SB 700: Self-generation incentive program.

Existing law requires the Public Utilities Commission (PUC) to open a proceeding to determine appropriate targets, if any, for each load-serving entity, as defined, to procure viable and cost-effective energy storage systems to be achieved by December 31, 2015, and December 31, 2020. If determined to be appropriate, the commission is required to adopt the procurement targets, by October 1, 2013, and to reevaluate the determinations not less than once every 3 years. Existing law excludes an electrical corporation that has 60,000 or fewer customer accounts within California from these requirements.

In response to a requirement to adopt initiatives on or before March 7, 2001, to reduce demand for electricity and reduce load during peak demand periods, including differential incentives for renewable or super clean distributed generation resources, the PUC adopted decisions establishing a self-generation incentive program. Existing law authorizes the PUC to authorize the annual collection of not more than double the amount authorized for the self-generation incentive program in the 2008 calendar year, through December 31, 2019. Existing law requires the PUC to require electrical corporations to administer the program for distributed energy resources established pursuant to the above-described law until January 1, 2021, and to separately administer solar technologies pursuant to the California Solar Initiative. Existing law requires the PUC to provide repayment of all unallocated funds collected for the self-generation incentive program on January 1, 2021, to reduce ratepayer costs. Existing law requires the PUC, on or before July 1, 2015, to update the factor for avoided emissions of greenhouse gases, as provided, to determine eligibility for participation in the program.

This bill would extend the collection for the self-generation incentive program to December 31, 2024, and the administration of the program to January 1, 2026. The bill would require the commission to adopt requirements for energy storage systems to ensure that eligible energy storage systems reduce the emissions of greenhouse gases. The bill would specify that generation technologies using nonrenewable fuels are not eligible for incentives under the program on and after January 1, 2020.

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

Because a violation of an order or decision of the commission implementing the requirements of this bill 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.