SB 793: Green Tariff Shared Renewables Program.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2015-10-08
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. The Green Tariff Shared Renewables Program requires a participating utility, defined as being an electrical corporation with 100,000 or more customers in California, to file with the commission an application requesting approval of a tariff to implement a program enabling ratepayers to participate in electrical generation facilities that use eligible renewable energy resources, consistent with certain legislative findings and statements of intent. Existing law requires the commission, by July 1, 2014, to issue a decision concerning the participating utilitys application, determining whether to approve or disapprove the application, with or without modifications. Existing law requires the commission, after notice and opportunity for public comment, to approve the application if the commission determines that the proposed program is reasonable and consistent with the legislative findings and statements of intent and requires the commission to require that a participating utilitys green tariff shared renewables program be administered in accordance with specified provisions. Existing law repeals the program on January 1, 2019.
This bill would require the commission to additionally require that a participating utilitys green tariff shared renewables program permit a participating customer to subscribe to the program and be provided with a nonbinding estimate of reasonably anticipated bill credits and bill charges, as determined by the commission, for a period of up to 20 years.
Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the bill would require action by the commission to implement its requirements and a violation of those requirements would be a crime, the bill would impose a state-mandated local program by expanding the definition of a crime.
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.
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. The Green Tariff Shared Renewables Program requires a participating utility, defined as being an electrical corporation with 100,000 or more customers in California, to file with the commission an application requesting approval of a tariff to implement a program enabling ratepayers to participate in electrical generation facilities that use eligible renewable energy resources, consistent with certain legislative findings and statements of intent. Existing law requires the commission, by July 1, 2014, to issue a decision concerning the participating utilitys application, determining whether to approve or disapprove the application, with or without modifications. Existing law requires the commission, after notice and opportunity for public comment, to approve the application if the commission determines that the proposed program is reasonable and consistent with the legislative findings and statements of intent and requires the commission to require that a participating utilitys green tariff shared renewables program be administered in accordance with specified provisions. Existing law repeals the program on January 1, 2019.
This bill would require the commission to additionally require that a participating utilitys green tariff shared renewables program permit a participating customer to subscribe to the program and be provided with a nonbinding estimate of reasonably anticipated bill credits and bill charges, as determined by the commission, for a period of up to 20 years.
Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the bill would require action by the commission to implement its requirements and a violation of those requirements would be a crime, the bill would impose a state-mandated local program by expanding the definition of a crime.
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.
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. The Green Tariff Shared Renewables Program requires a participating utility, defined as being an electrical corporation with 100,000 or more customers in California, to file with the commission an application requesting approval of a tariff to implement a program enabling ratepayers to participate in electrical generation facilities that use eligible renewable energy resources, consistent with certain legislative findings and statements of intent. Existing law requires the commission, by July 1, 2014, to issue a decision concerning the participating utilitys application, determining whether to approve or disapprove the application, with or without modifications. Existing law requires the commission, after notice and opportunity for public comment, to approve the application if the commission determines that the proposed program is reasonable and consistent with the legislative findings and statements of intent and requires the commission to require that a participating utilitys green tariff shared renewables program be administered in accordance with specified provisions. Existing law repeals the program on January 1, 2019.
This bill would require the commission to additionally require that a participating utilitys green tariff shared renewables program permit a participating customer to subscribe to the program and receive a reasonably estimated bill credit and bill charge, be provided with a nonbinding estimate of reasonably anticipated bill credits and bill charges, as determined by the commission, for a period of up to 20 years.
Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the bill would require action by the commission to implement its requirements and a violation of those requirements would be a crime, the bill would imposed impose a state-mandated local program by expanding the definition of a crime.
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.
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. The Green Tariff Shared Renewables Program requires a participating utility, defined as being an electrical corporation with 100,000 or more customers in California, to file with the commission an application requesting approval of a tariff to implement a program enabling ratepayers to participate in electrical generation facilities that use eligible renewable energy resources, consistent with certain legislative findings and statements of intent. Existing law requires the commission, by July 1, 2014, to issue a decision concerning the participating utilitys application, determining whether to approve or disapprove the application, with or without modifications. Existing law requires the commission, after notice and opportunity for public comment, to approve the application if the commission determines that the proposed program is reasonable and consistent with the legislative findings and statements of intent and requires the commission to require that a participating utilitys green tariff shared renewables program be administered in accordance with specified provisions. Existing law repeals the program on January 1, 2019.
This bill would require the commission to additionally require that a participating utilitys green tariff shared renewables program permit a participating customer to subscribe to the program and receive a reasonably estimated bill credit and bill charge, as determined by the commission, for a period of up to 20 years. The bill would delete the repeal of the program.
Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the bill would require action by the commission to implement its requirements and a violation of those requirements would be a crime, the bill would imposed a state-mandated local program by expanding the definition of a crime.
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.
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. The Green Tariff Shared Renewables Program requires a participating utility, defined as being an electrical corporation with 100,000 or more customers in California, to file with the commission an application requesting approval of a tariff to implement a program enabling ratepayers to participate in electrical generation facilities that use eligible renewable energy resources, consistent with certain legislative findings and statements of intent. Existing law requires the commission, by July 1, 2014, to issue a decision concerning the participating utilitys application, determining whether to approve or disapprove the application, with or without modifications. Existing law requires the commission, after notice and opportunity for public comment, to approve the application if the commission determines that the proposed program is reasonable and consistent with the legislative findings and statements of intent and requires the commission to require that a participating utilitys green tariff shared renewables program be administered in accordance with specified provisions. Existing law repeals the program on January 1, 2019.
This bill would require the commission to additionally require that a participating utilitys green tariff shared renewables program permit a participating customer to subscribe to the program and receive a predictable reasonably estimated bill credit and bill charge charge, as determined by the commission, for a period of up to 20 years. The bill would delete the repeal of the program.
Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the bill would require action by the commission to implement its requirements and a violation of those requirements would be a crime, the bill would imposed a state-mandated local program by expanding the definition of a crime.
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.
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. The Green Tariff Shared Renewables Program requires a participating utility, defined as being an electrical corporation with 100,000 or more customers in California, to file with the commission an application requesting approval of a tariff to implement a program enabling ratepayers to participate in electrical generation facilities that use eligible renewable energy resources, consistent with certain legislative findings and statements of intent. Existing law requires the commission, by July 1, 2014, to issue a decision concerning the participating utilitys application, determining whether to approve or disapprove the application, with or without modifications. Existing law requires the commission, after notice and opportunity for public comment, to approve the application if the commission determines that the proposed program is reasonable and consistent with the legislative findings and statements of intent and requires the commission to require that a participating utilitys green tariff shared renewables program be administered in accordance with specified provisions. Existing law repeals the program on January 1, 2019.
This bill would require the commission to additionally require that a participating utilitys green tariff shared renewables program permit a participating customer to subscribe to the program and receive a predictable bill credit and bill charge for a period of up to 20 years. The bill would delete the repeal of the program.
Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the bill would require action by the commission to implement its requirements and a violation of those requirements would be a crime, the bill would imposed a state-mandated local program by expanding the definition of a crime.
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.
(a)The commission shall require a green tariff shared renewables program to be administered by a participating utility in accordance with this section.
(b)Generating facilities participating in a participating utilitys green tariff shared renewables program shall be eligible renewable energy resources with a nameplate rated generating capacity not exceeding 20 megawatts, except for those generating facilities reserved for location in areas identified by the California Environmental Protection Agency as the most impacted and disadvantaged communities pursuant to paragraph (1) of subdivision (d), which shall not exceed one megawatt nameplate rated generating capacity.
(c)A participating utility shall use commission-approved tools and mechanisms to procure additional eligible renewable energy resources for the green tariff shared renewables program from electrical generation facilities that are in addition to those required by the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1). For purposes of this subdivision, commission-approved tools and mechanisms means those procurement methods approved by the commission for an electrical corporation to procure eligible renewable energy resources for purposes of meeting the procurement requirements of the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1).
(d)A participating utility shall permit customers within the service territory of the utility to purchase electricity pursuant to the tariff approved by the commission to implement the utilitys green tariff shared renewables program, until the utility meets its proportionate share of a statewide limitation of 600 megawatts of customer participation, measured by nameplate rated generating capacity. The proportionate share shall be calculated based on the ratio of each participating utilitys retail sales to total retail sales of electricity by all participating utilities. The commission may place other restrictions on purchases under a green tariff shared renewables program, including restricting participation to a certain level of capacity each year. The following restrictions shall apply to the statewide 600 megawatt limitation:
(1)(A)One hundred megawatts shall be reserved for facilities that are no larger than one megawatt nameplate rated generating capacity and that are located in areas previously identified by the California Environmental Protection Agency as the most impacted and disadvantaged communities. These communities shall be identified by census tract, and shall be determined to be the most impacted 20 percent based on results from the best available cumulative impact screening methodology designed to identify each of the following:
(i)Areas disproportionately affected by environmental pollution and other hazards that can lead to negative public health effects, exposure, or environmental degradation.
(ii)Areas with socioeconomic vulnerability.
(B)(1)For purposes of this paragraph, previously identified means identified prior to commencing construction of the facility.
(2)Not less than 100 megawatts shall be reserved for participation by residential class customers.
(3)Twenty megawatts shall be reserved for the City of Davis.
(e)To the extent possible, a participating utility shall seek to procure eligible renewable energy resources that are located in reasonable proximity to enrolled participants.
(f)A participating utilitys green tariff shared renewables program shall support diverse procurement and the goals of commission General Order 156.
(g)A participating utilitys green tariff shared renewables program shall not allow a customer to subscribe to more than 100 percent of the customers electricity demand.
(h)Except as authorized by this subdivision, a participating utilitys green tariff shared renewables program shall not allow a customer to subscribe to more than two megawatts of nameplate generating capacity. This limitation does not apply to a federal, state, or local government, school or school district, county office of education, the California Community Colleges, the California State University, or the University of California.
(i)A participating utilitys green tariff shared renewables program shall not allow any single entity or its affiliates or subsidiaries to subscribe to more than 20 percent of any single calendar years total cumulative rated generating capacity.
(j)To the extent possible, a participating utility shall actively market the utilitys green tariff shared renewables program to low-income and minority communities and customers.
(k)Participating customers shall receive bill credits for the generation of a participating eligible renewable energy resource using the class average retail generation cost as established in the participating utilitys approved tariff for the class to which the participating customer belongs, plus a renewables adjustment value representing the difference between the time-of-delivery profile of the eligible renewable energy resource used to serve the participating customer and the class average time-of-delivery profile and the resource adequacy value, if any, of the resource contained in the utilitys green tariff shared renewables program. The renewables adjustment value applicable to a time-of-delivery profile of an eligible renewable energy resource shall be determined according to rules adopted by the commission. For these purposes, time-of-delivery profile refers to the daily generating pattern of a participating eligible renewable energy resource over time, the value of which is determined by comparing the generating pattern of that participating eligible renewable energy resource to the demand for electricity over time and other generating resources available to serve that demand.
(l)Participating customers shall pay a renewable generation rate established by the commission, the administrative costs of the participating utility, and any other charges the commission determines are just and reasonable to fully cover the cost of procuring a green tariff shared renewables programs resources to serve a participating customers needs.
(m)A participating customers rates shall be debited or credited with any other commission-approved costs or values applicable to the eligible renewable energy resources contained in a participating utilitys green tariff shared renewables programs portfolio. These additional costs or values shall be applied to new customers when they initially subscribe after the cost or value has been approved by the commission.
(n)Participating customers shall pay all otherwise applicable charges without modification.
(o)A participating utility shall permit a participating customer to subscribe to the program and be provided with a nonbinding estimate of reasonably anticipated bill credits and bill charges, as determined by the commission, for a period of up to 20 years.
(p)A participating utility shall provide support for enhanced community renewables programs to facilitate development of eligible renewable energy resource projects located close to the source of demand.
(q)The commission shall ensure that charges and credits associated with a participating utilitys green tariff shared renewables program are set in a manner that ensures nonparticipant ratepayer indifference for the remaining bundled service, direct access, and community choice aggregation customers and ensures that no costs are shifted from participating customers to nonparticipating ratepayers.
(r)A participating utility shall track and account for all revenues and costs to ensure that the utility recovers the actual costs of the utilitys green tariff shared renewables program and that all costs and revenues are fully transparent and auditable.
(s)Any renewable energy credits associated with electricity procured by a participating utility for the utilitys green tariff shared renewables program and utilized by a participating customer shall be retired by the participating utility on behalf of the participating customer. Those renewable energy credits shall not be further sold, transferred, or otherwise monetized for any purpose. Any renewable energy credits associated with electricity procured by a participating utility for the shared renewable energy self-generation program, but not utilized by a participating customer, shall be counted toward meeting that participating utilitys renewables portfolio standard.
(t)A participating utility shall, in the event of participant customer attrition or other causes that reduce customer participation or electrical demand below generation levels, apply the excess generation from the eligible renewable energy resources procured through the utilitys green tariff shared renewables program to the utilitys renewable portfolio standard procurement obligations or bank the excess generation for future use to benefit all customers in accordance with the renewables portfolio standard banking and procurement rules approved by the commission.
(u)In calculating its procurement requirements to meet the requirements of the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1), a participating utility may exclude from total retail sales the kilowatthours generated by an eligible renewable energy resource that is credited to a participating customer pursuant to the utilitys green tariff shared renewables program, commencing with the point in time at which the generating facility achieves commercial operation.
(v)All renewable energy resources procured on behalf of participating customers in the participating utilitys green tariff shared renewables program shall comply with the State Air Resources Boards Voluntary Renewable Electricity Program. California-eligible greenhouse gas allowances associated with these purchases shall be retired on behalf of participating customers as part of the boards Voluntary Renewable Electricity Program.
(w)A participating utility shall provide a municipality with aggregated consumption data for participating customers within the municipalitys jurisdiction to allow for reporting on progress toward climate action goals by the municipality. A participating utility shall also publicly disclose, on a geographic basis, consumption data and reductions in emissions of greenhouse gases achieved by participating customers in the utilitys green tariff shared renewables program, on an aggregated basis consistent with privacy protections as specified in Chapter 5 (commencing with Section 8380) of Division 4.1.
(x)Nothing in this section prohibits or restricts a community choice aggregator from offering its own voluntary renewable energy programs to participating customers of the community choice aggregation.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)The commission shall require a green tariff shared renewables program to be administered by a participating utility in accordance with this section.
(b)Generating facilities participating in a participating utilitys green tariff shared renewables program shall be eligible renewable energy resources with a nameplate rated generating capacity not exceeding 20 megawatts, except for those generating facilities reserved for location in areas identified by the California Environmental Protection Agency as the most impacted and disadvantaged communities pursuant to paragraph (1) of subdivision (d), which shall not exceed one megawatt nameplate rated generating capacity.
(c)A participating utility shall use commission-approved tools and mechanisms to procure additional eligible renewable energy resources for the green tariff shared renewables program from electrical generation facilities that are in addition to those required by the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1). For purposes of this subdivision, commission-approved tools and mechanisms means those procurement methods approved by the commission for an electrical corporation to procure eligible renewable energy resources for purposes of meeting the procurement requirements of the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1).
(d)A participating utility shall permit customers within the service territory of the utility to purchase electricity pursuant to the tariff approved by the commission to implement the utilitys green tariff shared renewables program, until the utility meets its proportionate share of a statewide limitation of 600 megawatts of customer participation, measured by nameplate rated generating capacity. The proportionate share shall be calculated based on the ratio of each participating utilitys retail sales to total retail sales of electricity by all participating utilities. The commission may place other restrictions on purchases under a green tariff shared renewables program, including restricting participation to a certain level of capacity each year. The following restrictions shall apply to the statewide 600 megawatt limitation:
(1)(A)One hundred megawatts shall be reserved for facilities that are no larger than one megawatt nameplate rated generating capacity and that are located in areas previously identified by the California Environmental Protection Agency as the most impacted and disadvantaged communities. These communities shall be identified by census tract, and shall be determined to be the most impacted 20 percent based on results from the best available cumulative impact screening methodology designed to identify each of the following:
(i)Areas disproportionately affected by environmental pollution and other hazards that can lead to negative public health effects, exposure, or environmental degradation.
(ii)Areas with socioeconomic vulnerability.
(B)(1)For purposes of this paragraph, previously identified means identified prior to commencing construction of the facility.
(2)Not less than 100 megawatts shall be reserved for participation by residential class customers.
(3)Twenty megawatts shall be reserved for the City of Davis.
(e)To the extent possible, a participating utility shall seek to procure eligible renewable energy resources that are located in reasonable proximity to enrolled participants.
(f)A participating utilitys green tariff shared renewables program shall support diverse procurement and the goals of commission General Order 156.
(g)A participating utilitys green tariff shared renewables program shall not allow a customer to subscribe to more than 100 percent of the customers electricity demand.
(h)Except as authorized by this subdivision, a participating utilitys green tariff shared renewables program shall not allow a customer to subscribe to more than two megawatts of nameplate generating capacity. This limitation does not apply to a federal, state, or local government, school or school district, county office of education, the California Community Colleges, the California State University, or the University of California.
(i)A participating utilitys green tariff shared renewables program shall not allow any single entity or its affiliates or subsidiaries to subscribe to more than 20 percent of any single calendar years total cumulative rated generating capacity.
(j)To the extent possible, a participating utility shall actively market the utilitys green tariff shared renewables program to low-income and minority communities and customers.
(k)Participating customers shall receive bill credits for the generation of a participating eligible renewable energy resource using the class average retail generation cost as established in the participating utilitys approved tariff for the class to which the participating customer belongs, plus a renewables adjustment value representing the difference between the time-of-delivery profile of the eligible renewable energy resource used to serve the participating customer and the class average time-of-delivery profile and the resource adequacy value, if any, of the resource contained in the utilitys green tariff shared renewables program. The renewables adjustment value applicable to a time-of-delivery profile of an eligible renewable energy resource shall be determined according to rules adopted by the commission. For these purposes, time-of-delivery profile refers to the daily generating pattern of a participating eligible renewable energy resource over time, the value of which is determined by comparing the generating pattern of that participating eligible renewable energy resource to the demand for electricity over time and other generating resources available to serve that demand.
(l)Participating customers shall pay a renewable generation rate established by the commission, the administrative costs of the participating utility, and any other charges the commission determines are just and reasonable to fully cover the cost of procuring a green tariff shared renewables programs resources to serve a participating customers needs.
(m)A participating customers rates shall be debited or credited with any other commission-approved costs or values applicable to the eligible renewable energy resources contained in a participating utilitys green tariff shared renewables programs portfolio. These additional costs or values shall be applied to new customers when they initially subscribe after the cost or value has been approved by the commission.
(n)Participating customers shall pay all otherwise applicable charges without modification.
(o)A participating utility shall permit a participating customer to subscribe to the program and be provided with a nonbinding estimate of reasonably anticipated bill credits and bill charges, as determined by the commission, for a period of up to 20 years.
(p)A participating utility shall provide support for enhanced community renewables programs to facilitate development of eligible renewable energy resource projects located close to the source of demand.
(q)The commission shall ensure that charges and credits associated with a participating utilitys green tariff shared renewables program are set in a manner that ensures nonparticipant ratepayer indifference for the remaining bundled service, direct access, and community choice aggregation customers and ensures that no costs are shifted from participating customers to nonparticipating ratepayers.
(r)A participating utility shall track and account for all revenues and costs to ensure that the utility recovers the actual costs of the utilitys green tariff shared renewables program and that all costs and revenues are fully transparent and auditable.
(s)Any renewable energy credits associated with electricity procured by a participating utility for the utilitys green tariff shared renewables program and utilized by a participating customer shall be retired by the participating utility on behalf of the participating customer. Those renewable energy credits shall not be further sold, transferred, or otherwise monetized for any purpose. Any renewable energy credits associated with electricity procured by a participating utility for the shared renewable energy self-generation program, but not utilized by a participating customer, shall be counted toward meeting that participating utilitys renewables portfolio standard.
(t)A participating utility shall, in the event of participant customer attrition or other causes that reduce customer participation or electrical demand below generation levels, apply the excess generation from the eligible renewable energy resources procured through the utilitys green tariff shared renewables program to the utilitys renewable portfolio standard procurement obligations or bank the excess generation for future use to benefit all customers in accordance with the renewables portfolio standard banking and procurement rules approved by the commission.
(u)In calculating its procurement requirements to meet the requirements of the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1), a participating utility may exclude from total retail sales the kilowatthours generated by an eligible renewable energy resource that is credited to a participating customer pursuant to the utilitys green tariff shared renewables program, commencing with the point in time at which the generating facility achieves commercial operation.
(v)All renewable energy resources procured on behalf of participating customers in the participating utilitys green tariff shared renewables program shall comply with the State Air Resources Boards Voluntary Renewable Electricity Program. California-eligible greenhouse gas allowances associated with these purchases shall be retired on behalf of participating customers as part of the boards Voluntary Renewable Electricity Program.
(w)A participating utility shall provide a municipality with aggregated consumption data for participating customers within the municipalitys jurisdiction to allow for reporting on progress toward climate action goals by the municipality. A participating utility shall also publicly disclose, on a geographic basis, consumption data and reductions in emissions of greenhouse gases achieved by participating customers in the utilitys green tariff shared renewables program, on an aggregated basis consistent with privacy protections as specified in Chapter 5 (commencing with Section 8380) of Division 4.1.
(x)Nothing in this section prohibits or restricts a community choice aggregator from offering its own voluntary renewable energy programs to participating customers of the community choice aggregation.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)The commission shall require a green tariff shared renewables program to be administered by a participating utility in accordance with this section.
(b)Generating facilities participating in a participating utilitys green tariff shared renewables program shall be eligible renewable energy resources with a nameplate rated generating capacity not exceeding 20 megawatts, except for those generating facilities reserved for location in areas identified by the California Environmental Protection Agency as the most impacted and disadvantaged communities pursuant to paragraph (1) of subdivision (d), which shall not exceed one megawatt nameplate rated generating capacity.
(c)A participating utility shall use commission-approved tools and mechanisms to procure additional eligible renewable energy resources for the green tariff shared renewables program from electrical generation facilities that are in addition to those required by the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1). For purposes of this subdivision, commission-approved tools and mechanisms means those procurement methods approved by the commission for an electrical corporation to procure eligible renewable energy resources for purposes of meeting the procurement requirements of the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1).
(d)A participating utility shall permit customers within the service territory of the utility to purchase electricity pursuant to the tariff approved by the commission to implement the utilitys green tariff shared renewables program, until the utility meets its proportionate share of a statewide limitation of 600 megawatts of customer participation, measured by nameplate rated generating capacity. The proportionate share shall be calculated based on the ratio of each participating utilitys retail sales to total retail sales of electricity by all participating utilities. The commission may place other restrictions on purchases under a green tariff shared renewables program, including restricting participation to a certain level of capacity each year. The following restrictions shall apply to the statewide 600 megawatt limitation:
(1)(A)One hundred megawatts shall be reserved for facilities that are no larger than one megawatt nameplate rated generating capacity and that are located in areas previously identified by the California Environmental Protection Agency as the most impacted and disadvantaged communities. These communities shall be identified by census tract, and shall be determined to be the most impacted 20 percent based on results from the best available cumulative impact screening methodology designed to identify each of the following:
(i)Areas disproportionately affected by environmental pollution and other hazards that can lead to negative public health effects, exposure, or environmental degradation.
(ii)Areas with socioeconomic vulnerability.
(B)(1)For purposes of this paragraph, previously identified means identified prior to commencing construction of the facility.
(2)Not less than 100 megawatts shall be reserved for participation by residential class customers.
(3)Twenty megawatts shall be reserved for the City of Davis.
(e)To the extent possible, a participating utility shall seek to procure eligible renewable energy resources that are located in reasonable proximity to enrolled participants.
(f)A participating utilitys green tariff shared renewables program shall support diverse procurement and the goals of commission General Order 156.
(g)A participating utilitys green tariff shared renewables program shall not allow a customer to subscribe to more than 100 percent of the customers electricity demand.
(h)Except as authorized by this subdivision, a participating utilitys green tariff shared renewables program shall not allow a customer to subscribe to more than two megawatts of nameplate generating capacity. This limitation does not apply to a federal, state, or local government, school or school district, county office of education, the California Community Colleges, the California State University, or the University of California.
(i)A participating utilitys green tariff shared renewables program shall not allow any single entity or its affiliates or subsidiaries to subscribe to more than 20 percent of any single calendar years total cumulative rated generating capacity.
(j)To the extent possible, a participating utility shall actively market the utilitys green tariff shared renewables program to low-income and minority communities and customers.
(k)Participating customers shall receive bill credits for the generation of a participating eligible renewable energy resource using the class average retail generation cost as established in the participating utilitys approved tariff for the class to which the participating customer belongs, plus a renewables adjustment value representing the difference between the time-of-delivery profile of the eligible renewable energy resource used to serve the participating customer and the class average time-of-delivery profile and the resource adequacy value, if any, of the resource contained in the utilitys green tariff shared renewables program. The renewables adjustment value applicable to a time-of-delivery profile of an eligible renewable energy resource shall be determined according to rules adopted by the commission. For these purposes, time-of-delivery profile refers to the daily generating pattern of a participating eligible renewable energy resource over time, the value of which is determined by comparing the generating pattern of that participating eligible renewable energy resource to the demand for electricity over time and other generating resources available to serve that demand.
(l)Participating customers shall pay a renewable generation rate established by the commission, the administrative costs of the participating utility, and any other charges the commission determines are just and reasonable to fully cover the cost of procuring a green tariff shared renewables programs resources to serve a participating customers needs.
(m)A participating customers rates shall be debited or credited with any other commission-approved costs or values applicable to the eligible renewable energy resources contained in a participating utilitys green tariff shared renewables programs portfolio. These additional costs or values shall be applied to new customers when they initially subscribe after the cost or value has been approved by the commission.
(n)Participating customers shall pay all otherwise applicable charges without modification.
(o)A participating utility shall permit a participating customer to subscribe to the program and receive a reasonably estimated bill credit and bill charge, be provided with a nonbinding estimate of reasonably anticipated bill credits and bill charges, as determined by the commission, for a period of up to 20 years.
(p)A participating utility shall provide support for enhanced community renewables programs to facilitate development of eligible renewable energy resource projects located close to the source of demand.
(q)The commission shall ensure that charges and credits associated with a participating utilitys green tariff shared renewables program are set in a manner that ensures nonparticipant ratepayer indifference for the remaining bundled service, direct access, and community choice aggregation customers and ensures that no costs are shifted from participating customers to nonparticipating ratepayers.
(r)A participating utility shall track and account for all revenues and costs to ensure that the utility recovers the actual costs of the utilitys green tariff shared renewables program and that all costs and revenues are fully transparent and auditable.
(s)Any renewable energy credits associated with electricity procured by a participating utility for the utilitys green tariff shared renewables program and utilized by a participating customer shall be retired by the participating utility on behalf of the participating customer. Those renewable energy credits shall not be further sold, transferred, or otherwise monetized for any purpose. Any renewable energy credits associated with electricity procured by a participating utility for the shared renewable energy self-generation program, but not utilized by a participating customer, shall be counted toward meeting that participating utilitys renewables portfolio standard.
(t)A participating utility shall, in the event of participant customer attrition or other causes that reduce customer participation or electrical demand below generation levels, apply the excess generation from the eligible renewable energy resources procured through the utilitys green tariff shared renewables program to the utilitys renewable portfolio standard procurement obligations or bank the excess generation for future use to benefit all customers in accordance with the renewables portfolio standard banking and procurement rules approved by the commission.
(u)In calculating its procurement requirements to meet the requirements of the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1), a participating utility may exclude from total retail sales the kilowatthours generated by an eligible renewable energy resource that is credited to a participating customer pursuant to the utilitys green tariff shared renewables program, commencing with the point in time at which the generating facility achieves commercial operation.
(v)All renewable energy resources procured on behalf of participating customers in the participating utilitys green tariff shared renewables program shall comply with the State Air Resources Boards Voluntary Renewable Electricity Program. California-eligible greenhouse gas allowances associated with these purchases shall be retired on behalf of participating customers as part of the boards Voluntary Renewable Electricity Program.
(w)A participating utility shall provide a municipality with aggregated consumption data for participating customers within the municipalitys jurisdiction to allow for reporting on progress toward climate action goals by the municipality. A participating utility shall also publicly disclose, on a geographic basis, consumption data and reductions in emissions of greenhouse gases achieved by participating customers in the utilitys green tariff shared renewables program, on an aggregated basis consistent with privacy protections as specified in Chapter 5 (commencing with Section 8380) of Division 4.1.
(x)Nothing in this section prohibits or restricts a community choice aggregator from offering its own voluntary renewable energy programs to participating customers of the community choice aggregation.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)The commission shall require a green tariff shared renewables program to be administered by a participating utility in accordance with this section.
(b)Generating facilities participating in a participating utilitys green tariff shared renewables program shall be eligible renewable energy resources with a nameplate rated generating capacity not exceeding 20 megawatts, except for those generating facilities reserved for location in areas identified by the California Environmental Protection Agency as the most impacted and disadvantaged communities pursuant to paragraph (1) of subdivision (d), which shall not exceed one megawatt nameplate rated generating capacity.
(c)A participating utility shall use commission-approved tools and mechanisms to procure additional eligible renewable energy resources for the green tariff shared renewables program from electrical generation facilities that are in addition to those required by the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1). For purposes of this subdivision, commission-approved tools and mechanisms means those procurement methods approved by the commission for an electrical corporation to procure eligible renewable energy resources for purposes of meeting the procurement requirements of the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1).
(d)A participating utility shall permit customers within the service territory of the utility to purchase electricity pursuant to the tariff approved by the commission to implement the utilitys green tariff shared renewables program, until the utility meets its proportionate share of a statewide limitation of 600 megawatts of customer participation, measured by nameplate rated generating capacity. The proportionate share shall be calculated based on the ratio of each participating utilitys retail sales to total retail sales of electricity by all participating utilities. The commission may place other restrictions on purchases under a green tariff shared renewables program, including restricting participation to a certain level of capacity each year. The following restrictions shall apply to the statewide 600 megawatt limitation:
(1)(A)One hundred megawatts shall be reserved for facilities that are no larger than one megawatt nameplate rated generating capacity and that are located in areas previously identified by the California Environmental Protection Agency as the most impacted and disadvantaged communities. These communities shall be identified by census tract, and shall be determined to be the most impacted 20 percent based on results from the best available cumulative impact screening methodology designed to identify each of the following:
(i)Areas disproportionately affected by environmental pollution and other hazards that can lead to negative public health effects, exposure, or environmental degradation.
(ii)Areas with socioeconomic vulnerability.
(B)(1)For purposes of this paragraph, previously identified means identified prior to commencing construction of the facility.
(2)Not less than 100 megawatts shall be reserved for participation by residential class customers.
(3)Twenty megawatts shall be reserved for the City of Davis.
(e)To the extent possible, a participating utility shall seek to procure eligible renewable energy resources that are located in reasonable proximity to enrolled participants.
(f)A participating utilitys green tariff shared renewables program shall support diverse procurement and the goals of commission General Order 156.
(g)A participating utilitys green tariff shared renewables program shall not allow a customer to subscribe to more than 100 percent of the customers electricity demand.
(h)Except as authorized by this subdivision, a participating utilitys green tariff shared renewables program shall not allow a customer to subscribe to more than two megawatts of nameplate generating capacity. This limitation does not apply to a federal, state, or local government, school or school district, county office of education, the California Community Colleges, the California State University, or the University of California.
(i)A participating utilitys green tariff shared renewables program shall not allow any single entity or its affiliates or subsidiaries to subscribe to more than 20 percent of any single calendar years total cumulative rated generating capacity.
(j)To the extent possible, a participating utility shall actively market the utilitys green tariff shared renewables program to low-income and minority communities and customers.
(k)Participating customers shall receive bill credits for the generation of a participating eligible renewable energy resource using the class average retail generation cost as established in the participating utilitys approved tariff for the class to which the participating customer belongs, plus a renewables adjustment value representing the difference between the time-of-delivery profile of the eligible renewable energy resource used to serve the participating customer and the class average time-of-delivery profile and the resource adequacy value, if any, of the resource contained in the utilitys green tariff shared renewables program. The renewables adjustment value applicable to a time-of-delivery profile of an eligible renewable energy resource shall be determined according to rules adopted by the commission. For these purposes, time-of-delivery profile refers to the daily generating pattern of a participating eligible renewable energy resource over time, the value of which is determined by comparing the generating pattern of that participating eligible renewable energy resource to the demand for electricity over time and other generating resources available to serve that demand.
(l)Participating customers shall pay a renewable generation rate established by the commission, the administrative costs of the participating utility, and any other charges the commission determines are just and reasonable to fully cover the cost of procuring a green tariff shared renewables programs resources to serve a participating customers needs.
(m)A participating customers rates shall be debited or credited with any other commission-approved costs or values applicable to the eligible renewable energy resources contained in a participating utilitys green tariff shared renewables programs portfolio. These additional costs or values shall be applied to new customers when they initially subscribe after the cost or value has been approved by the commission.
(n)Participating customers shall pay all otherwise applicable charges without modification.
(o)A participating utility shall permit a participating customer to subscribe to the program and receive a reasonably estimated bill credit and bill charge, as determined by the commission, for a period of up to 20 years.
(p)A participating utility shall provide support for enhanced community renewables programs to facilitate development of eligible renewable energy resource projects located close to the source of demand.
(q)The commission shall ensure that charges and credits associated with a participating utilitys green tariff shared renewables program are set in a manner that ensures nonparticipant ratepayer indifference for the remaining bundled service, direct access, and community choice aggregation customers and ensures that no costs are shifted from participating customers to nonparticipating ratepayers.
(r)A participating utility shall track and account for all revenues and costs to ensure that the utility recovers the actual costs of the utilitys green tariff shared renewables program and that all costs and revenues are fully transparent and auditable.
(s)Any renewable energy credits associated with electricity procured by a participating utility for the utilitys green tariff shared renewables program and utilized by a participating customer shall be retired by the participating utility on behalf of the participating customer. Those renewable energy credits shall not be further sold, transferred, or otherwise monetized for any purpose. Any renewable energy credits associated with electricity procured by a participating utility for the shared renewable energy self-generation program, but not utilized by a participating customer, shall be counted toward meeting that participating utilitys renewables portfolio standard.
(t)A participating utility shall, in the event of participant customer attrition or other causes that reduce customer participation or electrical demand below generation levels, apply the excess generation from the eligible renewable energy resources procured through the utilitys green tariff shared renewables program to the utilitys renewable portfolio standard procurement obligations or bank the excess generation for future use to benefit all customers in accordance with the renewables portfolio standard banking and procurement rules approved by the commission.
(u)In calculating its procurement requirements to meet the requirements of the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1), a participating utility may exclude from total retail sales the kilowatthours generated by an eligible renewable energy resource that is credited to a participating customer pursuant to the utilitys green tariff shared renewables program, commencing with the point in time at which the generating facility achieves commercial operation.
(v)All renewable energy resources procured on behalf of participating customers in the participating utilitys green tariff shared renewables program shall comply with the State Air Resources Boards Voluntary Renewable Electricity Program. California-eligible greenhouse gas allowances associated with these purchases shall be retired on behalf of participating customers as part of the boards Voluntary Renewable Electricity Program.
(w)A participating utility shall provide a municipality with aggregated consumption data for participating customers within the municipalitys jurisdiction to allow for reporting on progress toward climate action goals by the municipality. A participating utility shall also publicly disclose, on a geographic basis, consumption data and reductions in emissions of greenhouse gases achieved by participating customers in the utilitys green tariff shared renewables program, on an aggregated basis consistent with privacy protections as specified in Chapter 5 (commencing with Section 8380) of Division 4.1.
(x)Nothing in this section prohibits or restricts a community choice aggregator from offering its own voluntary renewable energy programs to participating customers of the community choice aggregation.
SEC. 2.Section 2834 of the Public Utilities Code is repealed.SEC. 3.SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)The commission shall require a green tariff shared renewables program to be administered by a participating utility in accordance with this section.
(b)Generating facilities participating in a participating utilitys green tariff shared renewables program shall be eligible renewable energy resources with a nameplate rated generating capacity not exceeding 20 megawatts, except for those generating facilities reserved for location in areas identified by the California Environmental Protection Agency as the most impacted and disadvantaged communities pursuant to paragraph (1) of subdivision (d), which shall not exceed one megawatt nameplate rated generating capacity.
(c)A participating utility shall use commission-approved tools and mechanisms to procure additional eligible renewable energy resources for the green tariff shared renewables program from electrical generation facilities that are in addition to those required by the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1). For purposes of this subdivision, commission-approved tools and mechanisms means those procurement methods approved by the commission for an electrical corporation to procure eligible renewable energy resources for purposes of meeting the procurement requirements of the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1).
(d)A participating utility shall permit customers within the service territory of the utility to purchase electricity pursuant to the tariff approved by the commission to implement the utilitys green tariff shared renewables program, until the utility meets its proportionate share of a statewide limitation of 600 megawatts of customer participation, measured by nameplate rated generating capacity. The proportionate share shall be calculated based on the ratio of each participating utilitys retail sales to total retail sales of electricity by all participating utilities. The commission may place other restrictions on purchases under a green tariff shared renewables program, including restricting participation to a certain level of capacity each year. The following restrictions shall apply to the statewide 600 megawatt limitation:
(1)(A)One hundred megawatts shall be reserved for facilities that are no larger than one megawatt nameplate rated generating capacity and that are located in areas previously identified by the California Environmental Protection Agency as the most impacted and disadvantaged communities. These communities shall be identified by census tract, and shall be determined to be the most impacted 20 percent based on results from the best available cumulative impact screening methodology designed to identify each of the following:
(i)Areas disproportionately affected by environmental pollution and other hazards that can lead to negative public health effects, exposure, or environmental degradation.
(ii)Areas with socioeconomic vulnerability.
(B)(1)For purposes of this paragraph, previously identified means identified prior to commencing construction of the facility.
(2)Not less than 100 megawatts shall be reserved for participation by residential class customers.
(3)Twenty megawatts shall be reserved for the City of Davis.
(e)To the extent possible, a participating utility shall seek to procure eligible renewable energy resources that are located in reasonable proximity to enrolled participants.
(f)A participating utilitys green tariff shared renewables program shall support diverse procurement and the goals of commission General Order 156.
(g)A participating utilitys green tariff shared renewables program shall not allow a customer to subscribe to more than 100 percent of the customers electricity demand.
(h)Except as authorized by this subdivision, a participating utilitys green tariff shared renewables program shall not allow a customer to subscribe to more than two megawatts of nameplate generating capacity. This limitation does not apply to a federal, state, or local government, school or school district, county office of education, the California Community Colleges, the California State University, or the University of California.
(i)A participating utilitys green tariff shared renewables program shall not allow any single entity or its affiliates or subsidiaries to subscribe to more than 20 percent of any single calendar years total cumulative rated generating capacity.
(j)To the extent possible, a participating utility shall actively market the utilitys green tariff shared renewables program to low-income and minority communities and customers.
(k)Participating customers shall receive bill credits for the generation of a participating eligible renewable energy resource using the class average retail generation cost as established in the participating utilitys approved tariff for the class to which the participating customer belongs, plus a renewables adjustment value representing the difference between the time-of-delivery profile of the eligible renewable energy resource used to serve the participating customer and the class average time-of-delivery profile and the resource adequacy value, if any, of the resource contained in the utilitys green tariff shared renewables program. The renewables adjustment value applicable to a time-of-delivery profile of an eligible renewable energy resource shall be determined according to rules adopted by the commission. For these purposes, time-of-delivery profile refers to the daily generating pattern of a participating eligible renewable energy resource over time, the value of which is determined by comparing the generating pattern of that participating eligible renewable energy resource to the demand for electricity over time and other generating resources available to serve that demand.
(l)Participating customers shall pay a renewable generation rate established by the commission, the administrative costs of the participating utility, and any other charges the commission determines are just and reasonable to fully cover the cost of procuring a green tariff shared renewables programs resources to serve a participating customers needs.
(m)A participating customers rates shall be debited or credited with any other commission-approved costs or values applicable to the eligible renewable energy resources contained in a participating utilitys green tariff shared renewables programs portfolio. These additional costs or values shall be applied to new customers when they initially subscribe after the cost or value has been approved by the commission.
(n)Participating customers shall pay all otherwise applicable charges without modification.
(o)A participating utility shall permit a participating customer to subscribe to the program and receive a predictable reasonably estimated bill credit and bill charge charge, as determined by the commission, for a period of up to 20 years.
(p)A participating utility shall provide support for enhanced community renewables programs to facilitate development of eligible renewable energy resource projects located close to the source of demand.
(q)The commission shall ensure that charges and credits associated with a participating utilitys green tariff shared renewables program are set in a manner that ensures nonparticipant ratepayer indifference for the remaining bundled service, direct access, and community choice aggregation customers and ensures that no costs are shifted from participating customers to nonparticipating ratepayers.
(r)A participating utility shall track and account for all revenues and costs to ensure that the utility recovers the actual costs of the utilitys green tariff shared renewables program and that all costs and revenues are fully transparent and auditable.
(s)Any renewable energy credits associated with electricity procured by a participating utility for the utilitys green tariff shared renewables program and utilized by a participating customer shall be retired by the participating utility on behalf of the participating customer. Those renewable energy credits shall not be further sold, transferred, or otherwise monetized for any purpose. Any renewable energy credits associated with electricity procured by a participating utility for the shared renewable energy self-generation program, but not utilized by a participating customer, shall be counted toward meeting that participating utilitys renewables portfolio standard.
(t)A participating utility shall, in the event of participant customer attrition or other causes that reduce customer participation or electrical demand below generation levels, apply the excess generation from the eligible renewable energy resources procured through the utilitys green tariff shared renewables program to the utilitys renewable portfolio standard procurement obligations or bank the excess generation for future use to benefit all customers in accordance with the renewables portfolio standard banking and procurement rules approved by the commission.
(u)In calculating its procurement requirements to meet the requirements of the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1), a participating utility may exclude from total retail sales the kilowatthours generated by an eligible renewable energy resource that is credited to a participating customer pursuant to the utilitys green tariff shared renewables program, commencing with the point in time at which the generating facility achieves commercial operation.
(v)All renewable energy resources procured on behalf of participating customers in the participating utilitys green tariff shared renewables program shall comply with the State Air Resources Boards Voluntary Renewable Electricity Program. California-eligible greenhouse gas allowances associated with these purchases shall be retired on behalf of participating customers as part of the boards Voluntary Renewable Electricity Program.
(w)A participating utility shall provide a municipality with aggregated consumption data for participating customers within the municipalitys jurisdiction to allow for reporting on progress toward climate action goals by the municipality. A participating utility shall also publicly disclose, on a geographic basis, consumption data and reductions in emissions of greenhouse gases achieved by participating customers in the utilitys green tariff shared renewables program, on an aggregated basis consistent with privacy protections as specified in Chapter 5 (commencing with Section 8380) of Division 4.1.
(x)Nothing in this section prohibits or restricts a community choice aggregator from offering its own voluntary renewable energy programs to participating customers of the community choice aggregation.
SEC. 2.Section 2834 of the Public Utilities Code is repealed.SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)The commission shall require a green tariff shared renewables program to be administered by a participating utility in accordance with this section.
(b)Generating facilities participating in a participating utilitys green tariff shared renewables program shall be eligible renewable energy resources with a nameplate rated generating capacity not exceeding 20 megawatts, except for those generating facilities reserved for location in areas identified by the California Environmental Protection Agency as the most impacted and disadvantaged communities pursuant to paragraph (1) of subdivision (d), which shall not exceed one megawatt nameplate rated generating capacity.
(c)A participating utility shall use commission-approved tools and mechanisms to procure additional eligible renewable energy resources for the green tariff shared renewables program from electrical generation facilities that are in addition to those required by the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1). For purposes of this subdivision, commission-approved tools and mechanisms means those procurement methods approved by the commission for an electrical corporation to procure eligible renewable energy resources for purposes of meeting the procurement requirements of the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1).
(d)A participating utility shall permit customers within the service territory of the utility to purchase electricity pursuant to the tariff approved by the commission to implement the utilitys green tariff shared renewables program, until the utility meets its proportionate share of a statewide limitation of 600 megawatts of customer participation, measured by nameplate rated generating capacity. The proportionate share shall be calculated based on the ratio of each participating utilitys retail sales to total retail sales of electricity by all participating utilities. The commission may place other restrictions on purchases under a green tariff shared renewables program, including restricting participation to a certain level of capacity each year. The following restrictions shall apply to the statewide 600 megawatt limitation:
(1)(A)One hundred megawatts shall be reserved for facilities that are no larger than one megawatt nameplate rated generating capacity and that are located in areas previously identified by the California Environmental Protection Agency as the most impacted and disadvantaged communities. These communities shall be identified by census tract, and shall be determined to be the most impacted 20 percent based on results from the best available cumulative impact screening methodology designed to identify each of the following:
(i)Areas disproportionately affected by environmental pollution and other hazards that can lead to negative public health effects, exposure, or environmental degradation.
(ii)Areas with socioeconomic vulnerability.
(B)(1)For purposes of this paragraph, previously identified means identified prior to commencing construction of the facility.
(2)Not less than 100 megawatts shall be reserved for participation by residential class customers.
(3)Twenty megawatts shall be reserved for the City of Davis.
(e)To the extent possible, a participating utility shall seek to procure eligible renewable energy resources that are located in reasonable proximity to enrolled participants.
(f)A participating utilitys green tariff shared renewables program shall support diverse procurement and the goals of commission General Order 156.
(g)A participating utilitys green tariff shared renewables program shall not allow a customer to subscribe to more than 100 percent of the customers electricity demand.
(h)Except as authorized by this subdivision, a participating utilitys green tariff shared renewables program shall not allow a customer to subscribe to more than two megawatts of nameplate generating capacity. This limitation does not apply to a federal, state, or local government, school or school district, county office of education, the California Community Colleges, the California State University, or the University of California.
(i)A participating utilitys green tariff shared renewables program shall not allow any single entity or its affiliates or subsidiaries to subscribe to more than 20 percent of any single calendar years total cumulative rated generating capacity.
(j)To the extent possible, a participating utility shall actively market the utilitys green tariff shared renewables program to low-income and minority communities and customers.
(k)Participating customers shall receive bill credits for the generation of a participating eligible renewable energy resource using the class average retail generation cost as established in the participating utilitys approved tariff for the class to which the participating customer belongs, plus a renewables adjustment value representing the difference between the time-of-delivery profile of the eligible renewable energy resource used to serve the participating customer and the class average time-of-delivery profile and the resource adequacy value, if any, of the resource contained in the utilitys green tariff shared renewables program. The renewables adjustment value applicable to a time-of-delivery profile of an eligible renewable energy resource shall be determined according to rules adopted by the commission. For these purposes, time-of-delivery profile refers to the daily generating pattern of a participating eligible renewable energy resource over time, the value of which is determined by comparing the generating pattern of that participating eligible renewable energy resource to the demand for electricity over time and other generating resources available to serve that demand.
(l)Participating customers shall pay a renewable generation rate established by the commission, the administrative costs of the participating utility, and any other charges the commission determines are just and reasonable to fully cover the cost of procuring a green tariff shared renewables programs resources to serve a participating customers needs.
(m)A participating customers rates shall be debited or credited with any other commission-approved costs or values applicable to the eligible renewable energy resources contained in a participating utilitys green tariff shared renewables programs portfolio. These additional costs or values shall be applied to new customers when they initially subscribe after the cost or value has been approved by the commission.
(n)Participating customers shall pay all otherwise applicable charges without modification.
(o)A participating utility shall permit a participating customer to subscribe to the program and receive a predictable bill credit and bill charge for a period of up to 20 years.
(o)
(p)A participating utility shall provide support for enhanced community renewables programs to facilitate development of eligible renewable energy resource projects located close to the source of demand.
(p)
(q)The commission shall ensure that charges and credits associated with a participating utilitys green tariff shared renewables program are set in a manner that ensures nonparticipant ratepayer indifference for the remaining bundled service, direct access, and community choice aggregation customers and ensures that no costs are shifted from participating customers to nonparticipating ratepayers.
(q)
(r)A participating utility shall track and account for all revenues and costs to ensure that the utility recovers the actual costs of the utilitys green tariff shared renewables program and that all costs and revenues are fully transparent and auditable.
(r)
(s)Any renewable energy credits associated with electricity procured by a participating utility for the utilitys green tariff shared renewables program and utilized by a participating customer shall be retired by the participating utility on behalf of the participating customer. Those renewable energy credits shall not be further sold, transferred, or otherwise monetized for any purpose. Any renewable energy credits associated with electricity procured by a participating utility for the shared renewable energy self-generation program, but not utilized by a participating customer, shall be counted toward meeting that participating utilitys renewables portfolio standard.
(s)
(t)A participating utility shall, in the event of participant customer attrition or other causes that reduce customer participation or electrical demand below generation levels, apply the excess generation from the eligible renewable energy resources procured through the utilitys green tariff shared renewables program to the utilitys renewable portfolio standard procurement obligations or bank the excess generation for future use to benefit all customers in accordance with the renewables portfolio standard banking and procurement rules approved by the commission.
(t)
(u)In calculating its procurement requirements to meet the requirements of the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1), a participating utility may exclude from total retail sales the kilowatthours generated by an eligible renewable energy resource that is credited to a participating customer pursuant to the utilitys green tariff shared renewables program, commencing with the point in time at which the generating facility achieves commercial operation.
(u)
(v)All renewable energy resources procured on behalf of participating customers in the participating utilitys green tariff shared renewables program shall comply with the State Air Resources Boards Voluntary Renewable Electricity Program. California-eligible greenhouse gas allowances associated with these purchases shall be retired on behalf of participating customers as part of the boards Voluntary Renewable Electricity Program.
(v)
(w)A participating utility shall provide a municipality with aggregated consumption data for participating customers within the municipalitys jurisdiction to allow for reporting on progress toward climate action goals by the municipality. A participating utility shall also publicly disclose, on a geographic basis, consumption data and reductions in emissions of greenhouse gases achieved by participating customers in the utilitys green tariff shared renewables program, on an aggregated basis consistent with privacy protections as specified in Chapter 5 (commencing with Section 8380) of Division 4.1.
(w)
(x)Nothing in this section prohibits or restricts a community choice aggregator from offering its own voluntary renewable energy programs to participating customers of the community choice aggregation.
SEC. 2.Section 2834 of the Public Utilities Code is repealed.2834.This chapter shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
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Date
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Status
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|---|---|
| Aug 27, 2015 | In Senate. Concurrence in Assembly amendments pending. |
| May 18, 2015 | Read third time. Passed. (Ayes 23. Noes 13. Page 1024.) Ordered to the Assembly. |
| Jun 4, 2015 | Referred to Com. on U. & C. |
| Jun 29, 2015 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 14. Noes 0.) (June 22). |
| Jun 30, 2015 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 15, 2015 | From committee: Do pass. Ordered to consent calendar. (Ayes 16. Noes 0.) (July 15). |
| Jul 16, 2015 | Read second time. Ordered to consent calendar. |
| Aug 20, 2015 | From consent calendar on motion of Assembly Member Waldron. |
| Aug 20, 2015 | Ordered to third reading. |
| May 18, 2015 | In Assembly. Read first time. Held at Desk. |
| Aug 27, 2015 | Read third time. Passed. Ordered to the Senate. |
| Aug 27, 2015 | Read third time. Passed. (Ayes 79. Noes 0. Page 2629.) Ordered to the Senate. |
| Aug 31, 2015 | Assembly amendments concurred in. (Ayes 38. Noes 0. Page 2275.) Ordered to engrossing and enrolling. |
| Aug 31, 2015 | Assembly amendments concurred in. (Ayes 38. Noes 0.) Ordered to engrossing and enrolling. |
| Sep 1, 2015 | Enrolled and presented to the Governor at 4:30 p.m. |
| Oct 8, 2015 | Approved by the Governor. |
| Oct 8, 2015 | Chaptered by Secretary of State. Chapter 587, Statutes of 2015. |
| Feb 27, 2015 | Introduced. To Com. on RLS. for assignment. To print. |
| May 12, 2015 | Read second time. Ordered to third reading. |
| May 11, 2015 | From committee: Do pass. (Ayes 5. Noes 2.) (May 11). |
| May 11, 2015 | From committee: Do pass. (Ayes 5. Noes 2. Page 960.) (May 11). |
| May 5, 2015 | Set for hearing May 11. |
| May 5, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR. |
| May 4, 2015 | May 4 set for first hearing canceled at the request of author. |
| Apr 29, 2015 | Set for hearing May 4. |
| Apr 27, 2015 | Read second time and amended. Re-referred to Com. on APPR. |
| Apr 23, 2015 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 3. Page 724.) (April 21). |
| Apr 7, 2015 | Set for hearing April 21. |
| Apr 6, 2015 | April 7 set for first hearing canceled at the request of author. |
| Mar 24, 2015 | Set for hearing April 7. |
| Mar 19, 2015 | Referred to Com. on E., U., & C. |
| Mar 2, 2015 | Read first time. |
| Mar 2, 2015 | From printer. May be acted upon on or after April 1. |
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Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 31, 2015 | Unfinished Business SB793 Wolk Concurrence | Senate Floor |
Passed |
|
| Aug 27, 2015 | SB 793 Wolk Senate Third Reading By WILLIAMS | Assembly Floor |
Passed |
|
| Jul 15, 2015 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jun 22, 2015 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Utilities and Commerce |
Passed |
|
| May 18, 2015 | Senate 3rd Reading SB793 Wolk | Senate Floor |
Passed |
|
| May 11, 2015 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 21, 2015 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Energy, Utilities and Communications |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
|
|---|---|---|
| Borrego Solar | ** Support | Aug 31, 2015 |
| California Center For Sustainable Energy | * Indeterminate | Apr 20, 2015 |
| California Environmental Justice Alliance | ** Support | Aug 31, 2015 |
| California Environmental Justice Coalition | ** Support | Jun 22, 2015 |
| California Public Utilities Commission | ** Support | Aug 31, 2015 |
| California Solar Energy Industries Association | ** Support | Aug 31, 2015 |
| CONCERN: | ** Support | Apr 20, 2015 |
| Environmental Defense Fund | ** Support | Aug 31, 2015 |
| Large-Scale Solar Association | ** Support | Aug 31, 2015 |
| Large-Scale Solar Association, if amended | ** Support | Apr 20, 2015 |
| Office of Ratepayer Advocates, unless amended | ** Against | Apr 20, 2015 |
| Pacific Gas & Electric Company | * Indeterminate | Apr 20, 2015 |
| Page H | ** Support | Jun 22, 2015 |
| Sempra Energy And Its Affiliates: San Diego Gas & Electric, Southern California Gas Co., And Sempra Energy Global Enterprises | * Indeterminate | Apr 20, 2015 |
| Sierra Club California | ** Support | Aug 31, 2015 |
| Solar Energy Industries Association | ** Support | Aug 31, 2015 |
| Solar Energy Industries Association, if amended | ** Support | Apr 20, 2015 |
| SolarCity | ** Support | Aug 31, 2015 |
| Southern California Edison | * Against | Apr 20, 2015 |
| Southern California Edison | * Indeterminate | Apr 20, 2015 |
| The Utility Reform Network | ** Support | Aug 31, 2015 |
| Vote Solar | ** Support | Aug 31, 2015 |
| Western States Petroleum Association | * Indeterminate | May 11, 2015 |
SB 793
Page 5
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
UNFINISHED BUSINESS
Bill No: SB 793
Amended: 6/30/15
SENATE ENERGY, U. & C. COMMITTEE: 8-3, 4/21/15
AYES: Hueso, Hertzberg, Hill, Lara, Leyva, McGuire, Pavley, Wolk
NOES: Fuller, Cannella, Morrell
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/11/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
SENATE FLOOR: 23-13, 5/18/15
AYES: Allen, Beall, Block, De León, Galgiani, Hancock, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Pan, Roth, Wieckowski, Wolk
NOES: Anderson, Bates, Cannella, Fuller, Gaines, Huff, Moorlach, Morrell, Nguyen, Nielsen, Runner, Stone, Vidak
NO VOTE RECORDED: Berryhill, Hall, Pavley
ASSEMBLY FLOOR: 79-0, 8/27/15 - See last page for vote
SUBJECT: Green Tariff Shared Renewables Program
DIGEST: This bill requires an investor-owned utility (IOU) that offers a Green Tariff Shared Renewables (GTSR) Program to permit a participating customer to subscribe to the program and be provided with a nonbinding estimate of reasonably anticipated bill credits and bill charges, as determined by the California Public Utilities Commission (CPUC), for a period of up to 20 years.
Assembly Amendments replace the words “receive a reasonably estimated bill credit and bill charge” with “be provided with a nonbinding estimate of reasonably anticipated bill credits and bill charges.” The Assembly amended the bill for clarity. The Assembly amendment is consistent with the intent behind prior amendments made to the bill in the Senate.
Existing law:
Requires the electrical IOUs to permit customers to subscribe to the GTSR Program until there is statewide 600 megawatts (MW) of customer participation, with each utility responsible for its proportionate share of GTSR participation. Statute also sets aside the following GTSR Program components: (a) 100 MW for facilities 1 MW or less located in areas identified by the California Environmental Protection Agency as the most impacted and disadvantaged communities; (b) 100 MW for residential customers; and (c) 20 MW for the City of Davis. Statute declares the intent of the Legislature that implementation of the GTSR Program not affect nonparticipating ratepayers. Statute further requires the CPUC, by July 1, 2014, to issue a decision to approve or disapprove each IOU’s GTSR Program, with or without modification. (Public Utilities Code §2831 et seq.)
Grants the CPUC authority to fix rates charged by public utilities under its jurisdiction. (Article XII, Section 6, California Constitution.)
Requires retail sellers of electricity – IOUs, community choice aggregators, and energy service providers – and publicly-owned utilities to increase purchases of renewable energy such that at least 33 percent of retail sales are procured from renewable energy resources by December 31, 2020. This is known as the Renewable Portfolio Standard. (Public Utilities Code §399.11 et seq.)
This bill requires an IOU to allow a customer participating in its GTSR Program to subscribe to the program and be provided with a nonbinding estimate of reasonably anticipated bill credits and bill charges, as determined by the CPUC, for a period of up to 20 years.
Background
SB 43 and the GTSR Program. In 2013, the Legislature approved a bill – SB 43 (Wolk, Chapter 88) – that required the IOUs to allow customers to subscribe to a GTSR Program, which was to expand access to renewable energy resources to all ratepayers who are unable to access the benefits of onsite generation. The IOUs implemented the 600 MW program proportionately. The bill also set aside portions of the program for specific customer classes, including disadvantaged communities, residential customers and the City of Davis, which had operated a community solar pilot project prior to introduction of SB 43.
The bill codified numerous findings and statements of intent. Among those statements was that IOU ratepayers not participating in the GTSR Program be unaffected by implementation of the program.
The bill directed the IOUs each to submit a GTSR Program plan to the CPUC. The bill required the CPUC, by July 1, 2014, to issue a decision to approve each of the plans if it determines the plan is reasonable and meets the bill’s declarations and statements of intent. The bill also gave the CPUC the power to modify the IOUs’ GTSR Program plans.
CPUC proposes GTSR Program plan decision, limits contracts to one year. On January 29 of this year, the CPUC released a decision to approve the GTSR Program plans. (A.12-01-008 et al (http://docs.cpuc.ca.gov/PublishedDocs/
Published/G000/M145/K819/145819809.PDF). The CPUC decision, in interpreting SB 43, understands the bill to require implementation of two, distinct programs: (1) a Green Tariff option, in which customers may purchase energy with a greater share of renewables, and (2) an enhanced community renewables (ECR) option, which allows customers to purchase renewable energy from community-based projects.
Among the decision’s provisions was a discussion of customer subscription terms for both components of the GTSR Program. As described in the decision, the IOUs had submitted plans that offered various subscription terms. SDG&E had proposed that customers be able to participate with a one-year minimum commitment or with long-term commitments of two, three, five, or 10 years. Pacific Gas and Electric Company proposed customers commit to a one-year contract, moving to month-to-month participation thereafter. Southern California Edison, in contrast, proposed month-to-month participation.
The CPUC’s proposed decision, in discussing the IOUs’ proposals, declared a number of benefits to one-year GTSR Program contracts. First, the CPUC opined, one-year contracts provide the IOUs some certainty around program participation in the coming year. Second, the CPUC continued, a one-year commitment was long enough to allow participants to test the program without being locked in to the program for a longer duration.
The proposed decision also offered a number of drawbacks to longer-term contracts, such as those proposed by San Diego Gas & Electric Company, calling such contract terms “not viable.” As support for its position, CPUC noted that program rates would automatically adjust to match changes in commodity prices; therefore, long-term contracts provided no value as a hedge against future cost increases.
In the end, the proposed decision required GTSR Program (both Green Tariff and ECR) subscription terms of one year.
Bill requires terms, and a nonbinding estimate of reasonably anticipated bill credits and bill charges, for up to 20 years. As described above, this bill requires the IOUs to offer GTSR Program subscription of 20 years duration. This bill also requires a subscribing customer to be provided with a nonbinding estimate of reasonably anticipated bill credits and bill charges, as determined by the CPUC, for a period of up to 20 years.
Prior Legislation
SB 43 (Wolk, Chapter 88, Statutes of 2013) required the IOUs to offer the GTSR Program to ratepayers.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Assembly Appropriations Committee, ongoing annual costs of approximately $130,000 (Public Utilities Reimbursement Account) for the CPUC to estimate costs and credits over 20 years.
Borrego Solar
California Environmental Justice Alliance
California Public Utilities Commission
California Solar Energy Industries Association
Environmental Defense Fund
Large-Scale Solar Association
Recurrent Energy
Sierra Club California
Solar Energy Industries Association
SolarCity
The Utility Reform Network
Vote Solar
OPPOSITION: (Verified 8/27/15)
None received
ARGUMENTS IN SUPPORT: The author and proponents contend this bill removes a barrier to participation in the GTSR Program by allowing longer-term contracts and providing, reasonably estimated, stable rates to those participating in it.
ASSEMBLY FLOOR: 79-0, 8/27/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Frazier
Prepared by: Jay Dickenson / E., U., & C. / (916) 651-4107
8/28/15 17:13:23
**** END ****
SB 793
Page 2
SENATE THIRD READING
SB 793
(Wolk)
As Amended June 30, 2015
Majority vote
SENATE VOTE: 23-13
Committee |
Votes |
Ayes |
Noes |
Utilities |
14-0 |
Rendon, Patterson, Achadjian, Bonilla, Burke, Eggman, Cristina Garcia, Hadley, Roger Hernández, Obernolte, Quirk, Santiago, Ting, Williams |
|
Appropriations |
16-0 |
Gomez, Bigelow, Bloom, Bonta, Calderon, Chang, Daly, Eggman, Gallagher, Eduardo Garcia, Jones, Quirk, Rendon, Wagner, Weber, Wood |
|
SUMMARY: Requires an investor-owned utility (IOU) participating in a Green Tariff Shared Renewables Program (GTSR) to permit a participating customer to subscribe to the program. This bill also requires the California Public Utilities Commission (CPUC) to provide the customer with a nonbinding estimate of reasonably anticipated bill credits and charges for a period up to 20 years.
EXISTING LAW:
Requires participating IOUs to file applications to establish a voluntary GTSR Program in their service area. (Public Utilities Code Section 2831)
Requires the CPUC to issue a decision on the IOU's voluntary GTSR Program applications by July 1, 2014. (Public Utilities Code Section 2831)
Specifies GTSR program criteria related to maximum statewide program size, size of qualified facilities, location of facilities near customers, restrictions on market concentration, inclusion of disadvantaged communities, a 20 megawatts (MW) set aside within the GTSR program for the City of Davis, and restrictions to ensure that the costs of the program are not borne by non-participants. (Public Utilities Code Section 2833)
Sunsets the statute January 1, 2019. (Public Utilities Code Section 2834)
FISCAL EFFECT: According to the Assembly Appropriations Committee, ongoing annual costs of approximately $130,000 (Public Utilities Reimbursement Account) for the CPUC to estimate costs and credits over 20 years.
COMMENTS:
Purpose. The GTSR program provides an option for households and businesses who cannot participate in rooftop solar programs because they rent their homes or places of business, do not have strong enough credit, or own a roof that is too small or does not receive enough sunlight. According to the author, the PUC rules currently prevent customers from subscribing to their utility's GTSR program for a term of more than one year, a limitation that was not required nor contemplated in the enabling legislation. Because utility bill credits and charges can fluctuate year to year, this one-year maximum limitation prevents a customer from reasonably predicting their rate associated with subscribing to GTSR beyond the current year.
This limitation is likely to significantly reduce program uptake, especially for customers who are considering making a long-term agreement with a specific renewable energy developer within the Enhanced Community Renewables portion of the GTSR programs. This bill provides customers with information necessary to make long-term decisions.
Background. In 2013, the Legislature passed SB 43 (Wolk), Chapter 413, Statutes of 2013, which created the GTSR Pilot Program, to allow electrical customers of IOUs to purchase electricity from local renewable energy facilities up to a statewide limit of 600 megawatts proportionately distributed among the IOUs. The goal of the GTSR program is to allow customers to access renewable energy resources even if they are unable to have the benefits of onsite generation. The CPUC issued this decision on January 29, 2015, that allows customers to subscribe to the GTSR one year at a time.
Analysis Prepared by: Sue Kateley / U. & C. / (916) 319-2083 FN: 0001444
Date of Hearing: July 15, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 793
(Wolk) – As Amended June 30, 2015
Policy Committee: |
Utilities and Commerce |
Vote: |
14 - 0 |
|
|
|
|
|
|
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill requires an investor-owned utility (IOU) participating in a Green Tariff Shared Renewables Program (GTSR) to permit a participating customer to subscribe to the program. This bill also requires the Public Utilities Commission (PUC) to provide the customer with a nonbinding estimate of reasonably anticipated bill credits and charges for a period up to 20 years.
FISCAL EFFECT:
Ongoing annual costs of approximately $130,000 (Public Utilities Reimbursement Account) for the PUC to estimate costs and credits over 20 years.
COMMENTS:
Purpose. The GTSR program provides an option for approximately 75% of households and 70% of businesses who cannot participate in rooftop solar programs because they rent their homes or places of business, do not have strong enough credit, or own a roof that is too small or does not receive enough sunlight. According to the author, the PUC rules currently prevent customers from subscribing to their utility’s GTSR program for a term of more than one year, a limitation that was not required nor contemplated in the enabling legislation. Because utility bill credits and charges can fluctuate year to year, this one-year maximum limitation prevents a customer from reasonably predicting their rate associated with subscribing to GTSR beyond the current year.
This limitation is likely to significantly reduce program uptake, especially for customers who are considering making a long-term agreement with a specific renewable energy developer within the Enhanced Community Renewables portion of the GTSR programs. This bill provides customers with information necessary to make long-term decisions.
Background. In 2013, the Legislature passed SB 43 (Wolk) Chapter 413, Statutes of 2013, which created the GTSR Pilot Program, to allow electrical customers of investor-owned utilities (IOUs) to purchase electricity from local renewable energy facilities up to a statewide limit of 600 megawatts (MV) proportionately distributed among the IOUs. The goal of the GTSR program is to allow customers to access renewable energy resources even if they are unable to have the benefits of onsite generation. The PUC issued this decision on January 29, 2015 that allows customers to subscribe to the GTSR one year at a time.
Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081
SB 793
Page 4
Date of Hearing: June 22, 2015
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Anthony Rendon, Chair
SB 793
(Wolk) – As Amended May 5, 2015
SENATE VOTE: 23-13
SUBJECT: Green Tariff Shared Renewables Program.
SUMMARY: Permits a participating customer to subscribe to a Green Tariff Shared Renewables (GTSR) Program and receive a reasonably estimated bill credit and bill charge, as determined by the California Public Utilities Commission (CPUC), for a period of up to 20 years. Specifically, this bill:
EXISTING LAW:
Requires participating Investor Owned Utilities (IOUs) to file applications to establish a voluntary GTSR Program in their service area. (Public Utilities Code Section 2831)
Requires the CPUC to issue a decision on the IOU's voluntary GTSR Program applications by July 1, 2014. (Public Utilities Code Section 2831)
Specifies GTSR program criteria related maximum statewide program size, size of qualified facilities, location of facilities near customers, restrictions on market concentration, inclusion of disadvantaged communities, a 20-MW set aside within the GTSR program for the City of Davis, and restrictions to ensure that the costs of the program are not borne by non-participants. (Public Utilities Code Section 2833)
Sunsets the statute January 1, 2019. (Public Utilities Code Section 2834)
FISCAL EFFECT: Unknown.
COMMENTS:
Author's Statement: "The CPUC issued a decision implementing parts of SB 43 (Wolk, Chapter 413, Statutes of 2013) in January 2015 that lays out the program design for the three IOU’s GTSR programs. Unfortunately, the CPUC rules currently prevent customers from subscribing to their utility’s GTSR program for a term of more than one year, a limitation that was not required nor contemplated in SB 43. Because the bill credits and charges can fluctuate year to year, this one-year maximum limitation prevents a customer from reasonably predicting their rate associated with subscribing to GTSR beyond the current year. This limitation is likely to significantly reduce program uptake, especially for customers who are considering making a long-term agreement with a specific renewable energy developer within the Enhanced Community Renewables portion of the GTSR programs."
"SB 793 would have no effect on the overall customer costs or rates of the three IOUs in California. SB 43 requires that all costs of an IOU’s green tariff shared renewables program be covered by participants of the program and that no costs be paid by ratepayers that are not participants of an IOU’s green tariff shared renewables program. However, SB 793 may lessen the costs to participants that sign up for an IOU’s green tariff shared renewables program."
What's a Green Tariff Shared Renewable Program? While rooftop solar is a strong and growing business in California, as much as 75% of households cannot participate because they are renters and don’t own their roofs, they do not have strong enough credit, or their roof is too small or doesn’t receive enough sunlight. The same is true of most businesses, 70% of whom rent or lease their facilities. Despite their inability to utilize renewable energy, these utility customers continue to pay into solar and renewable programs that fail to benefit them. Additionally, programs (MASH, SASH, Solar Share, etc.) designed to benefit low-income or rental utility customers by providing them the opportunity to utilize renewable energy either have no room for new participants or fail to provide consumers with access to affordable renewable energy.
A GTSR allows a utility customer to voluntarily subscribe to a rate plan that provides renewable energy to that customer from a local renewable energy facility. The customer pays the costs for participating in this program, and other ratepayers who are not participating in this program do not bear the cost of the program.
Status of CPUC Proceeding. There is an ongoing proceeding to implement SB 43 (A.12-01-008 et al). The CPUC rendered a decision at the end of January 2015 to begin implementing SB 43. However, there are a host of other issues that remain to be determined by the CPUC in a later phase of the proceeding. The later phase is expected to begin in August or September 2015.
This bill would not delay the current proceeding at the CPUC.
Need for this bill. According to the author, customers need to be able to enroll in the GTSR program for more than one year so that they can predict the billing rate associated with subscribing to GTSR beyond the current year. Having information that estimates bill credits and bill charges over a longer period of time can help a customer decide whether to enroll in this program.
The CPUC decision (D15-01-0511) on GTSR, the CPUC notes that in this decision:
We have eliminated the requirement that an IOU require a one-year enrollment minimum and early termination fee, provided that the IOU can demonstrate that ratepayer indifference can still be achieved. Longer terms and locked-in rates are slated for Phase IV.
The decision goes on to state that:
The GTSR Program may require up to a one-year enrollment term, with the option of continuing on a month-to-month basis at the end of the year. (Ordering Paragraph 46).
Even though the CPUC has provided flexibility with respect to the enrollment period, the other issue relates to pricing. One stakeholder in the CPUC proceeding put it this way: "… in order to offer participants fair compensation for the long-term value of GTSR resources and pricing certainty for the term of their participation, which, for ECR projects, is going to be much longer than one year if projects are to be successfully developed.
The CPUC issued a ruling on April 15, 2015, which will, among other things, consider options for customers to lock-in rates and have long-term contracts. The CPUC estimates a decision by November 2015.
The CPUC's decision must set the GTSR rates "in a manner that ensures nonparticipant ratepayer indifference for the remaining bundled service, direct access, and community choice aggregation customers and ensures that no costs are shifted from participating customers to nonparticipating ratepayers," as specified in Public Utilities Code Section 2833(q).
If SB 793 is enacted, the CPUC may need to consider directing the IOUs to include a disclosure to customers that choose to enroll for 20 years that the estimate of credits and charges are not a guarantee to those credits and charges.
20-year commitment: Current IOU rate plans are one-year commitments for customers and are terminated when a customer's life circumstance causes them to move, even if it occurs within the one-year commitment. As written, it is not clear whether a 20-year enrollment in GTSR would result in a debt obligation to the customer. This can impact whether or not a customer can continue to participate in the program (the duration of this commitment is a life-cycle generation - Yuppies, Generation X, Millenials, etc.), during which much can change in a person's life. For example, how would GTSR address changes that prevent a customer from meeting a 20-year enrollment commitment because of unexpected events (job change, a significant change in family circumstances such as death or divorce, moving to another utility service area, or change of residence). Commercial and government customers may be in a better position to make a 20-year commitment as their site ownership may not change as frequently as residential site ownership.
The author may wish to consider clarifying this language:
(o) A
participating utility shall permit a participating customer to
subscribe to the program and receive
a reasonably estimated be
provided with a non-binding estimate of reasonably
anticipated bill credit credits and
bill charge charges, as
determined by the commission, for a period of up to 20 years.
Support and Opposition:
Supporters state that SB 793 would give greater flexibility for customers and greater predictability for utilities, customers, and renewable energy financing entities because customers will receive a reasonably estimated bill credit and bill charge for a period of up to 20 years.
Opponents state that there is no comparable rationale for allowing customers to receive a fixed bill credit for a period of two decades. They point out that the GTSR rate will adjust to reflect the actual cost of generation used to serve customers and is tied to actual market prices for electricity, natural gas costs, and the costs of a changing mix of generation in the utility portfolio. They point out it is not possible to realistically forecast these costs over a 20-year time horizon for the purposes of fixed bill credits for the entire period.
Related Legislation:
SB 43 (Chapter 413, Statutes of 2013): Established, until January 1, 2019, a Shared Renewable Self Generation Program allowing IOU customers to purchase an interest in a “community renewable energy facility” and receive a bill credit for the generation component of the customer’s electrical service.
SB 843 (Wolk 2012): Would have established a new business model that would allow developers of renewable projects to sell electricity to customers of IOUs. Failed in Assembly Utilities Committee.
SB 383 (Wolk 2012) was amended to deal with a different subject in the Assembly
REGISTERED SUPPORT / OPPOSITION:
Support
Borrego Solar
California Environmental Justice Coalition
California Public Utilities Commission
California Solar Energy Industries Association
Environmental Defense Fund
Sierra Club
Solar Energy Industries Association
Vote Solar
Opposition
TURN (unless amended)
Analysis Prepared by: Sue Kateley / U. & C. / (916) 319-2083
SB 793
Page 5
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 793
Amended: 5/5/15
SENATE ENERGY, U. & C. COMMITTEE: 8-3, 4/21/15
AYES: Hueso, Hertzberg, Hill, Lara, Leyva, McGuire, Pavley, Wolk
NOES: Fuller, Cannella, Morrell
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/11/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
SUBJECT: Green Tariff Shared Renewables Program
DIGEST: This bill requires an investor-owned utility (IOU) that offers a Green Tariff Shared Renewables (GTSR) Program to permit a participating customer to subscribe to the program and receive a reasonably estimated bill credit and bill charge for a period of up to 20 years. This bill also deletes a January 2019 program sunset.
Existing law:
Requires the electrical IOUs to permit customers to subscribe to the GTSR Program until there is statewide 600 megawatts (MW) of customer participation, with each utility responsible for its proportionate share of GTSR participation. Statute also sets aside the following GTSR Program components: (a) 100 MW for facilities 1 MW or less located in areas identified by the California Environmental Protection Agency as the most impacted and disadvantaged communities; (b) 100 MW for residential customers; and (c) 20 MW for the City of Davis. Statute declares the intent of the Legislature that implementation of the GTSR Program not affect nonparticipating ratepayers. Statute further requires the California Public Utilities Commission (CPUC), by July 1, 2014, to issue a decision to approve or disapprove each IOU’s GTSR Program, with or without modification. (Public Utilities Code §2831 et seq.)
The California Constitution grants CPUC authority to fix rates charged by public utilities under its jurisdiction. (Article XII, Section 6, California Constitution.)
Requires retail sellers of electricity – IOUs, community choice aggregators, and energy service providers – and publicly-owned utilities to increase purchases of renewable energy such that at least 33 percent of retail sales are procured from renewable energy resources by December 31, 2020. This is known as the Renewable Portfolio Standard. (Public Utilities Code §399.11 et seq.)
This bill requires an IOU to allow a customer participating in its GTSR Program to subscribe to the program and receive a predictable bill credit and bill charge for a period of up to 20 years.
Background
Growing demand for access to renewable energy. Distributed electricity generation is not for everyone. For example, not every home or business can install solar panels on its roof, for a variety of reasons – structural limitations, directional alignment and ownership limitations, to name a few. Yet, as the state’s distributed generation incentives – such as the California Solar Initiative – led to increasing installation of renewable energy resources in the close of last decade, interest in expanding access to renewable resources grew.
By 2012, the state’s largest electrical IOUs – Pacific Gas and Electric (PG&E), Southern California Edison (SCE), and San Diego Gas and Electric (SDG&E) – had proposed to offer their customers “green” options that would provide greater access to renewable energy. Many individuals and organizations supported the proposal that “green” energy become more available to IOU customers. Several parties, however, expressed criticisms and concerns with the IOU proposals while they were under consideration at the CPUC.
SB 43 and the GTSR Program. In 2013, the Legislature approved a bill – SB 43 (Wolk) – that required the IOUs to allow customers to subscribe to a GTSR Program, which was to expand access to renewable energy resources to all ratepayers who are unable to access the benefits of onsite generation. The IOUs implemented the 600 MW program proportionately. The bill also set aside portions of the program for specific customer classes, including disadvantaged communities, residential customers and the City of Davis, which had operated a community solar pilot project prior to introduction of SB 43.
The bill codified numerous findings and statements of intent. Among those statements was that IOU ratepayers not participating in the GTSR Program be unaffected by implementation of the program.
The bill directed the IOUs each to submit a GTSR Program plan to the CPUC. The bill required the CPUC, by July 1, 2014, to issue a decision to approve each of the plans if it determines the plan is reasonable and meets the bill’s declarations and statements of intent. The bill also gave the CPUC the power to modify the IOUs’ GTSR Program plans.
CPUC proposes GTSR Program plan decision, limits contracts to one year. On January 29 of this year, the CPUC released a decision to approve the GTSR Program plans. (A.12-01-008 et al (http://docs.cpuc.ca.gov/PublishedDocs/
Published/G000/M145/K819/145819809.PDF). The CPUC decision, in interpreting SB 43, understands the bill to require implementation of two, distinct programs: (a) a Green Tariff option, in which customers may purchase energy with a greater share of renewables, and (b) an enhanced community renewables (ECR) option, which allows customers to purchase renewable energy from community-based projects.
Among the decision’s provisions was a discussion of customer subscription terms for both components of the GTSR Program. As described in the decision, the IOUs had submitted plans that offered various subscription terms. SDG&E had proposed that customers be able to participate with a one-year minimum commitment or with long-term commitments of two, three, five, or 10 years. PG&E proposed customers commit to a one-year contract, moving to month-to-month participation thereafter. SCE, in contrast, proposed month-to-month participation.
The CPUC’s proposed decision, in discussing the IOUs’ proposals, declared a number of benefits to one-year GTSR Program contracts. First, the CPUC opined, one-year contracts provide the IOUs some certainty around program participation in the coming year. Second, the CPUC continued, a one-year commitment was long enough to allow participants to test the program without being locked in to the program for a longer duration.
The proposed decision also offered a number of drawbacks to longer-term contracts, such as those proposed by SDG&E, calling such contract terms “not viable.” As support for its position, CPUC noted that program rates would automatically adjust to match changes in commodity prices; therefore, long-term contracts provided no value as a hedge against future cost increases.
In the end, the proposed decision required GTSR Program (both Green Tariff and ECR) subscription terms of one year.
Bill requires terms, and reasonably estimated credits, for up to 20 years. As described above, this bill requires the IOUs to offer GTSR Program subscription of 20 years duration. This bill also requires the subscriber to receive a reasonably estimated bill credit and bill charge, as determined by the CPUC, for a period of up to 20 years.
Over so soon? This bill also deletes the program sunset of January 1, 2019. The sunset would end the statutory requirement that the IOUs offer the GTSR Program to customers.
It is not clear what has changed since passage, in 2013, of SB 43, which included the sunset. In any case, the CPUC would be free to continue the GTSR Program, even with the sunset in statute. The sunset also allowed for an evaluation of the program, which the CPUC could continue if successful and still needed, or modify if warranted. Or, the Legislature could pass new legislation extending the program, should it wish.
Prior Legislation
SB 43 (Wolk, Chapter 88, Statutes of 2013) required the IOUs to offer the GTSR Program to ratepayers.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee, ongoing costs of approximately $130,000 from the Public Utilities Reimbursement Account (special) to estimate costs and credits over 20 years.
Borrego Solar
California Environmental Justice Alliance
California Solar Energy Industries Association
Environmental Defense Fund
Large-Scale Solar Association
Recurrent Energy
Sierra Club California
Solar Energy Industries Association
SolarCity
Vote Solar
OPPOSITION: (Verified 5/12/15)
The Utility Reform Network
ARGUMENTS IN SUPPORT: The author and proponents contend this bill removes a barrier to participation in the GTSR Program by allowing longer-term contracts and providing, reasonably estimated, stable rates to those participating in it.
ARGUMENTS IN OPPOSITION: Opponents argue that this bill results in a cost shift to ratepayers who do not participate in the program.
Prepared by: Jay Dickenson / E., U., & C. / (916) 651-4107
5/13/15 16:37:40
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SB 793 (Wolk) Page 0 of 1
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 793 (Wolk) - Green Tariff Shared Renewables Program.
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Version: May 5, 2015 |
Policy Vote: E., U., & C. 8 - 3 |
Urgency: No |
Mandate: Yes |
Hearing Date: May 11, 2015 |
Consultant: Marie Liu |
This bill does not meet the criteria for referral to the Suspense File.
Bill Summary:
SB 793 would require the California Public Utilities Commission (CPUC) to determine a reasonably estimated bill credit and charge for a period of up to 20 years for a customer participating in a Green Tariff Shared Renewables (GTSR) Program.
Fiscal Impact:
Ongoing costs of approximately $130,000 from the Public Utilities Reimbursement Account (special) to estimate costs and credits over 20 years.
Background:
In 2013, the Legislature passed SB 43 (Wolk) Chapter 413, Statutes of 2013, which created pilot program, titled the GTSR Program, to allow electrical customers of investor-owned utilities (IOUs) to purchase electricity from renewable energy facilities up to a statewide limit of 600 megawatts (MV) proportionately distributed among the IOUs. The goal of the GTSR program is to allow customers to access renewable energy resources even if they are unable to have the benefits of onsite generation.
The CPUC was to issue a decision by July 1, 2014 to approve or disapprove each IOU’s GTSR program. The CPUC issued this decision on January 29, 2015 that allows customers to subscribe to the GTSR one year at time.
The GTSR program sunsets in January 2019.
Proposed Law:
This bill would require an IOU participating in the GTSR program to allow a participating customer to receive a reasonably estimated bill credit and charge, as determined by the CPUC, for a period of up to 20 years.
Staff Comments:
The workload that would be created by this bill to estimate bill credit and charge under the GTSR program for 20 years could occur within an existing proceeding opened to implement SB 43. However, the work necessary to actually perform the calculation would necessitate additional staff according to the CPUC at an ongoing annual cost of $130,000.
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SB 793 (Wolk) Page 5 of 5
SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
Senator Ben Hueso, Chair
2015 - 2016 Regular
Bill No: SB 793 Hearing Date: 4/21/2015
Author: |
Wolk |
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Version: |
2/27/2015 As Introduced |
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Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Jay Dickenson |
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SUBJECT: Green Tariff Shared Renewables Program
DIGEST: This bill requires an investor-owned utility (IOU) that offers a Green Tariff Shared Renewables (GTSR) Program to permit a participating customer to subscribe to the program and receive a predictable bill credit and bill charge for a period of up to 20 years. The bill also deletes a January 2019 program sunset.
ANALYSIS:
Existing law:
Requires the electrical IOUs to permit customers to subscribe to the GTSR Program until there is statewide 600 megawatts (MW) of customer participation, with each utility responsible for its proportionate share of GTSR participation. Statute also sets aside the following GTSR Program components: (a) 100 MW for facilities 1 MW or less located in areas identified by the California Environmental Protection Agency (CalEPA) as the most impacted and disadvantaged communities; (b) 100 MW for residential customers; and (c) 20 MW for the City of Davis. Statute declares the intent of the Legislature that implementation of the GTSR Program not affect nonparticipating ratepayers. Statue further requires the California Public Utilities Commission (CPUC), by July 1, 2014, to issue a decision to approve or disapprove each IOU’s GTSR Program, with or without modification. (Public Utilities Code §2831 et seq.)
The California Constitution grants CPUC authority to fix rates charged by public utilities under its jurisdiction. (Article XII, Section 6, California Constitution.)
Requires retail sellers of electricity – investor-owned utilities (IOU), community choice aggregators (CCAs), and energy service providers (ESPs) – and publicly-owned utilities (POU) to increase purchases of renewable energy such that at least 33 percent of retail sales are procured from renewable energy resources by December 31, 2020. This is known as the Renewable Portfolio Standard (RPS). (Public Utilities Code §399.11 et seq.)
This bill requires an IOU to allow a customer participating in its GTSR Program to subscribe to the program and receive a predictable bill credit and bill charge for a period of up to 20 years.
Background
Growing Demand for Access to Renewable Energy. Distributed electricity generation is not for everyone. For example, not every home or business can install solar panels on its roof, for a variety of reasons – structural limitations, directional alignment and ownership limitations, to name a few. Yet, as the state’s distributed generation incentives – such as the California Solar Initiative (CSI) – led to increasing installation of renewable energy resources in the close of last decade, interest in expanding access to renewable resources grew.
By 2012, the state’s largest electrical IOUs –Pacific Gas and Electric (PG&E), Southern California Edison (SCE), and San Diego Gas and Electric (SDG&E) – had proposed to offer their customers “green” options that would provide greater access to renewable energy. Many individuals and organizations supported the proposal that “green” energy become more available to IOU customers.
Several parties, however, expressed criticisms and concerns with the IOU proposals while they were under consideration at the CPUC.
SB 43 and the Green Tariff Shared Renewables Program. In 2013, the Legislature approved a bill – SB 43 (Wolk) – that requires the IOUs to allow customers to subscribe to a GTSR Program, which was to expand access to renewable energy resources to all ratepayers who are unable to access the benefits of onsite generation. The IOUs were to implement the 600 MW program proportionately. The bill also set aside portions of the program for specific customer classes, including disadvantaged communities, residential customers and the City of Davis, which had operated a community solar pilot project prior to introduction of SB 43.
The bill codified numerous findings and statements of intent. Among those statements was that IOU ratepayers not participating in the GTSR Program be unaffected by implementation of the program.
The bill directs the IOUs each to submit a GTSR Program plan to the CPUC. The bill requires the CPUC, by July 1, 2014, to issue a decision to approve each of the plans if it determines the plan is reasonable and meets the bill’s declarations and statements of intent. The bill also gives the CPUC the power to modify the IOUs’ GTSR Program plans.
CPUC Proposes GTSR Program Plan Decision – Limits Contracts to One Year. On January 29 of this year, the CPUC released a decision to approve the GTSR Program plans.1 The CPUC decision, in interpreting the bill, understands the bill to require implementation of two, distinct programs: (a) a green tariff (Green Tariff) option, in which customers may purchase energy with a greater share of renewables, and (b) an enhanced community renewables (ECR) option, which allows customers to purchase renewable energy from community-based projects.
Among the decision’s provisions was a discussion of customer subscription terms for both components of the GTSR Program. As described in the decision, the IOUs had submitted plans that offered various subscription terms. SDG&E had proposed that customers be able to participate with a one-year minimum commitment or with long-term commitments of two, three, five or 10 years. PG&E proposed customers commit to a one-year contract, moving to month-to-month participation thereafter. SCE, in contrast, proposed month-to-month participation.
The CPUC’s proposed decision, in discussing the IOUs’ proposals, declared a number of benefits to one-year GTSR Program contracts. First, the CPUC opined, one-year contracts provide the IOUs some certainty around program participation in the coming year. Second, the CPUC continued, a one-year commitment was long enough to allow participants to test the program without being locked in to the program for a longer duration.
The proposed decisions also offered a number of drawbacks to longer-term contracts, such as those proposed by SDG&E, calling such contract terms “not viable.” As support for its position, CPUC noted that program rates would automatically adjust to match changes in commodity prices; therefore, long-term contracts provided no value as a hedge against future cost increases.
In the end, the proposed decision requires GTSR Program (both Green Tariff and ECR) subscription terms of one year.
Bill Requires Terms, and Predictable Credits, for Up to Twenty Years. As described above, this bill requires the IOUs to offer GTSR Program subscription of 20 years duration. The bill also requires the subscriber to receive a predictable bill credit and bill charge for a period of up to 20 years.
SB 43 requires customers participating in the GTSR Program to receive bill credits, in large part, for the generation of a participating eligible renewable energy resource using the class average retail generation cost.2 This means that the credit is based upon the market prices of electricity, natural gas and other factors of generation. The market prices of such factors change frequently. Therefore, it is likely impossible to square the requirements with the bill – predictable bill credit and bill charge for a period of up to 20 years – with existing law.
What’s more, were the IOUs to implement the provisions of this bill, despite its inconsistency with existing law, it is likely implementation would result in costs to nonparticipating ratepayers, again contrary to existing law. This is because, should retail price factors increase, the terms of the GTRS subscription required by this bill would prevent the bill credit from reflecting the price change. In effect, should such a situation come to pass, nonparticipating ratepayers would shoulder the costs of program participants. To avoid such a cost shift, the author and committee may wish to amend the bill to remove the requirement that a program participant receive a predictable bill credit and bill charge for a period of up to 20 years; instead the bill would require a reasonably estimated bill credit and bill charge, as determined by the CPUC, for a period of up to 20 years.
Over So Soon? The bill also deletes the program sunset of January 1, 2019. The sunset would end the statutory requirement that the IOUs offer the GTSR Program to customers.
It is not clear what has changed since passage, in 2013, of SB 43, which includes the sunset. In any case, the CPUC would be free to continue the GTSR Program, even with the sunset in statute. The sunset would allow also for an evaluation of the program, which the CPUC could continue if successful and still needed, or modify if warranted. Or, the Legislature could pass new legislation extending the program, should it wish.
Prior/Related Legislation
SB 43 (Wolk, Chapter 88, Statutes of 2013) requires the IOUs to offer the GTSR Program to ratepayers.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT:
Borrego Solar
California Environmental Justice Alliance
California Solar Energy Industries Association
Environmental Defense Fund
Large-Scale Solar Association, if amended
Sierra Club California
Solar Energy Industries Association, if amended
Vote Solar
CONCERN:
Pacific Gas and Electric Company
OPPOSITION:
Office of Ratepayer Advocates, unless amended
Southern California Edison
The Utility Reform Network, unless amended
ARGUMENTS IN SUPPORT: The author and proponents contend the bill removes a barrier to participation in the GTSR Program by allowing longer-term contracts and providing predictable stable rates to those participating in it.
ARGUMENTS IN OPPOSITION: Opponents argue that the bill would result in a cost shift to ratepayers who do not participate in the program. SCE also objects that the bill inappropriately prevents the CPUC from completing its work on implementing the GTSR Program, in which the agency will resolve the question of subscription terms.
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1 A.12-01-008 et al (http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M145/K819/145819809.PDF).
2 Public Utilities Code Section 2833(k).
Discussed in Hearing
2MIN
Senate Floor
1MIN
Assembly Floor
8MIN
Assembly Standing Committee on Utilities and Commerce
2MIN
Senate Floor
3MIN
Senate Standing Committee on Appropriations
9MIN
Senate Standing Committee on Energy, Utilities and Communications
Bill Author
Bill Co-Author(s):
