Bill Text: CA AB1228 | 2013-2014 | Regular Session | Amended
Bill Title: Electricity: eligible fuel cell customer-generators.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1228 Detail]
Download: California-2013-AB1228-Amended.html
BILL NUMBER: AB 1228 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 24, 2013
INTRODUCED BY Assembly Member V. Manuel Pérez
FEBRUARY 22, 2013
An act to amend Section 2827.10 of the Public Utilities Code,
relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
AB 1228, as amended, V. Manuel Pérez. Electricity: eligible fuel
cell customer-generators.
Existing law establishes a net energy metering program that is
available to an eligible fuel cell customer-generator, which is
defined as a customer of an electrical corporation and, among other
things, uses a fuel cell electrical generating facility with capacity
of not more than one megawatt. Existing law requires that the net
metering calculation be made by measuring the difference between the
electricity supplied to the eligible fuel cell customer-generator and
the electricity generated by the eligible fuel cell
customer-generator and fed back to the electrical grid over a
12-month period. Existing law requires that an electrical corporation
determine if the eligible fuel cell customer-generator was a net
consumer or producer of electricity during the 12-month period. For
purposes of making this determination, existing law requires that the
electrical corporation aggregate the electrical load of the eligible
fuel cell customer-generator under the same ownership.
This bill would increase the capacity of a fuel cell electrical
generating facility to not more than 3 megawatts. The bill would
prohibit the net rate at which electricity fed back to the
electrical grid by an eligible fuel cell customer-generator using a
fuel cell electrical generating facility with a capacity of more than
one megawatt from exceeding one megawatt.
Existing law provides that a net energy metering contract or
tariff must be identical, as specified, to the contract or tariff to
which a customer would be assigned if the customer was not an
eligible fuel cell customer-generator, and that any charge that would
increase an eligible fuel cell customer-generator's costs beyond
those of other customers in the rate class to which the eligible fuel
cell customer-generator would otherwise be assigned, including an
interconnection charge, may not form a part of net energy metering
tariffs. The Public Utilities Commission's Electric Rule 21
establishes a tariff that describes the interconnection, operating,
and metering requirements for generation facilities to be connected
with an electrical corporation's distribution system.
This bill would provide that fuel cell projects with a capacity of
not more than one megawatt would not be exempt from reasonable
interconnection charges established pursuant to Electric Rule 21. The
bill would also require the commission, when revising Electric Rule
21, to consider the ratepayer and system benefits of larger baseload
fuel cell projects.
Because the bill would require an expansion of the above-described
net energy metering programs and would require an order or decision
of the commission to implement, a violation of which is a crime,
these provisions would impose a state-mandated local program by
expanding the definition of a crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2827.10 of the Public Utilities Code is amended
to read:
2827.10. (a) As used in this section, the following terms have
the following meanings:
(1) "Electrical corporation" means an electrical corporation, as
defined in Section 218.
(2) "Eligible fuel cell electrical generating facility" means a
facility that includes the following:
(A) Integrated powerplant systems containing a stack, tubular
array, or other functionally similar configuration used to
electrochemically convert fuel to electric energy.
(B) An inverter and fuel processing system where necessary.
(C) Other plant equipment, including heat recovery equipment,
necessary to support the plant's operation or its energy conversion.
(3) (A) "Eligible fuel cell customer-generator" means a customer
of an electrical corporation that meets all the following criteria:
(i) Uses a fuel cell electrical generating facility with a
capacity of not more than three megawatts that is located on or
adjacent to the customer's owned, leased, or rented premises, is
interconnected and operates in parallel with the electrical grid
while the grid is operational or in a grid independent mode when the
grid is nonoperational, and is sized to offset part or all of the
eligible fuel cell customer-generator's own electrical requirements.
(ii) Is the recipient of local, state, or federal funds, or who
self-finances projects designed to encourage the development of
eligible fuel cell electrical generating facilities.
(iii) Uses technology the commission has determined will achieve
reductions in emissions of greenhouse gases pursuant to subdivision
(b), and meets the emission requirements for eligibility for funding
set forth in subdivision (c), of Section 379.6.
(B) For purposes of this paragraph, a person or entity is a
customer of the electrical corporation if the customer is physically
located within the service territory of the electrical corporation
and receives bundled service, distribution service, or transmission
service from the electrical corporation.
(4) "Net energy metering" means measuring the difference between
the electricity supplied through the electrical grid and the
difference between the electricity generated by an eligible fuel cell
electrical generating facility and fed back to the electrical grid
over a 12-month period as described in subdivision (e). Net energy
metering shall be accomplished using a time-of-use meter capable of
registering the flow of electricity in two directions. If the
existing electrical meter of an eligible fuel cell customer-generator
is not capable of measuring the flow of electricity in two
directions, the eligible fuel cell customer-generator shall be
responsible for all expenses involved in purchasing and installing a
meter that is able to measure electricity flow in two directions. If
an additional meter or meters are installed, the net energy metering
calculation shall yield a result identical to that of a time-of-use
meter.
(b) (1) Every electrical corporation, not later than March 1,
2004, shall file with the commission a standard tariff providing for
net energy metering for eligible fuel cell customer-generators,
consistent with this section. Subject to the limitation in
subdivision (f), every electrical corporation shall make this tariff
available to eligible fuel cell customer-generators upon request, on
a first-come-first-served basis, until the total cumulative rated
generating capacity of the eligible fuel cell electrical generating
facilities receiving service pursuant to the tariff reaches a level
equal to its proportionate share of a statewide limitation of 500
megawatts cumulative rated generation capacity served under this
section. The proportionate share shall be calculated based on the
ratio of the electrical corporation's peak demand compared to the
total statewide peak demand.
(2) To continue the growth of the market for onsite electric
generation using fuel cells, the commission may review and
incrementally raise the limitation established in paragraph (1) on
the total cumulative rated generating capacity of the eligible fuel
cell electrical generating facilities receiving service pursuant to
the tariff in paragraph (1).
(c) In determining the eligibility for the cumulative rated
generating capacity within an electrical corporation's service
territory, preference shall be given to facilities that, at the time
of installation, are located in a community with significant exposure
to air contaminants or localized air contaminants, or both,
including, but not limited to, communities of minority populations or
low-income populations, or both, based on the ambient air quality
standards established pursuant to Section 39607 of the Health and
Safety Code.
(d) (1) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate
components, and any monthly charges, to the contract or tariff to
which the customer would be assigned if the customer was not an
eligible fuel cell customer-generator. Any new or additional demand
charge, standby charge, customer charge, minimum monthly charge,
interconnection charge, or other charge that would increase an
eligible fuel cell customer-generator's costs beyond those of other
customers in the rate class to which the eligible fuel cell
customer-generator would otherwise be assigned are contrary to the
intent of the Legislature in enacting this section, and may not form
a part of net energy metering tariffs.
(2) Notwithstanding the provisions of this section, fuel cell
projects with a capacity of not more than one megawatt shall not be
exempt from reasonable interconnection charges established pursuant
to the commission's Electric Rule 21.
(3) When considering revisions to the commission's Electric Rule
21 interconnection tariff, the commission shall consider the
ratepayer and systems benefits of larger baseload fuel cell projects.
(2)
(4) The commission shall authorize an electrical
corporation to charge a fuel cell customer-generator a fee based on
the cost to the utility associated with providing interconnection
inspection services for that fuel cell customer-generator.
(e) The net metering calculation shall be made by measuring the
difference between the electricity supplied to the eligible fuel cell
customer-generator and the electricity generated by the eligible
fuel cell customer-generator and fed back to the electrical grid over
a 12-month period. The following rules shall apply to the annualized
metering calculation:
(1) The eligible fuel cell customer-generator shall, at the end of
each 12-month period following the date of final interconnection of
the eligible fuel cell electrical generating facility with an
electrical corporation, and at each anniversary date thereafter, be
billed for electricity used during that period. The electrical
corporation shall determine if the eligible fuel cell
customer-generator was a net consumer or a net producer of
electricity during that period. For purposes of determining if the
eligible fuel cell customer-generator was a net consumer or a net
producer of electricity during that period, the electrical
corporation shall aggregate the electrical load of the meters located
on the property where the eligible fuel cell electrical generation
facility is located and on all property adjacent or contiguous to the
property on which the facility is located, if those properties are
solely owned, leased, or rented by the eligible fuel cell
customer-generator. Each aggregated account shall be billed and
measured according to a time-of-use rate schedule.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electrical corporation exceeds the
electricity generated by the eligible fuel cell customer-generator
during that same period, the eligible fuel cell customer-generator is
a net electricity consumer and the electrical corporation shall be
owed compensation for the eligible fuel cell customer-generator's net
kilowatthour consumption over that same period. The compensation
owed for the eligible fuel cell customer-generator's consumption
shall be calculated as follows:
(A) The generation charges for any net monthly consumption of
electricity shall be calculated according to the terms of the tariff
to which the same customer would be assigned to or be eligible for if
the customer was not an eligible fuel cell customer-generator. When
the eligible fuel cell customer-generator is a net generator during
any discrete time-of-use period, the net kilowatthours produced shall
be valued at the same price per kilowatthour as the electrical
corporation would charge for retail kilowatthour sales for
generation, exclusive of any surcharges, during that same time-of-use
period. If the eligible fuel cell customer-generator's time-of-use
electrical meter is unable to measure the flow of electricity in two
directions, paragraph (4) of subdivision (a) shall apply. All other
charges, other than generation charges, shall be calculated in
accordance with the eligible fuel cell customer-generator's
applicable tariff and based on the total kilowatthours delivered by
the electrical corporation to the eligible fuel cell
customer-generator. To the extent that charges for transmission and
distribution services are recovered through demand charges in any
particular month, no standby reservation charges shall apply in that
monthly billing cycle.
(B) The net balance of moneys owed shall be paid in accordance
with the electrical corporation's normal billing cycle.
(3) At the end of each 12-month period, where the electricity
generated by the eligible fuel cell customer-generator during the
12-month period exceeds the electricity supplied by the electrical
corporation during that same period, the eligible fuel cell
customer-generator is a net electricity producer and the electrical
corporation shall retain any excess kilowatthours generated during
the prior 12-month period. The eligible fuel cell customer-generator
shall not be owed any compensation for those excess kilowatthours.
(4) If an eligible fuel cell customer-generator terminates service
with the electrical corporation, the electrical corporation shall
reconcile the eligible fuel cell customer-generator's consumption and
production of electricity during any 12-month period.
(f) No fuel cell electrical generating facility shall be eligible
for the tariff unless it commences operation prior to January 1,
2015, unless a later enacted statute, that is chaptered before
January 1, 2015, extends this eligibility commencement date. The
tariff shall remain in effect for an eligible fuel cell electrical
generating facility that commences operation pursuant to the tariff
prior to January 1, 2015. A fuel cell customer-generator shall be
eligible for the tariff established pursuant to this section only for
the operating life of the eligible fuel cell electrical generating
facility.
(g) For an eligible fuel cell customer-generator using a fuel cell
electrical generation facility with a capacity of more than one
megawatt, the net rate at which the electricity is fed back to the
electrical grid shall not exceed one megawatthour.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B 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 XIII B of the California
Constitution.
