California Assembly Bill AB1113 Latest Draft

 BILL NUMBER: AB 1113AMENDED BILL TEXT AMENDED IN ASSEMBLY MARCH 25, 2011 INTRODUCED BY Assembly Member Galgiani FEBRUARY 18, 2011  An act to amend Section 33082 of the Food and Agricultural Code, relating to milk and milk products.   An act to amend Section 2827.9 of the Public Utilities Code, relating to energy.  LEGISLATIVE COUNSEL'S DIGEST AB 1113, as amended, Galgiani.  Milk and milk products.   Energy: agricultural byproducts.   Under existing law, the Public Utilities Commission has regulatory authority over public utilities, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Under existing law, electric utilities, as defined, are required to provide eligible customer-generators with net energy metering, as defined. Under existing law, electrical corporations are required to provide eligible biogas digester customer-generators, that commence operation by December 31, 2009, with net energy metering, as defined, under a pilot program.   This bill would replace the existing pilot program for eligible biogas digester customer-generators with a net energy metering program for eligible customer-generators, as defined, that use agricultural residues, animal wastes, or animal renderings to generate electricity and that meet certain requirements.   Existing law requires the Secretary of Food and Agriculture to supervise the operation of all approved milk inspection services, as specified, and the regulations which are adopted by him or her.   This bill would make a technical, nonsubstantive change to that provision.  Vote: majority. Appropriation: no. Fiscal committee:  no   yes  . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 2827.9 of the   Public Utilities Code   is amended to read:  2827.9. (a) (1) The Legislature finds and declares that a  pilot  program to provide net energy metering for eligible  biogas digester  customer-generators would enhance the continued diversification of California's energy resource mix and would encourage the installation of livestock air emission controls that the State Air Resources Board believes may produce multiple environmental benefits. (2) The Legislature further finds and declares that the net energy metering  pilot  program authorized pursuant to this section for eligible  biogas digester  customer-generators, which nets out generation charges against generation charges on a time-of-use basis, furthers the intent of Chapter 7 of the Statutes of 2001, First Extraordinary Session, by facilitating the implementation of energy efficiency programs in order to reduce consumption of energy, reduce the costs associated with energy demand, and achieve a reduction in peak electricity demand. (b) As used in this section, the following definitions apply: (1) "Electrical corporation" means an electrical corporation, as defined in Section 218. (2) (A) "Eligible  biogas digester  customer-generator" means a customer of an electrical corporation that meets both of the following criteria: (i) Uses  a biogas digester   an eligible  electrical generating facility with a capacity of not more than one megawatt that is located on or adjacent to the customer's owned, leased, or rented premises, is interconnected and operates in parallel with the electric grid, and is sized to offset part or all of the eligible  biogas digester  customer-generator' s own electrical requirements. (ii) Is the recipient of local, state, or federal funds, or who self-finances pilot projects designed to encourage the development of eligible  biogas digester  electrical generating facilities. (B) Notwithstanding subparagraph (A), up to three large  biogas digester  electrical generating facilities with a generating capacity of more than one megawatt and not more than 10 megawatts, otherwise meeting the criteria of this section, shall be eligible for participation in the  pilot  program. (3) "Eligible  biogas digester  electrical generating facility" means  a generating facility used to produce electricity by either a manure methane production project or as a byproduct of the anaerobic digestion of biosolids and animal waste   any facility that produces electricity using (A) agricultural residues, including orchard trimmings and rice straw, (B) animal wastes, including   manure and poultry litter, or (C) animal renderings, that does not use municipal solid waste and produces no hazardous waste or discharge to surface or ground waters of the state  . (4) "Net energy metering" means measuring the difference between the electricity supplied through the electric grid and the difference between the electricity generated by an eligible  biogas digester  customer-generator and fed back to the electric grid over a 12-month period as described in subdivision (e). Net energy metering shall be accomplished using a time-of-use meter capable of registering the flow of electricity in two directions. If the existing electrical meter of an eligible  biogas digester  customer-generator is not capable of measuring the flow of electricity in two directions, the eligible  biogas digester  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 net energy metering calculation shall yield a result identical to that of a time-of-use meter. (c) Every electrical corporation shall file with the commission a standard tariff providing for net energy metering for eligible  biogas digester  customer-generators, consistent with this section. Every electrical corporation shall make this tariff available to eligible  biogas digester  customer-generators upon request, on a first-come-first-served basis, until the combined statewide cumulative rated generating capacity used by the eligible  biogas digester  customer-generators in the service territories of the three largest electrical corporations in the state reaches  50 megawatts. An eligible biogas digester   70 megawatts for eligible electrical generating facilities. An eligible  customer-generator shall be eligible for the tariff for the life of the eligible  biogas digester  electrical generating facility. (d) Each net energy metering contract or tariff shall be identical, with respect to rate structure, all retail rate components, and any monthly charges, to the contract or tariff to which the same customer would be assigned if the customer was not an eligible  biogas digester  customer-generator, except as set forth in subdivision (e). Any new or additional demand charge, standby charge, customer charge, minimum monthly charge, interconnection charge, or other charge that would increase an eligible  biogas digester  customer-generator's costs beyond those of other customers in the rate class to which the eligible  biogas digester  customer-generator would otherwise be assigned are contrary to the intent of this legislation, and shall not form a part of net energy metering tariffs. (e) The net energy metering calculation shall be made by measuring the difference between the electricity supplied to the eligible customer-generator and the electricity generated by the eligible customer-generator and fed back to the electric grid over a 12-month period. The following rules shall apply to the annualized metering calculation: (1) The eligible  biogas digester  customer-generator shall, at the end of each 12-month period following the date of final interconnection of the eligible  biogas digester customer-generator's system   electrical generating facility  with an electrical corporation, and at each anniversary date thereafter, be billed for electricity used during that period. The electrical corporation shall determine if the eligible  biogas digester  customer-generator was a net consumer or a net producer of electricity during that period. For purposes of determining if the  biogas digester   eligible  customer-generator was a net consumer or a net producer of electricity during that period, the electrical corporation shall aggregate the electrical load of  a dairy   an agricultural  operation under the same ownership, including, but not limited to, the electrical load attributable to  milking operations, milk refrigeration   operating the agricultural production facility  , and water pumping located on property adjacent or contiguous to the  dairy   property on   which the eligible electrical generating facility is loc   ated  . Each aggregated account shall be billed and measured according to a time-of-use rate schedule. (2) At the end of each 12-month period, where the electricity supplied during the period by the electrical corporation exceeds the electricity generated by the eligible  biogas digester  customer-generator during that same period, the eligible  biogas digester  customer-generator is a net electricity consumer and the electrical corporation shall be owed compensation for the eligible  biogas digester  customer-generator's net kilowatthour consumption over that same period. The compensation owed for the eligible  biogas digester  customer-generator's consumption shall be calculated as follows: (A) The generation charges for any net monthly consumption of electricity shall be calculated according to the terms of the tariff to which the same customer would be assigned to or be eligible for if the customer was not an eligible  biogas digester  customer-generator. When those eligible  biogas digester  customer-generators are net generators during any discrete time-of-use period, the net kilowatthours produced shall be valued at the same price per kilowatthour as the electrical corporation would charge for retail kilowatthour sales for generation, exclusive of any surcharges, during that same time-of-use period. If the eligible  biogas digester  customer-generator's time-of-use electrical meter is unable to measure the flow of electricity in two directions, paragraph (4) of subdivision (b) shall apply. All other charges, other than generation charges, shall be calculated in accordance with the eligible  biogas digester  customer-generator's applicable tariff and based on the total killowatthours delivered by the electrical corporation to the eligible  biogas digester  customer-generator. To the extent that charges for transmission and distribution services are recovered through demand charges in any particular month, no standby reservation charges shall apply in that monthly billing cycle. (B) The net balance of moneys owed shall be paid in accordance with the electrical corporation's normal billing cycle. (3) At the end of each 12-month period, where the electricity generated by the eligible  biogas digester  customer-generator during the 12-month period exceeds the electricity supplied by the electrical corporation during that same period, the eligible  biogas digester  customer-generator is a net electricity producer and the electrical corporation shall retain any excess kilowatthours generated during the prior 12-month period. The eligible  biogas digester  customer-generator shall not be owed any compensation for those excess kilowatthours. (4) If an eligible  biogas digester  customer-generator terminates service with the electrical corporation, the electrical corporation shall reconcile the eligible  biogas digester  customer-generator's consumption and production of electricity during any 12-month period. (f) No  biogas digester   eligible  electrical generating facility shall be eligible for participation in the tariff established pursuant to this section, that has not commenced operation by December 31, 2009.  A biogas   An eligible   digester  customer-generator shall be eligible for the tariff established pursuant to this section, only for the operating life of the eligible  biogas digester  electrical generating facility. (g) No  biogas digester  electrical generating facility that is subject to the best available control technology (BACT) requirements shall be eligible for participation in the tariff pursuant to this section unless the  biogas digester  electrical generating facility has installed the best available control technology as required by the  regional   applicable  air pollution control district  or air quality management district  at the time of installation to ensure the maximum feasible reductions in toxic and criteria pollutants. (h) On or before December 31, 2008, the commission, in collaboration with the State Air Resources Board, shall report to the Legislature all of the following information: (1) The impact of the  pilot  program on emissions of air pollutants. (2) The impact of the  pilot  program on the reliability of the transmission and distribution grid. (3) The impact of the  pilot  program on ratepayers.  SECTION 1.   Section 33082 of the Food and Agricultural Code is amended to read: 33082. The secretary shall supervise the operation of all approved milk inspection services in the enforcement of this division and the regulations which are adopted by him or her.