Amended IN Assembly May 19, 2022 Amended IN Assembly May 02, 2022 Amended IN Assembly March 28, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2316Introduced by Assembly Member WardFebruary 16, 2022 An act to amend Section 44258.5 of the Health and Safety Code, and to amend Sections 399.12 and 739.1 of, to add Section 2827.2 to, and to add and repeal Section 913.15 of, the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 2316, as amended, Ward. Community Renewable Energy Program. Public Utilities Commission: community renewable energy program.Existing law vests the Public Utilities Commission with 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 utilitys 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 corporations 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, on or before December 1, March 31, 2023, to establish the Community Renewable Energy Program to authorize a distribution customer of a large electrical corporation to subscribe to, and receive bill credits resulting from, the electricity generated by a community renewable energy facility, as defined, interconnected within the service territory of that large electrical corporation, as specified. The bill would require the commission to require each large electrical corporation to file any tariffs, agreements, or forms necessary for implementation of the program within 5 months of the establishment of the program. The bill would require the commission, in administering the program, to, among other things, evaluate and consider the financeability of community renewable energy facilities and the availability of bill credits for subscribers, establish a community renewable energy program tariff, and establish financial incentives to exclusively support subscriptions by low-income customers or low-income organizations if qualifying funds are available, as specified. The bill would require the commission to issue guidelines to a community renewable energy program, and require that the program comply with specified photovoltaic requirements, ensure at least 51% of the capacity of each community renewable energy facility is subscribed to by its subscribers are low-income customers or low-income service organizations. organizations, minimize impacts to nonsubscriber ratepayers, and provide bill credits to subscribers, as specified. The bill would require the commission to evaluate customer renewable energy subscription programs to determine if those programs meet those criteria, efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers, and to authorize the termination or modification of those programs that are duplicative or do not meet those criteria. The bill would require the commission, on or before December 31, 2023, to report to the Legislature the results of its evaluation and its justification for terminating, modifying, or retaining those programs.Existing law imposes various requirements on public works projects, as defined, including a requirement that, at minimum, all workers employed on a public works project be paid the general prevailing rate of per diem wages for work of a similar character in the locality in which a public work is performed, as specified. This bill would apply those public works project requirements to subject the construction of a community renewable energy facility facilities pursuant to the program. program to those prevailing wage requirements.This bill would require the commission, within 24 months of adopting a decision implementing the program, and annually thereafter for 4 years, to report to the Legislature on the facilities deployed, and customers subscribed, pursuant to the program, including an analysis of low-income customer participation.Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.Because a violation of a commission action implementing this bills requirements would be a crime, the 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.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. (a) It is the intent of the Legislature to create a community renewable energy program so that all Californians, especially those unable to host a rooftop solar system, realize the benefits of distributed generation through a cost-effective program that provides benefits to all ratepayers.(b) The Legislature further intends to facilitate community renewable energy options that can help the state cost effectively meet the energy efficiency mandates in the California Building Standards Code.(c) The Legislature further intends to support robust low-income customer participation in the Community Renewable Energy Program. community renewable energy program established pursuant to Section 2827.2 of the Public Utilities Code.SEC. 2.Section 44258.5 of the Health and Safety Code is amended to read:44258.5.(a)For purposes of this section, the following terms mean the following:(1)Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code.(2)Retail seller has the same meaning as set forth in Section 399.12 of the Public Utilities Code.(3)Transportation electrification has the same meaning as set forth in Section 237.5 of the Public Utilities Code.(b)The state board shall identify and adopt appropriate policies, rules, or regulations to remove regulatory disincentives preventing retail sellers and local publicly owned electric utilities from facilitating the achievement of greenhouse gas emission reductions in other sectors through increased investments in transportation electrification. Policies to be considered shall include, but are not limited to, an allocation of greenhouse gas emissions allowances to retail sellers and local publicly owned electric utilities, or other regulatory mechanisms, to account for increased greenhouse gas emissions in the electric sector from transportation electrification.SEC. 3.Section 399.12 of the Public Utilities Code is amended to read:399.12.For purposes of this article, the following terms have the following meanings:(a)Conduit hydroelectric facility means a facility for the generation of electricity that uses only the hydroelectric potential of an existing pipe, ditch, flume, siphon, tunnel, canal, or other manmade conduit that is operated to distribute water for a beneficial use.(b)Balancing authority means the responsible entity that integrates resource plans ahead of time, maintains load-interchange generation balance within a balancing authority area, and supports interconnection frequency in real time.(c)Balancing authority area means the collection of generation, transmission, and loads within the metered boundaries of the area within which the balancing authority maintains the electrical load-resource balance.(d)California balancing authority is a balancing authority with control over a balancing authority area primarily located in this state and operating for retail sellers and local publicly owned electric utilities subject to the requirements of this article and includes the Independent System Operator (ISO) and a local publicly owned electric utility operating a transmission grid that is not under the operational control of the ISO. A California balancing authority is responsible for the operation of the transmission grid within its metered boundaries, which is not limited by the political boundaries of the State of California.(e)Eligible renewable energy resource means an electrical generating facility that meets the definition of a renewable electrical generation facility in Section 25741 of the Public Resources Code, subject to the following:(1)(A)An existing small hydroelectric generation facility of 30 megawatts or less shall be eligible only if a retail seller or local publicly owned electric utility procured the electricity from the facility as of December 31, 2005. A new hydroelectric facility that commences generation of electricity after December 31, 2005, is not an eligible renewable energy resource if it will cause an adverse impact on instream beneficial uses or cause a change in the volume or timing of streamflow.(B)Notwithstanding subparagraph (A), a conduit hydroelectric facility of 30 megawatts or less that commenced operation before January 1, 2006, is an eligible renewable energy resource. A conduit hydroelectric facility of 30 megawatts or less that commences operation after December 31, 2005, is an eligible renewable energy resource if it does not cause an adverse impact on instream beneficial uses or cause a change in the volume or timing of streamflow.(C)A facility approved by the governing board of a local publicly owned electric utility before June 1, 2010, for procurement to satisfy renewable energy procurement obligations adopted pursuant to former Section 387, shall be certified as an eligible renewable energy resource by the Energy Commission pursuant to this article if the facility is a renewable electrical generation facility, as defined in Section 25741 of the Public Resources Code.(D)(i)A small hydroelectric generation unit with a nameplate capacity not exceeding 40 megawatts that is operated as part of a water supply or conveyance system is an eligible renewable energy resource only for the retail seller or local publicly owned electric utility that procured the electricity from the unit as of December 31, 2005. A unit shall not be eligible pursuant to this subparagraph if an application for certification is submitted to the Energy Commission after January 1, 2013. Only one retail seller or local publicly owned electric utility shall be deemed to have procured electricity from a given unit as of December 31, 2005.(ii)Notwithstanding clause (i), a local publicly owned electric utility that meets the criteria of subdivision (j) of Section 399.30 may sell to another local publicly owned electric utility electricity from small hydroelectric generation units that qualify as eligible renewable energy resources under clause (i), and that electricity may be used by the local publicly owned electric utility that purchased the electricity to meet its renewables portfolio standard procurement requirements. The total of all those sales from the local publicly owned electric utility shall be no greater than 100,000 megawatthours of electricity.(iii)The amendments made to this subdivision by the act adding this subparagraph are intended to clarify existing law and apply from December 10, 2011.(2)(A)A facility engaged in the combustion of municipal solid waste shall not be considered an eligible renewable energy resource.(B)Subparagraph (A) does not apply to generation before January 1, 2017, from a facility located in the County of Stanislaus that was operational before September 26, 1996.(f)Procure means to acquire through ownership or contract.(g)Procurement entity means any person or corporation authorized by the commission to enter into contracts to procure eligible renewable energy resources on behalf of customers of a retail seller pursuant to subdivision (f) of Section 399.13.(h)(1)Renewable energy credit means a certificate of proof associated with the generation of electricity from an eligible renewable energy resource, issued through the accounting system established by the Energy Commission pursuant to Section 399.25, that one unit of electricity was generated and delivered by an eligible renewable energy resource.(2)Renewable energy credit includes all renewable and environmental attributes associated with the production of electricity from the eligible renewable energy resource, except for an emissions reduction credit issued pursuant to Section 40709 of the Health and Safety Code and any credits or payments associated with the reduction of solid waste and treatment benefits created by the use of biomass or biogas fuels.(3)(A)Electricity generated by an eligible renewable energy resource attributable to the use of nonrenewable fuels, beyond a de minimis quantity used to generate electricity in the same process through which the facility converts renewable fuel to electricity, shall not result in the creation of a renewable energy credit. The Energy Commission shall set the de minimis quantity of nonrenewable fuels for each renewable energy technology at a level of no more than 2 percent of the total quantity of fuel used by the technology to generate electricity. The Energy Commission may adjust the de minimis quantity for an individual facility, up to a maximum of 5 percent, if it finds that all of the following conditions are met:(i)The facility demonstrates that the higher quantity of nonrenewable fuel will lead to an increase in generation from the eligible renewable energy facility that is significantly greater than generation from the nonrenewable fuel alone.(ii)The facility demonstrates that the higher quantity of nonrenewable fuels will reduce the variability of its electrical output in a manner that results in net environmental benefits to the state.(iii)The higher quantity of nonrenewable fuel is limited to either natural gas or hydrogen derived by reformation of a fossil fuel.(B)Electricity generated by a small hydroelectric generation facility shall not result in the creation of a renewable energy credit unless the facility meets the requirements of subparagraph (A) or (D) of paragraph (1) of subdivision (e).(C)Electricity generated by a conduit hydroelectric generation facility shall not result in the creation of a renewable energy credit unless the facility meets the requirements of subparagraph (B) of paragraph (1) of subdivision (e).(D)Electricity generated by a facility engaged in the combustion of municipal solid waste shall not result in the creation of a renewable energy credit. This subparagraph does not apply to renewable energy credits that were generated before January 1, 2017, by a facility engaged in the combustion of municipal solid waste located in the County of Stanislaus that was operational before September 26, 1996, and sold pursuant to contracts entered into before January 1, 2017.(i)Renewables portfolio standard means the specified percentage of electricity generated by eligible renewable energy resources that a retail seller or a local publicly owned electric utility is required to procure pursuant to this article.(j)Retail sales does not include the kilowatthours of generation attributable to a retail sellers end-use customers participating in the Community Renewable Energy Program pursuant to Section 2827.2.(k)Retail seller means an entity engaged in the retail sale of electricity to end-use customers located within the state, including any of the following:(1)An electrical corporation, as defined in Section 218.(2)A community choice aggregator. A community choice aggregator shall participate in the renewables portfolio standard program subject to the same terms and conditions applicable to an electrical corporation.(3)An electric service provider, as defined in Section 218.3. The electric service provider shall be subject to the same terms and conditions applicable to an electrical corporation pursuant to this article. This paragraph does not impair a contract entered into between an electric service provider and a retail customer before the suspension of direct access by the commission pursuant to Section 80110 of the Water Code.(4)Retail seller does not include any of the following:(A)A corporation or person employing cogeneration technology or producing electricity consistent with subdivision (b) of Section 218.(B)The Department of Water Resources acting in its capacity pursuant to Division 27 (commencing with Section 80000) of the Water Code.(C)A local publicly owned electric utility.(l)WECC means the Western Electricity Coordinating Council of the North American Electric Reliability Corporation, or a successor to the corporation.SEC. 4.Section 739.1 of the Public Utilities Code is amended to read:739.1.(a)The commission shall continue a program of assistance to low-income electric and gas customers with annual household incomes that are no greater than 200 percent of the federal poverty guideline levels, the cost of which shall not be borne solely by any single class of customer. For one-person households, program eligibility shall be based on two-person household guideline levels. The program shall be referred to as the California Alternate Rates for Energy or CARE program. The commission shall ensure that the level of discount for low-income electric and gas customers correctly reflects the level of need.(b)The commission shall establish rates for CARE program participants, subject to both of the following:(1)That the commission ensure that low-income ratepayers are not jeopardized or overburdened by monthly energy expenditures, pursuant to subdivision (b) of Section 382.(2)That the level of the discount for low-income electricity and gas ratepayers correctly reflects the level of need as determined by the needs assessment conducted pursuant to subdivision (d) of Section 382.(c)In establishing CARE discounts for an electrical corporation with 100,000 or more customer accounts in California, the commission shall ensure all of the following:(1)The average effective CARE discount shall not be less than 30 percent or more than 35 percent of the revenues that would have been produced for the same billed usage by non-CARE customers. The average effective discount determined by the commission shall reflect any charges not paid by CARE customers, including payments for the California Solar Initiative, payments for the self-generation incentive program made pursuant to Section 379.6, payment of the separate rate component to fund the CARE program made pursuant to subdivision (a) of Section 381, payments made to the Department of Water Resources pursuant to Division 27 (commencing with Section 80000) of the Water Code, and any discount in a fixed charge. The commission shall not consider any incentive provided to a low-income customer pursuant to Section 2827.2 in calculating the average effective CARE discount. The average effective CARE discount shall be calculated as a weighted average of the CARE discounts provided to individual customers.(2)If an electrical corporation provides an average effective CARE discount in excess of the maximum percentage specified in paragraph (1), the electrical corporation shall not reduce, on an annual basis, the average effective CARE discount by more than a reasonable percentage decrease below the discount in effect on January 1, 2013, or that the electrical corporation had been authorized to place in effect by that date.(3)The entire discount shall be provided in the form of a reduction in the overall bill for the eligible CARE customer.(d)The commission shall work with electrical and gas corporations to establish penetration goals. The commission shall authorize recovery of all administrative costs associated with the implementation of the CARE program that the commission determines to be reasonable, through a balancing account mechanism. Administrative costs shall include, but are not limited to, outreach, marketing, regulatory compliance, certification and verification, billing, measurement and evaluation, and capital improvements and upgrades to communications and processing equipment.(e)The commission shall examine methods to improve CARE enrollment and participation. This examination shall include, but need not be limited to, comparing information from CARE and the Universal Lifeline Telephone Service (ULTS) to determine the most effective means of using that information to increase CARE enrollment, automatic enrollment of ULTS customers who are eligible for the CARE program, customer privacy issues, and alternative mechanisms for outreach to potential enrollees. The commission shall ensure that a customer consents before enrollment. The commission shall consult with interested parties, including ULTS providers, to develop the best methods of informing ULTS customers about other available low-income programs and the best mechanism for telephone providers to recover reasonable costs incurred pursuant to this section.(f)(1)The commission shall improve the CARE application process by cooperating with other entities and representatives of California government, including the California Health and Human Services Agency and the Secretary of California Health and Human Services, to ensure that all gas and electric customers eligible for public assistance programs in California that reside within the service territory of an electrical corporation or gas corporation, are enrolled in the CARE program. The commission may determine that gas and electric customers are categorically eligible for CARE assistance if they are enrolled in other public assistance programs with substantially the same income eligibility requirements as the CARE program. To the extent practicable, the commission shall develop a CARE application process using the existing ULTS application process as a model. The commission shall work with electrical and gas corporations and the Low-Income Oversight Board established in Section 382.1 to meet the low-income objectives in this section.(2)The commission shall ensure that an electrical corporation or gas corporation with a commission-approved program to provide discounts based on economic need in addition to the CARE program, including a Family Electric Rate Assistance program, use a single application form to enable an applicant to alternatively apply for any assistance program for which the applicant may be eligible. It is the intent of the Legislature to allow applicants under one program, that may not be eligible under that program, but that may be eligible under an alternative assistance program based upon economic need, to complete a single application for any commission-approved assistance program offered by the public utility.(g)It is the intent of the Legislature that the commission ensure CARE program participants receive affordable electric and gas service that does not impose an unfair economic burden on those participants.(h)The commissions program of assistance to low-income electric and gas customers shall, as soon as practicable, include nonprofit group living facilities specified by the commission, if the commission finds that the residents in these facilities substantially meet the commissions low-income eligibility requirements and there is a feasible process for certifying that the assistance shall be used for the direct benefit, such as improved quality of care or improved food service, of the low-income residents in the facilities. The commission shall authorize utilities to offer discounts to eligible facilities licensed or permitted by appropriate state or local agencies, and to facilities, including womens shelters, hospices, and homeless shelters, that may not have a license or permit but provide other proof satisfactory to the utility that they are eligible to participate in the program.(i)(1)In addition to existing assessments of eligibility, an electrical corporation may require proof of income eligibility for those CARE program participants whose electricity usage, in any monthly or other billing period, exceeds 400 percent of baseline usage. The authority of an electrical corporation to require proof of income eligibility is not limited by the means by which the CARE program participant enrolled in the program, including if the participant was automatically enrolled in the CARE program because of participation in a governmental assistance program. If a CARE program participants electricity usage exceeds 400 percent of baseline usage, the electrical corporation may require the CARE program participant to participate in the Energy Savings Assistance Program (ESAP), which includes a residential energy assessment, in order to provide the CARE program participant with information and assistance in reducing their energy usage. Continued participation in the CARE program may be conditioned upon the CARE program participant agreeing to participate in ESAP within 45 days of notice being given by the electrical corporation pursuant to this paragraph. The electrical corporation may require the CARE program participant to notify the utility of whether the residence is rented, and, if so, a means by which to contact the landlord, and the electrical corporation may share any evaluation and recommendation relative to the residential structure that is made as part of an energy assessment with the landlord of the CARE program participant. Requirements imposed pursuant to this paragraph shall be consistent with procedures adopted by the commission.(2)If a CARE program participants electricity usage exceeds 600 percent of baseline usage, the electrical corporation shall require the CARE program participant to participate in ESAP, which includes a residential energy assessment, in order to provide the CARE program participant with information and assistance in reducing their energy usage. Continued participation in the CARE program shall be conditioned upon the CARE program participant agreeing to participate in ESAP within 45 days of a notice made by the electrical corporation pursuant to this paragraph. The electrical corporation may require the CARE program participant to notify the utility of whether the residence is rented, and, if so, a means by which to contact the landlord, and the electrical corporation may share any evaluation and recommendation relative to the residential structure that is made as part of an energy assessment with the landlord of the CARE program participant. Following the completion of the energy assessment, if the CARE program participants electricity usage continues to exceed 600 percent of baseline usage, the electrical corporation may remove the CARE program participant from the program if the removal is consistent with procedures adopted by the commission. This paragraph does not prevent a CARE program participant with electricity usage exceeding 600 percent of baseline usage from participating in an appeals process with the electrical corporation to determine whether the participants usage levels are legitimate.(3)A CARE program participant in a rental residence shall not be removed from the program in situations where the landlord is nonresponsive when contacted by the electrical corporation or does not provide for ESAP participation.SEC. 5.SEC. 2. Section 913.15 is added to the Public Utilities Code, to read:913.15. (a) Within 24 months of adopting a decision implementing the Community Renewable Energy Program a community renewable energy program pursuant to Section 2827.2, and annually thereafter for 4 years, the commission shall submit a report to the Legislature on the facilities deployed, and customers subscribed, pursuant to that program, including an analysis of low-income customer participation.(b) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.SEC. 6.SEC. 3. Section 2827.2 is added to the Public Utilities Code, to read:2827.2. (a) For purposes of this section, the following definitions apply:(1)Applicable bill credit rate means the dollar-per-kilowatthour rate, as determined by the commission, used to calculate a subscribers bill credit.(2)Benefiting account means an electrical account that satisfies both of the following:(A)It is located in the service territory of the same large electrical corporation as the generator account.(B)It is an individually metered account of a distribution customer of a large electrical corporation.(3)Bill credit means the monetary value of the electricity generated by the community renewable energy facility allocated to a subscriber to offset that subscribers electricity bill.(4)Community renewable energy facility means a facility that meets all of the following requirements:(A)Is located in the service territory of a large electrical corporation.(B)Is connected to the electrical distribution grid serving the state.(C)Has at least three subscribers.(D)Has at least 50 percent of its capacity subscribed to by subscribers with subscriptions of 25 kilowatts or less. For a master-metered facility, this requirement is satisfied when the subscribed capacity is equivalent to 25 kilowatts or less per housing unit.(E)Is located on a single parcel, or contiguous parcels, of land.(F)Is not colocated with another community renewable energy facility. Colocation shall be determined based on reasonable parameters identified by the commission.(G)Uses solar photovoltaic generation that includes energy storage or wind generation, which may include energy storage.(H)Enables a subscriber to receive a bill credit for the electricity generated by the facility in proportion to the size of the subscribers subscription.(I)Subscribes at least 51 percent of its capacity to low-income customers or low-income service organizations.(5)Community Renewable Energy Program or program means the program established pursuant to subdivision (b).(6)Generator account means the customer account where the community renewable energy facility is located behind a single meter and interconnected to the large electrical corporations distribution system.(7)(1) Large electrical corporation has the same meaning as defined in Section 2827.(8)Load-serving entity has the same meaning as defined in Section 380.(9)(2) Low-income customer means either of the following:(A) An individual or household who qualifies for one or more of the following programs:(i) The California Alternate Rates for Energy (CARE) program described in Section 739.1.(ii) The Family Electric Rate Assistance (FERA) program described in Section 739.12.(iii) The CalFresh program established pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the Welfare and Institutions Code.(iv) The federal Supplemental Nutrition Assistance Program (SNAP) (Chapter 51 (commencing with Section 2011) of Title 7 of the United States Code).(v) The Low-income Heating Energy Assistance Program (LIHEAP) (42 U.S.C. Sec. 8621).(vi) The federal Head Start Program (42 U.S.C. Sec. 9801 et seq.).(B) An individual or household who resides within an underserved community. community, as defined in Section 1601.(10)(3) Low-income service organization means an organization or nonprofit whose primary function is to provide services, assistance, or housing to low-income customers, and may include, but is not limited to, a local or central tribal government or a tribally designated housing entity.(11)Net crediting means a process whereby a large electrical corporation or load-serving entity applies the difference between the bill credit and the subscribers subscription cost on the subscribers electricity bill and disburses the subscription cost amount to the subscriber organization.(12)Renewable energy credit has the same meaning as defined in Section 399.12.(13)(4) Subscriber means a distribution customer of a large electrical corporation who owns one or more subscriptions of a community renewable energy facility interconnected with that large electrical corporation associated with one or more benefiting accounts. facility. A subscriber shall be located in the same large electrical corporation service territory where the community renewable energy facility to which the subscriber is subscribed is located.(14)Subscriber organization means a for-profit or nonprofit entity that owns or operates one or more community renewable energy facilities. A subscriber organization shall not be considered an electrical corporation, load-serving entity, or otherwise a utility solely as a result of its ownership or operation of a community renewable energy facility.(15)Subscription means a contract between a subscriber and the owner or operator of a community renewable energy facility. A subscription shall be sized so that the estimated bill credits do not exceed the subscribers average annual bill for the customer account to which the subscription is attributed.(16)Underserved community has the same meaning as defined in Section 1601.(b)(1)(A)On or before December 1, 2023, the commission shall establish the Community Renewable Energy Program to authorize a distribution customer of a large electrical corporation to subscribe to, and receive bill credits resulting from, the electricity generated by a community renewable energy facility interconnected within the service territory of that large electrical corporation.(B)The commission shall implement the program as part of a proceeding to evaluate the reasonableness of other voluntary customer renewable energy subscription programs. The commission may use an existing proceeding for this purpose.(C)The commission shall ensure that the portfolio of programs resulting from the proceeding to evaluate the reasonableness of voluntary customer renewable energy subscription programs will efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers.(2)The commission shall require each large electrical corporation to file any tariffs, agreements, or forms necessary for implementation of the program within five months of the establishment of the program.(c)In administering the program, the commission shall do all of the following:(1)Evaluate and consider the financeability of community renewable energy facilities and the availability of bill credits for subscribers.(2)(A)Establish a community renewable energy program tariff that does all of the following:(i)Creates a bill credit rate that is differentiated based on the time of generation. This time-differentiated bill credit rate shall be based on the avoided costs of the facility and be consistent with the commissions methods for calculating the full set of benefits of distributed energy resources. In creating the time-differentiated bill credit rate, the commission may do any of the following:(I)Authorize a bill credit rate based on the forecasted values of avoided cost components for a duration of no less than 10 years and no longer than the expected life of the facility.(II)Incorporate actual wholesale market prices for the electrical supply portion of the avoided costs.(ii)Provides bill credits to a community renewable energy facilitys subscribers for not less than 25 years from the date the community renewable energy facility is first interconnected.(iii)Ensures that renewable energy credits from generation by the community renewable energy facility are retired on behalf of the subscribers and are not used to satisfy any compliance obligation of the load-serving entity.(B)In consultation with the Energy Commission, ensure the tariff is complementary to, and consistent with, the requirements of the California Building Standards Code (Title 24 of the California Code of Regulations).(3)(A)Require each large electrical corporation to apply bill credits to subscriber bills within one billing cycle following the cycle during which the electricity was generated by the community renewable energy facility. The elements of the bill credit shall be credited by each load-serving entity based on the costs for which it is responsible, as determined by the commission.(B)Require each large electrical corporation to provide a bill credit on a subscribers subsequent monthly electricity bill for the proportional output of a community renewable energy facility attributable to that subscriber. The value of the bill credit for the subscriber shall be calculated by multiplying the subscribers portion of the kilowatthour electricity production from the community renewable energy facility by the applicable bill credit rate for the subscriber. Any amount of the bill credit that exceeds the subscribers monthly bill shall be carried over and applied to the next months bill in perpetuity.(4)Authorize all distribution customers of a large electrical corporation to participate in the program and ensure participation opportunities for all customer classes.(5)Prohibit a large electrical corporation from removing a customer from their otherwise applicable tariff and customer class in order to participate in a community renewable energy facility.(6)(A)If the retention of a subscription is necessary for a building to remain in compliance with the California Building Standards Code (Title 24 of the California Code of Regulations), authorize the subscription to remain with the meter for a period of not less than 20 years when the applicable customer account changes.(B)If the retention of a subscription is not necessary for a building to remain in compliance with the California Building Standards Code (Title 24 of the California Code of Regulations), authorize the transfer and porting of the subscription, including authorizing a subscriber to retain a subscription to a community renewable energy facility if the subscriber moves within the same large electrical corporations service territory.(7)(A)Establish any necessary protocols for large electrical corporations and subscriber organizations to communicate the necessary information for calculating and providing bill credits to subscribers in a timely fashion, including both of the following reports:(i)Monthly reports to the large electrical corporation whereby each subscriber organization shall, in a standardized electronic format, provide to the large electrical corporation a subscriber list indicating the percentage of generation attributable to each subscriber to a community renewable energy facility in accordance with the subscribers portion of the electricity generated by the community renewable energy facility. Subscriber lists may be updated monthly to reflect unsubscribed customers and to add new subscribers.(ii)Monthly reports, in a standardized electronic format, from the large electrical corporation to the subscriber organization that indicates the total value of bill credits generated by the community renewable energy facility in the prior month and the amount of the bill credit applied to each subscriber.(B)The monthly reports described in subparagraph (A) shall be made available to the commission and, upon request, to any load-serving entity with subscribers of a community renewable energy program in its service territory.(8)Evaluate the potential to accumulate bill credits on the generator account in the event that some or all of the electricity generated by a community renewable energy facility is not allocated to subscribers in a given month. The commission shall determine appropriate allocation rules for accumulated bill credits that protect ratepayer interests while balancing those interests with the interest in providing fair compensation for community renewable energy facility generation.(9)Authorize community renewable energy facilities to interconnect through Electric Rule 21, or any successor interconnection rule.(10)Provide for consumer protection in accordance with existing laws, including all of the following:(A)Require all subscriber organizations to register with the commission before subscribing residential customers.(B)Require uniform disclosures to be made to subscribers.(C)Prohibit termination or exit fees from being assessed on low-income customers who end their subscriptions.(D)Prohibit subscriber organizations from collecting credit scores from low-income customers.(E)Establish remedies for subscriber organization violations of the programs requirements.(11)Establish financial incentives to exclusively support subscriptions by low-income customers or low-income organizations if qualifying funds are available either through an appropriation by the Legislature or select ratepayer funds for programs for which distributed solar, battery storage, or wind are otherwise eligible. Priority for a financial incentive shall be given to a low-income subscriber living in a disadvantaged community, as identified pursuant to Section 39711 of the Health and Safety Code. In implementing this paragraph, the commission shall ensure that the financial incentives minimize costs to nonsubscriber ratepayers.(12)Require large electrical corporations to establish net crediting available to subscriber organizations and their subscribers at a cost not to exceed the equivalent of 1 percent of the value of the bill credit.(13)Authorize each large electrical corporation to recover its reasonable costs of administering the program from subscribers.(14)Ensure a community renewable energy facility has received any nonministerial permits and a signed interconnection agreement before securing capacity for purposes of the program.(15)Include a program implementation schedule.(d)The commission shall issue guidelines to ensure at least 51 percent of the capacity of each community renewable energy facility is subscribed to by low-income customers or low-income service organizations.(e)The commission shall develop, and post on its internet website, a list of low-income service organizations and, consistent with subparagraph (A) of paragraph (9) of subdivision (a), a list of programs that may be used to qualify low-income customers.(f)The commission may establish methods that are not onerous on subscribers to reasonably confirm the status and eligibility of low-income customers.(g)The commission may structure the program, consistent with this section, to reduce the costs and risks associated with low-income customer participation.(h)Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of a community renewable energy facility 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.(b) On or before March 31, 2023, the commission shall open a proceeding to establish a new tariff or program, or modify an existing tariff or program, to establish a community renewable energy program.(c) The community renewable energy program shall do all of the following:(1) Comply with the photovoltaic requirements for low-rise residential buildings set forth in Section 150.1(c)(14) of Title 24 of the California Code of Regulations.(2) Ensure at least 51 percent of subscribers are low-income customers or low-income service organizations.(3) Minimize impacts to nonsubscriber ratepayers. If the commission determines financial incentives are necessary to generate participation in the community renewable energy program, the commission shall ensure those incentives exclusively support subscriptions by low-income customers or low-income service organizations. Qualifying funds for those incentives shall only be available either through an appropriation by the Legislature or select ratepayer funds for programs for which distributed solar, battery storage, or wind resources are otherwise eligible.(4) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, subject construction of community renewable energy facilities to prevailing wage for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.(5) Provide bill credits to subscribers based on the avoided costs of the community renewable energy facility, as determined by the commissions methods for calculating the full set of benefits of distributed energy resources.(d) (1) As part of the proceeding, the commission shall evaluate customer renewable energy subscription programs to determine if those programs meet the criteria described in subdivision (c), efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers. If a duplicative customer renewable energy subscription program exists, or if a customer renewable energy subscription program does not meet the criteria described in subdivision (c), the commission shall authorize the termination or modification of that program.(2) (A) On or before December 31, 2023, the commission shall report to the Legislature the results of its evaluation and its justification for terminating, modifying, or retaining each customer renewable energy subscription program.(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on December 31, 2027, pursuant to Section 10231.5 of the Government Code.(C) A report to be submitted pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.SEC. 7.SEC. 4. 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.
Amended IN Assembly May 19, 2022 Amended IN Assembly May 02, 2022 Amended IN Assembly March 28, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2316Introduced by Assembly Member WardFebruary 16, 2022 An act to amend Section 44258.5 of the Health and Safety Code, and to amend Sections 399.12 and 739.1 of, to add Section 2827.2 to, and to add and repeal Section 913.15 of, the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 2316, as amended, Ward. Community Renewable Energy Program. Public Utilities Commission: community renewable energy program.Existing law vests the Public Utilities Commission with 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 utilitys 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 corporations 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, on or before December 1, March 31, 2023, to establish the Community Renewable Energy Program to authorize a distribution customer of a large electrical corporation to subscribe to, and receive bill credits resulting from, the electricity generated by a community renewable energy facility, as defined, interconnected within the service territory of that large electrical corporation, as specified. The bill would require the commission to require each large electrical corporation to file any tariffs, agreements, or forms necessary for implementation of the program within 5 months of the establishment of the program. The bill would require the commission, in administering the program, to, among other things, evaluate and consider the financeability of community renewable energy facilities and the availability of bill credits for subscribers, establish a community renewable energy program tariff, and establish financial incentives to exclusively support subscriptions by low-income customers or low-income organizations if qualifying funds are available, as specified. The bill would require the commission to issue guidelines to a community renewable energy program, and require that the program comply with specified photovoltaic requirements, ensure at least 51% of the capacity of each community renewable energy facility is subscribed to by its subscribers are low-income customers or low-income service organizations. organizations, minimize impacts to nonsubscriber ratepayers, and provide bill credits to subscribers, as specified. The bill would require the commission to evaluate customer renewable energy subscription programs to determine if those programs meet those criteria, efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers, and to authorize the termination or modification of those programs that are duplicative or do not meet those criteria. The bill would require the commission, on or before December 31, 2023, to report to the Legislature the results of its evaluation and its justification for terminating, modifying, or retaining those programs.Existing law imposes various requirements on public works projects, as defined, including a requirement that, at minimum, all workers employed on a public works project be paid the general prevailing rate of per diem wages for work of a similar character in the locality in which a public work is performed, as specified. This bill would apply those public works project requirements to subject the construction of a community renewable energy facility facilities pursuant to the program. program to those prevailing wage requirements.This bill would require the commission, within 24 months of adopting a decision implementing the program, and annually thereafter for 4 years, to report to the Legislature on the facilities deployed, and customers subscribed, pursuant to the program, including an analysis of low-income customer participation.Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.Because a violation of a commission action implementing this bills requirements would be a crime, the 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Amended IN Assembly May 19, 2022 Amended IN Assembly May 02, 2022 Amended IN Assembly March 28, 2022
Amended IN Assembly May 19, 2022
Amended IN Assembly May 02, 2022
Amended IN Assembly March 28, 2022
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Assembly Bill
No. 2316
Introduced by Assembly Member WardFebruary 16, 2022
Introduced by Assembly Member Ward
February 16, 2022
An act to amend Section 44258.5 of the Health and Safety Code, and to amend Sections 399.12 and 739.1 of, to add Section 2827.2 to, and to add and repeal Section 913.15 of, the Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2316, as amended, Ward. Community Renewable Energy Program. Public Utilities Commission: community renewable energy program.
Existing law vests the Public Utilities Commission with 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 utilitys 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 corporations 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, on or before December 1, March 31, 2023, to establish the Community Renewable Energy Program to authorize a distribution customer of a large electrical corporation to subscribe to, and receive bill credits resulting from, the electricity generated by a community renewable energy facility, as defined, interconnected within the service territory of that large electrical corporation, as specified. The bill would require the commission to require each large electrical corporation to file any tariffs, agreements, or forms necessary for implementation of the program within 5 months of the establishment of the program. The bill would require the commission, in administering the program, to, among other things, evaluate and consider the financeability of community renewable energy facilities and the availability of bill credits for subscribers, establish a community renewable energy program tariff, and establish financial incentives to exclusively support subscriptions by low-income customers or low-income organizations if qualifying funds are available, as specified. The bill would require the commission to issue guidelines to a community renewable energy program, and require that the program comply with specified photovoltaic requirements, ensure at least 51% of the capacity of each community renewable energy facility is subscribed to by its subscribers are low-income customers or low-income service organizations. organizations, minimize impacts to nonsubscriber ratepayers, and provide bill credits to subscribers, as specified. The bill would require the commission to evaluate customer renewable energy subscription programs to determine if those programs meet those criteria, efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers, and to authorize the termination or modification of those programs that are duplicative or do not meet those criteria. The bill would require the commission, on or before December 31, 2023, to report to the Legislature the results of its evaluation and its justification for terminating, modifying, or retaining those programs.Existing law imposes various requirements on public works projects, as defined, including a requirement that, at minimum, all workers employed on a public works project be paid the general prevailing rate of per diem wages for work of a similar character in the locality in which a public work is performed, as specified. This bill would apply those public works project requirements to subject the construction of a community renewable energy facility facilities pursuant to the program. program to those prevailing wage requirements.This bill would require the commission, within 24 months of adopting a decision implementing the program, and annually thereafter for 4 years, to report to the Legislature on the facilities deployed, and customers subscribed, pursuant to the program, including an analysis of low-income customer participation.Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.Because a violation of a commission action implementing this bills requirements would be a crime, the 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.
Existing law vests the Public Utilities Commission with 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 utilitys 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 corporations 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, on or before December 1, March 31, 2023, to establish the Community Renewable Energy Program to authorize a distribution customer of a large electrical corporation to subscribe to, and receive bill credits resulting from, the electricity generated by a community renewable energy facility, as defined, interconnected within the service territory of that large electrical corporation, as specified. The bill would require the commission to require each large electrical corporation to file any tariffs, agreements, or forms necessary for implementation of the program within 5 months of the establishment of the program. The bill would require the commission, in administering the program, to, among other things, evaluate and consider the financeability of community renewable energy facilities and the availability of bill credits for subscribers, establish a community renewable energy program tariff, and establish financial incentives to exclusively support subscriptions by low-income customers or low-income organizations if qualifying funds are available, as specified. The bill would require the commission to issue guidelines to a community renewable energy program, and require that the program comply with specified photovoltaic requirements, ensure at least 51% of the capacity of each community renewable energy facility is subscribed to by its subscribers are low-income customers or low-income service organizations. organizations, minimize impacts to nonsubscriber ratepayers, and provide bill credits to subscribers, as specified. The bill would require the commission to evaluate customer renewable energy subscription programs to determine if those programs meet those criteria, efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers, and to authorize the termination or modification of those programs that are duplicative or do not meet those criteria. The bill would require the commission, on or before December 31, 2023, to report to the Legislature the results of its evaluation and its justification for terminating, modifying, or retaining those programs.
Existing law imposes various requirements on public works projects, as defined, including a requirement that, at minimum, all workers employed on a public works project be paid the general prevailing rate of per diem wages for work of a similar character in the locality in which a public work is performed, as specified.
This bill would apply those public works project requirements to subject the construction of a community renewable energy facility facilities pursuant to the program. program to those prevailing wage requirements.
This bill would require the commission, within 24 months of adopting a decision implementing the program, and annually thereafter for 4 years, to report to the Legislature on the facilities deployed, and customers subscribed, pursuant to the program, including an analysis of low-income customer participation.
Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because a violation of a commission action implementing this bills requirements would be a crime, the 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.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. (a) It is the intent of the Legislature to create a community renewable energy program so that all Californians, especially those unable to host a rooftop solar system, realize the benefits of distributed generation through a cost-effective program that provides benefits to all ratepayers.(b) The Legislature further intends to facilitate community renewable energy options that can help the state cost effectively meet the energy efficiency mandates in the California Building Standards Code.(c) The Legislature further intends to support robust low-income customer participation in the Community Renewable Energy Program. community renewable energy program established pursuant to Section 2827.2 of the Public Utilities Code.SEC. 2.Section 44258.5 of the Health and Safety Code is amended to read:44258.5.(a)For purposes of this section, the following terms mean the following:(1)Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code.(2)Retail seller has the same meaning as set forth in Section 399.12 of the Public Utilities Code.(3)Transportation electrification has the same meaning as set forth in Section 237.5 of the Public Utilities Code.(b)The state board shall identify and adopt appropriate policies, rules, or regulations to remove regulatory disincentives preventing retail sellers and local publicly owned electric utilities from facilitating the achievement of greenhouse gas emission reductions in other sectors through increased investments in transportation electrification. Policies to be considered shall include, but are not limited to, an allocation of greenhouse gas emissions allowances to retail sellers and local publicly owned electric utilities, or other regulatory mechanisms, to account for increased greenhouse gas emissions in the electric sector from transportation electrification.SEC. 3.Section 399.12 of the Public Utilities Code is amended to read:399.12.For purposes of this article, the following terms have the following meanings:(a)Conduit hydroelectric facility means a facility for the generation of electricity that uses only the hydroelectric potential of an existing pipe, ditch, flume, siphon, tunnel, canal, or other manmade conduit that is operated to distribute water for a beneficial use.(b)Balancing authority means the responsible entity that integrates resource plans ahead of time, maintains load-interchange generation balance within a balancing authority area, and supports interconnection frequency in real time.(c)Balancing authority area means the collection of generation, transmission, and loads within the metered boundaries of the area within which the balancing authority maintains the electrical load-resource balance.(d)California balancing authority is a balancing authority with control over a balancing authority area primarily located in this state and operating for retail sellers and local publicly owned electric utilities subject to the requirements of this article and includes the Independent System Operator (ISO) and a local publicly owned electric utility operating a transmission grid that is not under the operational control of the ISO. A California balancing authority is responsible for the operation of the transmission grid within its metered boundaries, which is not limited by the political boundaries of the State of California.(e)Eligible renewable energy resource means an electrical generating facility that meets the definition of a renewable electrical generation facility in Section 25741 of the Public Resources Code, subject to the following:(1)(A)An existing small hydroelectric generation facility of 30 megawatts or less shall be eligible only if a retail seller or local publicly owned electric utility procured the electricity from the facility as of December 31, 2005. A new hydroelectric facility that commences generation of electricity after December 31, 2005, is not an eligible renewable energy resource if it will cause an adverse impact on instream beneficial uses or cause a change in the volume or timing of streamflow.(B)Notwithstanding subparagraph (A), a conduit hydroelectric facility of 30 megawatts or less that commenced operation before January 1, 2006, is an eligible renewable energy resource. A conduit hydroelectric facility of 30 megawatts or less that commences operation after December 31, 2005, is an eligible renewable energy resource if it does not cause an adverse impact on instream beneficial uses or cause a change in the volume or timing of streamflow.(C)A facility approved by the governing board of a local publicly owned electric utility before June 1, 2010, for procurement to satisfy renewable energy procurement obligations adopted pursuant to former Section 387, shall be certified as an eligible renewable energy resource by the Energy Commission pursuant to this article if the facility is a renewable electrical generation facility, as defined in Section 25741 of the Public Resources Code.(D)(i)A small hydroelectric generation unit with a nameplate capacity not exceeding 40 megawatts that is operated as part of a water supply or conveyance system is an eligible renewable energy resource only for the retail seller or local publicly owned electric utility that procured the electricity from the unit as of December 31, 2005. A unit shall not be eligible pursuant to this subparagraph if an application for certification is submitted to the Energy Commission after January 1, 2013. Only one retail seller or local publicly owned electric utility shall be deemed to have procured electricity from a given unit as of December 31, 2005.(ii)Notwithstanding clause (i), a local publicly owned electric utility that meets the criteria of subdivision (j) of Section 399.30 may sell to another local publicly owned electric utility electricity from small hydroelectric generation units that qualify as eligible renewable energy resources under clause (i), and that electricity may be used by the local publicly owned electric utility that purchased the electricity to meet its renewables portfolio standard procurement requirements. The total of all those sales from the local publicly owned electric utility shall be no greater than 100,000 megawatthours of electricity.(iii)The amendments made to this subdivision by the act adding this subparagraph are intended to clarify existing law and apply from December 10, 2011.(2)(A)A facility engaged in the combustion of municipal solid waste shall not be considered an eligible renewable energy resource.(B)Subparagraph (A) does not apply to generation before January 1, 2017, from a facility located in the County of Stanislaus that was operational before September 26, 1996.(f)Procure means to acquire through ownership or contract.(g)Procurement entity means any person or corporation authorized by the commission to enter into contracts to procure eligible renewable energy resources on behalf of customers of a retail seller pursuant to subdivision (f) of Section 399.13.(h)(1)Renewable energy credit means a certificate of proof associated with the generation of electricity from an eligible renewable energy resource, issued through the accounting system established by the Energy Commission pursuant to Section 399.25, that one unit of electricity was generated and delivered by an eligible renewable energy resource.(2)Renewable energy credit includes all renewable and environmental attributes associated with the production of electricity from the eligible renewable energy resource, except for an emissions reduction credit issued pursuant to Section 40709 of the Health and Safety Code and any credits or payments associated with the reduction of solid waste and treatment benefits created by the use of biomass or biogas fuels.(3)(A)Electricity generated by an eligible renewable energy resource attributable to the use of nonrenewable fuels, beyond a de minimis quantity used to generate electricity in the same process through which the facility converts renewable fuel to electricity, shall not result in the creation of a renewable energy credit. The Energy Commission shall set the de minimis quantity of nonrenewable fuels for each renewable energy technology at a level of no more than 2 percent of the total quantity of fuel used by the technology to generate electricity. The Energy Commission may adjust the de minimis quantity for an individual facility, up to a maximum of 5 percent, if it finds that all of the following conditions are met:(i)The facility demonstrates that the higher quantity of nonrenewable fuel will lead to an increase in generation from the eligible renewable energy facility that is significantly greater than generation from the nonrenewable fuel alone.(ii)The facility demonstrates that the higher quantity of nonrenewable fuels will reduce the variability of its electrical output in a manner that results in net environmental benefits to the state.(iii)The higher quantity of nonrenewable fuel is limited to either natural gas or hydrogen derived by reformation of a fossil fuel.(B)Electricity generated by a small hydroelectric generation facility shall not result in the creation of a renewable energy credit unless the facility meets the requirements of subparagraph (A) or (D) of paragraph (1) of subdivision (e).(C)Electricity generated by a conduit hydroelectric generation facility shall not result in the creation of a renewable energy credit unless the facility meets the requirements of subparagraph (B) of paragraph (1) of subdivision (e).(D)Electricity generated by a facility engaged in the combustion of municipal solid waste shall not result in the creation of a renewable energy credit. This subparagraph does not apply to renewable energy credits that were generated before January 1, 2017, by a facility engaged in the combustion of municipal solid waste located in the County of Stanislaus that was operational before September 26, 1996, and sold pursuant to contracts entered into before January 1, 2017.(i)Renewables portfolio standard means the specified percentage of electricity generated by eligible renewable energy resources that a retail seller or a local publicly owned electric utility is required to procure pursuant to this article.(j)Retail sales does not include the kilowatthours of generation attributable to a retail sellers end-use customers participating in the Community Renewable Energy Program pursuant to Section 2827.2.(k)Retail seller means an entity engaged in the retail sale of electricity to end-use customers located within the state, including any of the following:(1)An electrical corporation, as defined in Section 218.(2)A community choice aggregator. A community choice aggregator shall participate in the renewables portfolio standard program subject to the same terms and conditions applicable to an electrical corporation.(3)An electric service provider, as defined in Section 218.3. The electric service provider shall be subject to the same terms and conditions applicable to an electrical corporation pursuant to this article. This paragraph does not impair a contract entered into between an electric service provider and a retail customer before the suspension of direct access by the commission pursuant to Section 80110 of the Water Code.(4)Retail seller does not include any of the following:(A)A corporation or person employing cogeneration technology or producing electricity consistent with subdivision (b) of Section 218.(B)The Department of Water Resources acting in its capacity pursuant to Division 27 (commencing with Section 80000) of the Water Code.(C)A local publicly owned electric utility.(l)WECC means the Western Electricity Coordinating Council of the North American Electric Reliability Corporation, or a successor to the corporation.SEC. 4.Section 739.1 of the Public Utilities Code is amended to read:739.1.(a)The commission shall continue a program of assistance to low-income electric and gas customers with annual household incomes that are no greater than 200 percent of the federal poverty guideline levels, the cost of which shall not be borne solely by any single class of customer. For one-person households, program eligibility shall be based on two-person household guideline levels. The program shall be referred to as the California Alternate Rates for Energy or CARE program. The commission shall ensure that the level of discount for low-income electric and gas customers correctly reflects the level of need.(b)The commission shall establish rates for CARE program participants, subject to both of the following:(1)That the commission ensure that low-income ratepayers are not jeopardized or overburdened by monthly energy expenditures, pursuant to subdivision (b) of Section 382.(2)That the level of the discount for low-income electricity and gas ratepayers correctly reflects the level of need as determined by the needs assessment conducted pursuant to subdivision (d) of Section 382.(c)In establishing CARE discounts for an electrical corporation with 100,000 or more customer accounts in California, the commission shall ensure all of the following:(1)The average effective CARE discount shall not be less than 30 percent or more than 35 percent of the revenues that would have been produced for the same billed usage by non-CARE customers. The average effective discount determined by the commission shall reflect any charges not paid by CARE customers, including payments for the California Solar Initiative, payments for the self-generation incentive program made pursuant to Section 379.6, payment of the separate rate component to fund the CARE program made pursuant to subdivision (a) of Section 381, payments made to the Department of Water Resources pursuant to Division 27 (commencing with Section 80000) of the Water Code, and any discount in a fixed charge. The commission shall not consider any incentive provided to a low-income customer pursuant to Section 2827.2 in calculating the average effective CARE discount. The average effective CARE discount shall be calculated as a weighted average of the CARE discounts provided to individual customers.(2)If an electrical corporation provides an average effective CARE discount in excess of the maximum percentage specified in paragraph (1), the electrical corporation shall not reduce, on an annual basis, the average effective CARE discount by more than a reasonable percentage decrease below the discount in effect on January 1, 2013, or that the electrical corporation had been authorized to place in effect by that date.(3)The entire discount shall be provided in the form of a reduction in the overall bill for the eligible CARE customer.(d)The commission shall work with electrical and gas corporations to establish penetration goals. The commission shall authorize recovery of all administrative costs associated with the implementation of the CARE program that the commission determines to be reasonable, through a balancing account mechanism. Administrative costs shall include, but are not limited to, outreach, marketing, regulatory compliance, certification and verification, billing, measurement and evaluation, and capital improvements and upgrades to communications and processing equipment.(e)The commission shall examine methods to improve CARE enrollment and participation. This examination shall include, but need not be limited to, comparing information from CARE and the Universal Lifeline Telephone Service (ULTS) to determine the most effective means of using that information to increase CARE enrollment, automatic enrollment of ULTS customers who are eligible for the CARE program, customer privacy issues, and alternative mechanisms for outreach to potential enrollees. The commission shall ensure that a customer consents before enrollment. The commission shall consult with interested parties, including ULTS providers, to develop the best methods of informing ULTS customers about other available low-income programs and the best mechanism for telephone providers to recover reasonable costs incurred pursuant to this section.(f)(1)The commission shall improve the CARE application process by cooperating with other entities and representatives of California government, including the California Health and Human Services Agency and the Secretary of California Health and Human Services, to ensure that all gas and electric customers eligible for public assistance programs in California that reside within the service territory of an electrical corporation or gas corporation, are enrolled in the CARE program. The commission may determine that gas and electric customers are categorically eligible for CARE assistance if they are enrolled in other public assistance programs with substantially the same income eligibility requirements as the CARE program. To the extent practicable, the commission shall develop a CARE application process using the existing ULTS application process as a model. The commission shall work with electrical and gas corporations and the Low-Income Oversight Board established in Section 382.1 to meet the low-income objectives in this section.(2)The commission shall ensure that an electrical corporation or gas corporation with a commission-approved program to provide discounts based on economic need in addition to the CARE program, including a Family Electric Rate Assistance program, use a single application form to enable an applicant to alternatively apply for any assistance program for which the applicant may be eligible. It is the intent of the Legislature to allow applicants under one program, that may not be eligible under that program, but that may be eligible under an alternative assistance program based upon economic need, to complete a single application for any commission-approved assistance program offered by the public utility.(g)It is the intent of the Legislature that the commission ensure CARE program participants receive affordable electric and gas service that does not impose an unfair economic burden on those participants.(h)The commissions program of assistance to low-income electric and gas customers shall, as soon as practicable, include nonprofit group living facilities specified by the commission, if the commission finds that the residents in these facilities substantially meet the commissions low-income eligibility requirements and there is a feasible process for certifying that the assistance shall be used for the direct benefit, such as improved quality of care or improved food service, of the low-income residents in the facilities. The commission shall authorize utilities to offer discounts to eligible facilities licensed or permitted by appropriate state or local agencies, and to facilities, including womens shelters, hospices, and homeless shelters, that may not have a license or permit but provide other proof satisfactory to the utility that they are eligible to participate in the program.(i)(1)In addition to existing assessments of eligibility, an electrical corporation may require proof of income eligibility for those CARE program participants whose electricity usage, in any monthly or other billing period, exceeds 400 percent of baseline usage. The authority of an electrical corporation to require proof of income eligibility is not limited by the means by which the CARE program participant enrolled in the program, including if the participant was automatically enrolled in the CARE program because of participation in a governmental assistance program. If a CARE program participants electricity usage exceeds 400 percent of baseline usage, the electrical corporation may require the CARE program participant to participate in the Energy Savings Assistance Program (ESAP), which includes a residential energy assessment, in order to provide the CARE program participant with information and assistance in reducing their energy usage. Continued participation in the CARE program may be conditioned upon the CARE program participant agreeing to participate in ESAP within 45 days of notice being given by the electrical corporation pursuant to this paragraph. The electrical corporation may require the CARE program participant to notify the utility of whether the residence is rented, and, if so, a means by which to contact the landlord, and the electrical corporation may share any evaluation and recommendation relative to the residential structure that is made as part of an energy assessment with the landlord of the CARE program participant. Requirements imposed pursuant to this paragraph shall be consistent with procedures adopted by the commission.(2)If a CARE program participants electricity usage exceeds 600 percent of baseline usage, the electrical corporation shall require the CARE program participant to participate in ESAP, which includes a residential energy assessment, in order to provide the CARE program participant with information and assistance in reducing their energy usage. Continued participation in the CARE program shall be conditioned upon the CARE program participant agreeing to participate in ESAP within 45 days of a notice made by the electrical corporation pursuant to this paragraph. The electrical corporation may require the CARE program participant to notify the utility of whether the residence is rented, and, if so, a means by which to contact the landlord, and the electrical corporation may share any evaluation and recommendation relative to the residential structure that is made as part of an energy assessment with the landlord of the CARE program participant. Following the completion of the energy assessment, if the CARE program participants electricity usage continues to exceed 600 percent of baseline usage, the electrical corporation may remove the CARE program participant from the program if the removal is consistent with procedures adopted by the commission. This paragraph does not prevent a CARE program participant with electricity usage exceeding 600 percent of baseline usage from participating in an appeals process with the electrical corporation to determine whether the participants usage levels are legitimate.(3)A CARE program participant in a rental residence shall not be removed from the program in situations where the landlord is nonresponsive when contacted by the electrical corporation or does not provide for ESAP participation.SEC. 5.SEC. 2. Section 913.15 is added to the Public Utilities Code, to read:913.15. (a) Within 24 months of adopting a decision implementing the Community Renewable Energy Program a community renewable energy program pursuant to Section 2827.2, and annually thereafter for 4 years, the commission shall submit a report to the Legislature on the facilities deployed, and customers subscribed, pursuant to that program, including an analysis of low-income customer participation.(b) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.SEC. 6.SEC. 3. Section 2827.2 is added to the Public Utilities Code, to read:2827.2. (a) For purposes of this section, the following definitions apply:(1)Applicable bill credit rate means the dollar-per-kilowatthour rate, as determined by the commission, used to calculate a subscribers bill credit.(2)Benefiting account means an electrical account that satisfies both of the following:(A)It is located in the service territory of the same large electrical corporation as the generator account.(B)It is an individually metered account of a distribution customer of a large electrical corporation.(3)Bill credit means the monetary value of the electricity generated by the community renewable energy facility allocated to a subscriber to offset that subscribers electricity bill.(4)Community renewable energy facility means a facility that meets all of the following requirements:(A)Is located in the service territory of a large electrical corporation.(B)Is connected to the electrical distribution grid serving the state.(C)Has at least three subscribers.(D)Has at least 50 percent of its capacity subscribed to by subscribers with subscriptions of 25 kilowatts or less. For a master-metered facility, this requirement is satisfied when the subscribed capacity is equivalent to 25 kilowatts or less per housing unit.(E)Is located on a single parcel, or contiguous parcels, of land.(F)Is not colocated with another community renewable energy facility. Colocation shall be determined based on reasonable parameters identified by the commission.(G)Uses solar photovoltaic generation that includes energy storage or wind generation, which may include energy storage.(H)Enables a subscriber to receive a bill credit for the electricity generated by the facility in proportion to the size of the subscribers subscription.(I)Subscribes at least 51 percent of its capacity to low-income customers or low-income service organizations.(5)Community Renewable Energy Program or program means the program established pursuant to subdivision (b).(6)Generator account means the customer account where the community renewable energy facility is located behind a single meter and interconnected to the large electrical corporations distribution system.(7)(1) Large electrical corporation has the same meaning as defined in Section 2827.(8)Load-serving entity has the same meaning as defined in Section 380.(9)(2) Low-income customer means either of the following:(A) An individual or household who qualifies for one or more of the following programs:(i) The California Alternate Rates for Energy (CARE) program described in Section 739.1.(ii) The Family Electric Rate Assistance (FERA) program described in Section 739.12.(iii) The CalFresh program established pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the Welfare and Institutions Code.(iv) The federal Supplemental Nutrition Assistance Program (SNAP) (Chapter 51 (commencing with Section 2011) of Title 7 of the United States Code).(v) The Low-income Heating Energy Assistance Program (LIHEAP) (42 U.S.C. Sec. 8621).(vi) The federal Head Start Program (42 U.S.C. Sec. 9801 et seq.).(B) An individual or household who resides within an underserved community. community, as defined in Section 1601.(10)(3) Low-income service organization means an organization or nonprofit whose primary function is to provide services, assistance, or housing to low-income customers, and may include, but is not limited to, a local or central tribal government or a tribally designated housing entity.(11)Net crediting means a process whereby a large electrical corporation or load-serving entity applies the difference between the bill credit and the subscribers subscription cost on the subscribers electricity bill and disburses the subscription cost amount to the subscriber organization.(12)Renewable energy credit has the same meaning as defined in Section 399.12.(13)(4) Subscriber means a distribution customer of a large electrical corporation who owns one or more subscriptions of a community renewable energy facility interconnected with that large electrical corporation associated with one or more benefiting accounts. facility. A subscriber shall be located in the same large electrical corporation service territory where the community renewable energy facility to which the subscriber is subscribed is located.(14)Subscriber organization means a for-profit or nonprofit entity that owns or operates one or more community renewable energy facilities. A subscriber organization shall not be considered an electrical corporation, load-serving entity, or otherwise a utility solely as a result of its ownership or operation of a community renewable energy facility.(15)Subscription means a contract between a subscriber and the owner or operator of a community renewable energy facility. A subscription shall be sized so that the estimated bill credits do not exceed the subscribers average annual bill for the customer account to which the subscription is attributed.(16)Underserved community has the same meaning as defined in Section 1601.(b)(1)(A)On or before December 1, 2023, the commission shall establish the Community Renewable Energy Program to authorize a distribution customer of a large electrical corporation to subscribe to, and receive bill credits resulting from, the electricity generated by a community renewable energy facility interconnected within the service territory of that large electrical corporation.(B)The commission shall implement the program as part of a proceeding to evaluate the reasonableness of other voluntary customer renewable energy subscription programs. The commission may use an existing proceeding for this purpose.(C)The commission shall ensure that the portfolio of programs resulting from the proceeding to evaluate the reasonableness of voluntary customer renewable energy subscription programs will efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers.(2)The commission shall require each large electrical corporation to file any tariffs, agreements, or forms necessary for implementation of the program within five months of the establishment of the program.(c)In administering the program, the commission shall do all of the following:(1)Evaluate and consider the financeability of community renewable energy facilities and the availability of bill credits for subscribers.(2)(A)Establish a community renewable energy program tariff that does all of the following:(i)Creates a bill credit rate that is differentiated based on the time of generation. This time-differentiated bill credit rate shall be based on the avoided costs of the facility and be consistent with the commissions methods for calculating the full set of benefits of distributed energy resources. In creating the time-differentiated bill credit rate, the commission may do any of the following:(I)Authorize a bill credit rate based on the forecasted values of avoided cost components for a duration of no less than 10 years and no longer than the expected life of the facility.(II)Incorporate actual wholesale market prices for the electrical supply portion of the avoided costs.(ii)Provides bill credits to a community renewable energy facilitys subscribers for not less than 25 years from the date the community renewable energy facility is first interconnected.(iii)Ensures that renewable energy credits from generation by the community renewable energy facility are retired on behalf of the subscribers and are not used to satisfy any compliance obligation of the load-serving entity.(B)In consultation with the Energy Commission, ensure the tariff is complementary to, and consistent with, the requirements of the California Building Standards Code (Title 24 of the California Code of Regulations).(3)(A)Require each large electrical corporation to apply bill credits to subscriber bills within one billing cycle following the cycle during which the electricity was generated by the community renewable energy facility. The elements of the bill credit shall be credited by each load-serving entity based on the costs for which it is responsible, as determined by the commission.(B)Require each large electrical corporation to provide a bill credit on a subscribers subsequent monthly electricity bill for the proportional output of a community renewable energy facility attributable to that subscriber. The value of the bill credit for the subscriber shall be calculated by multiplying the subscribers portion of the kilowatthour electricity production from the community renewable energy facility by the applicable bill credit rate for the subscriber. Any amount of the bill credit that exceeds the subscribers monthly bill shall be carried over and applied to the next months bill in perpetuity.(4)Authorize all distribution customers of a large electrical corporation to participate in the program and ensure participation opportunities for all customer classes.(5)Prohibit a large electrical corporation from removing a customer from their otherwise applicable tariff and customer class in order to participate in a community renewable energy facility.(6)(A)If the retention of a subscription is necessary for a building to remain in compliance with the California Building Standards Code (Title 24 of the California Code of Regulations), authorize the subscription to remain with the meter for a period of not less than 20 years when the applicable customer account changes.(B)If the retention of a subscription is not necessary for a building to remain in compliance with the California Building Standards Code (Title 24 of the California Code of Regulations), authorize the transfer and porting of the subscription, including authorizing a subscriber to retain a subscription to a community renewable energy facility if the subscriber moves within the same large electrical corporations service territory.(7)(A)Establish any necessary protocols for large electrical corporations and subscriber organizations to communicate the necessary information for calculating and providing bill credits to subscribers in a timely fashion, including both of the following reports:(i)Monthly reports to the large electrical corporation whereby each subscriber organization shall, in a standardized electronic format, provide to the large electrical corporation a subscriber list indicating the percentage of generation attributable to each subscriber to a community renewable energy facility in accordance with the subscribers portion of the electricity generated by the community renewable energy facility. Subscriber lists may be updated monthly to reflect unsubscribed customers and to add new subscribers.(ii)Monthly reports, in a standardized electronic format, from the large electrical corporation to the subscriber organization that indicates the total value of bill credits generated by the community renewable energy facility in the prior month and the amount of the bill credit applied to each subscriber.(B)The monthly reports described in subparagraph (A) shall be made available to the commission and, upon request, to any load-serving entity with subscribers of a community renewable energy program in its service territory.(8)Evaluate the potential to accumulate bill credits on the generator account in the event that some or all of the electricity generated by a community renewable energy facility is not allocated to subscribers in a given month. The commission shall determine appropriate allocation rules for accumulated bill credits that protect ratepayer interests while balancing those interests with the interest in providing fair compensation for community renewable energy facility generation.(9)Authorize community renewable energy facilities to interconnect through Electric Rule 21, or any successor interconnection rule.(10)Provide for consumer protection in accordance with existing laws, including all of the following:(A)Require all subscriber organizations to register with the commission before subscribing residential customers.(B)Require uniform disclosures to be made to subscribers.(C)Prohibit termination or exit fees from being assessed on low-income customers who end their subscriptions.(D)Prohibit subscriber organizations from collecting credit scores from low-income customers.(E)Establish remedies for subscriber organization violations of the programs requirements.(11)Establish financial incentives to exclusively support subscriptions by low-income customers or low-income organizations if qualifying funds are available either through an appropriation by the Legislature or select ratepayer funds for programs for which distributed solar, battery storage, or wind are otherwise eligible. Priority for a financial incentive shall be given to a low-income subscriber living in a disadvantaged community, as identified pursuant to Section 39711 of the Health and Safety Code. In implementing this paragraph, the commission shall ensure that the financial incentives minimize costs to nonsubscriber ratepayers.(12)Require large electrical corporations to establish net crediting available to subscriber organizations and their subscribers at a cost not to exceed the equivalent of 1 percent of the value of the bill credit.(13)Authorize each large electrical corporation to recover its reasonable costs of administering the program from subscribers.(14)Ensure a community renewable energy facility has received any nonministerial permits and a signed interconnection agreement before securing capacity for purposes of the program.(15)Include a program implementation schedule.(d)The commission shall issue guidelines to ensure at least 51 percent of the capacity of each community renewable energy facility is subscribed to by low-income customers or low-income service organizations.(e)The commission shall develop, and post on its internet website, a list of low-income service organizations and, consistent with subparagraph (A) of paragraph (9) of subdivision (a), a list of programs that may be used to qualify low-income customers.(f)The commission may establish methods that are not onerous on subscribers to reasonably confirm the status and eligibility of low-income customers.(g)The commission may structure the program, consistent with this section, to reduce the costs and risks associated with low-income customer participation.(h)Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of a community renewable energy facility 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.(b) On or before March 31, 2023, the commission shall open a proceeding to establish a new tariff or program, or modify an existing tariff or program, to establish a community renewable energy program.(c) The community renewable energy program shall do all of the following:(1) Comply with the photovoltaic requirements for low-rise residential buildings set forth in Section 150.1(c)(14) of Title 24 of the California Code of Regulations.(2) Ensure at least 51 percent of subscribers are low-income customers or low-income service organizations.(3) Minimize impacts to nonsubscriber ratepayers. If the commission determines financial incentives are necessary to generate participation in the community renewable energy program, the commission shall ensure those incentives exclusively support subscriptions by low-income customers or low-income service organizations. Qualifying funds for those incentives shall only be available either through an appropriation by the Legislature or select ratepayer funds for programs for which distributed solar, battery storage, or wind resources are otherwise eligible.(4) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, subject construction of community renewable energy facilities to prevailing wage for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.(5) Provide bill credits to subscribers based on the avoided costs of the community renewable energy facility, as determined by the commissions methods for calculating the full set of benefits of distributed energy resources.(d) (1) As part of the proceeding, the commission shall evaluate customer renewable energy subscription programs to determine if those programs meet the criteria described in subdivision (c), efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers. If a duplicative customer renewable energy subscription program exists, or if a customer renewable energy subscription program does not meet the criteria described in subdivision (c), the commission shall authorize the termination or modification of that program.(2) (A) On or before December 31, 2023, the commission shall report to the Legislature the results of its evaluation and its justification for terminating, modifying, or retaining each customer renewable energy subscription program.(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on December 31, 2027, pursuant to Section 10231.5 of the Government Code.(C) A report to be submitted pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.SEC. 7.SEC. 4. 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. (a) It is the intent of the Legislature to create a community renewable energy program so that all Californians, especially those unable to host a rooftop solar system, realize the benefits of distributed generation through a cost-effective program that provides benefits to all ratepayers.(b) The Legislature further intends to facilitate community renewable energy options that can help the state cost effectively meet the energy efficiency mandates in the California Building Standards Code.(c) The Legislature further intends to support robust low-income customer participation in the Community Renewable Energy Program. community renewable energy program established pursuant to Section 2827.2 of the Public Utilities Code.
SECTION 1. (a) It is the intent of the Legislature to create a community renewable energy program so that all Californians, especially those unable to host a rooftop solar system, realize the benefits of distributed generation through a cost-effective program that provides benefits to all ratepayers.(b) The Legislature further intends to facilitate community renewable energy options that can help the state cost effectively meet the energy efficiency mandates in the California Building Standards Code.(c) The Legislature further intends to support robust low-income customer participation in the Community Renewable Energy Program. community renewable energy program established pursuant to Section 2827.2 of the Public Utilities Code.
SECTION 1. (a) It is the intent of the Legislature to create a community renewable energy program so that all Californians, especially those unable to host a rooftop solar system, realize the benefits of distributed generation through a cost-effective program that provides benefits to all ratepayers.
### SECTION 1.
(b) The Legislature further intends to facilitate community renewable energy options that can help the state cost effectively meet the energy efficiency mandates in the California Building Standards Code.
(c) The Legislature further intends to support robust low-income customer participation in the Community Renewable Energy Program. community renewable energy program established pursuant to Section 2827.2 of the Public Utilities Code.
(a)For purposes of this section, the following terms mean the following:
(1)Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code.
(2)Retail seller has the same meaning as set forth in Section 399.12 of the Public Utilities Code.
(3)Transportation electrification has the same meaning as set forth in Section 237.5 of the Public Utilities Code.
(b)The state board shall identify and adopt appropriate policies, rules, or regulations to remove regulatory disincentives preventing retail sellers and local publicly owned electric utilities from facilitating the achievement of greenhouse gas emission reductions in other sectors through increased investments in transportation electrification. Policies to be considered shall include, but are not limited to, an allocation of greenhouse gas emissions allowances to retail sellers and local publicly owned electric utilities, or other regulatory mechanisms, to account for increased greenhouse gas emissions in the electric sector from transportation electrification.
For purposes of this article, the following terms have the following meanings:
(a)Conduit hydroelectric facility means a facility for the generation of electricity that uses only the hydroelectric potential of an existing pipe, ditch, flume, siphon, tunnel, canal, or other manmade conduit that is operated to distribute water for a beneficial use.
(b)Balancing authority means the responsible entity that integrates resource plans ahead of time, maintains load-interchange generation balance within a balancing authority area, and supports interconnection frequency in real time.
(c)Balancing authority area means the collection of generation, transmission, and loads within the metered boundaries of the area within which the balancing authority maintains the electrical load-resource balance.
(d)California balancing authority is a balancing authority with control over a balancing authority area primarily located in this state and operating for retail sellers and local publicly owned electric utilities subject to the requirements of this article and includes the Independent System Operator (ISO) and a local publicly owned electric utility operating a transmission grid that is not under the operational control of the ISO. A California balancing authority is responsible for the operation of the transmission grid within its metered boundaries, which is not limited by the political boundaries of the State of California.
(e)Eligible renewable energy resource means an electrical generating facility that meets the definition of a renewable electrical generation facility in Section 25741 of the Public Resources Code, subject to the following:
(1)(A)An existing small hydroelectric generation facility of 30 megawatts or less shall be eligible only if a retail seller or local publicly owned electric utility procured the electricity from the facility as of December 31, 2005. A new hydroelectric facility that commences generation of electricity after December 31, 2005, is not an eligible renewable energy resource if it will cause an adverse impact on instream beneficial uses or cause a change in the volume or timing of streamflow.
(B)Notwithstanding subparagraph (A), a conduit hydroelectric facility of 30 megawatts or less that commenced operation before January 1, 2006, is an eligible renewable energy resource. A conduit hydroelectric facility of 30 megawatts or less that commences operation after December 31, 2005, is an eligible renewable energy resource if it does not cause an adverse impact on instream beneficial uses or cause a change in the volume or timing of streamflow.
(C)A facility approved by the governing board of a local publicly owned electric utility before June 1, 2010, for procurement to satisfy renewable energy procurement obligations adopted pursuant to former Section 387, shall be certified as an eligible renewable energy resource by the Energy Commission pursuant to this article if the facility is a renewable electrical generation facility, as defined in Section 25741 of the Public Resources Code.
(D)(i)A small hydroelectric generation unit with a nameplate capacity not exceeding 40 megawatts that is operated as part of a water supply or conveyance system is an eligible renewable energy resource only for the retail seller or local publicly owned electric utility that procured the electricity from the unit as of December 31, 2005. A unit shall not be eligible pursuant to this subparagraph if an application for certification is submitted to the Energy Commission after January 1, 2013. Only one retail seller or local publicly owned electric utility shall be deemed to have procured electricity from a given unit as of December 31, 2005.
(ii)Notwithstanding clause (i), a local publicly owned electric utility that meets the criteria of subdivision (j) of Section 399.30 may sell to another local publicly owned electric utility electricity from small hydroelectric generation units that qualify as eligible renewable energy resources under clause (i), and that electricity may be used by the local publicly owned electric utility that purchased the electricity to meet its renewables portfolio standard procurement requirements. The total of all those sales from the local publicly owned electric utility shall be no greater than 100,000 megawatthours of electricity.
(iii)The amendments made to this subdivision by the act adding this subparagraph are intended to clarify existing law and apply from December 10, 2011.
(2)(A)A facility engaged in the combustion of municipal solid waste shall not be considered an eligible renewable energy resource.
(B)Subparagraph (A) does not apply to generation before January 1, 2017, from a facility located in the County of Stanislaus that was operational before September 26, 1996.
(f)Procure means to acquire through ownership or contract.
(g)Procurement entity means any person or corporation authorized by the commission to enter into contracts to procure eligible renewable energy resources on behalf of customers of a retail seller pursuant to subdivision (f) of Section 399.13.
(h)(1)Renewable energy credit means a certificate of proof associated with the generation of electricity from an eligible renewable energy resource, issued through the accounting system established by the Energy Commission pursuant to Section 399.25, that one unit of electricity was generated and delivered by an eligible renewable energy resource.
(2)Renewable energy credit includes all renewable and environmental attributes associated with the production of electricity from the eligible renewable energy resource, except for an emissions reduction credit issued pursuant to Section 40709 of the Health and Safety Code and any credits or payments associated with the reduction of solid waste and treatment benefits created by the use of biomass or biogas fuels.
(3)(A)Electricity generated by an eligible renewable energy resource attributable to the use of nonrenewable fuels, beyond a de minimis quantity used to generate electricity in the same process through which the facility converts renewable fuel to electricity, shall not result in the creation of a renewable energy credit. The Energy Commission shall set the de minimis quantity of nonrenewable fuels for each renewable energy technology at a level of no more than 2 percent of the total quantity of fuel used by the technology to generate electricity. The Energy Commission may adjust the de minimis quantity for an individual facility, up to a maximum of 5 percent, if it finds that all of the following conditions are met:
(i)The facility demonstrates that the higher quantity of nonrenewable fuel will lead to an increase in generation from the eligible renewable energy facility that is significantly greater than generation from the nonrenewable fuel alone.
(ii)The facility demonstrates that the higher quantity of nonrenewable fuels will reduce the variability of its electrical output in a manner that results in net environmental benefits to the state.
(iii)The higher quantity of nonrenewable fuel is limited to either natural gas or hydrogen derived by reformation of a fossil fuel.
(B)Electricity generated by a small hydroelectric generation facility shall not result in the creation of a renewable energy credit unless the facility meets the requirements of subparagraph (A) or (D) of paragraph (1) of subdivision (e).
(C)Electricity generated by a conduit hydroelectric generation facility shall not result in the creation of a renewable energy credit unless the facility meets the requirements of subparagraph (B) of paragraph (1) of subdivision (e).
(D)Electricity generated by a facility engaged in the combustion of municipal solid waste shall not result in the creation of a renewable energy credit. This subparagraph does not apply to renewable energy credits that were generated before January 1, 2017, by a facility engaged in the combustion of municipal solid waste located in the County of Stanislaus that was operational before September 26, 1996, and sold pursuant to contracts entered into before January 1, 2017.
(i)Renewables portfolio standard means the specified percentage of electricity generated by eligible renewable energy resources that a retail seller or a local publicly owned electric utility is required to procure pursuant to this article.
(j)Retail sales does not include the kilowatthours of generation attributable to a retail sellers end-use customers participating in the Community Renewable Energy Program pursuant to Section 2827.2.
(k)Retail seller means an entity engaged in the retail sale of electricity to end-use customers located within the state, including any of the following:
(1)An electrical corporation, as defined in Section 218.
(2)A community choice aggregator. A community choice aggregator shall participate in the renewables portfolio standard program subject to the same terms and conditions applicable to an electrical corporation.
(3)An electric service provider, as defined in Section 218.3. The electric service provider shall be subject to the same terms and conditions applicable to an electrical corporation pursuant to this article. This paragraph does not impair a contract entered into between an electric service provider and a retail customer before the suspension of direct access by the commission pursuant to Section 80110 of the Water Code.
(4)Retail seller does not include any of the following:
(A)A corporation or person employing cogeneration technology or producing electricity consistent with subdivision (b) of Section 218.
(B)The Department of Water Resources acting in its capacity pursuant to Division 27 (commencing with Section 80000) of the Water Code.
(C)A local publicly owned electric utility.
(l)WECC means the Western Electricity Coordinating Council of the North American Electric Reliability Corporation, or a successor to the corporation.
(a)The commission shall continue a program of assistance to low-income electric and gas customers with annual household incomes that are no greater than 200 percent of the federal poverty guideline levels, the cost of which shall not be borne solely by any single class of customer. For one-person households, program eligibility shall be based on two-person household guideline levels. The program shall be referred to as the California Alternate Rates for Energy or CARE program. The commission shall ensure that the level of discount for low-income electric and gas customers correctly reflects the level of need.
(b)The commission shall establish rates for CARE program participants, subject to both of the following:
(1)That the commission ensure that low-income ratepayers are not jeopardized or overburdened by monthly energy expenditures, pursuant to subdivision (b) of Section 382.
(2)That the level of the discount for low-income electricity and gas ratepayers correctly reflects the level of need as determined by the needs assessment conducted pursuant to subdivision (d) of Section 382.
(c)In establishing CARE discounts for an electrical corporation with 100,000 or more customer accounts in California, the commission shall ensure all of the following:
(1)The average effective CARE discount shall not be less than 30 percent or more than 35 percent of the revenues that would have been produced for the same billed usage by non-CARE customers. The average effective discount determined by the commission shall reflect any charges not paid by CARE customers, including payments for the California Solar Initiative, payments for the self-generation incentive program made pursuant to Section 379.6, payment of the separate rate component to fund the CARE program made pursuant to subdivision (a) of Section 381, payments made to the Department of Water Resources pursuant to Division 27 (commencing with Section 80000) of the Water Code, and any discount in a fixed charge. The commission shall not consider any incentive provided to a low-income customer pursuant to Section 2827.2 in calculating the average effective CARE discount. The average effective CARE discount shall be calculated as a weighted average of the CARE discounts provided to individual customers.
(2)If an electrical corporation provides an average effective CARE discount in excess of the maximum percentage specified in paragraph (1), the electrical corporation shall not reduce, on an annual basis, the average effective CARE discount by more than a reasonable percentage decrease below the discount in effect on January 1, 2013, or that the electrical corporation had been authorized to place in effect by that date.
(3)The entire discount shall be provided in the form of a reduction in the overall bill for the eligible CARE customer.
(d)The commission shall work with electrical and gas corporations to establish penetration goals. The commission shall authorize recovery of all administrative costs associated with the implementation of the CARE program that the commission determines to be reasonable, through a balancing account mechanism. Administrative costs shall include, but are not limited to, outreach, marketing, regulatory compliance, certification and verification, billing, measurement and evaluation, and capital improvements and upgrades to communications and processing equipment.
(e)The commission shall examine methods to improve CARE enrollment and participation. This examination shall include, but need not be limited to, comparing information from CARE and the Universal Lifeline Telephone Service (ULTS) to determine the most effective means of using that information to increase CARE enrollment, automatic enrollment of ULTS customers who are eligible for the CARE program, customer privacy issues, and alternative mechanisms for outreach to potential enrollees. The commission shall ensure that a customer consents before enrollment. The commission shall consult with interested parties, including ULTS providers, to develop the best methods of informing ULTS customers about other available low-income programs and the best mechanism for telephone providers to recover reasonable costs incurred pursuant to this section.
(f)(1)The commission shall improve the CARE application process by cooperating with other entities and representatives of California government, including the California Health and Human Services Agency and the Secretary of California Health and Human Services, to ensure that all gas and electric customers eligible for public assistance programs in California that reside within the service territory of an electrical corporation or gas corporation, are enrolled in the CARE program. The commission may determine that gas and electric customers are categorically eligible for CARE assistance if they are enrolled in other public assistance programs with substantially the same income eligibility requirements as the CARE program. To the extent practicable, the commission shall develop a CARE application process using the existing ULTS application process as a model. The commission shall work with electrical and gas corporations and the Low-Income Oversight Board established in Section 382.1 to meet the low-income objectives in this section.
(2)The commission shall ensure that an electrical corporation or gas corporation with a commission-approved program to provide discounts based on economic need in addition to the CARE program, including a Family Electric Rate Assistance program, use a single application form to enable an applicant to alternatively apply for any assistance program for which the applicant may be eligible. It is the intent of the Legislature to allow applicants under one program, that may not be eligible under that program, but that may be eligible under an alternative assistance program based upon economic need, to complete a single application for any commission-approved assistance program offered by the public utility.
(g)It is the intent of the Legislature that the commission ensure CARE program participants receive affordable electric and gas service that does not impose an unfair economic burden on those participants.
(h)The commissions program of assistance to low-income electric and gas customers shall, as soon as practicable, include nonprofit group living facilities specified by the commission, if the commission finds that the residents in these facilities substantially meet the commissions low-income eligibility requirements and there is a feasible process for certifying that the assistance shall be used for the direct benefit, such as improved quality of care or improved food service, of the low-income residents in the facilities. The commission shall authorize utilities to offer discounts to eligible facilities licensed or permitted by appropriate state or local agencies, and to facilities, including womens shelters, hospices, and homeless shelters, that may not have a license or permit but provide other proof satisfactory to the utility that they are eligible to participate in the program.
(i)(1)In addition to existing assessments of eligibility, an electrical corporation may require proof of income eligibility for those CARE program participants whose electricity usage, in any monthly or other billing period, exceeds 400 percent of baseline usage. The authority of an electrical corporation to require proof of income eligibility is not limited by the means by which the CARE program participant enrolled in the program, including if the participant was automatically enrolled in the CARE program because of participation in a governmental assistance program. If a CARE program participants electricity usage exceeds 400 percent of baseline usage, the electrical corporation may require the CARE program participant to participate in the Energy Savings Assistance Program (ESAP), which includes a residential energy assessment, in order to provide the CARE program participant with information and assistance in reducing their energy usage. Continued participation in the CARE program may be conditioned upon the CARE program participant agreeing to participate in ESAP within 45 days of notice being given by the electrical corporation pursuant to this paragraph. The electrical corporation may require the CARE program participant to notify the utility of whether the residence is rented, and, if so, a means by which to contact the landlord, and the electrical corporation may share any evaluation and recommendation relative to the residential structure that is made as part of an energy assessment with the landlord of the CARE program participant. Requirements imposed pursuant to this paragraph shall be consistent with procedures adopted by the commission.
(2)If a CARE program participants electricity usage exceeds 600 percent of baseline usage, the electrical corporation shall require the CARE program participant to participate in ESAP, which includes a residential energy assessment, in order to provide the CARE program participant with information and assistance in reducing their energy usage. Continued participation in the CARE program shall be conditioned upon the CARE program participant agreeing to participate in ESAP within 45 days of a notice made by the electrical corporation pursuant to this paragraph. The electrical corporation may require the CARE program participant to notify the utility of whether the residence is rented, and, if so, a means by which to contact the landlord, and the electrical corporation may share any evaluation and recommendation relative to the residential structure that is made as part of an energy assessment with the landlord of the CARE program participant. Following the completion of the energy assessment, if the CARE program participants electricity usage continues to exceed 600 percent of baseline usage, the electrical corporation may remove the CARE program participant from the program if the removal is consistent with procedures adopted by the commission. This paragraph does not prevent a CARE program participant with electricity usage exceeding 600 percent of baseline usage from participating in an appeals process with the electrical corporation to determine whether the participants usage levels are legitimate.
(3)A CARE program participant in a rental residence shall not be removed from the program in situations where the landlord is nonresponsive when contacted by the electrical corporation or does not provide for ESAP participation.
SEC. 5.SEC. 2. Section 913.15 is added to the Public Utilities Code, to read:913.15. (a) Within 24 months of adopting a decision implementing the Community Renewable Energy Program a community renewable energy program pursuant to Section 2827.2, and annually thereafter for 4 years, the commission shall submit a report to the Legislature on the facilities deployed, and customers subscribed, pursuant to that program, including an analysis of low-income customer participation.(b) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.
SEC. 5.SEC. 2. Section 913.15 is added to the Public Utilities Code, to read:
### SEC. 5.SEC. 2.
913.15. (a) Within 24 months of adopting a decision implementing the Community Renewable Energy Program a community renewable energy program pursuant to Section 2827.2, and annually thereafter for 4 years, the commission shall submit a report to the Legislature on the facilities deployed, and customers subscribed, pursuant to that program, including an analysis of low-income customer participation.(b) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.
913.15. (a) Within 24 months of adopting a decision implementing the Community Renewable Energy Program a community renewable energy program pursuant to Section 2827.2, and annually thereafter for 4 years, the commission shall submit a report to the Legislature on the facilities deployed, and customers subscribed, pursuant to that program, including an analysis of low-income customer participation.(b) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.
913.15. (a) Within 24 months of adopting a decision implementing the Community Renewable Energy Program a community renewable energy program pursuant to Section 2827.2, and annually thereafter for 4 years, the commission shall submit a report to the Legislature on the facilities deployed, and customers subscribed, pursuant to that program, including an analysis of low-income customer participation.(b) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.
913.15. (a) Within 24 months of adopting a decision implementing the Community Renewable Energy Program a community renewable energy program pursuant to Section 2827.2, and annually thereafter for 4 years, the commission shall submit a report to the Legislature on the facilities deployed, and customers subscribed, pursuant to that program, including an analysis of low-income customer participation.
(b) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.
SEC. 6.SEC. 3. Section 2827.2 is added to the Public Utilities Code, to read:2827.2. (a) For purposes of this section, the following definitions apply:(1)Applicable bill credit rate means the dollar-per-kilowatthour rate, as determined by the commission, used to calculate a subscribers bill credit.(2)Benefiting account means an electrical account that satisfies both of the following:(A)It is located in the service territory of the same large electrical corporation as the generator account.(B)It is an individually metered account of a distribution customer of a large electrical corporation.(3)Bill credit means the monetary value of the electricity generated by the community renewable energy facility allocated to a subscriber to offset that subscribers electricity bill.(4)Community renewable energy facility means a facility that meets all of the following requirements:(A)Is located in the service territory of a large electrical corporation.(B)Is connected to the electrical distribution grid serving the state.(C)Has at least three subscribers.(D)Has at least 50 percent of its capacity subscribed to by subscribers with subscriptions of 25 kilowatts or less. For a master-metered facility, this requirement is satisfied when the subscribed capacity is equivalent to 25 kilowatts or less per housing unit.(E)Is located on a single parcel, or contiguous parcels, of land.(F)Is not colocated with another community renewable energy facility. Colocation shall be determined based on reasonable parameters identified by the commission.(G)Uses solar photovoltaic generation that includes energy storage or wind generation, which may include energy storage.(H)Enables a subscriber to receive a bill credit for the electricity generated by the facility in proportion to the size of the subscribers subscription.(I)Subscribes at least 51 percent of its capacity to low-income customers or low-income service organizations.(5)Community Renewable Energy Program or program means the program established pursuant to subdivision (b).(6)Generator account means the customer account where the community renewable energy facility is located behind a single meter and interconnected to the large electrical corporations distribution system.(7)(1) Large electrical corporation has the same meaning as defined in Section 2827.(8)Load-serving entity has the same meaning as defined in Section 380.(9)(2) Low-income customer means either of the following:(A) An individual or household who qualifies for one or more of the following programs:(i) The California Alternate Rates for Energy (CARE) program described in Section 739.1.(ii) The Family Electric Rate Assistance (FERA) program described in Section 739.12.(iii) The CalFresh program established pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the Welfare and Institutions Code.(iv) The federal Supplemental Nutrition Assistance Program (SNAP) (Chapter 51 (commencing with Section 2011) of Title 7 of the United States Code).(v) The Low-income Heating Energy Assistance Program (LIHEAP) (42 U.S.C. Sec. 8621).(vi) The federal Head Start Program (42 U.S.C. Sec. 9801 et seq.).(B) An individual or household who resides within an underserved community. community, as defined in Section 1601.(10)(3) Low-income service organization means an organization or nonprofit whose primary function is to provide services, assistance, or housing to low-income customers, and may include, but is not limited to, a local or central tribal government or a tribally designated housing entity.(11)Net crediting means a process whereby a large electrical corporation or load-serving entity applies the difference between the bill credit and the subscribers subscription cost on the subscribers electricity bill and disburses the subscription cost amount to the subscriber organization.(12)Renewable energy credit has the same meaning as defined in Section 399.12.(13)(4) Subscriber means a distribution customer of a large electrical corporation who owns one or more subscriptions of a community renewable energy facility interconnected with that large electrical corporation associated with one or more benefiting accounts. facility. A subscriber shall be located in the same large electrical corporation service territory where the community renewable energy facility to which the subscriber is subscribed is located.(14)Subscriber organization means a for-profit or nonprofit entity that owns or operates one or more community renewable energy facilities. A subscriber organization shall not be considered an electrical corporation, load-serving entity, or otherwise a utility solely as a result of its ownership or operation of a community renewable energy facility.(15)Subscription means a contract between a subscriber and the owner or operator of a community renewable energy facility. A subscription shall be sized so that the estimated bill credits do not exceed the subscribers average annual bill for the customer account to which the subscription is attributed.(16)Underserved community has the same meaning as defined in Section 1601.(b)(1)(A)On or before December 1, 2023, the commission shall establish the Community Renewable Energy Program to authorize a distribution customer of a large electrical corporation to subscribe to, and receive bill credits resulting from, the electricity generated by a community renewable energy facility interconnected within the service territory of that large electrical corporation.(B)The commission shall implement the program as part of a proceeding to evaluate the reasonableness of other voluntary customer renewable energy subscription programs. The commission may use an existing proceeding for this purpose.(C)The commission shall ensure that the portfolio of programs resulting from the proceeding to evaluate the reasonableness of voluntary customer renewable energy subscription programs will efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers.(2)The commission shall require each large electrical corporation to file any tariffs, agreements, or forms necessary for implementation of the program within five months of the establishment of the program.(c)In administering the program, the commission shall do all of the following:(1)Evaluate and consider the financeability of community renewable energy facilities and the availability of bill credits for subscribers.(2)(A)Establish a community renewable energy program tariff that does all of the following:(i)Creates a bill credit rate that is differentiated based on the time of generation. This time-differentiated bill credit rate shall be based on the avoided costs of the facility and be consistent with the commissions methods for calculating the full set of benefits of distributed energy resources. In creating the time-differentiated bill credit rate, the commission may do any of the following:(I)Authorize a bill credit rate based on the forecasted values of avoided cost components for a duration of no less than 10 years and no longer than the expected life of the facility.(II)Incorporate actual wholesale market prices for the electrical supply portion of the avoided costs.(ii)Provides bill credits to a community renewable energy facilitys subscribers for not less than 25 years from the date the community renewable energy facility is first interconnected.(iii)Ensures that renewable energy credits from generation by the community renewable energy facility are retired on behalf of the subscribers and are not used to satisfy any compliance obligation of the load-serving entity.(B)In consultation with the Energy Commission, ensure the tariff is complementary to, and consistent with, the requirements of the California Building Standards Code (Title 24 of the California Code of Regulations).(3)(A)Require each large electrical corporation to apply bill credits to subscriber bills within one billing cycle following the cycle during which the electricity was generated by the community renewable energy facility. The elements of the bill credit shall be credited by each load-serving entity based on the costs for which it is responsible, as determined by the commission.(B)Require each large electrical corporation to provide a bill credit on a subscribers subsequent monthly electricity bill for the proportional output of a community renewable energy facility attributable to that subscriber. The value of the bill credit for the subscriber shall be calculated by multiplying the subscribers portion of the kilowatthour electricity production from the community renewable energy facility by the applicable bill credit rate for the subscriber. Any amount of the bill credit that exceeds the subscribers monthly bill shall be carried over and applied to the next months bill in perpetuity.(4)Authorize all distribution customers of a large electrical corporation to participate in the program and ensure participation opportunities for all customer classes.(5)Prohibit a large electrical corporation from removing a customer from their otherwise applicable tariff and customer class in order to participate in a community renewable energy facility.(6)(A)If the retention of a subscription is necessary for a building to remain in compliance with the California Building Standards Code (Title 24 of the California Code of Regulations), authorize the subscription to remain with the meter for a period of not less than 20 years when the applicable customer account changes.(B)If the retention of a subscription is not necessary for a building to remain in compliance with the California Building Standards Code (Title 24 of the California Code of Regulations), authorize the transfer and porting of the subscription, including authorizing a subscriber to retain a subscription to a community renewable energy facility if the subscriber moves within the same large electrical corporations service territory.(7)(A)Establish any necessary protocols for large electrical corporations and subscriber organizations to communicate the necessary information for calculating and providing bill credits to subscribers in a timely fashion, including both of the following reports:(i)Monthly reports to the large electrical corporation whereby each subscriber organization shall, in a standardized electronic format, provide to the large electrical corporation a subscriber list indicating the percentage of generation attributable to each subscriber to a community renewable energy facility in accordance with the subscribers portion of the electricity generated by the community renewable energy facility. Subscriber lists may be updated monthly to reflect unsubscribed customers and to add new subscribers.(ii)Monthly reports, in a standardized electronic format, from the large electrical corporation to the subscriber organization that indicates the total value of bill credits generated by the community renewable energy facility in the prior month and the amount of the bill credit applied to each subscriber.(B)The monthly reports described in subparagraph (A) shall be made available to the commission and, upon request, to any load-serving entity with subscribers of a community renewable energy program in its service territory.(8)Evaluate the potential to accumulate bill credits on the generator account in the event that some or all of the electricity generated by a community renewable energy facility is not allocated to subscribers in a given month. The commission shall determine appropriate allocation rules for accumulated bill credits that protect ratepayer interests while balancing those interests with the interest in providing fair compensation for community renewable energy facility generation.(9)Authorize community renewable energy facilities to interconnect through Electric Rule 21, or any successor interconnection rule.(10)Provide for consumer protection in accordance with existing laws, including all of the following:(A)Require all subscriber organizations to register with the commission before subscribing residential customers.(B)Require uniform disclosures to be made to subscribers.(C)Prohibit termination or exit fees from being assessed on low-income customers who end their subscriptions.(D)Prohibit subscriber organizations from collecting credit scores from low-income customers.(E)Establish remedies for subscriber organization violations of the programs requirements.(11)Establish financial incentives to exclusively support subscriptions by low-income customers or low-income organizations if qualifying funds are available either through an appropriation by the Legislature or select ratepayer funds for programs for which distributed solar, battery storage, or wind are otherwise eligible. Priority for a financial incentive shall be given to a low-income subscriber living in a disadvantaged community, as identified pursuant to Section 39711 of the Health and Safety Code. In implementing this paragraph, the commission shall ensure that the financial incentives minimize costs to nonsubscriber ratepayers.(12)Require large electrical corporations to establish net crediting available to subscriber organizations and their subscribers at a cost not to exceed the equivalent of 1 percent of the value of the bill credit.(13)Authorize each large electrical corporation to recover its reasonable costs of administering the program from subscribers.(14)Ensure a community renewable energy facility has received any nonministerial permits and a signed interconnection agreement before securing capacity for purposes of the program.(15)Include a program implementation schedule.(d)The commission shall issue guidelines to ensure at least 51 percent of the capacity of each community renewable energy facility is subscribed to by low-income customers or low-income service organizations.(e)The commission shall develop, and post on its internet website, a list of low-income service organizations and, consistent with subparagraph (A) of paragraph (9) of subdivision (a), a list of programs that may be used to qualify low-income customers.(f)The commission may establish methods that are not onerous on subscribers to reasonably confirm the status and eligibility of low-income customers.(g)The commission may structure the program, consistent with this section, to reduce the costs and risks associated with low-income customer participation.(h)Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of a community renewable energy facility 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.(b) On or before March 31, 2023, the commission shall open a proceeding to establish a new tariff or program, or modify an existing tariff or program, to establish a community renewable energy program.(c) The community renewable energy program shall do all of the following:(1) Comply with the photovoltaic requirements for low-rise residential buildings set forth in Section 150.1(c)(14) of Title 24 of the California Code of Regulations.(2) Ensure at least 51 percent of subscribers are low-income customers or low-income service organizations.(3) Minimize impacts to nonsubscriber ratepayers. If the commission determines financial incentives are necessary to generate participation in the community renewable energy program, the commission shall ensure those incentives exclusively support subscriptions by low-income customers or low-income service organizations. Qualifying funds for those incentives shall only be available either through an appropriation by the Legislature or select ratepayer funds for programs for which distributed solar, battery storage, or wind resources are otherwise eligible.(4) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, subject construction of community renewable energy facilities to prevailing wage for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.(5) Provide bill credits to subscribers based on the avoided costs of the community renewable energy facility, as determined by the commissions methods for calculating the full set of benefits of distributed energy resources.(d) (1) As part of the proceeding, the commission shall evaluate customer renewable energy subscription programs to determine if those programs meet the criteria described in subdivision (c), efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers. If a duplicative customer renewable energy subscription program exists, or if a customer renewable energy subscription program does not meet the criteria described in subdivision (c), the commission shall authorize the termination or modification of that program.(2) (A) On or before December 31, 2023, the commission shall report to the Legislature the results of its evaluation and its justification for terminating, modifying, or retaining each customer renewable energy subscription program.(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on December 31, 2027, pursuant to Section 10231.5 of the Government Code.(C) A report to be submitted pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.
SEC. 6.SEC. 3. Section 2827.2 is added to the Public Utilities Code, to read:
### SEC. 6.SEC. 3.
2827.2. (a) For purposes of this section, the following definitions apply:(1)Applicable bill credit rate means the dollar-per-kilowatthour rate, as determined by the commission, used to calculate a subscribers bill credit.(2)Benefiting account means an electrical account that satisfies both of the following:(A)It is located in the service territory of the same large electrical corporation as the generator account.(B)It is an individually metered account of a distribution customer of a large electrical corporation.(3)Bill credit means the monetary value of the electricity generated by the community renewable energy facility allocated to a subscriber to offset that subscribers electricity bill.(4)Community renewable energy facility means a facility that meets all of the following requirements:(A)Is located in the service territory of a large electrical corporation.(B)Is connected to the electrical distribution grid serving the state.(C)Has at least three subscribers.(D)Has at least 50 percent of its capacity subscribed to by subscribers with subscriptions of 25 kilowatts or less. For a master-metered facility, this requirement is satisfied when the subscribed capacity is equivalent to 25 kilowatts or less per housing unit.(E)Is located on a single parcel, or contiguous parcels, of land.(F)Is not colocated with another community renewable energy facility. Colocation shall be determined based on reasonable parameters identified by the commission.(G)Uses solar photovoltaic generation that includes energy storage or wind generation, which may include energy storage.(H)Enables a subscriber to receive a bill credit for the electricity generated by the facility in proportion to the size of the subscribers subscription.(I)Subscribes at least 51 percent of its capacity to low-income customers or low-income service organizations.(5)Community Renewable Energy Program or program means the program established pursuant to subdivision (b).(6)Generator account means the customer account where the community renewable energy facility is located behind a single meter and interconnected to the large electrical corporations distribution system.(7)(1) Large electrical corporation has the same meaning as defined in Section 2827.(8)Load-serving entity has the same meaning as defined in Section 380.(9)(2) Low-income customer means either of the following:(A) An individual or household who qualifies for one or more of the following programs:(i) The California Alternate Rates for Energy (CARE) program described in Section 739.1.(ii) The Family Electric Rate Assistance (FERA) program described in Section 739.12.(iii) The CalFresh program established pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the Welfare and Institutions Code.(iv) The federal Supplemental Nutrition Assistance Program (SNAP) (Chapter 51 (commencing with Section 2011) of Title 7 of the United States Code).(v) The Low-income Heating Energy Assistance Program (LIHEAP) (42 U.S.C. Sec. 8621).(vi) The federal Head Start Program (42 U.S.C. Sec. 9801 et seq.).(B) An individual or household who resides within an underserved community. community, as defined in Section 1601.(10)(3) Low-income service organization means an organization or nonprofit whose primary function is to provide services, assistance, or housing to low-income customers, and may include, but is not limited to, a local or central tribal government or a tribally designated housing entity.(11)Net crediting means a process whereby a large electrical corporation or load-serving entity applies the difference between the bill credit and the subscribers subscription cost on the subscribers electricity bill and disburses the subscription cost amount to the subscriber organization.(12)Renewable energy credit has the same meaning as defined in Section 399.12.(13)(4) Subscriber means a distribution customer of a large electrical corporation who owns one or more subscriptions of a community renewable energy facility interconnected with that large electrical corporation associated with one or more benefiting accounts. facility. A subscriber shall be located in the same large electrical corporation service territory where the community renewable energy facility to which the subscriber is subscribed is located.(14)Subscriber organization means a for-profit or nonprofit entity that owns or operates one or more community renewable energy facilities. A subscriber organization shall not be considered an electrical corporation, load-serving entity, or otherwise a utility solely as a result of its ownership or operation of a community renewable energy facility.(15)Subscription means a contract between a subscriber and the owner or operator of a community renewable energy facility. A subscription shall be sized so that the estimated bill credits do not exceed the subscribers average annual bill for the customer account to which the subscription is attributed.(16)Underserved community has the same meaning as defined in Section 1601.(b)(1)(A)On or before December 1, 2023, the commission shall establish the Community Renewable Energy Program to authorize a distribution customer of a large electrical corporation to subscribe to, and receive bill credits resulting from, the electricity generated by a community renewable energy facility interconnected within the service territory of that large electrical corporation.(B)The commission shall implement the program as part of a proceeding to evaluate the reasonableness of other voluntary customer renewable energy subscription programs. The commission may use an existing proceeding for this purpose.(C)The commission shall ensure that the portfolio of programs resulting from the proceeding to evaluate the reasonableness of voluntary customer renewable energy subscription programs will efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers.(2)The commission shall require each large electrical corporation to file any tariffs, agreements, or forms necessary for implementation of the program within five months of the establishment of the program.(c)In administering the program, the commission shall do all of the following:(1)Evaluate and consider the financeability of community renewable energy facilities and the availability of bill credits for subscribers.(2)(A)Establish a community renewable energy program tariff that does all of the following:(i)Creates a bill credit rate that is differentiated based on the time of generation. This time-differentiated bill credit rate shall be based on the avoided costs of the facility and be consistent with the commissions methods for calculating the full set of benefits of distributed energy resources. In creating the time-differentiated bill credit rate, the commission may do any of the following:(I)Authorize a bill credit rate based on the forecasted values of avoided cost components for a duration of no less than 10 years and no longer than the expected life of the facility.(II)Incorporate actual wholesale market prices for the electrical supply portion of the avoided costs.(ii)Provides bill credits to a community renewable energy facilitys subscribers for not less than 25 years from the date the community renewable energy facility is first interconnected.(iii)Ensures that renewable energy credits from generation by the community renewable energy facility are retired on behalf of the subscribers and are not used to satisfy any compliance obligation of the load-serving entity.(B)In consultation with the Energy Commission, ensure the tariff is complementary to, and consistent with, the requirements of the California Building Standards Code (Title 24 of the California Code of Regulations).(3)(A)Require each large electrical corporation to apply bill credits to subscriber bills within one billing cycle following the cycle during which the electricity was generated by the community renewable energy facility. The elements of the bill credit shall be credited by each load-serving entity based on the costs for which it is responsible, as determined by the commission.(B)Require each large electrical corporation to provide a bill credit on a subscribers subsequent monthly electricity bill for the proportional output of a community renewable energy facility attributable to that subscriber. The value of the bill credit for the subscriber shall be calculated by multiplying the subscribers portion of the kilowatthour electricity production from the community renewable energy facility by the applicable bill credit rate for the subscriber. Any amount of the bill credit that exceeds the subscribers monthly bill shall be carried over and applied to the next months bill in perpetuity.(4)Authorize all distribution customers of a large electrical corporation to participate in the program and ensure participation opportunities for all customer classes.(5)Prohibit a large electrical corporation from removing a customer from their otherwise applicable tariff and customer class in order to participate in a community renewable energy facility.(6)(A)If the retention of a subscription is necessary for a building to remain in compliance with the California Building Standards Code (Title 24 of the California Code of Regulations), authorize the subscription to remain with the meter for a period of not less than 20 years when the applicable customer account changes.(B)If the retention of a subscription is not necessary for a building to remain in compliance with the California Building Standards Code (Title 24 of the California Code of Regulations), authorize the transfer and porting of the subscription, including authorizing a subscriber to retain a subscription to a community renewable energy facility if the subscriber moves within the same large electrical corporations service territory.(7)(A)Establish any necessary protocols for large electrical corporations and subscriber organizations to communicate the necessary information for calculating and providing bill credits to subscribers in a timely fashion, including both of the following reports:(i)Monthly reports to the large electrical corporation whereby each subscriber organization shall, in a standardized electronic format, provide to the large electrical corporation a subscriber list indicating the percentage of generation attributable to each subscriber to a community renewable energy facility in accordance with the subscribers portion of the electricity generated by the community renewable energy facility. Subscriber lists may be updated monthly to reflect unsubscribed customers and to add new subscribers.(ii)Monthly reports, in a standardized electronic format, from the large electrical corporation to the subscriber organization that indicates the total value of bill credits generated by the community renewable energy facility in the prior month and the amount of the bill credit applied to each subscriber.(B)The monthly reports described in subparagraph (A) shall be made available to the commission and, upon request, to any load-serving entity with subscribers of a community renewable energy program in its service territory.(8)Evaluate the potential to accumulate bill credits on the generator account in the event that some or all of the electricity generated by a community renewable energy facility is not allocated to subscribers in a given month. The commission shall determine appropriate allocation rules for accumulated bill credits that protect ratepayer interests while balancing those interests with the interest in providing fair compensation for community renewable energy facility generation.(9)Authorize community renewable energy facilities to interconnect through Electric Rule 21, or any successor interconnection rule.(10)Provide for consumer protection in accordance with existing laws, including all of the following:(A)Require all subscriber organizations to register with the commission before subscribing residential customers.(B)Require uniform disclosures to be made to subscribers.(C)Prohibit termination or exit fees from being assessed on low-income customers who end their subscriptions.(D)Prohibit subscriber organizations from collecting credit scores from low-income customers.(E)Establish remedies for subscriber organization violations of the programs requirements.(11)Establish financial incentives to exclusively support subscriptions by low-income customers or low-income organizations if qualifying funds are available either through an appropriation by the Legislature or select ratepayer funds for programs for which distributed solar, battery storage, or wind are otherwise eligible. Priority for a financial incentive shall be given to a low-income subscriber living in a disadvantaged community, as identified pursuant to Section 39711 of the Health and Safety Code. In implementing this paragraph, the commission shall ensure that the financial incentives minimize costs to nonsubscriber ratepayers.(12)Require large electrical corporations to establish net crediting available to subscriber organizations and their subscribers at a cost not to exceed the equivalent of 1 percent of the value of the bill credit.(13)Authorize each large electrical corporation to recover its reasonable costs of administering the program from subscribers.(14)Ensure a community renewable energy facility has received any nonministerial permits and a signed interconnection agreement before securing capacity for purposes of the program.(15)Include a program implementation schedule.(d)The commission shall issue guidelines to ensure at least 51 percent of the capacity of each community renewable energy facility is subscribed to by low-income customers or low-income service organizations.(e)The commission shall develop, and post on its internet website, a list of low-income service organizations and, consistent with subparagraph (A) of paragraph (9) of subdivision (a), a list of programs that may be used to qualify low-income customers.(f)The commission may establish methods that are not onerous on subscribers to reasonably confirm the status and eligibility of low-income customers.(g)The commission may structure the program, consistent with this section, to reduce the costs and risks associated with low-income customer participation.(h)Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of a community renewable energy facility 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.(b) On or before March 31, 2023, the commission shall open a proceeding to establish a new tariff or program, or modify an existing tariff or program, to establish a community renewable energy program.(c) The community renewable energy program shall do all of the following:(1) Comply with the photovoltaic requirements for low-rise residential buildings set forth in Section 150.1(c)(14) of Title 24 of the California Code of Regulations.(2) Ensure at least 51 percent of subscribers are low-income customers or low-income service organizations.(3) Minimize impacts to nonsubscriber ratepayers. If the commission determines financial incentives are necessary to generate participation in the community renewable energy program, the commission shall ensure those incentives exclusively support subscriptions by low-income customers or low-income service organizations. Qualifying funds for those incentives shall only be available either through an appropriation by the Legislature or select ratepayer funds for programs for which distributed solar, battery storage, or wind resources are otherwise eligible.(4) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, subject construction of community renewable energy facilities to prevailing wage for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.(5) Provide bill credits to subscribers based on the avoided costs of the community renewable energy facility, as determined by the commissions methods for calculating the full set of benefits of distributed energy resources.(d) (1) As part of the proceeding, the commission shall evaluate customer renewable energy subscription programs to determine if those programs meet the criteria described in subdivision (c), efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers. If a duplicative customer renewable energy subscription program exists, or if a customer renewable energy subscription program does not meet the criteria described in subdivision (c), the commission shall authorize the termination or modification of that program.(2) (A) On or before December 31, 2023, the commission shall report to the Legislature the results of its evaluation and its justification for terminating, modifying, or retaining each customer renewable energy subscription program.(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on December 31, 2027, pursuant to Section 10231.5 of the Government Code.(C) A report to be submitted pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.
2827.2. (a) For purposes of this section, the following definitions apply:(1)Applicable bill credit rate means the dollar-per-kilowatthour rate, as determined by the commission, used to calculate a subscribers bill credit.(2)Benefiting account means an electrical account that satisfies both of the following:(A)It is located in the service territory of the same large electrical corporation as the generator account.(B)It is an individually metered account of a distribution customer of a large electrical corporation.(3)Bill credit means the monetary value of the electricity generated by the community renewable energy facility allocated to a subscriber to offset that subscribers electricity bill.(4)Community renewable energy facility means a facility that meets all of the following requirements:(A)Is located in the service territory of a large electrical corporation.(B)Is connected to the electrical distribution grid serving the state.(C)Has at least three subscribers.(D)Has at least 50 percent of its capacity subscribed to by subscribers with subscriptions of 25 kilowatts or less. For a master-metered facility, this requirement is satisfied when the subscribed capacity is equivalent to 25 kilowatts or less per housing unit.(E)Is located on a single parcel, or contiguous parcels, of land.(F)Is not colocated with another community renewable energy facility. Colocation shall be determined based on reasonable parameters identified by the commission.(G)Uses solar photovoltaic generation that includes energy storage or wind generation, which may include energy storage.(H)Enables a subscriber to receive a bill credit for the electricity generated by the facility in proportion to the size of the subscribers subscription.(I)Subscribes at least 51 percent of its capacity to low-income customers or low-income service organizations.(5)Community Renewable Energy Program or program means the program established pursuant to subdivision (b).(6)Generator account means the customer account where the community renewable energy facility is located behind a single meter and interconnected to the large electrical corporations distribution system.(7)(1) Large electrical corporation has the same meaning as defined in Section 2827.(8)Load-serving entity has the same meaning as defined in Section 380.(9)(2) Low-income customer means either of the following:(A) An individual or household who qualifies for one or more of the following programs:(i) The California Alternate Rates for Energy (CARE) program described in Section 739.1.(ii) The Family Electric Rate Assistance (FERA) program described in Section 739.12.(iii) The CalFresh program established pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the Welfare and Institutions Code.(iv) The federal Supplemental Nutrition Assistance Program (SNAP) (Chapter 51 (commencing with Section 2011) of Title 7 of the United States Code).(v) The Low-income Heating Energy Assistance Program (LIHEAP) (42 U.S.C. Sec. 8621).(vi) The federal Head Start Program (42 U.S.C. Sec. 9801 et seq.).(B) An individual or household who resides within an underserved community. community, as defined in Section 1601.(10)(3) Low-income service organization means an organization or nonprofit whose primary function is to provide services, assistance, or housing to low-income customers, and may include, but is not limited to, a local or central tribal government or a tribally designated housing entity.(11)Net crediting means a process whereby a large electrical corporation or load-serving entity applies the difference between the bill credit and the subscribers subscription cost on the subscribers electricity bill and disburses the subscription cost amount to the subscriber organization.(12)Renewable energy credit has the same meaning as defined in Section 399.12.(13)(4) Subscriber means a distribution customer of a large electrical corporation who owns one or more subscriptions of a community renewable energy facility interconnected with that large electrical corporation associated with one or more benefiting accounts. facility. A subscriber shall be located in the same large electrical corporation service territory where the community renewable energy facility to which the subscriber is subscribed is located.(14)Subscriber organization means a for-profit or nonprofit entity that owns or operates one or more community renewable energy facilities. A subscriber organization shall not be considered an electrical corporation, load-serving entity, or otherwise a utility solely as a result of its ownership or operation of a community renewable energy facility.(15)Subscription means a contract between a subscriber and the owner or operator of a community renewable energy facility. A subscription shall be sized so that the estimated bill credits do not exceed the subscribers average annual bill for the customer account to which the subscription is attributed.(16)Underserved community has the same meaning as defined in Section 1601.(b)(1)(A)On or before December 1, 2023, the commission shall establish the Community Renewable Energy Program to authorize a distribution customer of a large electrical corporation to subscribe to, and receive bill credits resulting from, the electricity generated by a community renewable energy facility interconnected within the service territory of that large electrical corporation.(B)The commission shall implement the program as part of a proceeding to evaluate the reasonableness of other voluntary customer renewable energy subscription programs. The commission may use an existing proceeding for this purpose.(C)The commission shall ensure that the portfolio of programs resulting from the proceeding to evaluate the reasonableness of voluntary customer renewable energy subscription programs will efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers.(2)The commission shall require each large electrical corporation to file any tariffs, agreements, or forms necessary for implementation of the program within five months of the establishment of the program.(c)In administering the program, the commission shall do all of the following:(1)Evaluate and consider the financeability of community renewable energy facilities and the availability of bill credits for subscribers.(2)(A)Establish a community renewable energy program tariff that does all of the following:(i)Creates a bill credit rate that is differentiated based on the time of generation. This time-differentiated bill credit rate shall be based on the avoided costs of the facility and be consistent with the commissions methods for calculating the full set of benefits of distributed energy resources. In creating the time-differentiated bill credit rate, the commission may do any of the following:(I)Authorize a bill credit rate based on the forecasted values of avoided cost components for a duration of no less than 10 years and no longer than the expected life of the facility.(II)Incorporate actual wholesale market prices for the electrical supply portion of the avoided costs.(ii)Provides bill credits to a community renewable energy facilitys subscribers for not less than 25 years from the date the community renewable energy facility is first interconnected.(iii)Ensures that renewable energy credits from generation by the community renewable energy facility are retired on behalf of the subscribers and are not used to satisfy any compliance obligation of the load-serving entity.(B)In consultation with the Energy Commission, ensure the tariff is complementary to, and consistent with, the requirements of the California Building Standards Code (Title 24 of the California Code of Regulations).(3)(A)Require each large electrical corporation to apply bill credits to subscriber bills within one billing cycle following the cycle during which the electricity was generated by the community renewable energy facility. The elements of the bill credit shall be credited by each load-serving entity based on the costs for which it is responsible, as determined by the commission.(B)Require each large electrical corporation to provide a bill credit on a subscribers subsequent monthly electricity bill for the proportional output of a community renewable energy facility attributable to that subscriber. The value of the bill credit for the subscriber shall be calculated by multiplying the subscribers portion of the kilowatthour electricity production from the community renewable energy facility by the applicable bill credit rate for the subscriber. Any amount of the bill credit that exceeds the subscribers monthly bill shall be carried over and applied to the next months bill in perpetuity.(4)Authorize all distribution customers of a large electrical corporation to participate in the program and ensure participation opportunities for all customer classes.(5)Prohibit a large electrical corporation from removing a customer from their otherwise applicable tariff and customer class in order to participate in a community renewable energy facility.(6)(A)If the retention of a subscription is necessary for a building to remain in compliance with the California Building Standards Code (Title 24 of the California Code of Regulations), authorize the subscription to remain with the meter for a period of not less than 20 years when the applicable customer account changes.(B)If the retention of a subscription is not necessary for a building to remain in compliance with the California Building Standards Code (Title 24 of the California Code of Regulations), authorize the transfer and porting of the subscription, including authorizing a subscriber to retain a subscription to a community renewable energy facility if the subscriber moves within the same large electrical corporations service territory.(7)(A)Establish any necessary protocols for large electrical corporations and subscriber organizations to communicate the necessary information for calculating and providing bill credits to subscribers in a timely fashion, including both of the following reports:(i)Monthly reports to the large electrical corporation whereby each subscriber organization shall, in a standardized electronic format, provide to the large electrical corporation a subscriber list indicating the percentage of generation attributable to each subscriber to a community renewable energy facility in accordance with the subscribers portion of the electricity generated by the community renewable energy facility. Subscriber lists may be updated monthly to reflect unsubscribed customers and to add new subscribers.(ii)Monthly reports, in a standardized electronic format, from the large electrical corporation to the subscriber organization that indicates the total value of bill credits generated by the community renewable energy facility in the prior month and the amount of the bill credit applied to each subscriber.(B)The monthly reports described in subparagraph (A) shall be made available to the commission and, upon request, to any load-serving entity with subscribers of a community renewable energy program in its service territory.(8)Evaluate the potential to accumulate bill credits on the generator account in the event that some or all of the electricity generated by a community renewable energy facility is not allocated to subscribers in a given month. The commission shall determine appropriate allocation rules for accumulated bill credits that protect ratepayer interests while balancing those interests with the interest in providing fair compensation for community renewable energy facility generation.(9)Authorize community renewable energy facilities to interconnect through Electric Rule 21, or any successor interconnection rule.(10)Provide for consumer protection in accordance with existing laws, including all of the following:(A)Require all subscriber organizations to register with the commission before subscribing residential customers.(B)Require uniform disclosures to be made to subscribers.(C)Prohibit termination or exit fees from being assessed on low-income customers who end their subscriptions.(D)Prohibit subscriber organizations from collecting credit scores from low-income customers.(E)Establish remedies for subscriber organization violations of the programs requirements.(11)Establish financial incentives to exclusively support subscriptions by low-income customers or low-income organizations if qualifying funds are available either through an appropriation by the Legislature or select ratepayer funds for programs for which distributed solar, battery storage, or wind are otherwise eligible. Priority for a financial incentive shall be given to a low-income subscriber living in a disadvantaged community, as identified pursuant to Section 39711 of the Health and Safety Code. In implementing this paragraph, the commission shall ensure that the financial incentives minimize costs to nonsubscriber ratepayers.(12)Require large electrical corporations to establish net crediting available to subscriber organizations and their subscribers at a cost not to exceed the equivalent of 1 percent of the value of the bill credit.(13)Authorize each large electrical corporation to recover its reasonable costs of administering the program from subscribers.(14)Ensure a community renewable energy facility has received any nonministerial permits and a signed interconnection agreement before securing capacity for purposes of the program.(15)Include a program implementation schedule.(d)The commission shall issue guidelines to ensure at least 51 percent of the capacity of each community renewable energy facility is subscribed to by low-income customers or low-income service organizations.(e)The commission shall develop, and post on its internet website, a list of low-income service organizations and, consistent with subparagraph (A) of paragraph (9) of subdivision (a), a list of programs that may be used to qualify low-income customers.(f)The commission may establish methods that are not onerous on subscribers to reasonably confirm the status and eligibility of low-income customers.(g)The commission may structure the program, consistent with this section, to reduce the costs and risks associated with low-income customer participation.(h)Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of a community renewable energy facility 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.(b) On or before March 31, 2023, the commission shall open a proceeding to establish a new tariff or program, or modify an existing tariff or program, to establish a community renewable energy program.(c) The community renewable energy program shall do all of the following:(1) Comply with the photovoltaic requirements for low-rise residential buildings set forth in Section 150.1(c)(14) of Title 24 of the California Code of Regulations.(2) Ensure at least 51 percent of subscribers are low-income customers or low-income service organizations.(3) Minimize impacts to nonsubscriber ratepayers. If the commission determines financial incentives are necessary to generate participation in the community renewable energy program, the commission shall ensure those incentives exclusively support subscriptions by low-income customers or low-income service organizations. Qualifying funds for those incentives shall only be available either through an appropriation by the Legislature or select ratepayer funds for programs for which distributed solar, battery storage, or wind resources are otherwise eligible.(4) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, subject construction of community renewable energy facilities to prevailing wage for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.(5) Provide bill credits to subscribers based on the avoided costs of the community renewable energy facility, as determined by the commissions methods for calculating the full set of benefits of distributed energy resources.(d) (1) As part of the proceeding, the commission shall evaluate customer renewable energy subscription programs to determine if those programs meet the criteria described in subdivision (c), efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers. If a duplicative customer renewable energy subscription program exists, or if a customer renewable energy subscription program does not meet the criteria described in subdivision (c), the commission shall authorize the termination or modification of that program.(2) (A) On or before December 31, 2023, the commission shall report to the Legislature the results of its evaluation and its justification for terminating, modifying, or retaining each customer renewable energy subscription program.(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on December 31, 2027, pursuant to Section 10231.5 of the Government Code.(C) A report to be submitted pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.
2827.2. (a) For purposes of this section, the following definitions apply:(1)Applicable bill credit rate means the dollar-per-kilowatthour rate, as determined by the commission, used to calculate a subscribers bill credit.(2)Benefiting account means an electrical account that satisfies both of the following:(A)It is located in the service territory of the same large electrical corporation as the generator account.(B)It is an individually metered account of a distribution customer of a large electrical corporation.(3)Bill credit means the monetary value of the electricity generated by the community renewable energy facility allocated to a subscriber to offset that subscribers electricity bill.(4)Community renewable energy facility means a facility that meets all of the following requirements:(A)Is located in the service territory of a large electrical corporation.(B)Is connected to the electrical distribution grid serving the state.(C)Has at least three subscribers.(D)Has at least 50 percent of its capacity subscribed to by subscribers with subscriptions of 25 kilowatts or less. For a master-metered facility, this requirement is satisfied when the subscribed capacity is equivalent to 25 kilowatts or less per housing unit.(E)Is located on a single parcel, or contiguous parcels, of land.(F)Is not colocated with another community renewable energy facility. Colocation shall be determined based on reasonable parameters identified by the commission.(G)Uses solar photovoltaic generation that includes energy storage or wind generation, which may include energy storage.(H)Enables a subscriber to receive a bill credit for the electricity generated by the facility in proportion to the size of the subscribers subscription.(I)Subscribes at least 51 percent of its capacity to low-income customers or low-income service organizations.(5)Community Renewable Energy Program or program means the program established pursuant to subdivision (b).(6)Generator account means the customer account where the community renewable energy facility is located behind a single meter and interconnected to the large electrical corporations distribution system.(7)(1) Large electrical corporation has the same meaning as defined in Section 2827.(8)Load-serving entity has the same meaning as defined in Section 380.(9)(2) Low-income customer means either of the following:(A) An individual or household who qualifies for one or more of the following programs:(i) The California Alternate Rates for Energy (CARE) program described in Section 739.1.(ii) The Family Electric Rate Assistance (FERA) program described in Section 739.12.(iii) The CalFresh program established pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the Welfare and Institutions Code.(iv) The federal Supplemental Nutrition Assistance Program (SNAP) (Chapter 51 (commencing with Section 2011) of Title 7 of the United States Code).(v) The Low-income Heating Energy Assistance Program (LIHEAP) (42 U.S.C. Sec. 8621).(vi) The federal Head Start Program (42 U.S.C. Sec. 9801 et seq.).(B) An individual or household who resides within an underserved community. community, as defined in Section 1601.(10)(3) Low-income service organization means an organization or nonprofit whose primary function is to provide services, assistance, or housing to low-income customers, and may include, but is not limited to, a local or central tribal government or a tribally designated housing entity.(11)Net crediting means a process whereby a large electrical corporation or load-serving entity applies the difference between the bill credit and the subscribers subscription cost on the subscribers electricity bill and disburses the subscription cost amount to the subscriber organization.(12)Renewable energy credit has the same meaning as defined in Section 399.12.(13)(4) Subscriber means a distribution customer of a large electrical corporation who owns one or more subscriptions of a community renewable energy facility interconnected with that large electrical corporation associated with one or more benefiting accounts. facility. A subscriber shall be located in the same large electrical corporation service territory where the community renewable energy facility to which the subscriber is subscribed is located.(14)Subscriber organization means a for-profit or nonprofit entity that owns or operates one or more community renewable energy facilities. A subscriber organization shall not be considered an electrical corporation, load-serving entity, or otherwise a utility solely as a result of its ownership or operation of a community renewable energy facility.(15)Subscription means a contract between a subscriber and the owner or operator of a community renewable energy facility. A subscription shall be sized so that the estimated bill credits do not exceed the subscribers average annual bill for the customer account to which the subscription is attributed.(16)Underserved community has the same meaning as defined in Section 1601.(b)(1)(A)On or before December 1, 2023, the commission shall establish the Community Renewable Energy Program to authorize a distribution customer of a large electrical corporation to subscribe to, and receive bill credits resulting from, the electricity generated by a community renewable energy facility interconnected within the service territory of that large electrical corporation.(B)The commission shall implement the program as part of a proceeding to evaluate the reasonableness of other voluntary customer renewable energy subscription programs. The commission may use an existing proceeding for this purpose.(C)The commission shall ensure that the portfolio of programs resulting from the proceeding to evaluate the reasonableness of voluntary customer renewable energy subscription programs will efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers.(2)The commission shall require each large electrical corporation to file any tariffs, agreements, or forms necessary for implementation of the program within five months of the establishment of the program.(c)In administering the program, the commission shall do all of the following:(1)Evaluate and consider the financeability of community renewable energy facilities and the availability of bill credits for subscribers.(2)(A)Establish a community renewable energy program tariff that does all of the following:(i)Creates a bill credit rate that is differentiated based on the time of generation. This time-differentiated bill credit rate shall be based on the avoided costs of the facility and be consistent with the commissions methods for calculating the full set of benefits of distributed energy resources. In creating the time-differentiated bill credit rate, the commission may do any of the following:(I)Authorize a bill credit rate based on the forecasted values of avoided cost components for a duration of no less than 10 years and no longer than the expected life of the facility.(II)Incorporate actual wholesale market prices for the electrical supply portion of the avoided costs.(ii)Provides bill credits to a community renewable energy facilitys subscribers for not less than 25 years from the date the community renewable energy facility is first interconnected.(iii)Ensures that renewable energy credits from generation by the community renewable energy facility are retired on behalf of the subscribers and are not used to satisfy any compliance obligation of the load-serving entity.(B)In consultation with the Energy Commission, ensure the tariff is complementary to, and consistent with, the requirements of the California Building Standards Code (Title 24 of the California Code of Regulations).(3)(A)Require each large electrical corporation to apply bill credits to subscriber bills within one billing cycle following the cycle during which the electricity was generated by the community renewable energy facility. The elements of the bill credit shall be credited by each load-serving entity based on the costs for which it is responsible, as determined by the commission.(B)Require each large electrical corporation to provide a bill credit on a subscribers subsequent monthly electricity bill for the proportional output of a community renewable energy facility attributable to that subscriber. The value of the bill credit for the subscriber shall be calculated by multiplying the subscribers portion of the kilowatthour electricity production from the community renewable energy facility by the applicable bill credit rate for the subscriber. Any amount of the bill credit that exceeds the subscribers monthly bill shall be carried over and applied to the next months bill in perpetuity.(4)Authorize all distribution customers of a large electrical corporation to participate in the program and ensure participation opportunities for all customer classes.(5)Prohibit a large electrical corporation from removing a customer from their otherwise applicable tariff and customer class in order to participate in a community renewable energy facility.(6)(A)If the retention of a subscription is necessary for a building to remain in compliance with the California Building Standards Code (Title 24 of the California Code of Regulations), authorize the subscription to remain with the meter for a period of not less than 20 years when the applicable customer account changes.(B)If the retention of a subscription is not necessary for a building to remain in compliance with the California Building Standards Code (Title 24 of the California Code of Regulations), authorize the transfer and porting of the subscription, including authorizing a subscriber to retain a subscription to a community renewable energy facility if the subscriber moves within the same large electrical corporations service territory.(7)(A)Establish any necessary protocols for large electrical corporations and subscriber organizations to communicate the necessary information for calculating and providing bill credits to subscribers in a timely fashion, including both of the following reports:(i)Monthly reports to the large electrical corporation whereby each subscriber organization shall, in a standardized electronic format, provide to the large electrical corporation a subscriber list indicating the percentage of generation attributable to each subscriber to a community renewable energy facility in accordance with the subscribers portion of the electricity generated by the community renewable energy facility. Subscriber lists may be updated monthly to reflect unsubscribed customers and to add new subscribers.(ii)Monthly reports, in a standardized electronic format, from the large electrical corporation to the subscriber organization that indicates the total value of bill credits generated by the community renewable energy facility in the prior month and the amount of the bill credit applied to each subscriber.(B)The monthly reports described in subparagraph (A) shall be made available to the commission and, upon request, to any load-serving entity with subscribers of a community renewable energy program in its service territory.(8)Evaluate the potential to accumulate bill credits on the generator account in the event that some or all of the electricity generated by a community renewable energy facility is not allocated to subscribers in a given month. The commission shall determine appropriate allocation rules for accumulated bill credits that protect ratepayer interests while balancing those interests with the interest in providing fair compensation for community renewable energy facility generation.(9)Authorize community renewable energy facilities to interconnect through Electric Rule 21, or any successor interconnection rule.(10)Provide for consumer protection in accordance with existing laws, including all of the following:(A)Require all subscriber organizations to register with the commission before subscribing residential customers.(B)Require uniform disclosures to be made to subscribers.(C)Prohibit termination or exit fees from being assessed on low-income customers who end their subscriptions.(D)Prohibit subscriber organizations from collecting credit scores from low-income customers.(E)Establish remedies for subscriber organization violations of the programs requirements.(11)Establish financial incentives to exclusively support subscriptions by low-income customers or low-income organizations if qualifying funds are available either through an appropriation by the Legislature or select ratepayer funds for programs for which distributed solar, battery storage, or wind are otherwise eligible. Priority for a financial incentive shall be given to a low-income subscriber living in a disadvantaged community, as identified pursuant to Section 39711 of the Health and Safety Code. In implementing this paragraph, the commission shall ensure that the financial incentives minimize costs to nonsubscriber ratepayers.(12)Require large electrical corporations to establish net crediting available to subscriber organizations and their subscribers at a cost not to exceed the equivalent of 1 percent of the value of the bill credit.(13)Authorize each large electrical corporation to recover its reasonable costs of administering the program from subscribers.(14)Ensure a community renewable energy facility has received any nonministerial permits and a signed interconnection agreement before securing capacity for purposes of the program.(15)Include a program implementation schedule.(d)The commission shall issue guidelines to ensure at least 51 percent of the capacity of each community renewable energy facility is subscribed to by low-income customers or low-income service organizations.(e)The commission shall develop, and post on its internet website, a list of low-income service organizations and, consistent with subparagraph (A) of paragraph (9) of subdivision (a), a list of programs that may be used to qualify low-income customers.(f)The commission may establish methods that are not onerous on subscribers to reasonably confirm the status and eligibility of low-income customers.(g)The commission may structure the program, consistent with this section, to reduce the costs and risks associated with low-income customer participation.(h)Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of a community renewable energy facility 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.(b) On or before March 31, 2023, the commission shall open a proceeding to establish a new tariff or program, or modify an existing tariff or program, to establish a community renewable energy program.(c) The community renewable energy program shall do all of the following:(1) Comply with the photovoltaic requirements for low-rise residential buildings set forth in Section 150.1(c)(14) of Title 24 of the California Code of Regulations.(2) Ensure at least 51 percent of subscribers are low-income customers or low-income service organizations.(3) Minimize impacts to nonsubscriber ratepayers. If the commission determines financial incentives are necessary to generate participation in the community renewable energy program, the commission shall ensure those incentives exclusively support subscriptions by low-income customers or low-income service organizations. Qualifying funds for those incentives shall only be available either through an appropriation by the Legislature or select ratepayer funds for programs for which distributed solar, battery storage, or wind resources are otherwise eligible.(4) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, subject construction of community renewable energy facilities to prevailing wage for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.(5) Provide bill credits to subscribers based on the avoided costs of the community renewable energy facility, as determined by the commissions methods for calculating the full set of benefits of distributed energy resources.(d) (1) As part of the proceeding, the commission shall evaluate customer renewable energy subscription programs to determine if those programs meet the criteria described in subdivision (c), efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers. If a duplicative customer renewable energy subscription program exists, or if a customer renewable energy subscription program does not meet the criteria described in subdivision (c), the commission shall authorize the termination or modification of that program.(2) (A) On or before December 31, 2023, the commission shall report to the Legislature the results of its evaluation and its justification for terminating, modifying, or retaining each customer renewable energy subscription program.(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on December 31, 2027, pursuant to Section 10231.5 of the Government Code.(C) A report to be submitted pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.
2827.2. (a) For purposes of this section, the following definitions apply:
(1)Applicable bill credit rate means the dollar-per-kilowatthour rate, as determined by the commission, used to calculate a subscribers bill credit.
(2)Benefiting account means an electrical account that satisfies both of the following:
(A)It is located in the service territory of the same large electrical corporation as the generator account.
(B)It is an individually metered account of a distribution customer of a large electrical corporation.
(3)Bill credit means the monetary value of the electricity generated by the community renewable energy facility allocated to a subscriber to offset that subscribers electricity bill.
(4)Community renewable energy facility means a facility that meets all of the following requirements:
(A)Is located in the service territory of a large electrical corporation.
(B)Is connected to the electrical distribution grid serving the state.
(C)Has at least three subscribers.
(D)Has at least 50 percent of its capacity subscribed to by subscribers with subscriptions of 25 kilowatts or less. For a master-metered facility, this requirement is satisfied when the subscribed capacity is equivalent to 25 kilowatts or less per housing unit.
(E)Is located on a single parcel, or contiguous parcels, of land.
(F)Is not colocated with another community renewable energy facility. Colocation shall be determined based on reasonable parameters identified by the commission.
(G)Uses solar photovoltaic generation that includes energy storage or wind generation, which may include energy storage.
(H)Enables a subscriber to receive a bill credit for the electricity generated by the facility in proportion to the size of the subscribers subscription.
(I)Subscribes at least 51 percent of its capacity to low-income customers or low-income service organizations.
(5)Community Renewable Energy Program or program means the program established pursuant to subdivision (b).
(6)Generator account means the customer account where the community renewable energy facility is located behind a single meter and interconnected to the large electrical corporations distribution system.
(7)
(1) Large electrical corporation has the same meaning as defined in Section 2827.
(8)Load-serving entity has the same meaning as defined in Section 380.
(9)
(2) Low-income customer means either of the following:
(A) An individual or household who qualifies for one or more of the following programs:
(i) The California Alternate Rates for Energy (CARE) program described in Section 739.1.
(ii) The Family Electric Rate Assistance (FERA) program described in Section 739.12.
(iii) The CalFresh program established pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the Welfare and Institutions Code.
(iv) The federal Supplemental Nutrition Assistance Program (SNAP) (Chapter 51 (commencing with Section 2011) of Title 7 of the United States Code).
(v) The Low-income Heating Energy Assistance Program (LIHEAP) (42 U.S.C. Sec. 8621).
(vi) The federal Head Start Program (42 U.S.C. Sec. 9801 et seq.).
(B) An individual or household who resides within an underserved community. community, as defined in Section 1601.
(10)
(3) Low-income service organization means an organization or nonprofit whose primary function is to provide services, assistance, or housing to low-income customers, and may include, but is not limited to, a local or central tribal government or a tribally designated housing entity.
(11)Net crediting means a process whereby a large electrical corporation or load-serving entity applies the difference between the bill credit and the subscribers subscription cost on the subscribers electricity bill and disburses the subscription cost amount to the subscriber organization.
(12)Renewable energy credit has the same meaning as defined in Section 399.12.
(13)
(4) Subscriber means a distribution customer of a large electrical corporation who owns one or more subscriptions of a community renewable energy facility interconnected with that large electrical corporation associated with one or more benefiting accounts. facility. A subscriber shall be located in the same large electrical corporation service territory where the community renewable energy facility to which the subscriber is subscribed is located.
(14)Subscriber organization means a for-profit or nonprofit entity that owns or operates one or more community renewable energy facilities. A subscriber organization shall not be considered an electrical corporation, load-serving entity, or otherwise a utility solely as a result of its ownership or operation of a community renewable energy facility.
(15)Subscription means a contract between a subscriber and the owner or operator of a community renewable energy facility. A subscription shall be sized so that the estimated bill credits do not exceed the subscribers average annual bill for the customer account to which the subscription is attributed.
(16)Underserved community has the same meaning as defined in Section 1601.
(b)(1)(A)On or before December 1, 2023, the commission shall establish the Community Renewable Energy Program to authorize a distribution customer of a large electrical corporation to subscribe to, and receive bill credits resulting from, the electricity generated by a community renewable energy facility interconnected within the service territory of that large electrical corporation.
(B)The commission shall implement the program as part of a proceeding to evaluate the reasonableness of other voluntary customer renewable energy subscription programs. The commission may use an existing proceeding for this purpose.
(C)The commission shall ensure that the portfolio of programs resulting from the proceeding to evaluate the reasonableness of voluntary customer renewable energy subscription programs will efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers.
(2)The commission shall require each large electrical corporation to file any tariffs, agreements, or forms necessary for implementation of the program within five months of the establishment of the program.
(c)In administering the program, the commission shall do all of the following:
(1)Evaluate and consider the financeability of community renewable energy facilities and the availability of bill credits for subscribers.
(2)(A)Establish a community renewable energy program tariff that does all of the following:
(i)Creates a bill credit rate that is differentiated based on the time of generation. This time-differentiated bill credit rate shall be based on the avoided costs of the facility and be consistent with the commissions methods for calculating the full set of benefits of distributed energy resources. In creating the time-differentiated bill credit rate, the commission may do any of the following:
(I)Authorize a bill credit rate based on the forecasted values of avoided cost components for a duration of no less than 10 years and no longer than the expected life of the facility.
(II)Incorporate actual wholesale market prices for the electrical supply portion of the avoided costs.
(ii)Provides bill credits to a community renewable energy facilitys subscribers for not less than 25 years from the date the community renewable energy facility is first interconnected.
(iii)Ensures that renewable energy credits from generation by the community renewable energy facility are retired on behalf of the subscribers and are not used to satisfy any compliance obligation of the load-serving entity.
(B)In consultation with the Energy Commission, ensure the tariff is complementary to, and consistent with, the requirements of the California Building Standards Code (Title 24 of the California Code of Regulations).
(3)(A)Require each large electrical corporation to apply bill credits to subscriber bills within one billing cycle following the cycle during which the electricity was generated by the community renewable energy facility. The elements of the bill credit shall be credited by each load-serving entity based on the costs for which it is responsible, as determined by the commission.
(B)Require each large electrical corporation to provide a bill credit on a subscribers subsequent monthly electricity bill for the proportional output of a community renewable energy facility attributable to that subscriber. The value of the bill credit for the subscriber shall be calculated by multiplying the subscribers portion of the kilowatthour electricity production from the community renewable energy facility by the applicable bill credit rate for the subscriber. Any amount of the bill credit that exceeds the subscribers monthly bill shall be carried over and applied to the next months bill in perpetuity.
(4)Authorize all distribution customers of a large electrical corporation to participate in the program and ensure participation opportunities for all customer classes.
(5)Prohibit a large electrical corporation from removing a customer from their otherwise applicable tariff and customer class in order to participate in a community renewable energy facility.
(6)(A)If the retention of a subscription is necessary for a building to remain in compliance with the California Building Standards Code (Title 24 of the California Code of Regulations), authorize the subscription to remain with the meter for a period of not less than 20 years when the applicable customer account changes.
(B)If the retention of a subscription is not necessary for a building to remain in compliance with the California Building Standards Code (Title 24 of the California Code of Regulations), authorize the transfer and porting of the subscription, including authorizing a subscriber to retain a subscription to a community renewable energy facility if the subscriber moves within the same large electrical corporations service territory.
(7)(A)Establish any necessary protocols for large electrical corporations and subscriber organizations to communicate the necessary information for calculating and providing bill credits to subscribers in a timely fashion, including both of the following reports:
(i)Monthly reports to the large electrical corporation whereby each subscriber organization shall, in a standardized electronic format, provide to the large electrical corporation a subscriber list indicating the percentage of generation attributable to each subscriber to a community renewable energy facility in accordance with the subscribers portion of the electricity generated by the community renewable energy facility. Subscriber lists may be updated monthly to reflect unsubscribed customers and to add new subscribers.
(ii)Monthly reports, in a standardized electronic format, from the large electrical corporation to the subscriber organization that indicates the total value of bill credits generated by the community renewable energy facility in the prior month and the amount of the bill credit applied to each subscriber.
(B)The monthly reports described in subparagraph (A) shall be made available to the commission and, upon request, to any load-serving entity with subscribers of a community renewable energy program in its service territory.
(8)Evaluate the potential to accumulate bill credits on the generator account in the event that some or all of the electricity generated by a community renewable energy facility is not allocated to subscribers in a given month. The commission shall determine appropriate allocation rules for accumulated bill credits that protect ratepayer interests while balancing those interests with the interest in providing fair compensation for community renewable energy facility generation.
(9)Authorize community renewable energy facilities to interconnect through Electric Rule 21, or any successor interconnection rule.
(10)Provide for consumer protection in accordance with existing laws, including all of the following:
(A)Require all subscriber organizations to register with the commission before subscribing residential customers.
(B)Require uniform disclosures to be made to subscribers.
(C)Prohibit termination or exit fees from being assessed on low-income customers who end their subscriptions.
(D)Prohibit subscriber organizations from collecting credit scores from low-income customers.
(E)Establish remedies for subscriber organization violations of the programs requirements.
(11)Establish financial incentives to exclusively support subscriptions by low-income customers or low-income organizations if qualifying funds are available either through an appropriation by the Legislature or select ratepayer funds for programs for which distributed solar, battery storage, or wind are otherwise eligible. Priority for a financial incentive shall be given to a low-income subscriber living in a disadvantaged community, as identified pursuant to Section 39711 of the Health and Safety Code. In implementing this paragraph, the commission shall ensure that the financial incentives minimize costs to nonsubscriber ratepayers.
(12)Require large electrical corporations to establish net crediting available to subscriber organizations and their subscribers at a cost not to exceed the equivalent of 1 percent of the value of the bill credit.
(13)Authorize each large electrical corporation to recover its reasonable costs of administering the program from subscribers.
(14)Ensure a community renewable energy facility has received any nonministerial permits and a signed interconnection agreement before securing capacity for purposes of the program.
(15)Include a program implementation schedule.
(d)The commission shall issue guidelines to ensure at least 51 percent of the capacity of each community renewable energy facility is subscribed to by low-income customers or low-income service organizations.
(e)The commission shall develop, and post on its internet website, a list of low-income service organizations and, consistent with subparagraph (A) of paragraph (9) of subdivision (a), a list of programs that may be used to qualify low-income customers.
(f)The commission may establish methods that are not onerous on subscribers to reasonably confirm the status and eligibility of low-income customers.
(g)The commission may structure the program, consistent with this section, to reduce the costs and risks associated with low-income customer participation.
(h)Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of a community renewable energy facility 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.
(b) On or before March 31, 2023, the commission shall open a proceeding to establish a new tariff or program, or modify an existing tariff or program, to establish a community renewable energy program.
(c) The community renewable energy program shall do all of the following:
(1) Comply with the photovoltaic requirements for low-rise residential buildings set forth in Section 150.1(c)(14) of Title 24 of the California Code of Regulations.
(2) Ensure at least 51 percent of subscribers are low-income customers or low-income service organizations.
(3) Minimize impacts to nonsubscriber ratepayers. If the commission determines financial incentives are necessary to generate participation in the community renewable energy program, the commission shall ensure those incentives exclusively support subscriptions by low-income customers or low-income service organizations. Qualifying funds for those incentives shall only be available either through an appropriation by the Legislature or select ratepayer funds for programs for which distributed solar, battery storage, or wind resources are otherwise eligible.
(4) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, subject construction of community renewable energy facilities to prevailing wage for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.
(5) Provide bill credits to subscribers based on the avoided costs of the community renewable energy facility, as determined by the commissions methods for calculating the full set of benefits of distributed energy resources.
(d) (1) As part of the proceeding, the commission shall evaluate customer renewable energy subscription programs to determine if those programs meet the criteria described in subdivision (c), efficiently serve distinct customer groups, minimize duplicative offerings, and promote robust participation by low-income customers. If a duplicative customer renewable energy subscription program exists, or if a customer renewable energy subscription program does not meet the criteria described in subdivision (c), the commission shall authorize the termination or modification of that program.
(2) (A) On or before December 31, 2023, the commission shall report to the Legislature the results of its evaluation and its justification for terminating, modifying, or retaining each customer renewable energy subscription program.
(B) The requirement for submitting a report imposed under subparagraph (A) is inoperative on December 31, 2027, pursuant to Section 10231.5 of the Government Code.
(C) A report to be submitted pursuant to subparagraph (A) shall be submitted in compliance with Section 9795 of the Government Code.
SEC. 7.SEC. 4. 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. 7.SEC. 4. 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. 7.SEC. 4. 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. 7.SEC. 4.