California Assembly Bill AB2498 Amended / Bill

 BILL NUMBER: AB 2498AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 5, 2010 INTRODUCED BY Assembly Member Skinner FEBRUARY 19, 2010 An act to amend Section  2840.6   2840.2  of the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGEST AB 2498, as amended, Skinner. Combined heat and power systems. The existing Waste Heat and Carbon Emissions Reduction Act authorizes the Public Utilities Commission to require an electrical corporation to purchase excess electricity, as defined, from an eligible customer, as defined, of the electrical corporation that is delivered by a combined heat and power system, as defined, that complies with the sizing, energy efficiency, and air pollution control requirements of the act.  The act states the intent of the Legislature that state policies dramatically advance the efficiency of the state's use of natural gas by capturing unused waste heat, and in so doing, help offset the growing crisis in electricity supply and transmission congestion in the state.   This bill would make a technical, nonsubstantive revision to these provisions.   This bill would redefine combined heat and power system and greenhouse gas or greenhouse gases for purposes of the act.  Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 2840.2 of the   Public Utilities Code   is amended to read:  2840.2. For purposes of this article, the following terms have the following meanings: (a) "Combined heat and power system" means a system that produces both electricity and thermal energy for heating or cooling from a single fuel input that meets all of the following: (1) Is interconnected to, and operates in parallel with, the electric transmission and distribution grid. (2) Is sized to meet the eligible customer-generator's onsite thermal demand. (3) Meets the efficiency standards of subdivisions (a) and (d)  of Section 2843  ,  and  the greenhouse gases emissions performance standard of subdivision (f) of Section 2843  , and any applicable greenhouse gas emission reduction measure adopted by the State Air Resources Board pursuant to Division 25.5 (commencing with Section 38500)of the Health and Safety Code  . (b) "Eligible customer-generator" means a customer of an electrical corporation that meets both of the following requirements: (1) Uses a combined heat and power system with a generating capacity of not more than 20 megawatts, that first commences operation on or after January 1, 2008. (2) Uses a time-of-use meter capable of registering the flow of electricity in two directions. If the existing electrical meter of an eligible customer-generator is not capable of measuring the flow of electricity in two directions, the eligible customer-generator shall be responsible for all expenses involved in purchasing and installing a meter that is able to measure electricity flow in two directions. If an additional meter or meters are installed, the electricity flow calculations shall yield a result identical to that of a time-of-use meter. (c) "Electrical corporation" has the same meaning as defined in Section 218. (d) "Energy Commission" means the State Energy Resources Conservation and Development Commission. (e) "Excess electricity" means the net electricity exported to the electrical grid, generated by a combined heat and power system that is in compliance with Section 2843. (f) "Greenhouse gas" or "greenhouse gases"  includes all of the following gases: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride   shall have the same meanings as defined in Section 38505 of the Health and Safety Code  .  SECTION 1.   Section 2840.6 of the Public Utilities Code is amended to read: 2840.6. (a) It is the intent of the Legislature that state policies dramatically advance the efficiency of the state's use of natural gas by capturing unused waste heat, and in so doing, help offset the growing crisis in electricity supply and to relieve transmission congestion in the state. (b) It is the intent of the Legislature to reduce wasteful consumption of energy through improved residential, commercial, institutional, industrial, and manufacturer utilization of waste heat whenever it is cost effective, technologically feasible, and environmentally beneficial, particularly when this reduces emissions of carbon dioxide and other carbon-based greenhouse gases. (c) It is the intent of the Legislature to support and facilitate both customer- and utility-owned combined heat and power systems. (d) This article does not apply to, and shall not impact, combined heat and power systems in operation prior to January 1, 2008, or combined heat and power systems with a generating capacity greater than 20 megawatts.