Today's Law As Amended


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AB-1295 Public utilities: renewable energy: community renewables option.(2013-2014)



As Amends the Law Today


SECTION 1.

 Chapter 7.6 (commencing with Section 2831) is added to Part 2 of Division 1 of the Public Utilities Code, to read:

CHAPTER  7.6. Community Renewables Facility
2831.
 As used in this article, the following terms mean the following:
(a) “Community renewables facility” means an electric generation facility that has elected to participate in the community renewables option.
(b) “Community renewables option” means the right of an electric generation facility to participate in a program that allows a customer to subscribe to the output of an electric generation facility.
(c) “Community renewables rate” means the charge to subscribing customers for generation of electricity under the community renewables option that includes all of the following:
(1) The contract price paid to procure renewable resources to serve the community renewables subscription amount of the subscribing customer.
(2) Customer departing load charges.
(3) Renewable integration charges, as determined by the commission.
(4) Charges to recover the costs, if any, to procure sufficient resources to adequately serve subscribing customers.
(5) Charges to cover the cost of program administration.
(d) “Contract price” means the payment that is due to the electric generation facility in accordance with a power purchase contract executed pursuant to an eligible procurement program described in a cents per kilowatthours payment.
(e) “Electric generation facility” means a generating facility located within the service territory of, and developed to sell electricity to, an electrical corporation that meets all of the following criteria:
(1) Has an effective capacity of not more than 20 megawatts.
(2) Is interconnected and operates in parallel with the electrical transmission and distribution grid.
(3) Is strategically located and interconnected to the electrical transmission and distribution grid in a manner that optimizes the deliverability of electricity generated at the facility to load centers.
(4) Is an eligible renewable energy resource, as defined in Section 399.12.
(5) Begins commercial operation on or after January 1, 2012.
(f) “Eligible procurement program” means a competitively priced renewable procurement mechanism.
(g) “Generation rate” means the generation component of the customer’s energy or capacity rate, or both, through which the electrical corporation recovers energy procurement costs.
(h) “Subscribing customer” means a customer of an electrical corporation who has subscribed to the output of a community renewables facility.
(i) “Subscription amount” means the kilowatthours delivered to an electrical corporation from a community renewables facility to which a subscribing customer has subscribed.
(j) “Unsubscribed output” means the kilowatthours delivered to an electrical corporation from a community renewables facility to which no subscribing customer has subscribed.
2831.5.
 A community renewables facility is not an electrical corporation, as defined in Section 218, or an electric service provider, as defined in Section 218.3, solely by virtue of being a community renewables facility.
2832.
 (a) An electrical corporation shall provide, via a tariff advice filing or application approved by the commission, a community renewables option that allows a subscribing customer’s bill to be adjusted to reflect the customer’s subscription.
(b) The electrical corporation shall charge a community renewables rate in place of the customer’s otherwise applicable generation rate for the customer’s subscription amount. Other application electricity charges shall remain without modification. The community renewables rate shall ensure that nonsubscribing customers are unaffected by the community renewables option.
(c) In approving the community renewables option, the commission shall ensure all of the following:
(1) Customers that do not participate in the community renewables option are indifferent to whether other customers participate in the community renewables option, and no costs are shifted from subscribing customers to nonsubscribing customers.
(2) An electric generation facility that executes a power purchase contract with an electrical corporation may, in its sole discretion, make an election to become a community renewables facility.
(3) An electric generation facility that has begun commercial operation before the community renewables option is implemented may, for a limited time to be determined by the commission, in the electric generation facility’s sole discretion, make an election to become a community renewables facility.
(4) (A) The community renewables facility is solely responsible for any and all arrangements, agreements, or disputes with its subscribing customers concerning their subscription or subscriptions to the output of the community renewables facility. The community renewables facility shall communicate, in writing, to the electrical corporation, in a timely manner, to be specified in the electrical corporation’s tariff and contract, but not less than once per year, information necessary for the electrical corporation to administer the community renewables option that includes, but is not limited to, all of the following:
(i) The name of each subscribing customer.
(ii) The service address and service account number of each subscribing customer to which a bill adjustment should be applied.
(iii) Each subscribing customer’s subscription amount.
(B) The electrical corporation shall not be a party to an arrangement or agreement between the community renewables facility and the subscribing customer.
(C) A customer’s subscription to the output of a community renewables facility pursuant to this section is a not a direct transaction pursuant to subdivision (c) of Section 331.
(5) (A) The community renewables facility shall be required to establish, in its contract with the electrical corporation under an eligible procurement program, the portion of the facility’s output that will be subscribed to by subscribing customers under the community renewables option.
(B) The electrical corporation shall have the right to recover from the community renewables facility any procurement costs that are above the procurement costs that would otherwise be incurred by the electrical corporation in meeting its renewables portfolio standard procurement requirements pursuant to Section 399.15 due to a community renewables facility’s failure to maintain subscriptions for the portion of the facility output as contractually agreed to in subparagraph (A).
(6) The electrical corporation shall pay the community renewables facility for any unsubscribed output, as determined in establishing the subscribed output pursuant to subparagraph (A) of paragraph (5), by multiplying the unsubscribed output by the contract price.
(7) (A) Customer subscriptions shall not be credited towards the electrical corporation’s procurement requirements pursuant to Section 399.15 or the electrical corporation’s proportionate share of an eligible procurement program’s statewide cap.
(B) Incremental procurement under this section shall be limited to the electricity necessary to serve the community renewables subscription amounts of subscribing customers. This section does not require an electrical corporation to procure or pay for unsubscribed output in excess of an eligible procurement program’s statewide cap.
(C) In calculating its procurement requirements pursuant to Section 399.15, an electrical corporation may exclude from the total retail sales the kilowatthours subscribed to by participating customers pursuant to this section.
(8) Any unsubscribed output from a community renewables facility shall continue to be credited towards the electrical corporation’s procurement requirements pursuant to Section 399.15 and shall count toward the electrical corporation’s proportionate share of the eligible procurement program’s statewide cap.
(d) No later than July 1, 2014, the commission shall authorize the tariff for the community renewables option consistent with this section, including setting a reasonable cap on total megawatts that can be subscribed to under a community renewables program pursuant to this section, not to exceed 600 megawatts statewide and to be coordinated with any other customer renewable option or green rate programs. The commission shall ensure that the megawatts offered under this cap are both of the following:
(1) Allocated among electrical corporations in proportion to their contribution to statewide peak electricity demand.
(2) Distributed evenly over the life of the community renewables program.
(e) An electrical corporation shall recover from the community renewables facility any costs of implementing the community renewables option reasonably attributable to the community facility. Any implementation costs not reasonably attributable to the community renewables facility shall be recovered from participating ratepayers, as determined by the commission.
(f) If a customer participates in direct transactions pursuant to paragraph (1) of subdivision (b) of Section 365 or Section 365.1, the electrical corporation that provides distribution service for the customer is not obligated to allow that customer to participate in a community renewables option.
(g) (1) On and after January 1, 2016, the commission shall evaluate the demand for the community renewables option and consider whether to continue offering a community renewables option.
(2) If the commission determines that the community renewables option should terminate, the commission shall issue an order to that effect and deliver a copy of the order to the Secretary of State. The section shall become inoperative on the effective date of the order.
(h) An electrical corporation may voluntarily offer a renewable energy tariff to its retail customers notwithstanding any limitation in paragraph (3) of subdivision (b) of Section 399.15. Nothing in Section 399.15 shall prohibit an electrical corporation from voluntarily offering a renewable energy tariff.
2832.5.
 A local publicly owned electric utility required to comply with Section 399.32 may offer a community renewables option for an electric generation facility as defined in Section 399.32.
2833.
 This chapter shall remain in effect only until January 1, 2020, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date.