LEGISLATIVE SUBCOMMITTEE RECOMMENDATION: SUPPORT WITH TECHNICAL AMENDMENTS
SUMMARY OF BILL
SB 594 would allow Net Energy Metering (NEM) customer-generators with multiple meters to aggregate the electrical load of the meters located on the property where the generation facility is located and on all property adjacent or contiguous to the property on which the generation facility is located, if those properties are solely owned by the eligible customer-generator. This will allow a customer to install one renewable energy facility sized to serve their entire aggregated multi-meter on-site load (up to one megawatt) instead of installing separate generators at each meter. This bill would prohibit an eligible customer-generator that chooses to aggregate from receiving net surplus electricity compensation (NSC) and require the electric utility to retain surplus kilowatt-hours generated in a 12-month period.
SUMMARY OF SUPPORTING ARGUMENTS FOR RECOMMENDATION
This bill expands the NEM program in helpful ways that support the State's achievement of distributed generation (DG) related policy goals:
(1) NEM meter aggregation across multiple meters allows a customer to install one renewable energy facility sized to offset their entire aggregated multi-meter on-site load (up to one megawatt) instead of installing separate facilities at each meter. This is particularly important for agricultural, commercial, school, and government customers who can have several meters on one property.
(2) Significant obstacles continue to block some customers from efficiently and economically participating in the NEM program. Specifically, customers with multiple meters, such as farmers with separate meters for each of their irrigation pumps and other functions, are currently required to have separate renewable facilities for each meter to utilize NEM. This can be very costly and inefficient.
(3) Aggregation of multiple meters behind larger DG systems will improve the cost-effectiveness of NEM by enabling larger more efficient installations which represent a lower marginal cost to ratepayers.
SUMMARY OF SUGGESTED AMENDMENTS
1. After the sentence:
An eligible customer-generator with multiple meters may elect to aggregate the electrical load of the meters located on the property where the generation facility is located and on all property adjacent or contiguous to the property on which the generation facility is located, if those properties are solely owned by the eligible customer-generator.
Insert the sentence:
Parcels may be divided by a street, highway or public thoroughfare as long as
they are otherwise contiguous, and under the same ownership.
DIVISION ANALYSIS (Energy Division)
1. Offering NEM to more non-residential customer-generators will lower the cost of NEM to ratepayers.
The vast majority of renewable facilities that will take advantage of the multiple meter aggregation opportunity created by this bill will be larger non-residential applications. On that basis, any modification of the NEM program that incentivizes non-residential projects will result in the NEM program costing ratepayers less on a per project and per kWh basis.
The CPUC analyzed the net cost of the NEM program to ratepayers in March 20101, and found that commercial customer-generators cost comparatively less per kWh of exported generation than do residential customer-generators. The NEM program is currently capped at 5% of utility system peak load (known as the NEM "cap").2 As of 2008, NEM solar commercial-generators supplied about 56% of the capacity enrolled in the NEM program, but were responsible for just 10% of the total cost of the solar NEM program. Thus, while the NEM program overall represents a net cost to ratepayers, through this bill, the NEM program is likely to be more frequently subscribed by larger DG resources, which represent a lower marginal cost to ratepayers.
CPUC's study found that the nature of the customer being served made a difference in the cost borne by ratepayers. Because of their lower rates, non-residential projects cost non-participating ratepayers substantially less: the levelized net total cost of non-residential NEM facilities averages $0.03 per kWh-exported, compared to an average $0.19 per kWh-exported for residential facilities, as shown in Table 1.3
Table 1 also summarizes the characteristics of the solar NEM participation and impacts by residential and non-residential-sectors.
· Non-residential NEM facilities represent the majority of the MWs enrolled in the program. By the end of 2008, 7% of all solar NEM accounts were non-residential, and at the same time, non-residential NEM represented 56% of installed generation capacity.4
· Non-residential NEM facilities represented a net cost of $2.5 million/year, which was 13% of the total net cost of the NEM program on a per annum basis in 2008.
· The NEM program represented an annual net cost to ratepayers of $19.7 million in 2008, which is equivalent to 0.08% of annual utility revenue.
Table 1. Net Cost of Net Energy Metering Program (Solar NEM only installed through 2008)
Residential |
Non-Residential |
Total | |
Number of Solar NEM Projects |
38,380 accounts (93%) |
2,864 accounts (7%) |
41,244 accounts |
Installed Solar NEM Capacity |
162 MW (44%) |
203 MW (56%) |
365 MW |
20-year Annualized Cost for Solar NEM Installed through 20085 |
$17.2 Million (87%) |
$2.5 Million (13%) |
$19.7 Million (0.08% of total utility revenue) |
Levelized ($/kwh-exported) for Solar NEM installed through 2008 |
$0.19/ |
$0.03/ |
Average $0.12/ kWh-exported |
2. Facilitating non-residential NEM applications would move California closer to reaching its DG goals and closer to reaching the NEM cap, but those are not reasons to oppose the bill.
As set out in the PU Code, when NEM penetration levels reach 5% of each utility's aggregate customer peak demand (known as the NEM "cap")6, the IOUs can stop interconnecting new NEM facilities. This bill's expansion of larger non-residential NEM systems is likely to accelerate the advance toward the cap. However, this also means that California is moving faster toward its DG policy goals, and the reconsideration of the NEM cap will be an inevitable part of the conversation.
3. The bill maintains alignment between NEM, CSI, and Interconnection rules regarding generators sized up to 1.0 MW.
The bill does not alter the current structure of the NEM program regarding the 1 MW system size cap and thus maintains alignment between the NEM, CSI, and the CPUC's Rule 21 interconnection standards for customer-side generators. Under the CSI program, rebates are offered for up to 1.0 MW of capacity, and capacity above 1.0 MW does not receive an incentive. Under Rule 21, systems sized up to 1.0 MW on the customer side of the meter are eligible for "Simplified Interconnection," which is a form of accelerated and less-expensive interconnection.
4. Ratepayers would incur NEM-related costs, in the form of billing credits for T&D services, to a higher degree than otherwise permitted.
Under current rules, NEM is only offered to customer-generators who are using NEM to offset onsite load at a specific meter. It would encourage facilities sized up to 1 MW to serve the aggregated load of multiple meters, but would only offset the load of one meter. The net generation would be exported to the grid. The other aggregated meters would still consumer energy from the grid, but not be charged for the T&D costs associated with the serving those meters which would be a cost borne by non-NEM customers.
PROGRAM BACKGROUND
NEM is an electricity tariff billing mechanism whose intent is to facilitate the installation of DG by offering retail-rate billing credits for any electricity exported to the grid at times when there is no simultaneous energy demand to utilize the generation onsite.
Under existing complementary state laws, the CPUC oversees a range of policies that support self-generation:
1. Rebates: Rebates through the California Solar Initiative (CSI) and Self Generation Incentive Program (SGIP). The CSI program provides rebates for systems up to 1 MW (and allows systems up to 5 MW), with the exception of certain state-owned facilities (per AB 2724, 2010).
2. Simplified Interconnection: Reduced interconnection costs are available under utility Rule 21 tariffs that exempt self-generation renewable energy systems under 1 MW from most studies and fees. Rule 21 also offers these systems accelerated interconnection timelines. Separately, the CPUC exempted renewable self-generation systems from standby charges in 2003.
3. Net Energy Metering: Per PU Code 2827, NEM customer-generators who take service from IOUs have their net generation valued at the full retail rate at the time the energy is exported.7 AB 920 requires compensation of net surplus generation above annual load.
4. Virtual Net Energy Metering: First established as part of the Multifamily Affordable Solar Housing (MASH) Program8 in D.08-10-036, VNM allows customers to allocate the kilowatt-hour credits from the electricity generated from a single solar energy system on an affordable housing property to multiple customer accounts within that property. VNM was originally limited to MASH customers only, and D.11-07-031, among other directives, expanded both the types of customers and generation technologies eligible for VNM.
Specifically, D.11-07-031 does not limit the expanded VNM to CSI customers. Whereas VNM was previously limited to solar PV technologies, D.11-07-031 now allows all technologies that are eligible for the full retail NEM tariff to participate in VNM. D.11-07-031 also limits the expanded VNM to customers served by a single service delivery point (SDP).9
LEGISLATIVE HISTORY
1. At least four other bills modifying the NEM program are pending as of this writing in this legislative session:
o AB 2165 (Hill): Increases the generation-only NEM program cap for eligible fuel cell projects;
o AB 2514 (Bradford): Requires the CPUC to complete a study by June 30, 2013, to determine the extent to which each class of ratepayers receiving service under NEM is paying the full cost of the services provided to them by electrical corporations and the extent to which those customers pay their share of the costs of public purpose programs;
o SB 843 (Wolk): Facilitates a Community-Based Renewable Energy Self-Generation Program with unlimited virtual full retail rate bill credit sharing and RECs owed by interconnecting utility;
o SB 1537 (Kehoe): Prohibits the CPUC from adopting any new demand charges for NEM customers.
2. The NEM statute has been modified numerous times in the past decade. It was first established in response to AB 656 (1996), and subsequently modified by: AB 1755 (1998), AB 918 (2000), AB X1-29 (2001), SB 1038 (2002), AB 2228 (2003), AB 1214 (2004), AB 920 (2009), AB 510 (2010), and SB 489 (2011).
FISCAL IMPACT
SB 594 would require ongoing costs for 1 PURA V, for a total cost of approximately $120,234.
STATUS:
SB 594 is pending consideration in the Assembly Utilities and Commerce Committee.
SUPPORT/OPPOSITION
Support
None on file.
Opposition
None on file.
STAFF CONTACTS
Lynn Sadler, Director-OGA (916) 327-3277 ls1@cpuc.ca.gov
Nick Zanjani, Legislative Liaison-OGA (916) 327-3277 nkz@cpuc.ca.gov
BILL LANGUAGE
BILL NUMBER: SB 594 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 1, 2012
AMENDED IN SENATE MAY 25, 2011
AMENDED IN SENATE MAY 11, 2011
AMENDED IN SENATE APRIL 28, 2011
INTRODUCED BY Senator Wolk
( Coauthor: Senator
Blakeslee )
( Coauthor: Assembly Member
Williams )
FEBRUARY 17, 2011
An act to amend Sections 101150 and 101160 of, and to add
Sections 101161 and 101162 to, the Health and Safety
Section 2827 of the Public Utilities Code, relating to
public health energy .
LEGISLATIVE COUNSEL'S DIGEST
SB 594, as amended, Wolk. Local public health
laboratories. Energy: net energy metering.
Existing law relative to private energy producers requires every
electric utility, as defined, to make available to an eligible
customer-generator, as defined, a standard contract or tariff for net
energy metering 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 utility's aggregate
customer peak demand. Existing law requires the electric utility,
upon an affirmative election by the eligible customer-generator to
receive service pursuant to this contract or tariff, to either: (1)
provide net surplus electricity compensation for any net surplus
electricity generated in the 12-month period, or (2) allow the
eligible customer-generator to apply the net surplus electricity as a
credit for kilowatthours subsequently supplied by the electric
utility to the surplus customer-generator.
This bill would authorize an eligible customer-generator with
multiple meters to elect to aggregate the electrical load of the
meters located on the property where the generation facility is
located and on all property adjacent or contiguous to the property on
which the generation facility is located, if those properties are
solely owned by the eligible customer-generator, as provided. This
bill would prohibit an eligible customer-generator that chooses to
aggregate from receiving net surplus electricity compensation and
require the electric utility to retain kilowatthours, as prescribed.
Existing law establishes the State Department of Public Health and
sets forth its powers and duties relating to the prevention and
control of disease, including, but not limited to, the duty to
approve local public health laboratories.
This bill would recast those provisions to specify the duties of
the local public health laboratories, to require the department to
develop the examination for the certificate of public health
microbiologist for public health laboratories in consultation with
the California Association of Public Health Laboratory Directors, to
require the department to adopt regulations related to training
laboratories and continuing education requirements, and to define
related terms. The bill would authorize the department to charge a
fee as specified for providing, approving, and monitoring the
continuing education program.
By requiring local agencies to comply with these certification
requirements, this 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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2827 of the
Public Utilities Code is amended to read:
2827. (a) The Legislature finds and declares that a program to
provide net energy metering combined with net surplus compensation,
co-energy metering, and wind energy co-metering for eligible
customer-generators is one way to encourage substantial private
investment in renewable energy resources, stimulate in-state economic
growth, reduce demand for electricity during peak consumption
periods, help stabilize California's energy supply infrastructure,
enhance the continued diversification of California's energy resource
mix, reduce interconnection and administrative costs for electricity
suppliers, and encourage conservation and efficiency.
(b) As used in this section, the following terms have the
following meanings:
(1) "Co-energy metering" means a program that is the same in all
other respects as a net energy metering program, except that the
local publicly owned electric utility has elected to apply a
generation-to-generation energy and time-of-use credit formula as
provided in subdivision (i).
(2) "Electrical cooperative" means an electrical cooperative as
defined in Section 2776.
(3) "Electric utility" means an electrical corporation, a local
publicly owned electric utility, or an electrical cooperative, or any
other entity, except an electric service provider, that offers
electrical service. This section shall not apply to a local publicly
owned electric utility that serves more than 750,000 customers and
that also conveys water to its customers.
(4) "Eligible customer-generator" means a residential customer,
small commercial customer as defined in subdivision (h) of Section
331, or commercial, industrial, or agricultural customer of an
electric utility, who uses a renewable electrical generation
facility, or a combination of those facilities, with a total capacity
of not more than one megawatt, that is located on the customer's
owned, leased, or rented premises, and is interconnected and operates
in parallel with the electric grid, and is intended primarily to
offset part or all of the customer's own electrical requirements.
(5) "Renewable electrical generation facility" means a facility
that generates electricity from a renewable source listed in
paragraph (1) of subdivision (a) of Section 25741 of the Public
Resources Code. A small hydroelectric generation facility is not an
eligible renewable electrical generation facility if it will cause an
adverse impact on instream beneficial uses or cause a change in the
volume or timing of streamflow.
(6) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the
electricity generated by an eligible customer-generator and fed back
to the electric grid over a 12-month period as described in
subdivisions (c) and (h).
(7) "Net surplus customer-generator" means an eligible
customer-generator that generates more electricity during a 12-month
period than is supplied by the electric utility to the eligible
customer-generator during the same 12-month period.
(8) "Net surplus electricity" means all electricity generated by
an eligible customer-generator measured in kilowatthours over a
12-month period that exceeds the amount of electricity consumed by
that eligible customer-generator.
(9) "Net surplus electricity compensation" means a per
kilowatthour rate offered by the electric utility to the net surplus
customer-generator for net surplus electricity that is set by the
ratemaking authority pursuant to subdivision (h).
(10) "Ratemaking authority" means, for an electrical corporation,
the commission, for an electrical cooperative, its ratesetting body
selected by its shareholders or members, and for a local publicly
owned electric utility, the local elected body responsible for
setting the rates of the local publicly owned utility.
(11) "Wind energy co-metering" means any wind energy project
greater than 50 kilowatts, but not exceeding one megawatt, where the
difference between the electricity supplied through the electric grid
and the electricity generated by an eligible customer-generator and
fed back to the electric grid over a 12-month period is as described
in subdivision (h). Wind energy co-metering shall be accomplished
pursuant to Section 2827.8.
(c) (1) Every electric utility shall develop a standard contract
or tariff providing for net energy metering, and shall make this
standard contract or tariff available to eligible
customer-generators, 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 percent of the electric
utility's aggregate customer peak demand. Net energy metering shall
be accomplished using a single meter capable of registering the flow
of electricity in two directions. An additional meter or meters to
monitor the flow of electricity in each direction may be installed
with the consent of the eligible customer-generator, at the expense
of the electric utility, and the additional metering shall be used
only to provide the information necessary to accurately bill or
credit the eligible customer-generator pursuant to subdivision (h),
or to collect generating system performance information for research
purposes relative to a renewable electrical generation facility. If
the existing electrical meter of an eligible customer-generator is
not capable of measuring the flow of electricity in two directions,
the eligible 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 single meter. An eligible
customer-generator that is receiving service other than through the
standard contract or tariff may elect to receive service through the
standard contract or tariff until the electric utility reaches the
generation limit set forth in this paragraph. Once the generation
limit is reached, only eligible customer-generators that had
previously elected to receive service pursuant to the standard
contract or tariff have a right to continue to receive service
pursuant to the standard contract or tariff. Eligibility for net
energy metering does not limit an eligible customer-generator's
eligibility for any other rebate, incentive, or credit provided by
the electric utility, or pursuant to any governmental program,
including rebates and incentives provided pursuant to the California
Solar Initiative.
(2) An electrical corporation shall include a provision in the net
energy metering contract or tariff requiring that any customer with
an existing electrical generating facility and meter who enters into
a new net energy metering contract shall provide an inspection report
to the electrical corporation, unless the electrical generating
facility and meter have been installed or inspected within the
previous three years. The inspection report shall be prepared by a
California licensed contractor who is not the owner or operator of
the facility and meter. A California licensed electrician shall
perform the inspection of the electrical portion of the facility and
meter.
(3) (A) On an annual basis, every electric utility shall make
available to the ratemaking authority information on the total rated
generating capacity used by eligible customer-generators that are
customers of that provider in the provider's service area and the net
surplus electricity purchased by the electric utility pursuant to
this section.
(B) An electric service provider operating pursuant to Section 394
shall make available to the ratemaking authority the information
required by this paragraph for each eligible customer-generator that
is their customer for each service area of an electrical corporation,
local publicly owned electrical utility, or electrical cooperative,
in which the eligible customer-generator has net energy metering.
(C) The ratemaking authority shall develop a process for making
the information required by this paragraph available to electric
utilities, and for using that information to determine when, pursuant
to paragraphs (1) and (4), an electric utility is not obligated to
provide net energy metering to additional eligible
customer-generators in its service area.
(4) An electric utility is not obligated to provide net energy
metering to additional eligible customer-generators in its service
area when the combined total peak demand of all electricity used by
eligible customer-generators served by all the electric utilities in
that service area furnishing net energy metering to eligible
customer-generators exceeds 5 percent of the aggregate customer peak
demand of those electric utilities.
(d) Every electric utility shall make all necessary forms and
contracts for net energy metering and net surplus electricity
compensation service available for download from the Internet.
(e) (1) Every electric utility shall ensure that requests for
establishment of net energy metering and net surplus electricity
compensation are processed in a time period not exceeding that for
similarly situated customers requesting new electric service, but not
to exceed 30 working days from the date it receives a completed
application form for net energy metering service or net surplus
electricity compensation, including a signed interconnection
agreement from an eligible customer-generator and the electric
inspection clearance from the governmental authority having
jurisdiction.
(2) Every electric utility shall ensure that requests for an
interconnection agreement from an eligible customer-generator are
processed in a time period not to exceed 30 working days from the
date it receives a completed application form from the eligible
customer-generator for an interconnection agreement.
(3) If an electric utility is unable to process a request within
the allowable timeframe pursuant to paragraph (1) or (2), it shall
notify the eligible customer-generator and the ratemaking authority
of the reason for its inability to process the request and the
expected completion date.
(f) (1) If a customer participates in direct transactions pursuant
to paragraph (1) of subdivision (b) of Section 365, or Section
365.1, with an electric service provider that does not provide
distribution service for the direct transactions, the electric
utility that provides distribution service for the eligible
customer-generator is not obligated to provide net energy metering or
net surplus electricity compensation to the customer.
(2) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
service provider, and the customer is an eligible customer-generator,
the electric utility that provides distribution service for the
direct transactions may recover from the customer's electric service
provider the incremental costs of metering and billing service
related to net energy metering and net surplus electricity
compensation in an amount set by the ratemaking authority.
(g) Except for the time-variant kilowatthour pricing portion of
any tariff adopted by the commission pursuant to paragraph (4) of
subdivision (a) of Section 2851, 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 same customer would be assigned if the customer
did not use a renewable electrical generation facility, except that
eligible customer-generators shall not be assessed standby charges on
the electrical generating capacity or the kilowatthour production of
a renewable electrical generation facility. The charges for all
retail rate components for eligible customer-generators shall be
based exclusively on the customer-generator's net kilowatthour
consumption over a 12-month period, without regard to the eligible
customer-generator's choice as to from whom it purchases electricity
that is not self-generated. Any new or additional demand charge,
standby charge, customer charge, minimum monthly charge,
interconnection charge, or any other charge that would increase an
eligible customer-generator's costs beyond those of other customers
who are not eligible customer-generators in the rate class to which
the eligible customer-generator would otherwise be assigned if the
customer did not own, lease, rent, or otherwise operate a renewable
electrical generation facility is contrary to the intent of this
section, and shall not form a part of net energy metering contracts
or tariffs.
(h) For eligible customer-generators, the net energy metering
calculation shall be made by measuring the difference between the
electricity supplied to the eligible customer-generator and the
electricity generated by the eligible customer-generator and fed back
to the electric grid over a 12-month period. The following rules
shall apply to the annualized net metering calculation:
(1) The eligible residential or small commercial
customer-generator, at the end of each 12-month period following the
date of final interconnection of the eligible customer-generator's
system with an electric utility, and at each anniversary date
thereafter shall, be billed for electricity used during that 12-month
period. The electric utility shall determine if the eligible
residential or small commercial customer-generator was a net consumer
or a net surplus customer-generator during that period.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electric utility exceeds the
electricity generated by the eligible residential or small commercial
customer-generator during that same period, the eligible residential
or small commercial customer-generator is a net electricity consumer
and the electric utility shall be owed compensation for the eligible
customer-generator's net kilowatthour consumption over that 12-month
period. The compensation owed for the eligible residential or small
commercial customer-generator's consumption shall be calculated as
follows:
(A) For all eligible customer-generators taking service under
contracts or tariffs employing "baseline" and "over baseline" rates,
any net monthly consumption of electricity shall be calculated
according to the terms of the contract or tariff to which the same
customer would be assigned to, or be eligible for, if the customer
was not an eligible customer-generator. If those same
customer-generators are net generators over a billing period, the net
kilowatthours generated shall be valued at the same price per
kilowatthour as the electric utility would charge for the baseline
quantity of electricity during that billing period, and if the number
of kilowatthours generated exceeds the baseline quantity, the excess
shall be valued at the same price per kilowatthour as the electric
utility would charge for electricity over the baseline quantity
during that billing period.
(B) For all eligible customer-generators taking service under
contracts or tariffs employing time-of-use rates, any net monthly
consumption of electricity shall be calculated according to the terms
of the contract or tariff to which the same customer would be
assigned, or be eligible for, if the customer was not an eligible
customer-generator. When those same customer-generators are net
generators during any discrete time-of-use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electric utility would charge for retail
kilowatthour sales during that same time-of-use period. If the
eligible customer-generator's time-of-use electrical meter is unable
to measure the flow of electricity in two directions, paragraph (1)
of subdivision (c) shall apply.
(C) For all eligible residential and small commercial
customer-generators and for each billing period, the net balance of
moneys owed to the electric utility for net consumption of
electricity or credits owed to the eligible customer-generator for
net generation of electricity shall be carried forward as a monetary
value until the end of each 12-month period. For all eligible
commercial, industrial, and agricultural customer-generators, the net
balance of moneys owed shall be paid in accordance with the electric
utility's normal billing cycle, except that if the eligible
commercial, industrial, or agricultural customer-generator is a net
electricity producer over a normal billing cycle, any excess
kilowatthours generated during the billing cycle shall be carried
over to the following billing period as a monetary value, calculated
according to the procedures set forth in this section, and appear as
a credit on the eligible commercial, industrial, or agricultural
customer-generator's account, until the end of the annual period when
paragraph (3) shall apply.
(3) At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electric utility
during that same period, the eligible customer-generator is a net
surplus customer-generator and the electric utility, upon an
affirmative election by the net surplus customer-generator, shall
either (A) provide net surplus electricity compensation for any net
surplus electricity generated during the prior 12-month period, or
(B) allow the net surplus customer-generator to apply the net surplus
electricity as a credit for kilowatthours subsequently supplied by
the electric utility to the net surplus customer-generator. For an
eligible customer-generator that does not affirmatively elect to
receive service pursuant to net surplus electricity compensation, the
electric utility shall retain any excess kilowatthours generated
during the prior 12-month period. The eligible customer-generator not
affirmatively electing to receive service pursuant to net surplus
electricity compensation shall not be owed any compensation for the
net surplus electricity unless the electric utility enters into a
purchase agreement with the eligible customer-generator for those
excess kilowatthours. Every electric utility shall provide notice to
eligible customer-generators that they are eligible to receive net
surplus electricity compensation for net surplus electricity, that
they must elect to receive net surplus electricity compensation, and
that the 12-month period commences when the electric utility receives
the eligible customer-generator's election. For an electric utility
that is an electrical corporation or electrical cooperative, the
commission may adopt requirements for providing notice and the manner
by which eligible customer-generators may elect to receive net
surplus electricity compensation.
(4) (A) An eligible customer-generator with multiple meters may
elect to aggregate the electrical load of the meters located on the
property where the generation facility is located and on all property
adjacent or contiguous to the property on which the generation
facility is located, if those properties are solely owned by the
eligible customer-generator. If the eligible customer-generator
elects to aggregate the electric load pursuant to this paragraph, the
electric utility shall use the aggregated load for the purpose of
determining whether an eligible customer-generator is a net consumer
or a net surplus customer-generator during a 12-month period.
(B) If an eligible customer-generator chooses to aggregate
pursuant to subparagraph (A), the eligible customer-generator shall
be permanently ineligible to receive net surplus electricity
compensation, and the electric utility shall retain any kilowatthours
in excess of the eligible customer-generator's aggregated electrical
load generated during the 12-month period.
(4)
(5) (A) The ratemaking authority shall establish a net
surplus electricity compensation valuation to compensate the net
surplus customer-generator for the value of net surplus electricity
generated by the net surplus customer-generator. The commission shall
establish the valuation in a ratemaking proceeding. The ratemaking
authority for a local publicly owned electric utility shall establish
the valuation in a public proceeding. The net surplus electricity
compensation valuation shall be established so as to provide the net
surplus customer-generator just and reasonable compensation for the
value of net surplus electricity, while leaving other ratepayers
unaffected. The ratemaking authority shall determine whether the
compensation will include, where appropriate justification exists,
either or both of the following components:
(i) The value of the electricity itself.
(ii) The value of the renewable attributes of the electricity.
(B) In establishing the rate pursuant to subparagraph (A), the
ratemaking authority shall ensure that the rate does not result in a
shifting of costs between eligible customer-generators and other
bundled service customers.
(5)
(6) (A) Upon adoption of the net surplus electricity
compensation rate by the ratemaking authority, any renewable energy
credit, as defined in Section 399.12, for net surplus electricity
purchased by the electric utility shall belong to the electric
utility. Any renewable energy credit associated with electricity
generated by the eligible customer-generator that is utilized by the
eligible customer-generator shall remain the property of the eligible
customer-generator.
(B) Upon adoption of the net surplus electricity compensation rate
by the ratemaking authority, the net surplus electricity purchased
by the electric utility shall count toward the electric utility's
renewables portfolio standard annual procurement targets for the
purposes of paragraph (1) of subdivision (b) of Section 399.15, or
for a local publicly owned electric utility, the renewables portfolio
standard annual procurement targets established pursuant to Section
387.
(6)
(7) The electric utility shall provide every eligible
residential or small commercial customer-generator with net
electricity consumption and net surplus electricity generation
information with each regular bill. That information shall include
the current monetary balance owed the electric utility for net
electricity consumed, or the net surplus electricity generated, since
the last 12-month period ended. Notwithstanding this subdivision, an
electric utility shall permit that customer to pay monthly for net
energy consumed.
(7)
(8) If an eligible residential or small commercial
customer-generator terminates the customer relationship with the
electric utility, the electric utility shall reconcile the eligible
customer-generator's consumption and production of electricity during
any part of a 12-month period following the last reconciliation,
according to the requirements set forth in this subdivision, except
that those requirements shall apply only to the months since the most
recent 12-month bill.
(8)
(9) If an electric service provider or electric utility
providing net energy metering to a residential or small commercial
customer-generator ceases providing that electric service to that
customer during any 12-month period, and the customer-generator
enters into a new net energy metering contract or tariff with a new
electric service provider or electric utility, the 12-month period,
with respect to that new electric service provider or electric
utility, shall commence on the date on which the new electric service
provider or electric utility first supplies electric service to the
customer-generator.
(i) Notwithstanding any other provisions of this section,
paragraphs (1), (2), and (3) shall apply to an eligible
customer-generator with a capacity of more than 10 kilowatts, but not
exceeding one megawatt, that receives electric service from a local
publicly owned electric utility that has elected to utilize a
co-energy metering program unless the local publicly owned electric
utility chooses to provide service for eligible customer-generators
with a capacity of more than 10 kilowatts in accordance with
subdivisions (g) and (h):
(1) The eligible customer-generator shall be required to utilize a
meter, or multiple meters, capable of separately measuring
electricity flow in both directions. All meters shall provide
time-of-use measurements of electricity flow, and the customer shall
take service on a time-of-use rate schedule. If the existing meter of
the eligible customer-generator is not a time-of-use meter or is not
capable of measuring total flow of electricity in both directions,
the eligible customer-generator shall be responsible for all expenses
involved in purchasing and installing a meter that is both
time-of-use and able to measure total electricity flow in both
directions. This subdivision shall not restrict the ability of an
eligible customer-generator to utilize any economic incentives
provided by a governmental agency or an electric utility to reduce
its costs for purchasing and installing a time-of-use meter.
(2) The consumption of electricity from the local publicly owned
electric utility shall result in a cost to the eligible
customer-generator to be priced in accordance with the standard rate
charged to the eligible customer-generator in accordance with the
rate structure to which the customer would be assigned if the
customer did not use a renewable electrical generation facility. The
generation of electricity provided to the local publicly owned
electric utility shall result in a credit to the eligible
customer-generator and shall be priced in accordance with the
generation component, established under the applicable structure to
which the customer would be assigned if the customer did not use a
renewable electrical generation facility.
(3) All costs and credits shall be shown on the eligible
customer-generator's bill for each billing period. In any months in
which the eligible customer-generator has been a net consumer of
electricity calculated on the basis of value determined pursuant to
paragraph (2), the customer-generator shall owe to the local publicly
owned electric utility the balance of electricity costs and credits
during that billing period. In any billing period in which the
eligible customer-generator has been a net producer of electricity
calculated on the basis of value determined pursuant to paragraph
(2), the local publicly owned electric utility shall owe to the
eligible customer-generator the balance of electricity costs and
credits during that
billing period. Any net credit to the eligible customer-generator of
electricity costs may be carried forward to subsequent billing
periods, provided that a local publicly owned electric utility may
choose to carry the credit over as a kilowatthour credit consistent
with the provisions of any applicable contract or tariff, including
any differences attributable to the time of generation of the
electricity. At the end of each 12-month period, the local publicly
owned electric utility may reduce any net credit due to the eligible
customer-generator to zero.
(j) A renewable electrical generation facility used by an eligible
customer-generator shall meet all applicable safety and performance
standards established by the National Electrical Code, the Institute
of Electrical and Electronics Engineers, and accredited testing
laboratories, including Underwriters Laboratories Incorporated and,
where applicable, rules of the commission regarding safety and
reliability. A customer-generator whose renewable electrical
generation facility meets those standards and rules shall not be
required to install additional controls, perform or pay for
additional tests, or purchase additional liability insurance.
(k) If the commission determines that there are cost or revenue
obligations for an electrical corporation that may not be recovered
from customer-generators acting pursuant to this section, those
obligations shall remain within the customer class from which any
shortfall occurred and shall not be shifted to any other customer
class. Net energy metering and co-energy metering customers shall not
be exempt from the public goods charges imposed pursuant to Article
7 (commencing with Section 381), Article 8 (commencing with Section
385), or Article 15 (commencing with Section 399) of Chapter 2.3 of
Part 1.
(l) A net energy metering, co-energy metering, or wind energy
co-metering customer shall reimburse the Department of Water
Resources for all charges that would otherwise be imposed on the
customer by the commission to recover bond-related costs pursuant to
an agreement between the commission and the Department of Water
Resources pursuant to Section 80110 of the Water Code, as well as the
costs of the department equal to the share of the department's
estimated net unavoidable power purchase contract costs attributable
to the customer. The commission shall incorporate the determination
into an existing proceeding before the commission, and shall ensure
that the charges are nonbypassable. Until the commission has made a
determination regarding the nonbypassable charges, net energy
metering, co-energy metering, and wind energy co-metering shall
continue under the same rules, procedures, terms, and conditions as
were applicable on December 31, 2002.
(m) In implementing the requirements of subdivisions (k) and (
l ), an eligible customer-generator shall not be required
to replace its existing meter except as set forth in paragraph (1) of
subdivision (c), nor shall the electric utility require additional
measurement of usage beyond that which is necessary for customers in
the same rate class as the eligible customer-generator.
(n) It is the intent of the Legislature that the Treasurer
incorporate net energy metering, including net surplus electricity
compensation, co-energy metering, and wind energy co-metering
projects undertaken pursuant to this section as sustainable building
methods or distributive energy technologies for purposes of
evaluating low-income housing projects.
SECTION 1. Section 101150 of the Health and
Safety Code is amended to read:
101150. (a) For the purpose of protecting the community and the
public health, the local health department of a city or county shall
have available the services of a public health laboratory for the
examination of specimens from suspected cases of infectious and
environmental diseases, that may include, but need not be limited to,
the examination of specimens from milk, milk products, waters, food
products, vectors, and the environment.
(b) The public health laboratory shall provide the analyses
required to assist in community disease surveillance and to meet the
responsibilities and support the programs of the local health
department.
(c) In matters concerning the public's health, the public health
laboratory director shall be responsible to the local health officer
whose duty it is to enforce the law in accordance with Section
101030, 101375, 101460, or 101470. This subdivision does not preclude
the local health department from requiring the public health
laboratory director to be administratively responsible to other local
health department personnel.
(d) After consulting with the health officer, a local health
department may contract with any official city or county public
health laboratory or with the laboratories of the State Department of
Public Health to provide the services required by this chapter.
(e) The laboratories of the State Department of Public Health are
hereby designated as the public health laboratory for all local
health department jurisdictions that do not otherwise have access to
local public health laboratory service.
SEC. 2. Section 101160 of the Health and Safety
Code is amended to read:
101160. (a) Any city or county public health laboratory
established for the purposes set forth in this chapter and its
personnel shall be certified by the State Department of Public Health
to be in compliance with state and federal statutory or regulatory
requirements pertaining to municipal and county public health
laboratories and public health laboratory personnel pursuant to
applicable provisions of Title 17 of the California Code of
Regulations, including, but not limited to, Sections 1076, 1078, and
1079, and in compliance with the requirements of CLIA.
(b) For purposes of this article, the following terms have the
following meanings:
(1) "CLIA" means the federal Clinical Laboratory Improvement
Amendments of 1988 (42 U.S.C. Sec. 263a; Public Law 100-578) and the
regulations adopted thereunder by the federal Health Care Financing
Administration and effective on January 1, 1994, or any later date,
when adopted in California pursuant to subdivision (b) of Section
1208 of the Business and Professions Code.
(2) "Public health laboratory director" means a person who meets
the CLIA requirements for laboratory director and who is qualified by
the State Department of Public Health to direct a public health
laboratory certified under this article and pursuant to applicable
provisions of Title 17 of the California Code of Regulations,
including, but not limited to, Section 1302.
(3) "Public health microbiologist" means a person who meets the
CLIA requirements for testing personnel and who is authorized to
perform laboratory tests or analyses pursuant to a certificate issued
under this article and applicable provisions of Title 17 of the
California Code of Regulations, including, but not limited to,
Section 1079.
(4) "Public health microbiologist-trainee" means a person meeting
the academic qualifications and approved by the State Department of
Public Health to train in an approved public health laboratory
leading to examination and certification as a public health
microbiologist under this article and pursuant to applicable
provisions of Title 17 of the California Code of Regulations,
including, but not limited to, Section 1080.
SEC. 3. Section 101161 is added to the Health
and Safety Code, to read:
101161. The examination developed pursuant to Section 1079(c) of
Title 17 of the California Code of Regulations shall be developed in
consultation with the California Association of Public Health
Laboratory Directors.
SEC. 4. Section 101162 is added to the Health
and Safety Code, to read:
101162. The State Department of Public Health, by January 1,
2014, shall adopt regulations, in consultation with the California
Association of Public Health Laboratory Directors, to do all of the
following:
(a) Establish minimum requirements for training laboratories that
train public health microbiologist-trainees.
(b) Approve of and monitor a program of continuing education for
public health microbiologists certified pursuant to this article.
(c) (1) Require a maximum of 12 hours of continuing education
completed within a 12-month period, or 24 hours of continuing
education completed within a 24-month period, as a condition for
renewal of a certificate issued under this article.
(2) The department may charge public health microbiologists a fee,
not exceeding the reasonable amount necessary to cover the costs of
providing, approving, and monitoring the continuing education
program, as applicable. No fee shall be imposed on a public health
laboratory, or county or city health department, for approving or
renewing any certificate or maintaining the continuing education
program pursuant to this article.
SEC. 5. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.
1 Net Energy Metering Cost-Effectiveness Evaluation ("NEM Cost-Effectiveness Evaluation") (March 2010).
http://www.cpuc.ca.gov/PUC/energy/DistGen/nem_eval.htm. A summary of the key findings is attached as Appendix A.
2 The statutory definition of the NEM cap is the point where "total rated generating capacity used by eligible [NEM] customer-generators exceeds 5 percent of the electric utility's aggregate customer peak demand." PU Code 2827(c)(1).
3 NEM Cost-Effectiveness Evaluation, p. 11.
4 Id., pp. 15-16.
5 The 20-year annualized cost considers the net (or sum) of the bill impacts (the bill savings of a NEM customer), the billing cost (the utility's cost to bill a customer), and the avoided costs (the amount of energy the utility did not have to buy). See id., p. 47.
6 The statutory definition of the NEM cap is the point where "total rated generating capacity used by eligible [NEM] customer-generators exceeds 5 percent of the electric utility's aggregate customer peak demand." PU Code 2827(c)(1).
7 PU Code 2827(h)(2)(B).
8 The MASH Program is a component of the CSI Program that provides incentives to multifamily affordable housing residences.
9 Multifamily Affordable Solar Housing (MASH) participants remain the exception to the single SDP limitation in VNM.
