SB 366: Electrical corporations: Green Tariff Shared Renewables Program.

Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations. The Green Tariff Shared Renewables Program requires an electrical corporation with 100,000 or more customers in California to file with the PUC an application requesting approval of a tariff to implement a program enabling ratepayers to participate directly in offsite electrical generation facilities that use eligible renewable energy resources, consistent with certain legislative findings and statements of intent. Existing law requires the PUC, by July 1, 2014, to issue a decision to approve or disapprove the utilitys application, with or without modifications. Existing law requires the PUC, after notice and opportunity for public comment, to approve the application if the PUC determines that the proposed program is reasonable and consistent with the legislative findings and statements of intent and directs the commission to require that a utilitys Green Tariff Shared Renewables Program be administered in accordance with specified provisions. An electrical corporation is not required to offer the program once the nameplate rated generating capacity serving customers participating in the program reaches the utilitys proportionate share of a statewide limitation of 600 megawatts. Of this amount, 100 megawatts are reserved for facilities that are no larger than one megawatt nameplate rated generating capacity and that are located in areas that the California Environmental Protection Agency has identified pursuant to law as the 20% most impacted and disadvantaged communities, 100 megawatts are reserved for participation by residential class customers, and 20 megawatts are reserved for the City of Davis.

This bill would require the PUC to increase the 600-megawatt statewide minimum limitation up to 800 megawatts, to the extent necessary to accommodate participation by low-income customers and projects located in disadvantaged communities, as specified. The bill would provide, for the 100 megawatts reserved for the 20% most impacted and disadvantaged communities, that the 100 megawatts would instead be reserved for the 25% most impacted and disadvantaged communities, and would authorize the PUC to increase this minimum reserved for the most impacted and disadvantaged communities from 100 megawatts up to 300 megawatts. The bill would require, for the program generation not reserved for the most impacted and disadvantaged communities, residential class customers, and the City of Davis, that preference be given to projects located in disadvantaged communities identified by the agency.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. That act requires the state board to adopt a statewide greenhouse gas emissions limit, as defined, to be achieved by 2020, equivalent to the statewide greenhouse gas emissions level in 1990. The state board is authorized to include in its implementation of the act the use of market-based compliance mechanisms. The implementing regulations adopted by the state board provide for the direct allocation of greenhouse gas allowances to electrical corporations pursuant to a market-based compliance mechanism. Existing law authorizes the PUC to allocate 15% of the revenues from the sale of these allowances for clean energy and energy efficiency projects established pursuant to statute that are administered by electrical corporations or 3rd-party administrators and requires the PUC to direct the balance of the revenues to be credited directly to the residential, small business, and emissions-intensive trade-exposed retail customers of the electrical corporations, as specified. Existing law requires the PUC to annually authorize the allocation of $100,000,000 or 10%, whichever is less, beginning with the fiscal year commencing July 1, 2016, and ending with the fiscal year ending June 30, 2020, from the greenhouse gas allowance revenues received by electrical corporations set aside for clean energy and energy efficiency projects for the Multifamily Affordable Housing Solar Roofs Program.

This bill would require the PUC to implement, by January 1, 2019, the Renewable Energy for All program to pay any net costs associated with subscriptions by participating low-income customers under the Green Tariff Shared Renewables Program for generating facilities built pursuant to the 100 megawatts set aside for the most impacted and disadvantaged communities and projects given priority pursuant to this bill because they are located within disadvantaged communities. The bill would require that, beginning with the 201819 fiscal year and ending with the 201920 fiscal year, any moneys remaining of the 15% available for clean energy and energy efficiency projects from the sale of greenhouse gas allowances by electrical corporations not allocated to the Multifamily Affordable Housing Solar Roofs Program be allocated to the Renewable Energy for All program. The bill would authorize the PUC to allocate additional moneys to the Renewable Energy for All program if it makes specified findings. The bill would require the PUC to allocate moneys from the Renewable Energy for All program to community-based and nonprofit organizations to conduct marketing, education, and outreach to customers, with emphasis on increasing participation of low-income customers.

Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.

Because the bill requires action by the PUC to implement its requirements, and a violation of the PUCs rule or order would be a crime, the bill would impose a state-mandated local program by creating a new 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.