Today's Law As Amended


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AB-1139 Net energy metering.(2021-2022)



As Amends the Law Today


SECTION 1.

 Section 913.13 is added to the Public Utilities Code, to read:

913.13.
 The commission shall annually report, to be included in the assessment required by Section 913.7, on progress made to grow use of distributed energy resources among residential customers in disadvantaged communities.

SEC. 2.

 Section 2827.1 of the Public Utilities Code is amended to read:

2827.1.
 (a) For purposes of this section, “eligible customer-generator,” “large electrical corporation,” and “renewable electrical generation facility” have the same meanings as defined in Section 2827.
(b) Notwithstanding any other law, the commission shall develop a standard contract or tariff, which may include net energy metering, for eligible customer-generators with a renewable electrical generation facility that is a customer of a large electrical corporation no later than December 31, 2015. The commission may develop the standard contract or tariff prior to December 31, 2015, and may require a large electrical corporation that has reached the net energy metering program limit of subparagraph (B) of paragraph (4) of subdivision (c) of Section 2827 to offer the standard contract or tariff to eligible customer-generators.  August 1, 2022.  A large electrical corporation shall offer the standard contract or tariff to an eligible customer-generator beginning July 1, 2017, or prior to that date if ordered to do so by the commission because it has reached the net energy metering program limit of subparagraph (B) of paragraph (4) of subdivision (c) of Section 2827.  no later than December 31, 2023.  The commission may revise the standard contract or tariff as appropriate to achieve the objectives of this section. In developing the standard contract or tariff, the commission shall do all of the following:
(1) Ensure that the standard contract or tariff made available to eligible customer-generators ensures that customer-sited renewable distributed generation continues to grow sustainably and include  specific alternatives designed for growth among residential customers in disadvantaged communities.
(2) Establish terms of service and billing rules for eligible customer-generators.
(3) Ensure that the standard contract or tariff made available to eligible customer-generators is based on the costs and benefits of the renewable electrical generation facility.
(4) Ensure that the total benefits of the standard contract or tariff to all customers and the electrical system are approximately equal to the total costs.
(5) Allow projects greater than one megawatt that do not have significant impact on the distribution grid to be built to the size of the onsite load if the projects with a capacity of more than one megawatt are subject to reasonable interconnection charges established pursuant to the commission’s Electric Rule 21 and applicable state and federal requirements.
(6) Establish a transition period during which eligible customer-generators taking service under a net energy metering tariff or contract prior to July 1, 2017, or until the electrical corporation reaches its net energy metering program limit pursuant to subparagraph (B) of paragraph (4) of subdivision (c) of Section 2827, whichever is earlier, shall be eligible to continue service under the previously applicable net energy metering tariff for a length of time to be determined by the commission by March 31, 2014. Any rules adopted by the commission shall consider a reasonable expected payback period based on the year the customer initially took service under the tariff or contract authorized by Section 2827.
(7) (6)  The commission shall determine  Determine  which rates and tariffs are applicable to customer generators only during a rulemaking proceeding. Any fixed charges for residential customer generators that differ from the fixed charges allowed pursuant to subdivision (f) of Section 739.9 shall be authorized only in a rulemaking proceeding involving every large electrical corporation. The commission shall ensure customer generators are provided electric service at rates that are just and reasonable.
(c) Beginning July 1, 2017, or when ordered to do so by the commission because the  All new eligible customer-generators of a  large electrical corporation has reached its capacity limitation of subparagraph (B) of paragraph (4) of subdivision (c) of Section 2827, all new eligible customer-generators  shall be subject to the standard contract or tariff developed by the commission and any rules, terms, and rates developed pursuant to subdivision (b).  (b) by no later than December 31, 2023.  There shall be no limitation on the amount of generating capacity or number of new eligible customer-generators entitled to receive service pursuant to the standard contract or tariff after July 1, 2017. An eligible customer-generator that has received service under a net energy metering standard contract or tariff pursuant to Section 2827 that is no longer eligible to receive service shall be eligible to receive service pursuant to the standard contract or tariff developed by the commission pursuant to this section. tariff. 
(d) (1) For purposes of this subdivision, the following terms have the following meanings:
(A) “Prior tariff” means a net energy metering tariff approved by the commission pursuant to either Section 2827 or this section as it read prior to the addition of this subdivision.
(B) “Replacement tariff” means the contract or tariff that the commission is required to develop and adopt for large electrical corporations by August 1, 2022, pursuant to subdivision (b).
(2) (A) Except as provided in subparagraph (B), an eligible customer-generator of a large electrical corporation receiving service pursuant to a prior tariff shall be transferred to receive service pursuant to the replacement tariff no later than 10 years from the date that customer first received service pursuant to the prior tariff.
(B) (i) A nonresidential eligible customer-generator of a large electrical corporation that continues to pay a demand charge or connected load charge under the prior tariff may continue to take service under the prior tariff for 20 years from the date that eligible customer-generator first received net energy metering service.
(ii) A residential eligible customer-generator who owns or is a tenant of the owner of the renewable electrical generation facility shall be permitted to continue to take service under the prior tariff for up to 20 years from the date that customer first received net energy metering. For these purposes, a renewable electrical generation facility is not owned if it is subject to a lease or electricity purchase agreement.
(e) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of any renewable electrical generation facility after December 31, 2023, that is to receive service pursuant to the replacement tariff, shall constitute a public works project for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code. For purposes of this subdivision, “replacement tariff” has the same meaning as defined in subdivision (d).

SEC. 3.

 Section 2827.2 is added to the Public Utilities Code, to read:

2827.2.
 (a) For purposes of this section, the following terms have the following meanings:
(1) “Eligible customer-generator,” “large electrical corporation,” and “renewable electrical generation facility” have the same meanings as defined in Section 2827.
(2) “Prior tariff” means a net energy metering tariff approved by the commission pursuant to either Section 2827 or 2728.1 as it read on December 31, 2021.
(3) “Replacement tariff” means the contract or tariff that the commission is required to develop and adopt for large electrical corporations by August 1, 2022, pursuant to subdivision (b) of Section 2827.1.
(b) If the commission fails to adopt a replacement tariff for large electrical corporations by August 1, 2022, the commission shall develop a net energy metering tariff for large electrical corporations, to take effect no later than December 31, 2023, that does all of the following:
(1) Cost-effectively achieves the policy goals and objectives of the state described in Sections 454.51, 454.52, and 454.53, and includes specific alternatives designed for growth among residential customers in disadvantaged communities.
(2) Is based on the costs and benefits of the renewable electrical generation facility for nonparticipating ratepayers.
(3) Ensures that the nonparticipating ratepayer benefits of the standard contract or tariff exceeds or is approximately equal to the benefits to participating eligible customer-generators.
(4) Not impose costs on customers who do not utilize a net energy metering tariff.
(5) Credits the eligible customer-generator for any electricity exported to the electrical grid at a rate equal to the electrical corporation’s avoided cost as determined by the avoided cost calculator most recently adopted by the commission.
(c) (1) Except as provided in paragraph (2), an eligible customer-generator of a large electrical corporation receiving service pursuant to a prior tariff shall be transferred to receive service pursuant to the tariff adopted pursuant to subdivision (b) no later than 10 years from the date that customer first received service pursuant to the prior tariff.
(2) (A) A nonresidential eligible customer-generator of a large electrical corporation that continues to pay a demand charge or connected load charge under the prior tariff may continue to take service under the prior tariff for 20 years from the date that eligible customer-generator first received net energy metering service.
(B) A residential eligible customer-generator who owns or is a tenant of the owner of the renewable electrical generation facility shall be permitted to continue to take service under the prior tariff for up to 20 years from the date that customer first received net energy metering. For these purposes, a renewable electrical generation facility is not owned if it is subject to a lease or electricity purchase agreement.
(d) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of any renewable electrical generation facility after December 31, 2023, that is to receive service pursuant to the tariff adopted pursuant to subdivision (b), shall constitute a public works project for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.
SEC. 4.
 (a) For purposes of this section, the following terms have the following meanings:
(1) “Prior tariff” means a net energy metering tariff approved by the Public Utilities Commission pursuant to Section 2827.1 of the Public Utilities Code, as it read prior to the operative date of this section.
(2) “Replacement tariff” means the contract or tariff that the Public Utilities Commission is required to develop and adopt for large electrical corporations by August 1, 2022, pursuant to subdivision (b) of Section 2827.1 of, or the tariff developed pursuant to Section 2827.2 of, the Public Utilities Code.
(b) Until a replacement tariff is adopted and takes effect, all prior tariffs adopted by the Public Utilities Commission shall remain in operation.
SEC. 5.
 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.