BILL NUMBER: AB 728	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Negrete McLeod

                        FEBRUARY 17, 2005

   An act to amend Section 2827.9 of the Public Utilities Code,
relating to electricity.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 728, as introduced, Negrete McLeod.   Electricity: biogas
digester customer-generators: net metering.
   Under existing law, electric service providers, as defined, are
required to provide eligible customer-generators with net energy
metering, as defined. Under existing law, electrical corporations are
required, only until January 1, 2006, to provide eligible biogas
digester customer-generators with net energy metering, as defined,
under a pilot program. Existing law defines an "eligible biogas
digester customer-generator," in part, as a customer of an electrical
corporation that uses a biogas digester electrical generating
facility, as defined, with a capacity of not more than one megawatt,
that is located on or adjacent to the customer's premises, is
interconnected and operates in parallel with the electric grid, and
is sized to offset part or all of the customer's own electrical
requirements and that receives certain funding.
   Existing law requires an electrical corporation to file a standard
tariff providing for net energy metering for eligible biogas
digester customer-generators and to make the tariff available upon
request on a first-come-first-served basis, until the total
cumulative rated generating capacity used by the eligible biogas
digester customer-generators equals 5 megawatts within the service
territory of the electrical corporation, with a combined statewide
generating capacity not to exceed 15 megawatts.
   This bill would extend indefinitely the operation of the biogas
customer-generator program, as well as references to the program
being a pilot program. The bill would modify the definition of an
"eligible biogas digester customer-generator," to authorize a biogas
digester electrical generating facility with a capacity of not more
than 10 megawatts.
   This bill would require an electrical corporation to file a
standard tariff providing for net energy metering for eligible biogas
digester customer-generators and to make the tariff available upon
request. The bill would delete the above-described 5 megawatt per
electrical corporation and 15 megawatt statewide limitations upon the
availability of the tariff.
   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 2827.9 of the  Public Utilities Code  is
amended to read:
   2827.9.  (a) (1) The Legislature finds and declares that 
a pilot program to provide  net energy metering for eligible
biogas digester customer-generators would enhance the continued
diversification of California's energy resource mix and would
encourage the installation of livestock air emission controls that
the State Air Resources Board believes may produce multiple
environmental benefits.(2) The Legislature further finds and declares
that  the  net energy metering  pilot
program authorized pursuant to this section  for eligible
biogas digester customer-generators  , which nets out
generation charges against generation charges on a time of use basis,
furthers the intent of Chapter 7 of the Statutes of 2001, First
Extraordinary Session, by facilitating   f  
acilitates  the implementation of energy efficiency programs in
order to reduce consumption of energy, reduce the costs associated
with energy demand, and achieve a reduction in peak electricity
demand.
   (b) As used in this section, the following definitions apply:
   (1) " Electrical corporation" means an electrical corporation, as
defined in Section 218.
   (2) (A) "Eligible biogas digester customer-generator" means a
customer of an electrical corporation that meets both of the
following criteria:
   (i) Uses a biogas digester electrical generating facility with a
capacity of not more than  one megawatt   10
megawatts  that is located on or adjacent to the customer's
owned, leased, or rented premises, is interconnected and operates in
parallel with the electric grid, and is sized to offset part or all
of the eligible biogas digester customer-generator's own electrical
requirements.
   (ii) Is the recipient of local, state, or federal funds, or who
self-finances  pilot  projects designed to encourage
the development of eligible biogas digester electrical generating
facilities.
   (3) "Eligible biogas digester electrical generating facility"
means a generating facility used to produce electricity by either a
manure methane production project or as a byproduct of the anaerobic
digestion of bio-solids and animal waste.
   (4) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the difference
between the electricity generated by an eligible biogas digester
customer-generator and fed back to the electric grid over a 12-month
period as described in subdivision (e). Net energy metering shall be
accomplished using a time of use meter capable of registering the
flow of electricity in two directions. If the existing electrical
meter of an eligible biogas digester customer-generator is not
capable of measuring the flow of electricity in two directions, the
eligible biogas digester customer-generator shall be responsible for
all expenses involved in purchasing and installing a meter that is
able to measure electricity flow in two directions. If an additional
meter or meters are installed, the net energy metering calculation
shall yield a result identical to that of a time of use meter.
   (c) Every electrical corporation shall, not later than 60 days
from the effective date of this section, file with the commission a
standard tariff providing for net energy metering for eligible biogas
digester customer-generators, consistent with this section. Every
electrical corporation shall make this tariff available to eligible
biogas digester customer-generators upon request , on a first
come, first serve basis, until the total cumulative rated generating
capacity used by the eligible biogas digester customer-generators
equals 5 megawatts within the service territory of the electrical
corporation. The combined statewide cumulative rated generating
capacity used by the eligible biogas digester customer-generators in
the service territories of all three electrical corporations in the
state may not exceed 15 megawatts  .
   (d) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate
components, and any monthly charges, to the contract or tariff to
which the same customer would be assigned if the customer was not an
eligible biogas digester customer-generator, except as set forth in
subdivision (e). Any new or additional demand charge, standby charge,
customer charge, minimum monthly charge, interconnection charge, or
other charge that would increase an eligible biogas digester
customer-generator's costs beyond those of other customers in the
rate class to which the eligible biogas digester customer-generator
would otherwise be assigned are contrary to the intent of this
legislation, and shall not form a part of net energy metering
tariffs.
   (e) The net energy metering calculation shall be made by measuring
the difference between the electricity supplied to the eligible
customer-generator and the electricity generated by the eligible
customer-generator and fed back to the electric grid over a 12-month
period. The following rules shall apply to the annualized metering
calculation:
   (1) The eligible biogas digester customer-generator shall, at the
end of each 12-month period following the date of final
interconnection of the eligible biogas digester customer-generator's
system with an electrical corporation, and at each anniversary date
thereafter, be billed for electricity used during that period. The
electrical corporation shall determine if the eligible biogas
digester customer-generator was a net consumer or a net producer of
electricity during that period. For purposes of determining if the
biogas digester customer-generator was a net consumer or a net
producer of electricity during that period, the electrical
corporation shall aggregate the electrical load of a dairy operation
under the same ownership, including, but not limited to, the
electrical load attributable to milking operations, milk
refrigeration, and water pumping located on property adjacent or
 continuous   contiguous  to the dairy.
Each aggregated account shall be billed and measured according to a
time of use rate schedule.
   (2) At the end of each 12-month period, where the electricity
supplied during the period by the electrical corporation exceeds the
electricity generated by the eligible biogas digester
customer-generator during that same period, the eligible biogas
digester customer-generator is a net electricity consumer and the
electrical corporation shall be owed compensation for the eligible
biogas digester customer-generator's net kilowatthour consumption
over that same period. The compensation owed for the eligible biogas
digester customer-generator's consumption shall be calculated as
follows:
   (A) The generation charges for any net monthly consumption of
electricity shall be calculated according to the terms of the tariff
to which the same customer would be assigned to or be eligible for if
the customer was not an eligible biogas digester customer-generator.
When those eligible biogas digester customer-generators are net
generators during any discrete time of use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electrical corporation would charge for retail
kilowatthour sales for generation, exclusive of any surcharges,
during that same time of use period. If the eligible biogas digester
customer-generator's time of use electrical meter is unable to
measure the flow of electricity in two directions, paragraph (4) of
subdivision (b) shall apply. All other charges, other than generation
charges, shall be calculated in accordance with the eligible biogas
digester customer-generator's applicable tariff and based on the
total killowatthours delivered by the electrical corporation to the
eligible biogas digester customer-generator. To the extent that
charges for transmission and distribution services are recovered
through demand charges in any particular month, no standby
reservation charges shall apply in that monthly billing cycle.
   (B) The net balance of moneys owed shall be paid in accordance
with the electrical corporation's normal billing cycle.
   (3) At the end of each 12-month period, where the electricity
generated by the eligible biogas digester customer-generator during
the 12-month period exceeds the electricity supplied by the
electrical corporation during that same period, the eligible biogas
digester customer-generator is a net electricity producer and the
electrical corporation shall retain any excess kilowatthours
generated during the prior 12-month period. The eligible biogas
digester customer-generator shall not be owed any compensation for
those excess kilowatthours.
   (4) If an eligible biogas digester customer-generator terminates
service with the electrical corporation, the electrical corporation
shall reconcile the eligible biogas digester customer-generator's
consumption and production of electricity during any 12-month period.
  
   (f) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
that date.