BILL NUMBER: AB 728 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 7, 2005
PASSED THE ASSEMBLY SEPTEMBER 6, 2005
AMENDED IN SENATE SEPTEMBER 1, 2005
AMENDED IN SENATE AUGUST 16, 2005
AMENDED IN ASSEMBLY MAY 2, 2005
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, 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 the operation of the biogas
customer-generator pilot program until December 31, 2009, and would
authorize an eligible biogas digester customer-generator to continue
to receive service pursuant to the net energy metering tariff for the
life of the facility, after December 31, 2009. The bill would modify
the definition of an "eligible biogas digester customer-generator,"
to authorize up to 3 large biogas digester electrical generating
facilities with a capacity of more than one megawatt and not more
than 10 megawatts. The bill would delete the above-described 5
megawatt per electrical corporation limitation on eligibility for the
pilot program and would increase the current 15 megawatt statewide
limitation to 50 megawatts. The bill would require a biogas digester
electrical generating facility subject to the best available control
technology (BACT) requirements to install the BACT at the time of
installation in order to participate in the tariff. The bill would
require the commission, in collaboration with the State Air Resources
Board, to report certain information relative to the pilot program
to the Legislature on or before December 31, 2008.
Under existing law, the failure to file a required tariff, or a
violation of an order or direction of the commission, including a
commission-approved tariff, is a crime.
Because the bill would require electrical corporations to file new
tariffs and would continue tariffs in effect past their current
repeal date, the bill would impose a state-mandated local program by
creating new crimes.
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 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 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.
(B) Notwithstanding subparagraph (A), up to three large biogas
digester electrical generating facilities with a generating capacity
of more than one megawatt and not more than 10 megawatts, otherwise
meeting the criteria of this section, shall be eligible for
participation in the pilot program.
(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 biosolids 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 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-served basis, until the combined statewide
cumulative rated generating capacity used by the eligible biogas
digester customer-generators in the service territories of the three
largest electrical corporations in the state reaches 50 megawatts. An
eligible biogas digester customer-generator shall be eligible for
the tariff for the life of the eligible biogas digester electrical
generating facility.
(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
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) No biogas digester electrical generating facility shall be
eligible for participation in the tariff established pursuant to this
section, that has not commenced operation by December 31, 2009. A
biogas digester customer-generator shall be eligible for the tariff
established pursuant to this section, only for the operating life of
the eligible biogas digester electrical generating facility.
(g) No biogas digester electrical generating facility that is
subject to the best available control technology (BACT) requirements
shall be eligible for participation in the tariff pursuant to this
section unless the biogas digester electrical generating facility has
installed the best available control technology as required by the
regional air pollution control district at the time of installation
to ensure the maximum feasible reductions in toxic and criteria
pollutants.
(h) On or before December 31, 2008, the commission, in
collaboration with the State Air Resources Board, shall report to the
Legislature all of the following information:
(1) The impact of the pilot program on emissions of air
pollutants.
(2) The impact of the pilot program on the reliability of the
transmission and distribution grid.
(3) The impact of the pilot program on ratepayers.
SEC. 2. 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.