CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1552Introduced by Assembly Member Quirk-SilvaFebruary 17, 2017 An act to add Section 354 to the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 1552, as introduced, Quirk-Silva. Electricity: distributed generation.Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the PUC to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the PUC 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, as defined, 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 provides, notwithstanding these requirements, that a customer that installs new distributed energy resources not be exempted from (1) reasonable interconnection charges, (2) charges imposed pursuant to the Reliable Electric Service Investment Act, and (3) charges imposed to repay the Department of Water Resources for electricity procurement expenses incurred in response to the electricity crisis of 200001. Existing law requires the PUC, in establishing the rates applicable to customers that install new distributed energy resources, to create a firewall that segregates distribution cost recovery so that any net costs, taking into account the actual costs and benefits of distributed energy resources, proportional to each customer class, as determined by the PUC, resulting from the tariff modifications granted to members of each customer class may be recovered only from that class. This bill would, by July 1, 2018, to the extent authorized by federal law, require the states 3 largest electrical corporations to stop assessing utility-imposed nonbypassable charges against customers using clean distributed generation resources, as defined, for electricity generated and consumed on-site and instead require those customers to pay all applicable fees based only on electricity purchased from the electrical corporation that is delivered over the electrical grid.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the PUC implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 354 is added to the Public Utilities Code, to read:354. (a) As used in this section, clean distributed generation resource means a facility that is located on the customers premises and generates electricity, or electricity and useful heat, where the electricity generated is used for a purpose described in paragraph (1) or (2) of subdivision (b) of Section 218, and that meets, as determined for each year of eligibility based on the then current criteria, either of the following requirements:(1) It meets all of the following criteria:(A) Complies with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements (Section 94203 of Title 17 of the California Code of Regulations).(B) Has a nameplate rated generation capacity of 10 megawatts or less.(C) Is sized to meet the electrical demand of, or use the available waste heat of, the customer that will be served by the facility.(2) It meets all of the following criteria:(A) Is an eligible renewable energy resource, pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11)).(B) Has a nameplate rated generation capacity of 15 megawatts or less.(C) Is sized to meet the electrical demand of the customer that will be served by the facility.(D) Will not otherwise be addressed in the commissions implementation of Section 769 or 2827.1.(b) To the extent authorized by federal law, by July 1, 2018, the commission shall require the states three largest electrical corporations to stop assessing utility-imposed nonbypassable charges against customers using clean distributed generation resources for electricity generated and consumed on-site and instead require those customers to pay all applicable fees based only on electricity purchased from the electrical corporation that is delivered over the electrical grid.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1552Introduced by Assembly Member Quirk-SilvaFebruary 17, 2017 An act to add Section 354 to the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 1552, as introduced, Quirk-Silva. Electricity: distributed generation.Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the PUC to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the PUC 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, as defined, 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 provides, notwithstanding these requirements, that a customer that installs new distributed energy resources not be exempted from (1) reasonable interconnection charges, (2) charges imposed pursuant to the Reliable Electric Service Investment Act, and (3) charges imposed to repay the Department of Water Resources for electricity procurement expenses incurred in response to the electricity crisis of 200001. Existing law requires the PUC, in establishing the rates applicable to customers that install new distributed energy resources, to create a firewall that segregates distribution cost recovery so that any net costs, taking into account the actual costs and benefits of distributed energy resources, proportional to each customer class, as determined by the PUC, resulting from the tariff modifications granted to members of each customer class may be recovered only from that class. This bill would, by July 1, 2018, to the extent authorized by federal law, require the states 3 largest electrical corporations to stop assessing utility-imposed nonbypassable charges against customers using clean distributed generation resources, as defined, for electricity generated and consumed on-site and instead require those customers to pay all applicable fees based only on electricity purchased from the electrical corporation that is delivered over the electrical grid.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the PUC implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 1552
Introduced by Assembly Member Quirk-SilvaFebruary 17, 2017
Introduced by Assembly Member Quirk-Silva
February 17, 2017
An act to add Section 354 to the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1552, as introduced, Quirk-Silva. Electricity: distributed generation.
Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the PUC to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the PUC 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, as defined, 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 provides, notwithstanding these requirements, that a customer that installs new distributed energy resources not be exempted from (1) reasonable interconnection charges, (2) charges imposed pursuant to the Reliable Electric Service Investment Act, and (3) charges imposed to repay the Department of Water Resources for electricity procurement expenses incurred in response to the electricity crisis of 200001. Existing law requires the PUC, in establishing the rates applicable to customers that install new distributed energy resources, to create a firewall that segregates distribution cost recovery so that any net costs, taking into account the actual costs and benefits of distributed energy resources, proportional to each customer class, as determined by the PUC, resulting from the tariff modifications granted to members of each customer class may be recovered only from that class. This bill would, by July 1, 2018, to the extent authorized by federal law, require the states 3 largest electrical corporations to stop assessing utility-imposed nonbypassable charges against customers using clean distributed generation resources, as defined, for electricity generated and consumed on-site and instead require those customers to pay all applicable fees based only on electricity purchased from the electrical corporation that is delivered over the electrical grid.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the PUC implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.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.
Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the PUC to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law requires the PUC 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, as defined, 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 provides, notwithstanding these requirements, that a customer that installs new distributed energy resources not be exempted from (1) reasonable interconnection charges, (2) charges imposed pursuant to the Reliable Electric Service Investment Act, and (3) charges imposed to repay the Department of Water Resources for electricity procurement expenses incurred in response to the electricity crisis of 200001. Existing law requires the PUC, in establishing the rates applicable to customers that install new distributed energy resources, to create a firewall that segregates distribution cost recovery so that any net costs, taking into account the actual costs and benefits of distributed energy resources, proportional to each customer class, as determined by the PUC, resulting from the tariff modifications granted to members of each customer class may be recovered only from that class.
This bill would, by July 1, 2018, to the extent authorized by federal law, require the states 3 largest electrical corporations to stop assessing utility-imposed nonbypassable charges against customers using clean distributed generation resources, as defined, for electricity generated and consumed on-site and instead require those customers to pay all applicable fees based only on electricity purchased from the electrical corporation that is delivered over the electrical grid.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the PUC implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.
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.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 354 is added to the Public Utilities Code, to read:354. (a) As used in this section, clean distributed generation resource means a facility that is located on the customers premises and generates electricity, or electricity and useful heat, where the electricity generated is used for a purpose described in paragraph (1) or (2) of subdivision (b) of Section 218, and that meets, as determined for each year of eligibility based on the then current criteria, either of the following requirements:(1) It meets all of the following criteria:(A) Complies with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements (Section 94203 of Title 17 of the California Code of Regulations).(B) Has a nameplate rated generation capacity of 10 megawatts or less.(C) Is sized to meet the electrical demand of, or use the available waste heat of, the customer that will be served by the facility.(2) It meets all of the following criteria:(A) Is an eligible renewable energy resource, pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11)).(B) Has a nameplate rated generation capacity of 15 megawatts or less.(C) Is sized to meet the electrical demand of the customer that will be served by the facility.(D) Will not otherwise be addressed in the commissions implementation of Section 769 or 2827.1.(b) To the extent authorized by federal law, by July 1, 2018, the commission shall require the states three largest electrical corporations to stop assessing utility-imposed nonbypassable charges against customers using clean distributed generation resources for electricity generated and consumed on-site and instead require those customers to pay all applicable fees based only on electricity purchased from the electrical corporation that is delivered over the electrical grid.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 354 is added to the Public Utilities Code, to read:354. (a) As used in this section, clean distributed generation resource means a facility that is located on the customers premises and generates electricity, or electricity and useful heat, where the electricity generated is used for a purpose described in paragraph (1) or (2) of subdivision (b) of Section 218, and that meets, as determined for each year of eligibility based on the then current criteria, either of the following requirements:(1) It meets all of the following criteria:(A) Complies with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements (Section 94203 of Title 17 of the California Code of Regulations).(B) Has a nameplate rated generation capacity of 10 megawatts or less.(C) Is sized to meet the electrical demand of, or use the available waste heat of, the customer that will be served by the facility.(2) It meets all of the following criteria:(A) Is an eligible renewable energy resource, pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11)).(B) Has a nameplate rated generation capacity of 15 megawatts or less.(C) Is sized to meet the electrical demand of the customer that will be served by the facility.(D) Will not otherwise be addressed in the commissions implementation of Section 769 or 2827.1.(b) To the extent authorized by federal law, by July 1, 2018, the commission shall require the states three largest electrical corporations to stop assessing utility-imposed nonbypassable charges against customers using clean distributed generation resources for electricity generated and consumed on-site and instead require those customers to pay all applicable fees based only on electricity purchased from the electrical corporation that is delivered over the electrical grid.
SECTION 1. Section 354 is added to the Public Utilities Code, to read:
### SECTION 1.
354. (a) As used in this section, clean distributed generation resource means a facility that is located on the customers premises and generates electricity, or electricity and useful heat, where the electricity generated is used for a purpose described in paragraph (1) or (2) of subdivision (b) of Section 218, and that meets, as determined for each year of eligibility based on the then current criteria, either of the following requirements:(1) It meets all of the following criteria:(A) Complies with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements (Section 94203 of Title 17 of the California Code of Regulations).(B) Has a nameplate rated generation capacity of 10 megawatts or less.(C) Is sized to meet the electrical demand of, or use the available waste heat of, the customer that will be served by the facility.(2) It meets all of the following criteria:(A) Is an eligible renewable energy resource, pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11)).(B) Has a nameplate rated generation capacity of 15 megawatts or less.(C) Is sized to meet the electrical demand of the customer that will be served by the facility.(D) Will not otherwise be addressed in the commissions implementation of Section 769 or 2827.1.(b) To the extent authorized by federal law, by July 1, 2018, the commission shall require the states three largest electrical corporations to stop assessing utility-imposed nonbypassable charges against customers using clean distributed generation resources for electricity generated and consumed on-site and instead require those customers to pay all applicable fees based only on electricity purchased from the electrical corporation that is delivered over the electrical grid.
354. (a) As used in this section, clean distributed generation resource means a facility that is located on the customers premises and generates electricity, or electricity and useful heat, where the electricity generated is used for a purpose described in paragraph (1) or (2) of subdivision (b) of Section 218, and that meets, as determined for each year of eligibility based on the then current criteria, either of the following requirements:(1) It meets all of the following criteria:(A) Complies with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements (Section 94203 of Title 17 of the California Code of Regulations).(B) Has a nameplate rated generation capacity of 10 megawatts or less.(C) Is sized to meet the electrical demand of, or use the available waste heat of, the customer that will be served by the facility.(2) It meets all of the following criteria:(A) Is an eligible renewable energy resource, pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11)).(B) Has a nameplate rated generation capacity of 15 megawatts or less.(C) Is sized to meet the electrical demand of the customer that will be served by the facility.(D) Will not otherwise be addressed in the commissions implementation of Section 769 or 2827.1.(b) To the extent authorized by federal law, by July 1, 2018, the commission shall require the states three largest electrical corporations to stop assessing utility-imposed nonbypassable charges against customers using clean distributed generation resources for electricity generated and consumed on-site and instead require those customers to pay all applicable fees based only on electricity purchased from the electrical corporation that is delivered over the electrical grid.
354. (a) As used in this section, clean distributed generation resource means a facility that is located on the customers premises and generates electricity, or electricity and useful heat, where the electricity generated is used for a purpose described in paragraph (1) or (2) of subdivision (b) of Section 218, and that meets, as determined for each year of eligibility based on the then current criteria, either of the following requirements:(1) It meets all of the following criteria:(A) Complies with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements (Section 94203 of Title 17 of the California Code of Regulations).(B) Has a nameplate rated generation capacity of 10 megawatts or less.(C) Is sized to meet the electrical demand of, or use the available waste heat of, the customer that will be served by the facility.(2) It meets all of the following criteria:(A) Is an eligible renewable energy resource, pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11)).(B) Has a nameplate rated generation capacity of 15 megawatts or less.(C) Is sized to meet the electrical demand of the customer that will be served by the facility.(D) Will not otherwise be addressed in the commissions implementation of Section 769 or 2827.1.(b) To the extent authorized by federal law, by July 1, 2018, the commission shall require the states three largest electrical corporations to stop assessing utility-imposed nonbypassable charges against customers using clean distributed generation resources for electricity generated and consumed on-site and instead require those customers to pay all applicable fees based only on electricity purchased from the electrical corporation that is delivered over the electrical grid.
354. (a) As used in this section, clean distributed generation resource means a facility that is located on the customers premises and generates electricity, or electricity and useful heat, where the electricity generated is used for a purpose described in paragraph (1) or (2) of subdivision (b) of Section 218, and that meets, as determined for each year of eligibility based on the then current criteria, either of the following requirements:
(1) It meets all of the following criteria:
(A) Complies with the emissions standards adopted by the State Air Resources Board pursuant to the distributed generation certification program requirements (Section 94203 of Title 17 of the California Code of Regulations).
(B) Has a nameplate rated generation capacity of 10 megawatts or less.
(C) Is sized to meet the electrical demand of, or use the available waste heat of, the customer that will be served by the facility.
(2) It meets all of the following criteria:
(A) Is an eligible renewable energy resource, pursuant to the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11)).
(B) Has a nameplate rated generation capacity of 15 megawatts or less.
(C) Is sized to meet the electrical demand of the customer that will be served by the facility.
(D) Will not otherwise be addressed in the commissions implementation of Section 769 or 2827.1.
(b) To the extent authorized by federal law, by July 1, 2018, the commission shall require the states three largest electrical corporations to stop assessing utility-imposed nonbypassable charges against customers using clean distributed generation resources for electricity generated and consumed on-site and instead require those customers to pay all applicable fees based only on electricity purchased from the electrical corporation that is delivered over the electrical grid.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
### SEC. 2.