LEGISLATIVE SUBCOMMITTEE RECOMMENDATION: SUPPORT WITH AMENDMENTS
SUMMARY OF BILL:
This bill would amend Public Utilities Code (P.U. Code) 399.20 to require that the CPUC establish feed-in tariffs of 10, 15, or 20 years be offered for energy generated by a renewable electric generation facility of no more than 1.5 MW.
· Technology: The tariffs would be all eligible renewable energy resources. Third party ownership of facilities would be allowed.
· Price: The price paid under the feed-in tariff would be a base payment rate at the market price determined by the CPUC, and could be adjusted by the CPUC to reflect any of the following "green" benefits as appropriate:
o Benefits from reduced transmission congestion.
o Benefits from reduced transmission and distribution grid expansions and upgrades.
o Benefits from reducing emissions of greenhouse gases.
o Benefits from advancing the use of developing technologies.
o The cost of generation utilizing an eligible renewable energy resource.
· Administration Terms: This bill would require that the CPUC, in consultation with the Independent System Operator, monitor and examine the impact on the transmission and distribution grid and any effects on ratepayers resulting from electric generation facilities operating pursuant to a tariff or contract approved by the CPUC pursuant to this bill.
· Impact on Net Energy Metering and Incentive Programs: The bill would not allow any customer who has received any ratepayer-funded incentive or net energy metering (NEM) to be eligible for this tariff. A customer who receives service under a tariff or contract pursuant to this bill would not be eligible for any other ratepayer-funded incentives or NEM.
· Impact on RPS and Resource Adequacy: Each kilowatt hour of the output shall count toward the utility's RPS annual procurement targets. The actual generating capacity of an electric generating facility shall count toward the utility's Resource Adequacy requirement.
· Limits: The feed-in tariff would be capped for investor owned utilities (IOU) at 500 MW statewide.
· Publicly Owned Utilities: This bill would also provide that publicly owned utilities (POU) with 75,000 or more customers establish similar feed-in tariffs. The governing board for the POU would set the price, considering the same adjustments listed above. The feed-in tariff would be capped for POUs at 250 MW.
SUMMARY OF SUPPORTING ARGUMENTS FOR RECOMMENDATION:
· This bill would require the CPUC to amend its current feed-in tariff to extend it to all eligible renewable energy resources with capacity up to 1.5 MW, at a price set by the CPUC that would include up to five categories of adjustments for "green" energy. Furthermore, all IOUs would be required to offer this tariff, up to a statewide cap of 500 MW, which is 21.6 MW more than the current statewide cap. POUs with 75,000 or more customers would also be required to offer this tariff, up to a statewide cap of 250 MW, which they are currently not required to do.
o This bill would codifies much of what the CPUC has already done in D.07-07-027, namely to offer a feed-in tariff at the market price referent to all renewable facilities up to 1.5 MW.
¬ The one exception is that the CPUC did not yet require SDG&E to offer a feed-in tariff to any customer, but the CPUC is considering doing that in Phase 3 of R.06-05-027.
¬ The other exception is that this bill would allow the CPUC to adjust the current tariffs offered to small renewables facilities to incorporate up to five categories of green benefits listed above. California's current feed-in tariff is based on the current market price referent with no adjustments. If the CPUC were to make adjustments to the price (presumably upwards), it would likely make the feed-in tariff more attractive to customers and reflect the additional benefits of renewable generation.
¬ This bill would expand the amount of MWs (raises from 250 up to 500) that can subscribe to the tariff, but the Commission would have the discretion to implement it. Currently the law allows for 250 MW from water and wastewater facilities and the Commission voluntarily added an additional 228 MW from non-water and non-wastewater facilities. This code change would lump both kinds of facilities together, but keep the total at 500 MW.
o This bill would require that "actual" capacity of a facility would count towards the Resource Adequacy requirements. The existing law refers to the "physical" capacity that would likewise count. We recommend removing "actual" or "physical" because neither word is required.
o This bill would require that POUs offer a feed-in tariff. They are not currently required to do so.
o This bill would require that the CPUC, along with the Independent System Operator, examine and monitor the impact of the feed-in tariff. This monitoring seems prudent, especially if the feed-in tariff has any significant participation.
SUMMARY OF SUGGESTED AMENDMENTS:
· P.U. Code 399.20(b)(1) should be clarified for those utilities whose proportionate share of the 500 MW based on the ratio of their peak demand is less than 1.5 MW
· P.U. Code 399.20(b)(3) should read: "Is strategically located and interconnected to the grid in a manner that is considered "deliverable to load" according to the CAISO deliverability assessments."
· P.U. Code 399.20(g) should be changed to read: "The capacity of an electric generation facility should count toward the electrical corporation's resource adequacy requirement for purposes of Section 380."
· P.U. Code 399.20(e) should read: "Every electrical corporation shall make this tariff available to customers that own and operate an electric generation facility within the service territory, 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. The commission shall have the option of extending the tariff up to a combined statewide cumulative rated generating capacity of those electric generation facilities equaling 500 megawatts. An electrical corporation may make the terms of the tariff available to customers in the form of a standard contract subject to commission approval. Each electrical corporation shall only be required to offer service or contracts under this section until that electrical corporation meets its proportionate share of the 250 megawatts based on the ratio of its peak demand to the total statewide peak demand, or until that electrical corporation meets its share of the combined statewide cumulative rated generating capacity above 250 megawatts, up to 500 megawatts, as determined by the commission."
· The PU Code 399.20 (d) should be amended to allow the Commission to take into account other variables, if deemed necessary. As written, the Commission has a finite list, and it cannot exercise any discretion during implementation.
DIVISION ANALYSIS (Energy Division):
· This bill would expand the current Small Renewables Feed-In Tariff, established by AB 1969 and implemented at the CPUC by D.07-07-027 (aka "current feed-in tariff"), to all eligible renewable energy resources. The existing tariffs pursuant to P.U. Code Section 399.20 are restricted to publicly-owned water and wastewater facilities for all electrical corporations other than PG&E and SCE.
· Section 1(c) of this bill states that "[s]mall projects of less than four megawatts that are otherwise eligible renewable energy resources may face difficulties in participating in competitive solicitations under the renewables portfolio standard program." And, Section 1(d) of this bill states that "[a] tariff that allows customers of electrical corporations and local publicly owned electric utilities to sell electricity generated by renewable technologies would address these barriers and could assist in the achievement of the renewables portfolio standard and the state's goals for reducing emissions of greenhouse gases pursuant to the California Global Warming Solutions Act of 2006." While it is not known that the RPS program is insufficient for small projects, it is also not logical to state that projects of less than four MW face such difficulties, and create a tariff for facilities only up to 1.5 MW.
· This bill would require the CPUC to determine a base payment rate for every kilowatt hour of electricity generated, and determine adjustments for a number of proposed green benefits. California's current feed-in tariff payment is based on the market price referent, as adjusted by time of delivery. There appears to be no time of delivery adjustments proposed in this bill.
· This bill would set a cap for the feed-in tariff at 500 MW. P.U. Code 399.20, as it is currently written, sets a cap for the feed-in tariff for water and wastewater facilities at 250 MW. The CPUC separately designated a 228.4 MW cap for a feed-in tariff for non-water and -wastewater facilities for PG&E and SCE customers. That designation of MW would not disappear, so adopting this bill would effectively create a statewide cap of 728.4 MW, with most of the allocation in PG&E and SCE service territories. This should be clarified in the bill, but may also need to be addressed directly by the CPUC. The bill as written could inadvertently allow up to 500 MW of feed-in tariff anywhere in the state, which should not be "required" by the legislature, but rather "allowed by the legislature" if approved by the Commission, in consultation with the ISO.
· This bill would require that each IOU make this tariff available until that IOU meets its proportionate share of 500 MW based upon the ratio of its peak demand to the total statewide peak demand to facilities with capacity up to 1.5 MW. Some IOUs' proportionate statewide share will be less than 1.5 MW. This bill should clarify how those utilities will be treated.
· This bill would require that the governing body of a local publicly owned electric utility, which sells electricity at retail, provide a feed-in tariff for excess electricity generated by a renewable electric generation facility, considering a number of green benefit adjustments. California's current feed-in tariff only requires that electrical corporations offer the tariff to an electric generation facility.
· This bill would allow third party ownership of the electric generation facility, stating that neither property nor facility needs to be owned by the customer. The current feed-in tariff and other ratepayer-funded incentive programs tacitly allow third party ownership. However, this would be the first time, to our knowledge, that third party ownership of distributed generation would be explicitly referenced in the P.U. Code.
· This bill would not allow a customer who has received any ratepayer-funded incentive or net energy metering (NEM) to be eligible for this tariff. A customer who receives service under a tariff or contract pursuant to this bill would not be eligible for any other ratepayer-funded incentives or NEM. California's current feed-in tariff likewise disallows simultaneous participation in the tariff and other incentive programs, whether capacity based or energy based.
· This bill would require that an electric generation facility 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." The intent of this language is not clear and should be clarified. A possible clarification could be that the facility is considered "deliverable to load" according to the CAISO deliverability assessments.
· SCE previously petitioned to modify D.07-09-040 to prevent inclusion of the excess sales option. That petition was denied. The deadline has passed for SCE to take that issue to the courts. However, should this bill pass as written, SCE would potentially protest the excess sales option again which would lead to protracted litigation re-arguing an issue that has already been decided by the CPUC. This bill could be clarified to make clear that the tariff is available for both full buy/sell and excess sales options.
PROGRAM BACKGROUND:
· P.U. Code Section 399.20, as currently written, requires that feed-in tariffs be offered by electrical corporations to an electric generation facility, which is owned by a public water or wastewater agency, with an effective capacity up to 1.5 MW. Participants of the tariff pursuant to Section 399.20 are ineligible to receive benefits through ratepayer funded incentive programs.
· 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 feed-in tariff.
· 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.
· This bill would require modifications to and expansions to California's current feed-in tariff, which is still under active consideration in R.06-05-027.
· Feed-in tariffs should be dealt with in a comprehensive manner that takes the current P.U. Code Section 399.20, D.07-09-040, CSI and RPS into account.
· Legislation would only be necessary for the proposed changes in pricing, i.e. allowing the CPUC additional flexibility in the ratemaking of the tariff. Other issues should be aligned with the ongoing proceeding that will address expansion of the current feed-in tariff.
LEGISLATIVE HISTORY:
AB 1969 (Yee, Chapter 731, Statutes of 2006) led to implementation of P.U. Code Section 399.20. As aforementioned, this Code Section provides California's only feed-in tariff to date.
AB 1613 (Blakeslee, Chapter 713, Statutes of 2007) authorizes the California Public Utilities Commission (CPUC) to expand net metering and require that utilities buy excess power from CHP systems.
SB1 (Murray, Chapter 132, Statutes of 2006) created the California Solar Initiative program.
The implementation of P.U. Code Section 399.11 the RPS requirement of "generating 20 percent of total retail sales of electricity in California from eligible renewable energy resources by December 31, 2010".
FISCAL IMPACT:
· An appropriation of $324,860 to the PUC Utilities Reimbursement Account. All work required by this bill would be in addition to the administrative, analytical, and legal work already required by current programs such as the California Solar Initiative and the renewables portfolio standards.
STATUS:
· SB 1714 is awaiting hearing before the Senate Appropriations Committee.
SUPPORT/OPPOSITION:
Support: California Solar Energies Association
Opposition: None on file.
STAFF CONTACTS:
Bryan Crabb brd@cpuc.ca.gov
Staff - Office of Governmental Affairs (916) 322-8858
Date: May 6, 2008
BILL LANGUAGE:
BILL NUMBER: SB 1714 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 22, 2008
AMENDED IN SENATE APRIL 10, 2008
INTRODUCED BY Senator Negrete McLeod
FEBRUARY 22, 2008
An act to amend Section 399.20 of, and to add Section 387.6 to,
the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1714, as amended, Negrete McLeod. Renewable electric generation
facilities.
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). Under existing law the governing board of a local publicly
owned electric utility is responsible for implementing and enforcing
a renewables portfolio standard for the utility that recognizes the
intent of the Legislature to encourage renewable resources, while
taking into consideration the effect of the standard on rates,
reliability, and financial resources and the goal of environmental
improvement.
Existing law requires every electrical corporation to file with
the commission a standard tariff for electricity generated by 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 limits the effective capacity of the electric generation
facility to not larger than one megawatt, but authorizes the
commission to extend availability of the tariff to electric
generation facilities not larger than one and one-half megawatts.
Existing law provides that the electricity generated by an electric
generation facility counts toward the electrical corporation's
renewables portfolio standard and provides that the physical
generating capacity counts toward meeting the electrical corporation'
s resource adequacy requirements.
This bill would instead require every electrical corporation on
and after July 1, 2009, to file with the commission a standard tariff
for the electricity generated by an electric generation facility
with an effective capacity of not larger than 4
1.5 megawatts and authorizes any customer of the
utility to elect to participate in the tariff, with additional
revenues used to offset the costs that would otherwise be incurred by
ratepayers to implement the tariff and would require
an electrical corporation to make the tariff available to any
customer that owns and operates 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 500 megawatts . The bill would
require the commission, in consultation with the Independent System
Operator, to monitor and examine the impact on the transmission and
distribution grid and any effects upon ratepayers resulting from
electric generation facilities operating pursuant to these
provisions. The bill would provide that the actual generating
capacity of an electric generation facility counts toward meeting the
electrical corporation's resource adequacy requirements. The bill
would require a local publicly owned electric utility that sells
electricity at retail to 75,000 or more customers , by
July 1, 2009, to adopt and implement a tariff ,
for electricity generated by an electric generation facility
meeting certain size, deliverability, and interconnection
requirements , for electricity generated by an electric
generation facility based upon a renewable energy market price
determined by the commission pursuant to the renewables portfolio
standard program (base payment rate), and would require the utility's
governing board and to consider certain factors
and authorize the governing board to adjust the base
payment rate in response to those factors. The bill would authorize a
customer of the utility to elect to participate in the tariff with
additional revenues used to offset the costs that would otherwise be
incurred by ratepayers to implement the tariff . The bill
would require the local publicly owned electric utility to make the
tariff available to customers that own and operate an electric
generation facility within the service territory of the utility, upon
request, on a first-come-first-served basis, until the combined
statewide cumulative rated generating capacity of electric generation
facilities equals 250 megawatts. The bill would provide that the
electricity generated by the electric generation facility counts
towards meeting the local publicly owned electric utility's
renewables portfolio standard annual procurement targets. The bill
would provide that receiving a customer that
receives service pursuant to a tariff adopted by an electrical
corporation or local publicly owned electric utility pursuant to the
above-described provisions is not a disqualification for
participation in a ratepayer-funded incentive program
is not eligible for any other ratepayer-funded incentive
or net metering program. The bill would provide that a customer of an
electrical corporation is not eligible to receive service pursuant
to the tariff or contract approved by the commission pursuant to the
bill's provisions if the customer has received any ratepayer-funded
incentive for the electric generation facility, or if the customer
participated in a commission approved net metering tariff or contract
for the electric generation facility .
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. By placing requirements upon local publicly
owned electric utilities, which are entities of local government, 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 specified reasons.
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. The Legislature finds and declares all of the
following:
(a) The state should encourage the reduction of electricity demand
at customer sites and increase generating capacity in order to meet
the demand for electricity.
(b) Some tariff structures and regulatory structures are
presenting a barrier to meeting the requirements and goals of the
California Renewables Portfolio Standard Program (Section 387 of, and
Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1
of Division 1 of, the Public Utilities Code).
(c) Small projects of less than four megawatts that are otherwise
eligible renewable energy resources may face difficulties in
participating in competitive solicitations under the renewables
portfolio standard program.
(d) A tariff that allows customers of electrical corporations and
local publicly owned electric utilities to sell excess
electricity generated by solar
renewable technologies would address these barriers and could
assist in the achievement of the renewables portfolio standard and
the state's goals for reducing emissions of greenhouse gases pursuant
to the California Global Warming Solutions Act of 2006.
(e) A tariff for excess electricity generated by solar
electricity generated by renewable technologies
should recognize the environmental attributes of the renewable
technology, the characteristics that contribute to peak electricity
demand reduction, reduced transmission congestion, avoided
transmission and distribution improvements, and in a manner that
accelerates the deployment of solar renewable
energy resources.
(f) It is the policy of this state and the intent of the
Legislature to encourage the generation of electricity from
solar eligible renewable energy resources at the
sites where the electricity will be utilized.
SEC. 2. Section 387.6 is added to the Public Utilities Code, to
read:
387.6. (a) It is the policy of the state and the intent of the
Legislature to encourage electrical generation from eligible
renewable energy resources in an amount commensurate with a customer'
s demand for electricity.
(b) As used in this section, "electric generation facility" means
an electric generation facility, owned and operated by a retail
customer of an electrical corporation, and that meets all of the
following criteria:
(1) Has an effective capacity of not more than four
1.5 megawatts and is located on property owned
or under the control of the customer. Premises that are leased by the
customer are under the control of the customer for purposes of this
requirement. It is not required that the customer own the electric
generation facility.
(2) Is interconnected and operates in parallel with the electric
transmission and distribution grid.
(3) 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.
(4) Is an eligible renewable energy resource, as defined in
Section 399.12.
(c) A local publicly owned electric utility that sells electricity
at retail to 75,000 or more customers shall adopt a
standard tariff for electricity generated by an electric generation
facility that authorizes a customer to elect to participate
in the tariff with additional revenues used to offset the costs that
would otherwise be incurred by ratepayers to implement the tariff
.
(d) The tariff shall provide for a base payment rate for
every kilowatthour of electricity generated by an 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. The governing board
of the local publicly owned electric utility shall
consider, and may adjust the tariff base payment rate to reflect, any
establish a tariff and shall consider all of
the following:
(1) Benefits from reduced transmission congestion.
(2) Benefits from reduced transmission and distribution grid
expansions and upgrades.
(3) Benefits from reducing emissions of greenhouse gases.
(4) Benefits from advancing the use of developing technologies.
(5) The cost of generation utilizing an eligible renewable energy
resource.
(e) A local publicly owned electric utility that sells electricity
at retail shall make the tariff available to customers that own and
operate an electric generation facility within the service territory
of the utility, 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. A local
publicly owned electric utility may make the terms of the tariff
available to customers in the form of a standard contract. A local
publicly owned electric utility is only required to offer service or
contracts under this section until the utility meets its
proportionate share of the 250 megawatts based on the ratio of its
peak demand to the total statewide peak demand.
(f) Every kilowatthour of electricity generated by the electric
generation facility shall count toward the local publicly owned
electric utility's renewables portfolio standard annual procurement
targets for purposes of Section 387.
(g) Receiving service under a tariff or contract pursuant to this
section shall not be a disqualification for participation in a
ratepayer-funded incentive program.
SEC. 3. Section 399.20 of the Public Utilities Code is amended to
read:
399.20. (a) It is the policy of this state and the intent of the
Legislature to encourage electrical generation from eligible
renewable energy resources in an amount commensurate with a customer'
s demand for electricity.
(b) As used in this section, "electric generation facility" means
an electric generation facility, owned and operated by a retail
customer of an electrical corporation, and that meets all of the
following criteria:
(1) Has an effective capacity of not more than four
1.5 megawatts and is located on property owned
or under the control of the customer. Premises that are leased by the
customer are under the control of the customer for purposes of this
requirement. It is not required that the customer own the electric
generation facility.
(2) Is interconnected and operates in parallel with the electric
transmission and distribution grid.
(3) 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.
(4) Is an eligible renewable energy resource, as defined in
Section 399.12.
(c) Every electrical corporation shall file with the commission a
standard tariff for electricity generated by an electric generation
facility that authorizes a customer to elect to participate
in the tariff with additional revenues used to offset the costs that
would otherwise be incurred by ratepayers to implement the tariff.
facility.
(d) The tariff shall provide for a base payment rate for every
kilowatthour of electricity generated by an 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. The commission shall consider, and may adjust the
tariff base payment rate to reflect, any of the following:
(1) Benefits from reduced transmission congestion.
(2) Benefits from reduced transmission and distribution grid
expansions and upgrades.
(3) Benefits from reducing emissions of greenhouse gases.
(4) Benefits from advancing the use of developing technologies.
(5) The cost of generation utilizing an eligible renewable energy
resource.
(e) Every electrical corporation shall make this tariff available
to customers 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 250 500
megawatts. An electrical corporation may make the terms of the tariff
available to customers in the form of a standard contract subject to
commission approval. Each electrical corporation shall only be
required to offer service or contracts under this section until that
electrical corporation meets its proportionate share of the
250 500 megawatts based on the ratio of its peak
demand to the total statewide peak demand.
(f) Every kilowatthour of electricity generated by the electric
generation facility 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.
(g) The actual generating capacity of an electric generation
facility shall count toward the electrical corporation's resource
adequacy requirement for purposes of Section 380.
(h) The commission, in consultation with the Independent System
Operator, shall monitor and examine the impact on the transmission
and distribution grid and any effects upon ratepayers resulting from
electric generation facilities operating pursuant to a tariff or
contract approved by the commission pursuant to this section.
(i) Receiving service under a tariff or contract approved by the
commission pursuant to this section shall not be a disqualification
for participation in a ratepayer-funded incentive program.
(i) (1) A customer shall not be eligible to receive service
pursuant to a tariff or contract approved by the commission pursuant
to this section if the customer has received any ratepayer-funded
incentive for the electric generation facility, or if the customer
participated in a commission approved net metering tariff or contract
for the electric generation facility.
(2) A customer that receives service under a tariff or contract
approved by the commission pursuant to this section shall not be
eligible for any other ratepayer-funded incentive or net metering
program.
(j) (1) A customer electing to receive service under a tariff or
contract approved by the commission shall continue to receive service
under the tariff or contract until either of the following occurs:
(A) The customer no longer meets the eligibility requirements for
receiving service pursuant to the tariff or contract.
(B) The period of service established by the commission pursuant
to subdivision (d) is completed.
(2) Upon completion of the period of service established by the
commission pursuant to subdivision (d), the customer may elect to
renew receiving service pursuant to the tariff or contract approved
by the commission for the period of time then established by the
commission, or may elect to receive service under another then
applicable tariff.
SEC. 4. Sections 2 and 3 of this act shall become operative on
July 1, 2009.
SEC. 5. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
certain 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.
With respect to certain other costs, no reimbursement is required
by this act pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act, within
the meaning of Section 17556 of the Government Code.
