BILL NUMBER: SB 1015 INTRODUCED
BILL TEXT
INTRODUCED BY Senators Morrow, Aanestad, Ackerman, Battin, Denham,
Hollingsworth, Knight, Margett, McClintock, Oller, and Poochigian
FEBRUARY 21, 2003
An act to amend Section 353.1 of the Public Utilities Code,
relating to energy resources.
LEGISLATIVE COUNSEL'S DIGEST
SB 1015, as introduced, Morrow. Distributed energy resources.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations.
The commission must require every electrical corporation under the
operational control of the Independent System Operator as of January
1, 2001, to modify its tariffs so that customers that install
distributed energy resources, as defined, 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. "Distributed energy resources" are
defined as any electric generation technology that (a) commences
initial operation between May 1, 2001, and June 1, 2003, 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 5 megawatts or smaller, (d) serves onsite loads or over-the-fence
transactions, (e) is powered by any fuel other than diesel, and (f)
complies with emission standards and guidance adopted by the State
Air Resources Board.
This bill would revise the definition of "distributed energy
resources" by deleting the requirement that the electric generation
technology commence operation between May 1, 2001, and June 1, 2003,
and the requirement 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. Because
violation of an order, decision, or rule of the commission is a crime
under existing law, the bill would impose a state-mandated local
program by changing the definition of a crime.
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. The Legislature finds and declares each of the
following:
(a) California is currently experiencing a sustained economic
downturn.
(b) According to the Legislative Analyst, during the last two
years California has lost over 230,000 manufacturing jobs.
(c) According to the Milken Institute, in a study conducted in
early 2002, California has the highest overall cost of doing business
in the United States 32 percent above the national average and
California's costs of doing business are the highest in the western
United States.
(d) California's high cost of doing business is a significant
contributor to the sustained economic downturn of the state's
economy.
(e) The state's budget crisis of 2001 and 2002 will worsen if
employers continue to leave the state and prospective employers are
discouraged from siting operations in California because of a bad
business climate.
(f) Promoting investment in distributed energy resources allows
businesses the opportunity to control costs and obtain predictability
over their costs of doing business.
(g) Promoting investment in distributed energy resources will
lessen the chances of electricity shortages in the future.
SEC. 2. 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, 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)
(b) Is five megawatts or smaller in aggregate capacity.
(d)
(c) Serves onsite loads or over-the-fence transactions
allowed under Sections 216 and 218.
(e)
(d) Is powered by any fuel other than diesel.
(f)
(e) 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. 3. 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.