Bill Text: CA AB1110 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Advanced electrical distributed generation technology.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2009-10-11 - Chaptered by Secretary of State - Chapter 508, Statutes of 2009. [AB1110 Detail]

Download: California-2009-AB1110-Amended.html

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BILL NUMBER: AB 1110	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 26, 2009

INTRODUCED BY   Assembly Member Fuentes

                        FEBRUARY 27, 2009

   An act to  amend Section 216.6 of   add
Section 379.8 to  the Public Utilities Code, relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1110, as amended, Fuentes.  Cogeneration. 
 Advanced electrical distributed generation technology. 
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
as defined. The existing definition of an electrical corporation
excludes a corporation or person employing cogeneration, as defined,
technology or producing electricity from other than a conventional
power source for certain purposes.  Existing law states that it
is the policy of the state to encourage and support the development
of cogeneration as an efficient, environmentally beneficial,
competitive energy resource that will enhance the reliability of
local generation supply, and promote local business growth. Existing
law places certain limitations upon gas rates and surcharges charged
cogenerators. Existing law prohibits placing alternative fuel
capability requirements upon gas customers that use gas for purposes
of cogeneration. 
   This bill would  revise the existing definition of
cogeneration where the use of thermal energy follows the generation
of electricity, to allow technologies that utilize thermal energy
internally to increase overall electrical efficiency to not less than
40% high heat value, as established by the commission  
authorize the commission and the State Air Resources Board to treat
advanced electrical distributed generation technology, as defined, as
cogeneration, and would make certain existing limitations upon gas
rates and surcharges charged cogenerators applicable to an advanced
electrical distributed generation technology. The bill would make the
prohibition upon placing alternative fuel capability require 
 ments upon gas customers that use gas for purposes of
cogeneration applicable to a generator using   advanced
electrical distributed generation technology  .
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) California has adopted a set of aggressive policies, including
the California Global Warming Solutions Act of 2006, to reduce the
state's contribution to global warming.  
   (b) To meet the emission reduction goals set forth by the State
Air Resources Board and other agencies, the state will need to invest
in, and aid the deployment of, new energy efficiency programs, new
electricity transmission and development programs, as well as new
clean and efficient technologies.  
   (c) The development of advanced electrical distributed generation
technology is an emerging clean technology that can meet the state's
electricity needs while providing climate change and air quality
benefits.  
   (d) Current state policies that provide incentives to specific
electrical generation facilities that reduce emissions of greenhouse
gases while not providing similar incentives to other ultraclean
generation facilities may hinder the ability of the state to meet the
goals of the California Global Warming Solutions Act of 2006 by
creating disincentives for customers to install the cleanest
technologies available.  
   (e) It is the intent of the Legislature to define what are
advanced electrical distributed generation technologies and to
provide deployment incentives, including those incentives provided
for cogeneration technologies. 
   SEC. 2.    Section 379.8 is added to the  
Public Utilities Code   , to read:  
   379.8.  (a) As used in this section, "advanced electrical
distributed generation technology" means any electric distributed
generation technology that generates useful electricity and meets all
of the following conditions:
   (1) The emissions standards adopted by the State Air Resources
Board pursuant to the distributed generation certification program
requirements of Article 3 (commencing with Section 94200) of
Subchapter 8 of Chapter 1 of Division 3 of Title 17 of the California
Code of Regulations.
   (2) Produces de minimus emissions of sulfur oxides and nitrogen
oxides.
   (3) Meets the greenhouse gases emission performance standard
established by the commission pursuant to Section 8341.
   (4) Has an electrical efficiency of 50 percent lower heating value
or greater.
   (5) Is sized to meet onsite demand.
   (6) Is sized to meet the generator's onsite electrical demand.
   (7) Has parallel operation to the electrical distribution grid.
   (8) Utilizes renewable or nonrenewable fuel.
   (b) (1)  An advanced electrical distributed generation technology
shall qualify for the rate established by the commission pursuant to
Section 454.5.
   (2) The limitation in subdivision (b) of Section 6352 upon the
assessment of surcharges for gas used to generate electricity by a
nonutility facility applies to an advanced electrical distributed
generation technology.
   (3) The limitation in Section 2773.5 upon imposing alternative
fuel capability requirements upon gas customers that use gas for
purposes of cogeneration applies to an advanced electrical
distributed generation technology.
   (c) The commission or State Air Resources Board may, in
furtherance of the state's goals for achieving cost-effective
reductions in emissions of greenhouse gases, meeting resource
adequacy requirements, or meeting the renewables portfolio standard,
treat advanced electrical distributed generation technology as
cogeneration.  
  SECTION 1.    Section 216.6 of the Public
Utilities Code is amended to read:
   216.6.  "Cogeneration" means the sequential use of energy for the
production of electrical and useful thermal energy. The sequence can
be thermal use followed by generation of electricity or the reverse,
subject to the following standards:
   (a) At least 5 percent of the facility's total annual energy
output shall be in the form of useful thermal energy.
   (b) Where useful thermal energy follows the generation of
electricity, either of the following are true:
   (1) The useful annual electrical output plus one-half the useful
annual thermal energy output equals not less than 42.5 percent of any
natural gas and oil energy input.
   (2) The internal thermal use increases overall electrical
efficiency to not less than 40 percent high heat value, as
established by the commission.