LEGISLATIVE SUBCOMMITTEE RECOMMENDATION: OPPOSE UNLESS AMENDED
SUMMARY OF BILL:
This bill would require electrical corporations to offer feed-in tariffs to renewable electric generation facilities with effective generating capacities between 1.5 MW and 20 MW.
This bill would also encourage the governing board of each local publicly-owned electric utility (POUs) to develop and implement a feed-in tariff at the tariff price approved by each POU's governing board for a period of 10, 15, or 20 years.
SUMMARY OF SUPPORTING ARGUMENTS FOR RECOMMENDATION:
Even though the bill may be the best choice among all of the proposed Feed-in Tariffs (FiTs) legislation currently on the table, given all of the ongoing programs, many of which are just beginning and have not yet had a chance to be evaluated for success, it would be most prudent for the California Public Utilities Commission (CPUC) to review the interaction between all the current programs before supporting a significant expansion of FiTs. In addition, there are numerous technical issues with the bill that, it its present form would harm the RPS program, the current FiT program, long-term procurement and resource adequacy proceedings, the California Solar Initiative and the Self-Generation Incentive Program.
SUMMARY OF SUGGESTED AMENDMENTS:
· The bill should be amended to reflect the CPUC's responsibility and flexibility in implementing a FiT. As such, PU Code Section 399.21(c)(1) should be amended to state:
o The commission shall "have the option" to develop and approve a feed-in tariff for each electrical corporation that provides for payment for every kilowatt hour of electricity generated by a renewable electric generation facility that is delivered to the grid, at the tariff price developed and approved by the CPUC for a period of 10, 15, or 20 years. The CPUC should weigh the costs and benefits of such a feed-in tariff before adopting a broad-based approach. The CPUC should consider the impact of a feed-in tariff on long-term procurement policies, the RPS program, the QF program, the DG programs, and Net Energy Metering before adopting feed-in tariffs for some or all technologies.
· The bill should be changed to have an absolute cap, based either on a number of MW or a percentage of each utility's peak load, rather than a cap that allows the FiT to be available "until the utilities have met their RPS obligation."
· In order to align with current commission policy related to Renewable Energy Credits (RECs), Section 399.21(g) should be re-written to state:
o Every kilowatthour of the electricity generated by the renewable electric generation facility, excluding generation used to offset the customer's own usage of electricity, shall count toward the electrical corporation's renewables portfolio standard annual procurement targets for purposes of paragraph (1) of subdivision (b) of Section 399.15.
DIVISION ANALYSIS (Energy Division):
· AB 1807 would create a tariff available for electricity generated by renewable electric generation facilities, which are eligible renewable energy resources as defined in P.U. Code Section 399.12, with capacity of more than 1.5 MW and not more than 20 MW.
· Technology: The tariffs would be available to all renewable technologies in PU Code 399.12 (i.e. all renewables portfolio standard (RPS) eligible technologies).
· Price:
o By June 1, 2010 the CPUC must develop a methodology for determining a base rate to be paid for electricity generated by a renewable electric generation facility, and a separate base rate for each technology that is an eligible renewable energy resource, calculated based on cost of generation plus a reasonable profit.
o By June 1, 2010 the CPUC must develop a methodology for adjusting the base rate to be paid for electricity generated by renewable electric generation facilities in future years so that the base rate declines over time to reflect changing technology and operational practices.
· Terms of Feed-In Tariff: AB 1807 would require the CPUC to reduce the tariff rate to reflect taxes and other credits, subsidies, or incentives received for a renewable electric generation facility. This provision is unnecessary if the CPUC sets the tariff rate, because it would be impossible to not consider such financial factors in setting the rate.
· Renewable Portfolio Standard Program (RPS):
o The State's RPS program currently has contracted for dozens of new renewables projects, including many projects under 20 MW.1 While the "under 20 MW" projects are not the most prevalent type of project in the RPS "approved and pending contracts" list, it is indisputable that there are RPS contracts in this category.
o AB 1807 would replace the existing RPS program's process of competitive solicitations for projects between 1.5 MW and 20 MW.
o The electricity generation paid for under this FiT would count towards the State's RPS goals.
o The RPS program currently allows bidders to offer projects at viable prices without being subject to CPUC price litigation.
o The bill would create a high level of uncertainty for any pending or imminent contracts in this size arena. Until the price is determined by the CPUC after extensive litigation at the CPUC, the bill might put a large damper on demand in the RPS program. Even projects greater than 20 MW will be affected by the price paid to projects by 1.5 MW and 20 MW.
o If the investor-owned utilities (IOUs) (or the CPUC) want to offer limited feed-in tariffs (or standardized Power Purchase Agreements) at specified prices for small renewables they can do so under the existing RPS program, without legislation or significant litigation. For example, Southern California Edison currently has a biogas standard contract offer under the RPS program.
o The bill requires that utilities keep the FiT open until the RPS program is "complied with"; however, the RPS requirement could change over time.
o AB 1807 would require every electrical corporation to make the FiT available to customers until that electrical corporation's RPS is met, as determined by the commission. Using RPS as a baseline could be problematic because there is a significant delay in determining whether RPS goals were met in a given year. Such delay could introduce some amount of uncertainty for either electrical corporations or the renewable electric generation facility.
o Renewable Energy Credits: AB 1807 would require that every kilowatthour of electricity generated by the renewable electric generation facility, including generation used to offset the customer's own usage of electricity, shall count toward the electrical corporation's RPS annual procurement targets, while the customer is able to keep the RECs for energy used onsite. By allowing all energy, including that used onsite, to count toward the utility's RPS the utility would also receive those same RECs. This would essentially be double-counting the RPS and is contrary to current commission policy.
· Qualified Facilities (QF) Program:
o The State's QF program in the early 1980s brought online ~6,600 MW of generation, including ~1,200 MW of combined heat and power (CHP) and renewables projects under 20 MW.
o The bill would replace the recently enacted "new QF" contract terms and conditions available for new renewables adopted by D.07-09-040 which allows QFs to take a new standard offer contract under the pricing terms set by the Commission by decision.
o The QF program may be closed to new contracts in the future if FERC determines that the California Independent System Operation (CAISO) has successfully implemented Market Redesign Technology Upgrade (MRTU) and QFs are able to competitively bid into the State's energy markets. However, the precedent in the Northeast states is that FERC lifted the QF requirement for facilities over 20 MW, but retained the QF purchasing obligation on the utilities for facilities under 20 MW.
· Distributed Generation and Net Energy Metering Programs:
o The bill would affect the DG programs such as the California Solar Initiative (CSI) and Self Generation Incentive Program (SGIP). Customers that participate in CSI and SGIP generally take electrical service under a net energy metering (NEM) tariff.
o With this bill, the price paid under the tariffs (undetermined until set by the Commission) may exceed the incentive payment offered under the DG programs.
_ The DG programs are designed to have customers pay the majority of the capital costs, and ratepayers provide an upfront incentive to help install the capacity. [Even if the incentive is paid out over a few years-- as in the CSI's Performance Based Incentive option -- it is still an upfront incentive]. The customer's investment is largely offset through NEM savings and bill savings.
_ In contrast, under a FiT, ratepayers pay for the energy production from a DG facility. To make a FiT attractive, the price paid needs to allow the investor to recover the full cost of the system, otherwise a FiT will not be attractive to customers.
o To date, the CPUC has viewed FiT and NEM as mutually exclusive, yet it is not clear how the bill will affect customer interest in and participation in DG programs, and therefore NEM tariffs.
o A customer receiving electrical service pursuant to an alternative net metering program may not receive service pursuant to this FiT.
o Once a customer elects to receive electrical service pursuant to this proposed FiT the customer waives any right thereafter to receive service pursuant to an alternative net metering program. This may provide uncertainty for the period of time after the FiT contract has ended.
· Existing Small Renewables Feed-In Tariff Enacted by AB 1969 (Yee, 2006):
o California's current FiT is restricted to an electric generation facility with generation capacity up to 1.5 MW for PG&E, SDG&E, and SCE, and up to 1 MW for all other electrical corporations. Section 399.20 requires that the electric generation facility be owned by a public water or wastewater agency. However, PG&E and SDG&E are also able to offer such tariffs for non-water and non-wastewater facilities.
o This bill would require modification to the State's existing FiT (PU Code 399.20 as mandated by AB 1969) which was recently implemented by the Commission to pay the market price referent for renewable facilities under 1.5 MW. The Commission would need to consider how the price paid under AB1807 would affect the price already approved by the CPUC to be paid for facilities under the AB 1969 tariffs.
o The current FiT allows for both excess sales and full buy/sell options to accommodate some onsite load, but AB 1807 does not indicate whether both options would be allowable under the law as proposed.
· Long-Term Procurement and Resource Adequacy:
o Under the existing long-term procurement program, the utilities are required to biennially demonstrate their plans for long-term energy and capacity contracting. This FiT may create uncertainty in the utilities long-term planning process. In fact, a major problem with the QF program in the 1980s was its impact on the ability for the utilities to do sensible integrated planning. Under a major FiT (as was the case under the QF program), new generation resources could show up on the utility grid without necessarily being located when or where needed. New resources had five years to come online, and during that time, the utility could only adopt a "wait and see" attitude towards the new resources. While the AB 1807 FiT could be designed to have a locational component, as written, there is no guarantee that AB 1807 resources will come online in preferred locations.
o In today's long-term procurement planning environment, a new FiT program that might attract significant resources to the State could cause considerable uncertainty. The bill requires the utilities keep the FiT open until the RPS program is "complied with", but there is no total MW cap on the amount of resources that can take the FiT.
o If established, this new FiT will expose the state to uncertainty in its long-term procurement planning due to the fact that FiTs offer virtually no control over where, whether, and when the new resources appear. (This issue was at the heart of one of the challenges brought about by the State's QF program in the 1980s.)
o The legislation would require the CPUC to create new long-term procurement contracts at a price that would be litigated at the CPUC.
PROGRAM BACKGROUND:
· Public Utilities Code (PU Code) Section 399.20 requires that FiTs be offered by electrical corporations to an electric generation facility with generation capacity up to 1.5 MW for PG&E and SDG&E and up to 1 MW for all other electrical corporations. Section 399.20 requires that the electric generation facility be owned by a public water or wastewater agency. Participants of the tariff pursuant to Section 399.20 are ineligible to receive benefits through ratepayer funded incentive programs. Pursuant to D.07-07-027 PG&E and SCE are required, and SDG&E is able, to offer tariffs adopted in the implementation of §399.20 for non-water and non-wastewater facilities.
· Commission decision (D.) 07-09-040 adopts future pricing and policy for qualifying facilities. Qualifying facilities are able to form standard contracts at a set price for power delivery of renewable resources, which essentially mimics a FiT.
· Currently, CPUC policy is that only the energy purchased by the electrical corporation counts toward that corporation's RPS goals. Likewise, the electrical corporation receives the RECs only for purchased energy, while the customer retains the RECs for energy used onsite. AB 1807 would allow all of the energy produced, including what is used onsite by the customer, to count toward the electrical corporation's RPS. It would also allow the customer to retain the RECs for any energy used onsite. This would effectively allow for double counting of the RPS energy, and allow an unbundling of RPS generation and RECs. Currently, RECs are not allowed to be unbundled from RPS generation. The CPUC currently considers such unbundling as creating "brown power" which is not applicable toward RPS.
LEGISLATIVE HISTORY:
· AB 1969 (Yee, Ch. 731, Statutes of 2006) led to implementation of PU Code Section 399.20. As aforementioned, this Code Section provides California's only FiT to date.
FISCAL IMPACT:
Due to the complexity involved in creating such a program, the Commission would require 2 new permanent senior analysts and 1 permanent junior analyst with a cost of $324,860 to:
· Develop and approve a feed-in tariff for each electrical corporation.
· Develop a methodology for determining a base rate for the feed-in tariff.
· Determine how the base rate would be adjusted over time to reflect improvements in technology and operational practices.
· Establish a reduced tariff rate to reflect federal and state tax and other credits, subsidies, or other incentives received for a renewable electric generation facility.
STATUS:
AB 1807 is currently pending in the Assembly Committee on Utilities and Commerce.
SUPPORT/OPPOSITION:
Support: None on file.
Opposition: None on file.
STAFF CONTACTS:
Bryan Crabb, PURA V brd@cpuc.ca.gov
Office of Governmental Affairs (916) 322-8858
Date: April 17, 2008
BILL LANGUAGE:
BILL NUMBER: AB 1807 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 28, 2008
INTRODUCED BY Assembly Member Fuentes
JANUARY 16, 2008
An act to add Section Sections 387.2 and
399.21 to the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1807, as amended, Fuentes. Renewable electric generation
facilities: feed-in tariffs.
Under existing law, the Public Utilities Commission is vested with
regulatory authority over public utilities, including electrical
corporations. The Public Utilities Act imposes various duties and
responsibilities on the commission with respect to the purchase of
electricity by electrical corporations and requires the commission to
review and adopt a procurement plan and a renewable energy
procurement plan for each electrical corporation pursuant to the
California Renewables Portfolio Standard Program. The program
requires that a retail seller of electricity, including electrical
corporations, purchase a specified minimum percentage of electricity
generated by eligible renewable energy resources, as defined, in any
given year as a specified percentage of total kilowatthours sold to
retail end-use customers each calendar year (renewables portfolio
standard).
Existing law requires every electrical corporation to file with
the commission a standard tariff for renewable energy output produced
at an electric generation facility, as defined, that is an eligible
renewable energy resource and meets other size, deliverability, and
interconnection requirements. Existing law requires the electrical
corporation to make this tariff available to public water or
wastewater agencies that own and operate an electric generation
facility within the service territory of the electrical corporation,
upon request, on a first-come, first-served basis, until the combined
statewide cumulative rated generating capacity of those electric
generation facilities equals 250 megawatts. Existing law requires
that the electric generation facility be located on property owned or
under the control of the public water or wastewater agency and be
sized to offset part or all of the generator's electricity demand.
Existing law provides that the renewable energy output of an electric
generation facility counts toward the electrical corporation's
renewables portfolio standard and resource adequacy requirements.
This bill would require every electrical corporation to file with
the commission a standard feed-in tariff , as
defined, for the electricity delivered to the grid that
is generated by a renewable electric generation facility, as
defined, that is an eligible renewable energy resource and meets
other size, deliverability, and interconnection requirements. The
bill would require the commission to consult with the Energy
Commission and the Independent System Operator in approving feed-in
tariffs develop a methodology for determining a base
rate to be paid for electricity that is generated by a renewable
electric generation facility and to adjust the base rate
to be paid in future years so that the base rate declines over time
to reflect improvements in technology and operational practices. The
bill would authorize an electrical corporation to make adjustments to
the base rate to incentivize the generation of electricity to meet
load within the electrical corporation ' s
individual service territory, including generation of electricity to
match peak demand and regional adjustments to match deliverability of
electricity to load centers. The bill would require the commission
to reduce the tariff rate to reflect federal and state tax
and other credits, subsidies, or other incentives receive
d for a renewable electric generation facility . The bill would
require the electrical corporation to make the feed-in tariff
available to any customer of the electrical corporation, upon
request, on a first-come, first-served basis, until the electrical
corporation meets its renewables portfolio standard. The
The bill would require the commission to ensure that a
customer's eligibility to receive service pursuant to the feed-in
tariff is determined in advance so that a customer can invest in a
renewable electric generation facility knowing that the customer will
be eligible to receive service pursuant to the feed-in tariff and
the market tariff price that will be
applicable to that customer. The bill would authorize the commission
to place time limitations upon a customer for completion of the
renewable electric generation facility to remain eligible for the
feed-in tariff at the applicable market
tariff price and to establish reasonable operation and
reliability standards for a renewable electric generation facility to
remain eligible for the feed-in tariff at the applicable
market tariff price. The
The bill would provide that any renewable energy
credit, as defined, for electricity delivered to the grid and
purchased by the electrical corporation belongs to the electrical
corporation, and that any renewable energy credit associated with
electricity generated by the customer that is utilized by the
customer and not delivered to the grid remains the property of the
customer. The bill would provide that the electricity generated
by the renewable electric generation facility, including generation
used to offset the customer's own usage of electricity, counts toward
the electrical corporation's renewables portfolio standard and
resource adequacy requirements. The bill would authorize
prohibit a customer receiving electrical service
pursuant to an alternative net metering program, as defined,
to elect from electing to receive
service pursuant to the feed-in tariff filed by an electrical
corporation pursuant to the bill's requirements and would provide
that a customer electing to receive receiving
service pursuant to the feed-in tariff waives any right the
customer otherwise has to thereafter receive service pursuant to an
alternative net metering program.
This bill would require the commission, in consultation
with the Energy Commission, to develop feed-in tariffs for eligible
renewable energy resources of more than 20 megawatts that value a
diverse mix of sources of renewable energy based upon the most
successful feed-in tariffs utilized in Europe. The bill
would require the commission, in consultation with the Independent
System Operator, to establish tariff provisions that facilitate both
the renewables portfolio standard program and the reliable operation
of the grid.
Under existing law, a violation of the Public Utilities Act or an
order or direction of the commission is a crime. Because this bill
would require an order or other action of the commission to implement
its provisions and a violation of that order or action would be a
crime, the bill would impose a state-mandated local program by
creating a new crime.
Existing law requires the State Energy Resources Conservation and
Development Commission (Energy Commission), beginning November 1,
2003, and every 2 years thereafter, to adopt an integrated energy
policy report which includes an assessment and forecast of system
reliability and the need for resource additions, efficiency, and
conservation.
This bill would require the Energy Commission to study the
feasibility and desirability of implementing a feed-in tariff for
eligible renewable energy resources of more than 20 megawatts, based
upon the most successful feed-in tariffs utilized in Europe, in order
to advance the state's energy goals and needs and to report its
findings to the Legislature in the next integrated energy policy
report.
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 387.2 is added to the
Public Utilities Code , to read:
387.2. (a) It is the policy of this state and the intent of the
Legislature to encourage energy production from renewable resources
in an amount commensurate with electricity demand. Utilization of
feed-in tariffs for electricity generated by renewable energy
resources can help the state achieve its goals and assist the utility
in achieving its renewables portfolio standard.
(b) The governing board of each local publicly owned electric
utility is encouraged to develop and implement a feed-in tariff for
the utility that provides for payment for every kilowatthour of
electricity generated by a renewable electric generation facility at
the tariff price approved by the governing board for a period of 10,
15, or 20 years.
SECTION 1. SEC. 2. Section 399.21 is
added to the Public Utilities Code, to read:
399.21. (a) It is the policy of this state and the intent of the
Legislature to encourage energy production from renewable
resources in an amount commensurate with electricity demand.
Legislature, through implementation of a feed-in
tariff for electricity generated by renewable electric generation
facilities, to achieve all of the following:
(1) The generation of electricity from eligible renewable energy
resources in an amount and location commensurate with the growth of
electrical load within each load area.
(2) The deployment of eligible renewable energy resources in a
timely manner in order to eliminate, to the greatest extent possible,
the need for additional powerplants using fossil fuels to generate
electricity.
(3) The growth of green-collar jobs in California by developing
industries that build and deploy eligible renewable energy resources.
(4) The lending of capital for eligible renewable electric
generation facilities by ensuring a stable revenue stream for project
developers.
(5) The adoption of just and reasonable payments for electricity
generated by renewable electric generation facilities that protect
electrical corporations and ratepayers from inflated generation costs
resulting from the exercise of market power arising from future
renewable energy attainment targets and that protect electrical
corporations from receiving insufficient bids through the competitive
bidding process to meet their renewables portfolio standard
purchasing requirements.
(6) To increase the diversity of technologies that are eligible
renewable energy resources.
(b) As used in this section the following terms have the following
meanings:
(1) "Alternative net metering program" means any program that
requires an electrical corporation to purchase or credit electricity
generated by a subscriber pursuant to Article 3 (commencing with
Section 2821) of Chapter 7 of Part 2.
(2) "Eligible renewable energy resource" has the same meaning as
defined in Section 399.12.
(3) "Feed-in tariff" means the schedule detailing the rates,
rules, and terms of service that is filed by an electrical
corporation and approved by the commission that is applicable to the
purchase of electricity generated by a renewable electric generation
facility by the electrical corporation pursuant to this section.
(2)
(4) "Renewable electric generation facility" means a
facility for the generation of electricity that is owned and operated
by a customer of an electrical corporation and that meets all of the
following criteria:
(A) Has an effective generating capacity of more than one and
one-half and not more than 20 megawatts and is located on
property owned or under the control of the customer.
(B) Is interconnected and operates in parallel with the electric
transmission and distribution grid.
(C) Is strategically located and interconnected to the electric
transmission system in a manner that optimizes the deliverability of
electricity generated at the facility to load centers.
(D) Is an eligible renewable energy resource , as defined
in Section 399.12 .
(c) Every electrical corporation shall file with the commission a
standard feed-in tariff for the electricity generated by a renewable
electric generation facility. The commission shall consult with the
Energy Commission and the Independent System Operator in approving
feed-in tariffs.
(d) The feed-in tariff shall provide for payment for every
kilowatthour of electricity generated at a renewable electric
generation facility at the market price as determined by the
commission pursuant to Section 399.15 for a period of 10, 15, or 20
years, as authorized by the commission.
(c) (1) The commission shall develop and approve a feed-in tariff
for each electrical corporation that provides for payment for every
kilowatthour of electricity generated by a renewable electric
generation facility that is delivered to the grid, at the tariff
price approved by the commission for a period of 10, 15, or 20 years.
(2) By June 1, 2010, the commission shall develop both of the
following for each eligible renewable energy resource:
(A) A methodology for determining a base rate to be paid for
electricity that is generated by a renewable electric generation
facility. A separate base rate shall apply for each technology that
is an eligible renewable energy resource. The base rate shall be
calculated based upon the cost of generation, using best available
practices for the individual technology, plus a reasonable profit as
determined by the commission.
(B) A methodology for adjusting the base rate to be paid for
electricity generated by renewable electric generation facilities in
future years so that the base rate declines over time to reflect
improvements in technology and operational practices.
(3) The commission shall, upon development of the methodology
pursuant to paragraph (2), require each electrical corporation to
file a feed-in tariff for approval by the commission. An electrical
corporation may adjust the base rate of its feed-in tariff to
incentivize the generation of electricity to meet load within the
electrical corporation's individual service territory, including
generation of electricity to match peak demand and regional
adjustments to match deliverability of electricity to load areas. Any
adjustment to the base rate shall be based upon future projections
of electricity demand within its service territory or a load area.
(4) The commission shall reduce the tariff rate to reflect federal
and state tax and other credits, subsidies, or other incentives
received for a renewable electric generation facility. The commission
shall review tariff rates at least annually to ensure that the rate
is reduced to reflect federal and state tax and other credits,
subsidies, or other incentives received for a renewable electric
generation facility.
(5) The commission shall annually adjust the feed-in tariff rates
paid for electricity generated by a renewable electric generation
facility for inflation and component price in light of current market
conditions.
(d) Upon adoption of the feed-in tariff by the commission, any
renewable energy credit, as defined in Section 399.12, for
electricity delivered to the grid and purchased by the electrical
corporation shall belong to the electrical corporation. Any renewable
energy credit associated with electricity generated by the customer
that is utilized by the customer and not delivered to the grid shall
remain the property of the customer.
(e) Every electrical corporation shall make the feed-in tariff
available to customers that own and operate a renewable electric
generation facility within the service territory of the electrical
corporation, upon request, on a first-come, first-served basis, until
the electrical corporation meets its renewables portfolio standard.
An electrical corporation may make the terms of the feed-in tariff
available to customers in the form of a standard contract subject to
commission approval. An electrical corporation shall only be required
to offer service or contracts under this section until that
electrical corporation meets its renewables portfolio standard, as
determined by the commission.
(f) The commission shall ensure that a customer's eligibility to
receive service pursuant to the feed-in tariff is determined in
advance so that a customer can invest in a renewable electric
generation facility knowing that the customer will be eligible to
receive service pursuant to the feed-in tariff and the
market tariff price that will be applicable to
that customer. The commission may place time limitations upon a
customer for completion of the renewable electric generation facility
to remain eligible for the feed-in tariff at the applicable
market tariff price. The commission may
establish reasonable operation and reliability standards for a
renewable electric generation facility to remain eligible for the
feed-in tariff at the applicable market
tariff price.
(g) Every kilowatthour of the electricity generated by the
renewable electric generation facility, including generation used to
offset the customer's own usage of electricity, shall count toward
the electrical corporation's renewables portfolio standard annual
procurement targets for purposes of paragraph (1) of subdivision (b)
of Section 399.15.
(h) The physical generating capacity of a renewable electric
generation facility shall count toward the electrical corporation's
resource adequacy requirement for purposes of Section 380.
(i) (1) A customer receiving electrical service pursuant to an
alternative net metering program may not elect to receive
service pursuant to the feed-in tariff filed by an electrical
corporation pursuant to this section.
(2) A customer that elects to receive
receives electrical service pursuant to the feed-in tariff
filed by an electrical corporation pursuant to this section waives
any right that the customer otherwise has to thereafter receive
service pursuant to an alternative net metering program.
(j) The commission, in consultation with the Energy Commission,
shall develop feed-in tariffs for eligible renewable energy resources
of more than 20 megawatts that value a diverse mix of sources of
renewable energy based upon the most successful feed-in tariffs
utilized in Europe.
(k)
(j) The commission shall, in consultation with the
Independent System Operator, establish tariff provisions that
facilitate both the provisions of this chapter and the reliable
operation of the grid.
SEC. 2. The State Energy Resources Conservation
and Development Commission shall study the feasibility and
desirability of implementing a feed-in tariff for eligible renewable
energy resources of more than 20 megawatts, based upon the most
successful feed-in tariffs utilized in Europe, in order to advance
the state's energy goals and needs. The commission shall report its
findings to the Legislature in the next integrated energy policy
report prepared pursuant to Section 25302 of the Public Resources
Code.
SEC. 2. SEC. 3. 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.
1 See the CPUC's current list of CPUC approved and pending RPS contracts available at http://www.cpuc.ca.gov/PUC/energy/electric/RenewableEnergy/rpsprojects.htm
