB 2593	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 15, 2004
	AMENDED IN ASSEMBLY  APRIL 19, 2004
	AMENDED IN ASSEMBLY  APRIL 12, 2004

INTRODUCED BY   Assembly Member Calderon

                        FEBRUARY 20, 2004

   An act to  amend Section 379.6 of   add
Section 379.7 to  the Public Utilities Code, relating to public
utilities.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2593, as amended, 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 authorize 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
incentives.   The bill would make its provisions inapplicable
to ratepayers of an electrical corporation that serves no more than
2 counties. 
   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 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) 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
 
  SECTION 1.  Section 379.7 is added to the Public Utilities Code, to
read:
   379.7.  Notwithstanding subdivision (a) of Section 379.6, 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 may suspend for the year any further collection of funds
from ratepayers to support the program incentives.   This
subdivision does not apply to  ratepayers of an electrical
corporation that serves no more than two counties.