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SB-46 Distributed energy resources.(2003-2004)

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SB46:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2003–2004 REGULAR SESSION

Senate Bill
No. 46

Introduced  by  Senator Alpert, Sher

January 09, 2003

An act to amend Section 353.1 of the Public Utilities Code, relating to energy, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


SB 46, as introduced, Alpert. Distributed energy resources.
(1) Existing law requires the Public Utilities Commission to require each electrical corporation under the operational control of the Independent System Operator as of January 1, 2001, to modify tariffs so that all customers that install new distributed energy resources in accordance with specified criteria are served under rates, rules, and requirements identical to those of a customer within the same rate schedule that does not use distributed energy resources, and to withdraw any provisions in otherwise applicable tariffs that activate other tariffs, rates, or rules if a customer uses distributed energy resources. Existing law defines “distributed energy resources” to mean any electric generation technology that meets certain criteria, including having commenced initial operation between May 1, 2001, and June 1, 2003, except that gas-fired distributed energy resources that are not operated in a combined heat and power application must commence operation no later than September 1, 2002.
This bill would expand that distributed energy resources criterion to include electric generation technology that commenced initial operation between May 1, 2001, and June 1, 2005, except that gas-fired distributed energy resources that are not operated in a combined heat and power application must commence operation no later than September 1, 2002. Because a violation of a requirement of the commission is a crime, the bill would impose a state-mandated local program by changing the definition of a crime. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(3) The bill would declare that it is take effect immediately as an urgency statute.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) The Public Utilities Commission has failed to implement provisions of Chapter 12 of the Statutes of 2001, 2001–2002 First Extraordinary Session of the Legislature, to direct electrical corporations to establish new tariffs that take into account the actual costs and benefits of distributed generation.
(b) The commission has failed to implement provisions of that chapter that require the commission to submit a report to the Legislature by June 1, 2002, describing the methodology to be used for determining standby rates and the process by which the rates will be established.
(c) As a result of inaction by the commission, standby fee tariffs continue to serve as a disincentive to the installation of distributed energy generation, which is acknowledged to provide energy certainty to the customer, relief to the energy distribution system, and diversity to the state’s energy portfolio.

SEC. 2.

 Section 353.1 of the Public Utilities Code is amended to read:

353.1.
 As used in this article, “distributed energy resources” means any electric generation technology that meets all of the following criteria:
(a) Commences initial operation between May 1, 2001, and June 1, 2003 2005, except that gas-fired distributed energy resources that are not operated in a combined heat and power application must commence operation no later than September 1, 2002.
(b) Is located within a single facility.
(c) Is five megawatts or smaller in aggregate capacity.
(d) Serves onsite loads or over-the-fence transactions allowed under Sections 216 and 218.
(e) Is powered by any fuel other than diesel.
(f) Complies with emission standards and guidance adopted by the State Air Resources Board pursuant to Sections 41514.9 and 41514.10 of the Health and Safety Code. Prior to the adoption of those standards and guidance, for the purpose of this article, distributed energy resources shall meet emissions levels equivalent to nine parts per million oxides of nitrogen, or the equivalent standard taking into account efficiency as determined by the State Air Resources Board, averaged over a three-hour period, or best available control technology for the applicable air district, whichever is lower, except for distributed generation units that displace and therefore significantly reduce emissions from natural gas flares or reinjection compressors, as determined by the State Air Resources Control Board. These units shall comply with the applicable best available control technology as determined by the air pollution control district or air quality management district in which they are located.

SEC. 3.

 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.

SEC. 4.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to remove barriers to clean distributed generation as soon as possible, thereby promoting energy reliability and energy portfolio diversity, it is necessary for this act to take effect immediately.