AB 1637: Energy: greenhouse gas reduction.

(1)Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities. Existing law requires the PUC to require the administration, until January 1, 2021, of a self-generation incentive program for distributed generation resources and energy storage technologies. Existing law authorizes the PUC, in consultation with the State Energy Resources Conservation and Development Commission, to authorize the annual collection of not more than the amount authorized for the program in the 2008 calendar year.

This bill would increase the maximum annual collection the PUC may authorize for the program to double the amount authorized for the program in the 2008 calendar year.

(2)Existing law requires an electrical corporation to file with the PUC a standard tariff providing for net energy meeting for eligible fuel cell customer-generators and make the tariff available, on a first-come-first-served basis, until the total cumulative rated generating capacity of the eligible fuel cell electrical generating facilities receiving service pursuant to the tariff reaches a level equal to the electrical corporations proportionate share of a statewide limitation of 500 megawatts cumulative rated generation capacity served (program cap). Existing law requires the eligible fuel cell customer-generator to meet certain requirements, including requirements that the customer-generator uses: (A) a fuel cell electrical generation facility with a capacity of not more than one megawatt and (B) technology the PUC has determined will achieve certain reductions in emissions of greenhouse gases. Existing law provides that fuel cell electrical generation facilities are not eligible for the tariff unless the facilities commence operation prior to January 1, 2017.

This bill would increase the program cap by authorizing 500 megawatts in addition to the total installed capacity as of January 1, 2017. The bill would increase to 5 megawatts the maximum amount of generation capacity for a fuel cell electrical generation facility in the program. The bill would require, by March 31, 2017, the State Air Resources Board, in consultation with the Energy Commission, to establish a schedule of annual greenhouse gas emissions reduction standards, as specified, for fuel cell electrical generation resources and would require the PUC to determine if the technology used by the eligible fuel cell customer-generator will achieve those standards. The bill would require the fuel cell electrical generation resource to comply with emission standards adopted by the State Air Resources Board under the distributed generation certification program.

This bill would provide that fuel cell electrical generation facilities are not eligible for the tariff unless the facilities commence operation on or before December 31, 2021.