AB 2278: Local Government Renewable Energy Self-Generation Program.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law authorizes a local government to receive a bill credit, as specified, to be applied to a designated benefiting account for electricity exported to the electrical grid by an eligible renewable generating facility, as defined, and requires the commission to approve a rate tariff for the benefiting account. Existing law provides specific rules for the calculation of these bill credits. Under existing law, an electrical corporation is obligated to provide a bill credit to a benefiting account designated by a local government only until the combined statewide cumulative rated generating capacity of all eligible renewable generating facilities within the service territories of the states 3 largest electrical corporations reaches 250 megawatts. Existing law provides that any bill credit applicable to a benefiting account is credited to the generation component of electricity usage charges and reduces the bill up to the amount of those charges during a billing cycle. If the bill credit exceeds the generation component in a billing cycle, the surplus is carried over as a financial credit to the next billing cycle, except that when the last billing cycle of a 12-month period is reached, any remaining credit is reset to zero. These provisions are known as the Local Government Renewable Energy Self-Generation Program.

This bill would revise how the bill credit is calculated, as specified, and, for these purposes, would require the electrical corporation, until January 1, 2044, to use the time-of-use periods and seasonal definitions that were in effect on January 1, 2017. The bill would require the commission and an electrical corporation to consider the climate change benefits of the program when determining whether to propose, implement, approve, or modify any rate tariff, bill credit, time-of-use period, or rate design that impacts the ability of local governments to establish or continue to operate eligible renewable generating facilities under the program. The bill would require a tariff approved by the commission as part of the program to remain in effect for the operating life of the associated eligible renewable generating facility. The bill would repeal the requirement that when the last billing cycle of a 12-month period is reached, any remaining credit is reset to zero. The bill would prohibit the commission from implementing its provisions unless the commission determines that the implementation of these provisions would not result in cost shifting among customers.

Under existing law, a violation of the Public Utilities Act or an order or direction of the commission is a crime.

Because the provisions of this bill would require an order or other action of the commission to implement, and a violation of that order or action would be a crime, 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 a specified reason.