BILL NUMBER: SB 1891 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 10, 2004
AMENDED IN SENATE MAY 4, 2004
INTRODUCED BY Committee on Energy, Utilities and Communications
(Senators Bowen (Chair), Alarcon, Battin, Dunn, Morrow, Murray, Sher,
and Vasconcellos)
MARCH 1, 2004
An act to amend Section 780.5 of, and
Sections 25747, 25748, and 25751 of the Public Resources Code, and to
amend Sections 399.11, 399.12, 399.13, 399.14, 399.15, 399.16, and
780.5 of, to amend and renumber Section 454.1 of, and to
repeal Sections 383.5 and 445 of, the Public Utilities Code,
relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
SB 1891, as amended, Committee on Energy, Utilities and
Communications. Public utilities: metering of multiunit
residences: electrical transmission facilities : renewable
energy resources .
(1) Existing law requires the commission to require every
residential unit in an apartment house or similar multiunit
residential structure, condominium, or mobilehome park issued a
building permit on or after July 1, 1982, with certain exceptions, to
be individually metered for electric and gas service, except that
separate metering for gas service is not required for residential
units that are not equipped with gas appliances requiring venting or
that receive the majority of energy used for water or space heating
from a solar energy system or through cogeneration technology.
This bill would except from the requirement for separate metering
for gas service, multiunit residential units which are not equipped
with gas appliances requiring venting or are equipped with only
vented decorative appliances or which receive the majority of energy
used for water or space heating from a solar energy system or through
cogeneration technology.
(2) This bill would amend and renumber a provision of the Public
Utilities Code to eliminate a duplicative statutory numbering.
(3) Under the Public Utilities Act, the Public Utilities
Commission requires electrical corporations to identify a separate
rate component to fund in-state operation and development of existing
and new and emerging renewable resources technologies. This rate
component is a nonbypassable element of local distribution and
collected on the basis of usage. Existing law requires specified
electrical corporations to collect specific amounts to support
in-state operation and development of existing and new and emerging
renewable resources technologies.
Existing provisions in the Public Resources Code and Public
Utilities Code both require the State Energy Resources Conservation
and Development Commission (Energy Commission) to transfer funds
collected for in-state operation and development of existing and new
and emerging renewable resources technologies into the Renewable
Resource Trust Fund and establishes certain accounts in the fund to
carry out certain renewable energy purposes. The Public Resources
Code requires the Energy Commission to report to the Legislature on
the implementation of the Renewable Resource Trust Fund on a
quarterly basis and to report on the mechanisms funded by May 31,
2000, and every 2 years thereafter. The Public Utilities Code
instead requires the Energy Commission to report to the Legislature
on the implementation of the Renewable Resource Trust Fund, and the
mechanisms funded, on an annual basis with specified information.
This bill would repeal provisions in the Public Utilities Code
pertaining to the creation and administration of the Renewable
Resource Trust Fund by the Energy Commission and would amend the
provisions in the Public Resources Code to require the Energy
Commission to report to the Legislature on the implementation of the
Renewable Resource Trust Fund, and the mechanisms funded, on an
annual basis with specified information. The bill would make other
technical and conforming changes.
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 25747 of the Public Resources Code is
amended to read:
25747. (a) The commission shall adopt guidelines governing the
funding programs authorized under this chapter, at a publicly noticed
meeting offering all interested parties an opportunity to comment.
Substantive changes to the guidelines may not be adopted without at
least 10 days' written notice to the public. The public notice of
meetings required by this subdivision may not be less than 30 days.
Notwithstanding any other provision of law, any guidelines adopted
pursuant to this chapter or Section 399.13 of the Public
Utilities Code, shall be exempt from the requirements of
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code. The Legislature declares that the
changes made to this subdivision by the act amending this section
during the 2002 portion of the 2001-02 Regular Session are
declaratory of, and not a change in existing law.
(b) Funds to further the purposes of this chapter may be committed
for multiple years.
(c) Awards made pursuant to this chapter are grants, subject to
appeal to the commission upon a showing that factors other than those
described in the guidelines adopted by the commission were applied
in making the awards and payments. Any actions taken by an applicant
to apply for, or become or remain eligible and registered to
receive, payments or awards, including satisfying conditions
specified by the commission, shall not constitute the rendering of
goods, services, or a direct benefit to the commission.
SEC. 2. Section 25748 of the Public Resources Code is amended to
read:
25748. (a) The commission shall report to the
Legislature on or before May 31, 2000 March
31, 2004 , and on or before May 31 of every second
year March 31 annually thereafter, regarding the
results of the mechanisms funded pursuant to this chapter.
Reports prepared pursuant to this section shall include a
The report shall contain the following elements:
(1) A description of the allocation of funds among existing,
new and emerging technologies; the allocation of funds among
programs, including consumer-side incentives; and the need for the
reallocation of money among those technologies. The report
shall identify the
(2) The types and quantities of biomass fuels used by
facilities receiving funds pursuant to Section 25743 and their
impacts on improving air quality. The reports shall discuss
the
(3) The status of account transfers and repayments.
(4) A description of the cumulative commitment of claims by
account, the relative demand for funds by account, and a forecast of
future awards.
(5) A discussion of the progress being made toward achieving
the 17-percent target provided in Section 25740 by each funding
category authorized pursuant to this chapter. The reports
shall also address
(6) The description of the allocation of funds from interest
on the accounts described in this chapter, and money in the accounts
described in subdivision (b) of Section 25751. Money
(7) An itemized list, including project descriptions, award
amounts, and outcomes for projects awarded funding in the prior year.
(8) Other matters the Energy Commission determines may be of
importance to the Legislature.
(b) Money may be reallocated without further legislative
action among existing, new, and emerging technologies and
consumer-side programs in a manner consistent with the report and
with the latest report provided to the Legislature pursuant to this
section, except that reallocations may not reduce the allocation
established in Section 25743 nor increase the allocation established
in Section 25742.
SEC. 3. Section 25751 of the Public Resources Code is amended to
read:
25751. (a) The Renewable Resource Trust Fund is hereby created in
the State Treasury.
(b) The following accounts are hereby established within the
Renewable Resource Trust Fund:
(1) The Existing Renewable Resources Account.
(2) New Renewable Resources Account.
(3) Emerging Renewable Resources Account.
(4) Customer-Credit Renewable Resource Purchases Account.
(5) Renewable Resources Consumer Education Account.
(c) The money in the fund may be expended for the state's
administration of this article only upon appropriation by the
Legislature in the annual Budget Act.
(d) Notwithstanding Section 383, that portion of revenues
collected by electrical corporations for the benefit of in-state
operation and development of existing and new and emerging renewable
resource technologies, pursuant to Section 399.8 of the Public
Utilities Code, shall be transmitted to the commission at least
quarterly for deposit in the Renewable Resource Trust Fund pursuant
to Section 399.6 of the Public Utilities Code. After setting aside
in the fund money that may be needed for expenditures authorized by
the annual Budget Act in accordance with subdivision (c), the
Treasurer shall immediately deposit money received pursuant to this
section into the accounts created pursuant to subdivision (b) in
proportions designated by the commission for the current calendar
year. Notwithstanding Section 13340 of the Government Code, the
money in the fund and the accounts within the fund are hereby
continuously appropriated to the commission without regard to fiscal
year for the purposes enumerated in this chapter.
(e) Upon notification by the commission, the Controller shall pay
all awards of the money in the accounts created pursuant to
subdivision (b) for purposes enumerated in this chapter. The
eligibility of each award shall be determined solely by the
commission based on the procedures it adopts under this chapter.
Based on the eligibility of each award, the commission shall also
establish the need for a multiyear commitment to any particular award
and so advise the Department of Finance. Eligible awards submitted
by the commission to the Controller shall be accompanied by
information specifying the account from which payment should be made
and the amount of each payment; a summary description of how payment
of the award furthers the purposes enumerated in this chapter; and an
accounting of future costs associated with any award or group of
awards known to the commission to represent a portion of a multiyear
funding commitment.
(f) The commission may transfer funds between accounts for
cashflow purposes, provided that the balance due each account is
restored and the transfer does not adversely affect any of the
accounts. The commission shall examine the cashflow in the
respective accounts on an annual basis, and shall annually prepare
and submit to the Legislature a report that describes the status of
account transfers and repayments.
(g) The commission shall, on a quarterly basis, report to
the Legislature on the implementation of this article. Those
quarterly reports shall be submitted to the Legislature not more than
30 days after the close of each quarter and shall include
information describing the awards submitted to the Controller for
payment pursuant to this article, the cumulative commitment of claims
by account, the relative demand for funds by account, a forecast of
future awards, and other matters the commission determines may be of
importance to the Legislature.
(h) The Department of Finance, commencing March 1, 1999,
shall conduct an independent audit of the Renewable Resource Trust
Fund and its related accounts annually, and provide an audit report
to the Legislature not later than March 1 of each year for which this
article is operative. The Department of Finance's report shall
include information regarding revenues, payment of awards, reserves
held for future commitments, unencumbered cash balances, and other
matters that the Director of Finance determines may be of importance
to the Legislature.
SEC. 4. Section 383.5 of the Public Utilities Code is repealed.
383.5. (a) It is the intent of the Legislature in establishing
this program, to increase the amount of renewable electricity
generated per year, so that it equals at least 17 percent of the
total electricity generated for consumption in California.
(b) As used in this section, the following terms have the
following meaning:
(1) "In-state renewable electricity generation technology" means a
facility that meets all of the following criteria:
(A) The facility uses biomass, solar thermal, photovoltaic, wind,
geothermal, fuel cells using renewable fuels, small hydroelectric
generation of 30 megawatts or less, digester gas, municipal solid
waste conversion, landfill gas, ocean wave, ocean thermal, or tidal
current, and any additions or enhancements to the facility using that
technology.
(B) The facility is located in the state or near the border of the
state with the first point of connection to the Western Electricity
Coordinating Council (WECC) transmission system located within this
state.
(C) For the purposes of this subdivision, "solid waste conversion"
means a technology that uses a noncombustion thermal process to
convert solid waste to a clean burning fuel for the purpose of
generating electricity, and that meets all of the following criteria:
(i) The technology does not use air or oxygen in the conversion
process, except ambient air to maintain temperature control.
(ii) The technology produces no discharges of air contaminants or
emissions, including greenhouse gases as defined in Section 42801 of
the Health and Safety Code.
(iii) The technology produces no discharges to surface or
groundwaters of the state.
(iv) The technology produces no hazardous wastes.
(v) To the maximum extent feasible, the technology removes all
recyclable materials and marketable green waste compostable materials
from the solid waste stream prior to the conversion process and the
owner or operator of the facility certifies that the those materials
will be recycled or composted.
(vi) The facility at which the technology is used is in compliance
with all applicable laws, regulations, and ordinances.
(vii) The technology meets any other conditions established by the
State Energy Resources Conservation and Development Commission.
(viii) The facility certifies that any local agency sending solid
waste to the facility is in compliance with Division 30 (commencing
with Section 40000) of the Public Resources Code, has reduced,
recycled, or composted solid waste to the maximum extent feasible,
and shall have been found by the California Integrated Waste
Management Board to have diverted at least 30 percent of all solid
waste through source reduction, recycling and composting.
(2) "Report" means the report entitled "Investing in Renewable
Electricity Generation in California" (June 2001, Publication Number
P500-00-022) submitted to the Governor and the Legislature by the
State Energy Resources Conservation and Development Commission.
(3) "Energy Commission" means the State Energy Resources
Conservation and Development Commission.
(c) (1) Twenty percent of the funds collected pursuant to
paragraph (6) of subdivision (c) of Section 381 shall be used for
programs that are designed to improve the competitiveness of existing
in-state renewable electricity generation technology facilities, and
to secure for the state the environmental, economic, and reliability
benefits that continued operation of those facilities will provide.
Eligibility for incentives under this subdivision shall be limited
to those technologies found eligible for funds by the Energy
Commission pursuant to paragraphs (5), (6), and (8) of subdivision
(c) of Section 399.6.
(2) Any funds used to support in-state renewable electricity
generation technology facilities pursuant to this subdivision shall
be expended in accordance with the provisions of the report, subject
to all of the following requirements:
(A) Of the funding for existing renewable electricity generation
technology facilities available pursuant to this subdivision, 75
percent shall be used to fund first tier technologies, including
biomass and solar electric technologies and 25 percent shall be used
to fund second tier wind technologies.
(B) The Energy Commission shall reexamine the tier structure as
proposed in the report and adjust the structure to reflect market and
contractual conditions. The Energy Commission shall also consider
inflation when adjusting the structure.
(C) The Energy Commission shall establish a cents per kilowatthour
production incentive, not to exceed the payment caps per
kilowatthour established in the report, as those payment caps are
revised in guidelines adopted by the commission, representing the
difference between target prices and the market clearing price for
electricity, if sufficient funds are available. If there are
insufficient funds in any payment period to pay either the difference
between the target and market clearing price or the payment caps,
production incentives shall be based on the amount determined by
dividing available funds by eligible generation. The market clearing
price for electricity shall be determined by the Energy Commission
based on the energy prices paid to nonutility power generators as
authorized by the commission, or on otherwise available measures of
market price. For the first tier biomass technologies, the Energy
Commission shall establish a time-differentiated incentive structure
that encourages plants to run the maximum feasible amount of time and
that provides a higher incentive when the plants are receiving the
lowest price. The Energy Commission may establish a different
incentive rate within the same technology tier to account for
discounted contracts.
(D) Facilities that are eligible to receive funding pursuant to
this subdivision shall be registered in accordance with criteria
developed by the Energy Commission and those facilities may not
receive payments for any electricity produced that has any of the
following characteristics:
(i) Is sold at monthly average rates equal to or greater than the
applicable target price, as determined by the Energy Commission.
(ii) Is that portion of electricity generation attributable to the
use of qualified agricultural biomass fuel, for a facility that is
receiving fuel-based incentives through the Agricultural
Biomass-to-Energy Incentive Grant Program established pursuant to
Part 3 (commencing with Section 1101) of Division 1 of the Food and
Agricultural Code. Notwithstanding subdivision (f) of Section 1104
of the Food and Agricultural Code, facilities that receive funding
from the Agricultural Biomass-to-Energy Incentive Grant Program are
eligible to receive funding pursuant to this subdivision.
(iii) Is used onsite or is sold to customers in a manner that
excludes competitive transition charge payments, or is otherwise
excluded from competitive transition charge payments.
(d) (1) Fifty-one and one-half percent of the funds collected
pursuant to paragraph (6) of subdivision (c) of Section 381, shall be
used for programs designed to foster the development of new in-state
renewable electricity generation technology facilities, and to
secure for the state the environmental, economic, and reliability
benefits that continued operation of those facilities will provide.
(2) Any funds used for new in-state renewable electricity
generation technology facilities pursuant to this subdivision shall
be expended in accordance with the report, subject to all of the
following requirements:
(A) In order to cover the above market costs of renewable
resources as approved by the commission and selected by retail
sellers to fulfill their obligations under Article 16 (commencing
with Section 399.11), the Energy Commission shall award funds in the
form of supplemental energy payments, subject to the following
criteria:
(i) The Energy Commission may establish caps on supplemental
energy payments. The caps shall be designed to provide for a viable
energy market capable of achieving the goals of Article 16
(commencing with Section 399.11). The Energy Commission may waive
application of the caps to accommodate a facility, if it is
demonstrated to the satisfaction of the Energy Commission, that
operation of the facility would provide substantial economic and
environmental benefits to end use customers subject to the funding
requirements of Section 381.
(ii) Supplemental energy payments shall be awarded only to
facilities that are eligible for funding under this subdivision.
(iii) Supplemental energy payments awarded to facilities selected
by an electrical corporation pursuant to Article 16 (commencing with
Section 399.11) shall be paid for the lesser of 10 years, or the
duration of the contract with the electrical corporation.
(iv) The Energy Commission shall reduce or terminate supplemental
energy payments for projects that fail either to commence and
maintain operations consistent with the contractual obligations to an
electrical corporation, or that fail to meet eligibility
requirements.
(v) Funds shall be managed in an equitable manner in order for
retail sellers to meet their obligation under Article 16 (commencing
with Section 399.11).
(B) The Energy Commission may determine as part of a solicitation,
that a facility that does not meet the definition of "in-state
renewable electricity generation technology" facility solely because
it is located outside the state, is eligible for funding under this
subdivision if it meets both of the following requirements:
(i) It is located so that it is or will be connected to the
Western Electricity Coordinating Council (WECC) transmission system.
(ii) It is developed with guaranteed contracts to sell its
generation to end use customers subject to the funding requirements
of Section 381, or to marketers that provide this guarantee for
resale of the generation, for a period of time at least equal to the
amount of time it receives incentive payments under this subdivision.
(C) Facilities that are eligible to receive funding pursuant to
this subdivision shall be registered in accordance with criteria
developed by the Energy Commission and those facilities may not
receive payments for any electricity produced that has any of the
following characteristics:
(i) Is sold under an existing long-term contract with an existing
in-state electrical corporation if the contract includes fixed energy
or capacity payments, except for that electricity that satisfies the
provisions of subparagraph (C) of paragraph (1) of subdivision (c)
of Section 399.6.
(ii) Is used onsite or is sold to customers in a manner that
excludes competitive transition charge payments, or is otherwise
excluded from competitive transition charge payments.
(iii) Is produced by a facility that is owned by an electrical
corporation or a local publicly owned electric utility as defined in
subdivision (d) of Section 9604.
(iv) Is a hydroelectric generation project that will require a new
or increased appropriation of water under Part 2 (commencing with
Section 1200) of Division 2 of the Water Code.
(D) Eligibility to compete for funds or to receive funds shall be
contingent upon having to sell the output of the renewable
electricity generation facility to customers subject to the funding
requirements of Section 381.
(E) The Energy Commission may require applicants competing for
funding to post a forfeitable bid bond or other financial guaranty as
an assurance of the applicant's intent to move forward expeditiously
with the project proposed. The amount of any bid bond or financial
guaranty may not exceed 10 percent of the total amount of the funding
requested by the applicant.
(F) In awarding funding, the Energy Commission may provide
preference to projects that provide tangible demonstrable benefits to
communities with a plurality of minority or low-income populations.
(3) Repowered existing facilities shall be eligible for funding
under this subdivision if the capital investment to repower the
existing facility equals at least 80 percent of the value of the
repowered facility.
(4) Facilities engaging in the combustion of municipal solid waste
or tires are not eligible for funding under this subdivision.
(5) Production incentives awarded under this subdivision prior to
January 1, 2002, shall commence on the date that a project begins
electricity production, provided that the project was operational
prior to January 1, 2002, unless the Energy Commission finds that the
project will not be operational prior to January 1, 2002, due to
circumstances beyond the control of the developer. Upon making a
finding that the project will not be operational due to circumstances
beyond the control of the developer, the Energy Commission shall pay
production incentives over a five-year period, commencing on the
date of operation, provided that the date that a project begins
electricity production may not extend beyond January 1, 2007.
(6) Facilities generating electricity from biomass energy shall be
considered an in-state renewable electricity generation technology
facility to the extent that they certify to the satisfaction of the
Energy Commission that fuel utilization is limited to the following:
(A) Agricultural crops and agricultural wastes and residues.
(B) Solid waste materials such as waste pallets, crates, dunnage,
manufacturing, and construction wood wastes, landscape or
right-of-way tree trimmings, mill residues that are directly the
result of the milling of lumber, and rangeland maintenance residues.
(C) Wood and wood wastes that meet all of the following
requirements:
(i) Have been harvested pursuant to an approved timber harvest
plan prepared in accordance with the Z'berg-Nejedly Forest Practice
Act of 1973 (Chapter 8 (commencing with Section 4511), Part 2,
Division 4, Public Resource Code).
(ii) Have been harvested for the purpose of forest fire fuel
reduction or forest stand improvement.
(iii) Do not transport or cause the transportation of species
known to harbor insect or disease nests outside zones of infestation
or current quarantine zones, as identified by the Department of Food
and Agriculture or the Department of Forestry and Fire Protection,
unless approved by the Department of Food and Agriculture and the
Department of Forestry and Fire Protection.
(e) (1) Seventeen and one-half percent of the funds collected
pursuant to paragraph (6) of subdivision (c) of Section 381 shall be
used for a multiyear, consumer-based program to foster the
development of emerging renewable technologies in distributed
generation applications.
(2) Any funds used for emerging technologies pursuant to this
subdivision shall be expended in accordance with the report, subject
to all of the following requirements:
(A) Funding for emerging technologies shall be provided through a
competitive, market-based process that shall be in place for a period
of not less than five years, and shall be structured so as to allow
eligible emerging technology manufacturers and suppliers to
anticipate and plan for increased sale and installation volumes over
the life of the program.
(B) The program shall provide monetary rebates, buydowns, or
equivalent incentives, subject to subparagraph (C), to purchasers,
lessees, lessors, or sellers of eligible electricity generating
systems. Incentives shall benefit the end-use consumer of renewable
generation by directly and exclusively reducing the purchase or lease
cost of the eligible system, or the cost of electricity produced by
the eligible system. Incentives shall be issued on the basis of the
rated electrical capacity of the system measured in watts, or in the
amount of electricity production of the system, measured in
kilowatthours, determined by the Energy Commission.
(C) Eligible distributed emerging technologies are photovoltaic,
solar thermal electric, fuel cell technologies that utilize renewable
fuels, and wind turbines of not more than 50 kilowatts rated
electrical generating capacity
per customer site, and other distributed renewable emerging
technologies that meet the emerging technology eligibility criteria
established by the Energy Commission. Eligible electricity
generating systems are intended primarily to offset part or all of
the consumer's own electricity demand, and shall not be owned by
local publicly owned electric utilities, nor be located at a customer
site that is not receiving distribution service from an electrical
corporation that is subject to Section 381 and contributing funds to
support programs under this section. All eligible electricity
generating system components shall be new and unused, and shall not
have been previously placed in service in any other location or for
any other application, and shall have a warranty of not less than
five years to protect against defects and undue degradation of
electrical generation output. Systems and their fuel resource shall
be located on the same premises of the end-use consumer where the
consumer's own electricity demand is located, and all eligible
electricity generating systems shall be connected to the utility grid
in California. The Energy Commission may require eligible
electricity generating systems to have meters in place to monitor and
measure a system's performance and generation. Only systems that
will be operated in compliance with applicable law and the rules of
the commission shall be eligible for funding.
(D) The Energy Commission shall limit the amount of funds
available for any system or project of multiple systems and reduce
the level of funding for any system or project of multiple systems
that has received, or may be eligible to receive, any government or
utility funds, incentives, or credit.
(E) In awarding funding, the Energy Commission may provide
preference to systems that provide tangible demonstrable benefits to
communities with a plurality of minority or low-income populations.
(F) In awarding funding, the Energy Commission shall develop and
implement eligibility criteria and a system that provides preference
to systems based upon system performance, taking into account
factors, including, but not limited to, shading, insolation levels,
and installation orientation.
(f) (1) Ten percent of the funds collected pursuant to paragraph
(6) of subdivision (c) of Section 381 shall be used to provide
customer credits to customers that entered into a direct transaction
on or before September 20, 2001, for purchases of electricity
produced by registered in-state renewable electricity generating
facilities.
(2) Any funds used for customer credits pursuant to this
subdivision shall be expended, as provided in the report, subject to
the following requirements:
(A) Customer credits shall be awarded to California retail
customers located in the service territory of an electrical
corporation that is subject to Section 381 that is contributing funds
to support programs under this section, and that is purchasing
qualifying electricity from renewable electricity generating
facilities, through transactions traceable to specific generation
sources by any auditable contract trail or equivalent that provides
commercial verification that the electricity from the claimed
renewable electricity generating facilities has been sold once and
only once to a retail customer.
(B) Credits awarded pursuant to this paragraph may be paid
directly to electric service providers, energy marketers,
aggregators, or generators if those persons or entities account for
the credits on the recipient customer's utility bills. Credits may
not exceed one and one-half cents ($0.015) per kilowatthour. Credits
awarded to members of the combined class of customers, other than
residential and small commercial customers, may not exceed one
thousand dollars ($1,000) per customer per calendar year. In no
event may more than 20 percent of the total customer incentive funds
be awarded to members of the combined class of customers other than
residential and small commercial customers.
(C) The Energy Commission shall develop criteria and procedures
for the identification of energy purchasers and providers that are
eligible to receive funds pursuant to this paragraph through a
process consistent with this paragraph. These criteria and
procedures shall apply only to funding eligibility and may not extend
to other renewable marketing claims.
(D) The commission shall notify the Energy Commission in writing
within 10 days of revoking or suspending the registration of any
electric service provider pursuant to paragraph (4) of subdivision
(b) of Section 394.25.
(E) By March 31, 2003, the Energy Commission shall report to the
Governor and the Legislature on how to most effectively utilize the
funds for customer credits, including whether, and under what
conditions, the program should be continued. The report shall
include an examination of trends in markets for renewable energy,
including the trading of nonenergy attributes, and the role of
customer credits in these markets. The report will recommend an
appropriate funding allocation for the customer credits and how
implementation of the customer credits should be structured, if
appropriate.
(F) Customer credits may not be awarded for the purchase of
electricity that is used to meet the obligations of a renewable
portfolio standard.
(g) One percent of the funds collected pursuant to paragraph (6)
of subdivision (c) of Section 381 shall be used in accordance with
the report to promote renewable energy and to disseminate information
on renewable energy technologies, including emerging renewable
technologies, and to help develop a consumer market for renewable
energy and for small-scale emerging renewable energy technologies.
(h) (1) The Energy Commission shall adopt guidelines governing the
funding programs authorized under this section and Section 399.13,
at a publicly noticed meeting offering all interested parties an
opportunity to comment. Substantive changes to the guidelines may
not be adopted without at least 10 days' written notice to the
public. The public notice of meetings required by this paragraph may
not be less than 30 days. Notwithstanding any other provision of
law, any guidelines adopted pursuant to this section shall be exempt
from the requirements of Chapter 3.5 (commencing with Section 11340)
of Division 3 of Title 2 of the Government Code. The Legislature
declares that the changes made to this paragraph by the act amending
this section during the 2002 portion of the 2001-02 Regular Session
are declaratory of, and not a change in existing law.
(2) Funds to further the purposes of this section may be committed
for multiple years.
(3) Awards made pursuant to this section are grants, subject to
appeal to the Energy Commission upon a showing that factors other
than those described in the guidelines adopted by the Energy
Commission were applied in making the awards and payments. Any
actions taken by an applicant to apply for, or become or remain
eligible and registered to receive, payments or awards, including
satisfying conditions specified by the Energy Commission, shall not
constitute the rendering of goods, services, or a direct benefit to
the Energy Commission.
(i) The Energy Commission shall report to the Legislature on or
before March 31, 2004, and annually thereafter, regarding the results
of the mechanisms funded pursuant to this section. The report shall
contain the following elements:
(A) A description of the allocation of funds among existing, new
and emerging technologies; the allocation of funds among programs,
including consumer-side incentives; and the need for the reallocation
of money among those technologies.
(B) The status of account transfers and repayments.
(C) A description of the cumulative commitment of claims by
account, the relative demand for funds by account, and a forecast of
future awards.
(D) A discussion of the progress being made toward achieving the
17-percent target provided in subdivision (a) by each funding
category authorized pursuant to subdivisions (c), (d), (e), (f), and
(g) of this section.
(E) The description of the allocation of funds from interest on
the accounts described in this section, and money in the accounts
described in subdivision (e) of Section 381.
(F) An itemized list, including project descriptions, award
amounts, and outcomes for projects awarded funding in the prior year.
(G) Other matters the Energy Commission determines may be of
importance to the Legislature.
(2) Notwithstanding subdivisions (c), (d), (e), (f), and (g) of
this section, money may be reallocated without further legislative
action among existing, new, and emerging technologies and
consumer-side programs in a manner consistent with the report and
with the latest report provided to the Legislature pursuant to this
subdivision, except that reallocations may not reduce the allocation
established in subdivision (d) nor increase the allocation
established in subdivision (c).
(j) The Energy Commission shall, by December 1, 2003, prepare and
submit to the Legislature a comprehensive renewable electricity
generation resource plan that describes the renewable resource
potential available in California, and recommendations for a plan for
development to achieve the target of increasing the amount of
electricity generated from renewable sources per year, so that it
equals 17 percent of the total electricity generated for consumption
in California by 2006. The Energy Commission shall consult with the
commission, electrical corporations, and the Independent System
Operator, in the development and preparation of the plan.
(k) The Energy Commission shall participate in proceedings at the
commission that relate to or affect efforts to stimulate the
development of electricity generated from renewable sources, in order
to obtain coordination of the state's efforts to achieve the target
of increasing the amount of electricity generated from renewable
sources per year, so that it equals 17 percent of the total
electricity generated for consumption in California by 2006.
SEC. 5. Section 399.11 of the Public Utilities Code is amended to
read:
399.11. The Legislature finds and declares all of the following:
(a) In order to attain a target of 20 percent renewable energy for
the State of California and for the purposes of increasing the
diversity, reliability, public health and environmental benefits of
the energy mix, it is the intent of the Legislature that the
California Public Utilities Commission and the State Energy Resources
Conservation and Development Commission implement the California
Renewables Portfolio Standard Program described in this article.
(b) Increasing California's reliance on renewable energy resources
may promote stable electricity prices, protect public health,
improve environmental quality, stimulate sustainable economic
development, create new employment opportunities, and reduce reliance
on imported fuels.
(c) The development of renewable energy resources may ameliorate
air quality problems throughout the state and improve public health
by reducing the burning of fossil fuels and the associated
environmental impacts.
(d) The California Renewables Portfolio Standard Program is
intended to complement the Renewable Energy Program administered by
the State Energy Resources Conservation and Development Commission
and established pursuant to Sections 383.5 and 445
Chapter 8.6 (commencing with Section 25740) of Division 15 of
the Public Resources Code .
SEC. 6. Section 399.12 of the Public Utilities Code is amended to
read:
399.12. For purposes of this article, the following terms have
the following meanings:
(a) (1) "Eligible renewable energy resource" means an electric
generating facility that is one of the following:
(1) The facility meets the definition of "in-state renewable
electricity generation technology facility
" in Section 383.5 25741 of the Public
Resources Code .
(2) A geothermal generation facility originally commencing
operation prior to September 26, 1996, shall be eligible for purposes
of adjusting a retail seller's baseline quantity of eligible
renewable energy resources except for output certified as incremental
geothermal production by the Energy Commission, provided that the
incremental output was not sold to an electrical corporation under
contract entered into prior to September 26, 1996. For each facility
seeking certification, the Energy Commission shall determine
historical production trends and establish criteria for measuring
incremental geothermal production that recognizes the declining
output of existing steamfields and the contribution of capital
investments in the facility or wellfield.
(3) The output of a small hydroelectric generation facility of 30
megawatts or less procured or owned by an electrical corporation as
of the date of enactment of this article shall be eligible only for
purposes of establishing the baseline of an electrical corporation
pursuant to paragraph (3) of subdivision (a) of Section 399.15. A
new hydroelectric facility is not an eligible renewable energy
resource if it will require a new or increased appropriation or
diversion of water under Part 2 (commencing with Section 1200) of
Division 2 of the Water Code.
(4) A facility engaged in the combustion of municipal solid waste
shall not be considered an eligible renewable resource unless it is
located in Stanislaus County and was operational prior to September
26, 1996. Output from such facilities shall be eligible only for the
purpose of adjusting a retail seller's baseline quantity of eligible
renewable energy resources.
(b) "Energy Commission" means the State Energy Resources
Conservation and Development Commission.
(c) "Retail seller" means an entity engaged in the retail
sale of electricity to end-use customers, including any of the
following:
(1) An electrical corporation, as defined in Section 218.
(2) A community choice aggregator. The commission shall institute
a rulemaking to determine the manner in which a community choice
aggregator will participate in the renewables portfolio standard
subject to the same terms and conditions applicable to an electrical
corporation.
(3) An electric service provider, as defined in Section 218.3
subject to the following conditions:
(A) An electric service provider shall be considered a retail
seller under this article for sales to any customer acquiring service
after January 1, 2003.
(B) An electric service provider shall be considered a retail
seller under this article for sales to all its customers beginning on
the earlier of January 1, 2006, or the date on which a contract
between an electric service provider and a retail customer expires.
Nothing on this subdivision may require an electric service provider
to disclose the terms of the contract to the commission.
(C) The commission shall institute a rulemaking to determine the
manner in which electric service providers will participate in the
renewables portfolio standard. The electric service provider shall
be subject to the same terms and conditions applicable to an
electrical corporation pursuant to this article. Nothing in this
paragraph shall impair a contract entered into between an electric
service provider and a retail customer prior to the suspension of
direct access by the commission pursuant to Section 80110 of the
Water Code.
(4) "Retail seller" does not include any of the following:
(A) A corporation or person employing cogeneration technology or
producing power consistent with subdivision (b) of Section 218.
(B) The Department of Water Resources acting in its capacity
pursuant to Division 27 (commencing with Section 80000) of the Water
Code.
(C) A local publicly owned electrical utility as defined in
subdivision (d) of Section 9604.
(c) "Renewables portfolio standard" means the specified percentage
of electricity generated by eligible renewable energy resources that
a retail seller is required to procure pursuant to Sections 399.13
and 399.15.
SEC. 7. Section 399.13 of the Public Utilities Code is amended to
read:
399.13. The Energy Commission shall do all of the following:
(a) Certify eligible renewable energy resources that it determines
meet the criteria described in subdivision (a) of Section 399.12.
(b) Design and implement an accounting system to verify compliance
with the renewables portfolio standard by retail sellers, to ensure
that renewable energy output is counted only once for the purpose of
meeting the renewables portfolio standard of this state or any other
state, and for verifying retail product claims in this state or any
other state. In establishing the guidelines governing this system,
the Energy Commission shall collect data from electricity market
participants that it deems necessary to verify compliance of retail
sellers, in accordance with the requirements of this article and the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code). In seeking
data from electrical corporations, the Energy Commission shall
request data from the commission. The commission shall collect data
from electrical corporations and remit the data to the Energy
Commission within 90 days of the request.
(c) Allocate and award supplemental energy payments pursuant to
Section 383.5 Chapter 8.6 (commencing with
Section 25740) of Division 15 of the Public Resources Code, to
eligible renewable energy resources to cover above-market costs of
renewable energy.
SEC. 8. Section 399.14 of the Public Utilities Code is amended to
read:
399.14. (a) The commission shall direct each electrical
corporation to prepare renewable energy procurement plans as
described in paragraph (3) to satisfy its obligations under the
renewables portfolio standard. To the extent feasible, this
procurement plan shall be proposed, reviewed, and adopted by the
commission as part of, and pursuant to, a general procurement plan
process. The commission shall require each electrical corporation to
review and update its renewable energy procurement plan as it
determines to be necessary.
(1) (A) The commission shall not require an electrical corporation
to conduct procurement to fulfill the renewables portfolio standard
until the commission determines either of the following:
(i) The electrical corporation has attained an investment grade
credit rating as determined by at least two major rating agencies.
(ii) The electrical corporation is able to procure eligible
renewable energy resources on reasonable terms, those resources can
be financed if necessary, and the procurement will not impair the
restoration of an electrical corporation's creditworthiness. This
provision shall not apply before April 1, 2004, for any electrical
corporation that on June 30, 2003, is in federal court under Chapter
11 of the federal bankruptcy law.
(B) Within 90 days of the commission's determination as provided
in subparagraph (A), an electrical corporation shall conduct
solicitations to implement a renewable energy procurement plan. The
determination required by this paragraph shall apply only to the
requirements established pursuant to this article. The requirements
established for an electrical corporation pursuant to Section 454.5
shall be governed by that section.
(2) Not later than six months after the effective date of this
section, the commission shall adopt, by rule, for all electrical
corporations, all of the following:
(A) A process for determining market prices pursuant to
subdivision (c) of Section 399.15. The commission shall make
specific determinations of market prices after the closing date of a
competitive solicitation conducted by an electrical corporation for
eligible renewable energy resources. In order to ensure that the
market price established by the commission pursuant to subdivision
(c) of Section 399.15 does not influence the amount of a bid
submitted through the competitive solicitation in a manner that would
increase the amount ratepayers are obligated to pay for renewable
energy, and in order to ensure that the bid price does not influence
the establishment of the market price, the electrical corporation
shall not transmit or share the results of any competitive
solicitation for eligible renewable energy resources until the
commission has established market prices pursuant to subdivision (c)
of Section 399.15.
(B) A process that provides criteria for the rank ordering and
selection of least-cost and best-fit renewable resources to comply
with the annual California Renewables Portfolio Standard Program
obligations on a total cost basis. This process shall consider
estimates of indirect costs associated with needed transmission
investments and ongoing utility expenses resulting from integrating
and operating eligible renewable energy resources.
(C) Flexible rules for compliance including, but not limited to,
permitting electrical corporations to apply excess procurement in one
year to subsequent years or inadequate procurement in one year to no
more than the following three years.
(D) Standard terms and conditions to be used by all electrical
corporations in contracting for eligible renewable energy resources,
including performance requirements for renewable generators.
(3) Consistent with the goal of procuring the least-cost and
best-fit eligible renewable energy resources, the renewable energy
procurement plan submitted by an electrical corporation shall
include, but is not limited to, all of the following:
(A) An assessment of annual or multiyear portfolio supplies and
demand to determine the optimal mix of renewable generation resources
with deliverability characteristics that may include peaking,
dispatchable, baseload, firm, and as-available capacity.
(B) Provisions for employing available compliance flexibility
mechanisms established by the commission.
(C) A bid solicitation setting forth the need for renewable
generation of each deliverability characteristic, required online
dates, and locational preferences, if any.
(4) In soliciting and procuring eligible renewable energy
resources, each electrical corporation shall offer contracts of no
less than 10 years in duration, unless the commission approves of a
contract of shorter duration.
(5) In soliciting and procuring eligible renewable energy
resources, each electrical corporation may give preference to
projects that provide tangible demonstrable benefits to communities
with a plurality of minority or low-income populations.
(b) The commission shall review and accept, modify, or reject each
electrical corporation's renewable procurement plan 90 days prior to
the commencement of renewable procurement pursuant to this article
by the electrical corporation.
(c) The commission shall review the results of a renewable energy
resources solicitation submitted for approval by an electrical
corporation and accept or reject proposed contracts with eligible
renewable energy resources based on consistency with the approved
renewable procurement plan. If the commission determines that the
bid prices are elevated due to a lack of effective competition
amongst the bidders, the commission shall direct the electrical
corporation to renegotiate such contracts or conduct a new
solicitation.
(d) If an electrical corporation fails to comply with a commission
order adopting a renewable procurement plan, the commission shall
exercise its authority pursuant to Section 2113 to require
compliance.
(e) Upon application by an electrical corporation, the commission
may authorize another entity to enter into contracts on behalf of
customers of the electrical corporation for deliveries of eligible
renewable energy resources to satisfy the annual portfolio standard
obligations, subject to similar terms and conditions applicable to an
electrical corporation. The commission shall allow the procurement
entity to recover reasonable costs through retail rates subject to
review and approval.
(f) Procurement and administrative costs associated with long-term
contracts entered into by an electrical corporation for eligible
renewable energy resources pursuant to this article, at or below the
market price determined by the commission pursuant to subdivision (c)
of Section 399.15, shall be deemed reasonable per se, and shall be
recoverable in rates.
(g) For purposes of this article, "procure" means that a utility
may acquire the renewable output of electric generation facilities
that it owns or for which it has contracted. Nothing in this article
is intended to imply that the purchase of electricity from third
parties in a wholesale transaction is the preferred method of
fulfilling a retail seller's obligation to comply with this article.
(h) Construction, alteration, demolition, installation, and repair
work on an eligible renewable energy resource that receives
production incentives or
supplemental energy payments pursuant to Section
383.5 Sections 25742 and 25743 of the Public Resources
Code , including, but not limited to, work performed to
qualify, receive, or maintain production incentives or supplemental
energy payments is "public works" for the purposes of Chapter 1
(commencing with Section 1720) of Part 7 of Division 2 of the Labor
Code.
SEC. 9. Section 399.15 of the Public Utilities Code is amended to
read:
399.15. (a) In order to fulfill unmet long-term resource needs,
the commission shall establish a renewables portfolio standard
requiring all electrical corporations to procure a minimum quantity
of output from eligible renewable energy resources as a specified
percentage of total kilowatthours sold to their retail end-use
customers each calendar year, if sufficient funds are made available
pursuant to paragraph (2), and Sections
Section 399.6 and 383.5 Chapter 8.6
(commencing with Section 25740) of Division 15 of the Public
Resources Code, to cover the above-market costs of eligible
renewables, and subject to all of the following:
(1) An electric corporation shall not be required to enter into
long-term contracts with eligible renewable energy resources that
exceed the market prices established pursuant to subdivision (c) of
this section.
(2) The Energy Commission shall provide supplemental energy
payments from funds in the New Renewable Resources Account in the
Renewable Resource Trust Fund to eligible renewable energy resources
pursuant to Section 383.5 Chapter 8.6
(commencing with Section 25740) of Division 15 of the Public
Resources Code , consistent with this article, for above-market
costs. Indirect costs associated with the purchase of eligible
renewable energy resources, such as imbalance energy charges, sale of
excess energy, decreased generation from existing resources, or
transmission upgrades shall not be eligible for supplemental energy
payments, but shall be recoverable by an electrical corporation in
rates, as authorized by the commission.
(3) For purposes of setting annual procurement targets, the
commission shall establish an initial baseline for each electrical
corporation based on the actual percentage of retail sales procured
from eligible renewable energy resources in 2001, and, to the extent
applicable, adjusted going forward pursuant to subdivision (a) of
Section 399.12.
(b) The commission shall implement annual procurement targets for
each electrical corporation as follows:
(1) Beginning on January 1, 2003, each electrical corporation
shall, pursuant to subdivision (a), increase its total procurement of
eligible renewable energy resources by at least an additional 1
percent of retail sales per year so that 20 percent of its retail
sales are procured from eligible renewable energy resources no later
than December 31, 2017. An electrical corporation with 20 percent of
retail sales procured from eligible renewable energy resources in
any year shall not be required to increase its procurement of such
resources in the following year.
(2) Only for purposes of establishing these targets, the
commission shall include all power sold to retail customers by the
Department of Water Resources pursuant to Section 80100 of the Water
Code in the calculation of retail sales by an electrical corporation.
(3) In the event that an electrical corporation fails to procure
sufficient eligible renewable energy resources in a given year to
meet any annual target established pursuant to this subdivision, the
electrical corporation shall procure additional eligible renewable
energy resources in subsequent years to compensate for the shortfall
if sufficient funds are made available pursuant to paragraph (2), and
Sections 399.6 and 383.5 Section 399.6 and
Chapter 8.6 (commencing with Section 25740) of Division 15 of the
Public Resources Code, to cover the above-market costs of
eligible renewables.
(4) If supplemental energy payments from the Energy Commission, in
combination with the market prices approved by the commission, are
insufficient to cover the above-market costs of eligible renewable
energy resources, the commission shall allow an electrical
corporation to limit its annual procurement obligation to the
quantity of eligible renewable energy resources that can be procured
with available supplemental energy payments.
(c) The commission shall establish a methodology to determine the
market price of electricity for terms corresponding to the length of
contracts with renewable generators, in consideration of the
following:
(1) The long-term market price of electricity for fixed price
contracts, determined pursuant to the electrical corporation's
general procurement activities as authorized by the commission.
(2) The long-term ownership, operating, and fixed-price fuel costs
associated with fixed-price electricity from new generating
facilities.
(3) The value of different products including baseload, peaking,
and as-available output.
(d) The establishment of a renewables portfolio standard shall not
constitute implementation by the commission of the federal Public
Utility Regulatory Policies Act of 1978 (Public Law 95-617).
(e) The commission shall consult with the Energy Commission in
calculating market prices under subdivision (c) and establishing
other renewables portfolio standard policies.
SEC. 10. Section 399.16 of the Public Utilities Code is amended to
read:
399.16. The commission Energy Commission
may consider an electric generating facility that is located
outside the state to be an eligible renewable energy resource if it
meets the criteria described in Section 399.12 and all of the
following requirements:
(a) It is located so that it is, or will be, connected to the
Western Electricity Coordinating Council (WECC) transmission system.
(b) It is developed with guaranteed contracts to sell its
generation, and demonstrates delivery of energy, to a retail seller
or the Independent System Operator.
(c) It participates in the accounting system to verify compliance
with the renewables portfolio standard by retail sellers, once
established by the State Energy Resources
Conservation and Development Commission pursuant to
subdivision (b) of Section 399.13.
SEC. 11. Section 445 of the Public Utilities Code is repealed.
445. (a) The Renewable Resource Trust Fund is hereby created in
the State Treasury.
(b) The following accounts are hereby created within the Renewable
Resource Trust Fund:
(1) The Existing Renewable Resources Account.
(2) New Renewable Resources Account.
(3) Emerging Renewable Resources Account.
(4) Customer-Credit Renewable Resource Purchases Account.
(5) Renewable Resources Consumer Education Account.
(c) The money in the fund may be expended for the state's
administration of this article only upon appropriation by the
Legislature in the annual Budget Act.
(d) Notwithstanding Section 383, that portion of revenues
collected by electrical corporations for the benefit of in-state
operation and development of existing and new and emerging renewable
resource technologies, pursuant to paragraphs (3) and (6) of
subdivision (c) of Section 381, shall be transmitted to the State
Energy Resources Conservation and Development Commission (hereafter
the Energy Commission) at least quarterly for deposit in the
Renewable Resource Trust Fund. After setting aside in the fund money
that may be needed for expenditures authorized by the annual Budget
Act in accordance with subdivision (c), the Treasurer shall
immediately deposit money received pursuant to this section into the
accounts created pursuant to subdivision (b) in proportions
designated by the Energy Commission for the current calendar year.
Notwithstanding Section 13340 of the Government Code, the money in
the fund and the accounts within the fund are hereby continuously
appropriated to the Energy Commission without regard to fiscal year
for the purposes enumerated in Section 383.5.
(e) Upon notification by the Energy Commission, the Controller
shall pay all awards of the money in the accounts created pursuant to
subdivision (b) for purposes enumerated in Section 383.5. The
eligibility of each award shall be determined solely by the Energy
Commission based on the procedures it adopts under subdivision (h) of
Section 383.5. Based on the eligibility of each award, the Energy
Commission shall also establish the need for a multiyear commitment
to any particular award and so advise the Department of Finance.
Eligible awards submitted by the Energy Commission to the Controller
shall be accompanied by information specifying the account from which
payment should be made and the amount of each payment; a summary
description of how payment of the award furthers the purposes
enumerated in Section 383.5; and an accounting of future costs
associated with any award or group of awards known to the Energy
Commission to represent a portion of a multiyear funding commitment.
(f) The Energy Commission may transfer funds between accounts for
cashflow purposes, provided that the balance due each account is
restored and the transfer does not adversely affect any of the
accounts.
(g) The Department of Finance, commencing March 1, 1999, shall
conduct an independent audit of the Renewable Resource Trust Fund and
its related accounts annually, and provide an audit report to the
Legislature not later than March 1 of each year for which this
article is operative. The Department of Finance's report shall
include information regarding revenues, payment of awards, reserves
held for future commitments, unencumbered cash balances, and other
matters that the Director of Finance determines may be of importance
to the Legislature.
SEC. 12. Section 454.1 of the Public Utilities Code, as
added by Chapter 1040 of the Statutes of 2000, is amended and
renumbered to read:
464. (a) Reasonable expenditures by transmission owners that are
electrical corporations to plan, design, and engineer
reconfiguration, replacement, or expansion of transmission facilities
are in the public interest and are deemed prudent if made for the
purpose of facilitating competition in electric generation markets,
ensuring open access and comparable service, or maintaining or
enhancing reliability, whether or not these expenditures are for
transmission facilities that become operational.
(b) The commission and the Electricity Oversight Board shall
jointly facilitate the efforts of the state's transmission owning
electrical corporations to obtain authorization from the Federal
Energy Regulatory Commission to recover reasonable expenditures made
for the purposes stated in subdivision (a).
(c) Nothing in this section alters or affects the recovery of the
reasonable costs of other electric facilities in rates pursuant to
the commission's existing ratemaking authority under this code or
pursuant to the Federal Power Act (41 Stat. 1063; 16 U.S.C. Secs.
791a, et seq.). The commission may periodically review and adjust
depreciation schedules and rates authorized for an electric plant
that is under the jurisdiction of the commission and owned by an
electrical corporation and periodically review and adjust
depreciation schedules and rates authorized for a gas plant that is
under the jurisdiction of the commission and owned by a gas
corporation, consistent with this code.
SEC. 2.
SEC. 13. Section 780.5 of the Public Utilities Code is
amended to read:
780.5. The commission shall require every residential unit in an
apartment house or similar multiunit residential structure,
condominium, and mobilehome park for which a building permit has been
obtained on or after July 1, 1982, other than a dormitory or other
housing accommodation provided by any postsecondary educational
institution for its students or employees and other than farmworker
housing, to be individually metered for electrical and gas service,
except that separate metering for gas service is not required for
residential units which are not equipped with gas appliances
requiring venting or are equipped with only vented decorative
appliances or which receive the majority of energy used for water or
space heating from a solar energy system or through cogeneration
technology.