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

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Date Published: 05/28/2021 09:00 PM
AB1139:v95#DOCUMENT

Amended  IN  Assembly  May 28, 2021
Amended  IN  Assembly  May 11, 2021
Amended  IN  Assembly  May 04, 2021
Amended  IN  Assembly  April 08, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1139

Introduced by Assembly Members Lorena Gonzalez and Carrillo
(Principal coauthor: coauthors: Assembly Member Members Cooper and Quirk)

February 18, 2021

An act to amend Section 2827.1 of, and to add Sections 913.13 and 2827.2 to, the Public Utilities Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1139, as amended, Lorena Gonzalez. Net energy metering.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law requires every electric utility, defined to include electrical corporations, local publicly owned electric utilities, and electrical cooperatives, to develop a standard contract or tariff for net energy metering, as defined, for generation by a renewable electrical generation facility, as defined, and to make this contract or tariff available to eligible customer-generators, as defined, upon request on a first-come-first-served basis until the time that the total rated generating capacity used by eligible customer generators exceeds 5% of the electric utility’s aggregate customer peak demand. For a large electrical corporation, as defined, existing law requires the commission to have developed a 2nd standard contract or tariff to provide net energy metering to additional eligible customer-generators in the electrical corporation’s service territory and imposes no limitation on the number of new eligible customer-generators entitled to receive service pursuant to this 2nd standard contract or tariff. Existing law requires the commission to ensure that the 2nd standard contract or tariff made available to eligible customer-generators by large electrical corporations ensures that customer-sited renewable distributed generation continues to grow sustainably. Existing law requires the commission, in developing this standard contract or tariff, to include specific alternatives designed for growth among residential customers in disadvantaged communities.
This bill would require the commission, no later than February August 1, 2022, to develop a replacement for the 2nd standard contract or tariff, which may include net energy metering, for an eligible customer-generator with a renewable electrical generation facility that is a customer of a large electrical corporation, and would require that large electrical corporations offer the standard contract or tariff to eligible customer-generators beginning no later than December 31, 2023. The bill would eliminate the requirement that the large electrical corporation tariff or contract ensure that customer-sited renewable distributed generation continues to grow sustainably. The bill would require that a customer-generator of a large electrical corporation that receives service pursuant to the existing statutory net energy metering tariffs be transferred to the replacement tariff no later than 10 years from the date that customer first received service pursuant to those tariffs. tariffs, except as specified.
If the commission fails to adopt a replacement net energy metering tariff for large electrical corporations by February August 1, 2022, this bill would require the commission to develop a successor net energy metering tariff for large electrical corporations, to take effect no later than December 31, 2023, that does specified things, including having interconnection fees and monthly fixed charges based on the cost to interconnect and serve the eligible customer-generator and crediting the eligible customer-generator for any electricity exported to the electrical grid at a rate equal to the hourly wholesale market rate applicable at the time of the export and at the location of the eligible customer-generator. electrical corporation’s avoided cost. The bill would require that a an eligible customer-generator of a large electrical corporation that receives service pursuant to the existing statutory net energy metering tariffs be transferred to the successor tariff no later than 10 years from the date that customer first received service pursuant to those existing tariffs. tariffs, except as specified.
Existing law requires the PUC to submit various reports to the Legislature, as specified.
This bill would require the PUC to annually report to the Legislature, by June 30, on progress made to grow use of distributed energy resources among residential customers in disadvantaged communities.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because certain provisions of the bill would require an order, decision, rule, direction, demand, or requirement of the commission to implement, this bill would impose a state-mandated local program by creating new crimes.
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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


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 February August 1, 2022. A large electrical corporation shall offer the standard contract or tariff to an eligible customer-generator beginning 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 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) 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) All new eligible customer-generators of a large electrical corporation shall be subject to the standard contract or tariff developed by the commission and any rules, terms, and rates developed pursuant to subdivision (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.
(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 February August 1, 2022, pursuant to subdivision (b).
(2) An (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 February 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 February 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)Has interconnection fees and monthly fixed charges based on the cost to interconnect and serve the eligible customer-generator.

(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 hourly wholesale market rate applicable at the time of the export and at the location of the eligible customer-generator. electrical corporation’s avoided cost as determined by the avoided cost calculator most recently adopted by the commission.
(c) An (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 February 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.