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SB-851 Self-generation incentive program.(2023-2024)



Current Version: 05/02/23 - Amended Senate

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SB851:v96#DOCUMENT

Amended  IN  Senate  May 02, 2023
Amended  IN  Senate  March 30, 2023
Amended  IN  Senate  March 20, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 851

Introduced by Senator Stern

February 17, 2023

An act to amend Section 379.10 of the Public Utilities Code, relating to electricity.


LEGISLATIVE COUNSEL'S DIGEST


SB 851, as amended, Stern. Self-generation incentive program.
Existing law requires the Public Utilities Commission to require the administration, until January 1, 2026, of a self-generation incentive program to increase the deployment of distributed generation resources and energy storage systems. Existing law requires the commission, in administering the program, to use funds that are appropriated by the Legislature, as provided, for the purpose of providing incentives to eligible residential customers who install behind-the-meter energy storage systems or solar photovoltaic systems paired with energy storage systems. Existing law requires the commission to allocate 70% of that funding for incentives to eligible-low income residential customers who install either new behind-the-meter solar photovoltaic systems paired with energy storage systems or new energy storage systems.
This bill instead would require, among other things, that the incentives described above for eligible residential households be used in addition to the self-generation incentive program. The bill would require the commission to establish a system to equitably award incentives and set incentive levels, as specified. To ensure equitable access to those incentives for eligible residential customers, the bill would require the commission to establish new technology guidelines, as specified. to support adoption of commercially available behind-the-meter solar photovoltaic systems and energy storage systems by eligible residential customers. The bill would also require the commission to establish a block grant structure and associated guidelines for California Indian tribes, community-based service providers, local publicly owned electric utilities, and community choice aggregators to apply on behalf of eligible low-income residential households. entities with demonstrated success in providing service to low-income populations in the state.
Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because a violation of an order or decision of the commission implementing the above-described requirements would be a crime, this bill would impose a state-mandated local program.
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.

(a)The Legislature finds and declares all of the following:

(1)Increased frequency of extreme weather events due to climate change is challenging grid reliability and has accelerated customer adoption of onsite renewable generation and energy storage technology through the self-generation incentive program established pursuant to Section 379.6 of the Public Utilities Code to increase customer resiliency to power outages.

(2)Continued state funding to support customer adoption of onsite renewable generation and energy storage systems will require a fresh and integrated approach to enable resiliency, building decarbonization, transportation electrification, and demand flexibility to improve overall grid reliability and resiliency.

(3)Existing program design barriers have also prevented equitable access to self-generation incentive program funds, in which low-income households account for only about 1 percent of program participants. Complex rules have also precluded the participation of the most vulnerable low-income households, such as low-income renters or rural households lacking adequate electricity infrastructure access.

(4)An equitable program to support the adoption of onsite renewable generation and energy storage systems will require a departure from the existing self-generation incentive program framework and the creation of a new program paradigm.

(b)It is the intent of the Legislature that General Fund moneys appropriated to implement Section 379.10 of the Public Utilities Code should require significant reconsideration of the past programmatic paradigm to achieve broad decarbonization and climate equity benefits.

SEC. 2.SECTION 1.

 Section 379.10 of the Public Utilities Code is amended to read:

379.10.
 (a) In addition to the self-generation incentive program pursuant to Section 379.6, the commission shall use funds appropriated by the Legislature for the purpose of providing incentives to eligible residential households, including those receiving service from a local publicly owned electric utility, as defined pursuant to Section 224.3, who install behind-the-meter energy storage systems or renewable generation solar photovoltaic systems paired with energy storage systems, as an integrated approach to increase individual customer resiliency, to reduce the electrical grid’s net peak demand, to reduce electric ratepayer costs, to reduce energy costs for residential households, and to reduce emissions of greenhouse gases and localized air pollution. The commission shall allocate funding pursuant to this section as follows:
(1) Seventy percent for incentives to eligible low-income residential customers who install either new onsite renewable generation behind-the-meter solar photovoltaic systems paired with energy storage systems or new energy storage systems.
(2) Thirty percent for incentives to residential customers who install new onsite behind-the-meter energy storage systems.
(b) The commission shall establish a system to equitably award incentives to support adoption of commercially available onsite renewable generation behind-the-meter solar photovoltaic systems and energy storage systems by eligible residential customers. In establishing the system, the commission shall set incentive levels and enable one or more of the following:

(1)Expanded capacity to achieve substantial reductions in emissions through building decarbonization, transportation electrification, and other fuel switching to reduce onsite fossil fuel use.

(2)Increased resiliency and ability to isolate during periods of electrical system disruptions to mitigate the impact of outage events on individual households.

(3)Automated or programmable load management to reduce net-peak energy consumption to reduce demand and support electrical grid reliability.

(c)To ensure equitable access to funding provided under subdivision (a) to eligible residential customers, the commission shall also establish new technology guidelines to benefit renters, the access and functional needs population, as defined in Section 8593.3 of the Government Code, and low-income rural households lacking reliable electricity infrastructure access.

(d)

(c) The commission shall establish a block grant structure and associated guidelines for California Indian tribes, as defined in subdivision (c) of Section 8012 of the Health and Safety Code, community-based service providers, including nonprofit organizations providing renewable energy and energy storage installations to low- and moderate-income residents, local publicly owned electric utilities, as defined pursuant to Section 224.3, and community choice aggregators to apply on behalf of eligible low-income residential households. entities with demonstrated success in providing service to low-income populations in the state.

(e)

(d) (1) Resources eligible for incentives under this section shall include mobile and nonmobile energy storage and onsite renewable or zero-carbon energy generation behind-the-meter solar photovoltaic systems that enables customer demand management, building decarbonization, managed charging of electric vehicles, and clean backup power. The commission shall award no more than 5 percent of funds for mobile energy storage.
(2) To receive an incentive under this section, any resource that generates electricity, or stores electricity from the electrical grid or another generation resource, solar photovoltaic system and energy storage system shall meet one of the following conditions: emit no air pollution or greenhouse gases, including when used to displace use of fossil-fueled portable generators.

(A)Be a “renewable electrical generation facility” as defined in Section 25741 of the Public Resources Code.

(B)Be a “zero-carbon resource” pursuant to Section 454.53.

(C)Be a mobile energy storage device that emits no air pollution or greenhouse gases when used to displace use of fossil-fueled portable generators.

(f)

(e) The commission shall consider requiring customers installing renewable generation solar photovoltaic systems paired with energy storage systems or new energy storage systems under this section and served on a standard contract or tariff pursuant to Section 2827.1 to participate in a demand response or peak load reduction program offered through the customer’s load-serving entity, including market-integrated supply-side demand response programs, to reduce net peak demand.

SEC. 3.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.