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Bill Text SB43 Shared renewable energy selfgeneration program.

SB43Sharedrenewableenergyselfgenerationprogram.

(20132014)

CALIFORNIA LEGISLATURE 20132014 REGULAR SESSION

SENATEBILL

No.43

IntroducedbySenatorWolk (Coauthor(s):SenatorCorbett,Pavley) (Coauthor(s):AssemblyMemberLevine,Skinner)

December11,2012

Anactrelatingtoenergy.

LEGISLATIVE COUNSEL'S DIGEST

SB43,asintroduced,Wolk.Sharedrenewableenergyselfgenerationprogram. Under existing law, the Public Utilities Commission has regulatory jurisdiction over public utilities, including electrical corporations, as defined. Existing law authorizes the commission to fix the rates and charges for everypublicutility,andrequiresthatthoseratesandchargesbejustandreasonable.Underexistinglaw,the local government renewable energy selfgeneration program authorizes a local government, as defined, to receiveabillcredit,asdefined,tobeappliedtoadesignatedbenefitingaccountforelectricityexportedtothe electricalgridbyaneligiblerenewablegeneratingfacility,asdefined,andrequiresthecommissiontoadopta ratetariffforthebenefittingaccount. This bill would state various findings and declarations, and state the intent of the Legislature to enact legislation,relatingtoasharedrenewableenergyselfgenerationprogram. Vote:majorityAppropriation:noFiscalCommittee:noLocalProgram:no

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION1.TheLegislaturefindsanddeclaresasfollows:
(a)ThecreationofrenewableenergywithinCaliforniaprovidessignificantfinancial,health,environmental,and workforcebenefitstothestateofCalifornia. (b) The California Solar Initiative has been extremely successful, resulting in over 100,000 residential and commercialonsiteinstallationsofsolarenergysystems.However,itcannotreachallresidentsandbusinesses thatwanttoparticipate.ItistheintentoftheLegislaturetoenactlegislationthatwouldbuildonthesuccessof theCaliforniaSolarInitiativebydramaticallyexpandingthemarketforrenewableenergyresourcestoinclude allratepayerswhoarecurrentlyunabletoaccessthebenefitsofonsitegeneration.
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Bill Text SB43 Shared renewable energy selfgeneration program.

(c)TheGovernorhasproposedtheCleanEnergyJobsPlancallingforthedevelopmentof12,000megawatts of generation from distributed eligible renewable energy resources of up to 20 megawatts in size by 2020. Thereiswidespreadinterestfrommanylargeinstitutionalcustomers,includingschools,colleges,universities, localgovernments,businesses,andthemilitary,fordevelopmentofdistributedgenerationfacilitiestoserve their energy needs. For these reasons, the Legislature agrees that the Governors Clean Energy Jobs Plan representsadesiredpolicydirectionforthestate.ItistheintentoftheLegislaturethatdistributedgeneration that comes online as part of a shared renewable energy selfgeneration program is counted toward an electricalcorporationseffortstoimplementtheGovernorsCleanEnergyJobsPlan. (d)Properlydesignedsharedrenewableenergyprogramscanprovideaccessandcostsavingstocommunities thathaveunderparticipatedpreviously,suchaslowandmoderateincomeresidentsandrenters,whilenot shiftingcoststononbeneficiaries. (e)Whilemunicipalutilitiesalreadyhavetheauthoritytocreatetheirownsharedrenewableenergyprograms, onlyanactoftheLegislaturecanempowerthevastmajorityofCaliforniaresidentstobeabletocreatethe significant systemic benefits of shared renewable energy systems, including, but not limited to, avoided transmissionanddistributionupgrades,avoidedlineloss,andcleanerairandwater. (f)Publicinstitutionsneedtheflexibilityandopportunitytoparticipateinsharedrenewableenergyfacilitiesto generateelectricity.Electricityusageisoneofthemostsignificantcostpressuresfacingpublicinstitutionsata timewhentheyhavebeenforcedtocutessentialprograms,increaseclassroomsizes,andsendpinkslipsto teachers throughout the state. Schools may use the savings for restoring funds for salaries, student achievement,facilitymaintenance,andotherbudgetaryneeds. (g) Shared renewable energy selfgeneration creates jobs, reduces emissions of greenhouse gases, and promotes energy independence. Further, shared renewable energy selfgeneration will enable schools, colleges,universities,localgovernments,businesses,andconsumerstosavemoneyontheirelectricitybills, therebyhelpingtofundeducationalprograms,spurinvestments,andstrengthenourcommunities. (h)ManylargeenergyusersinCaliforniahavepursuedrenewableenergyprogramsoftheirown,butcannot maketheirgoalsduetoseismicorlandspacelimitations,orsizelimitsonnetmetering.Itistheintentofthe Legislaturetoenactlegislationthatwillcreateamechanismwherebyinstitutionalcustomers,includingmilitary installations, universities, and local governments, as well as groups of individuals, can efficiently invest in generatingelectricityfromeligiblerenewableenergyresources. (i)Therefore,itistheintentoftheLegislaturetoenactlegislationestablishingasharedrenewableenergyself generation program that will be implemented in such a manner as to broaden access to selfgeneration of renewableenergy,whilefairlycompensatingelectricalcorporationsfortheservicestheyprovide. (j)ItistheintentoftheLegislaturetoenactlegislationthatwouldrequirethePublicUtilitiesCommissionto carefully consider regulatory barriers to distributed generation projects already identified and those not yet identifiedandquicklyaddressthosebarriersinamannerthatisconducivetothedevelopmentofdistributed generationprojectsconsistentwithappropriateratepayerprotections. (k)ItistheintentoftheLegislaturetoenactlegislationthatwouldrequirethecommissiontominimizethe rate impact of a shared renewable energy selfgeneration program on nonbeneficiaries, with a goal of ratepayer indifference. To the extent that a program would impose incremental increases in rates, it is the intent that the commission ensure that the cost increases are equitably allocated to all customers on a nonbypassablebasisreflectingboththecostsandbenefitsthatsharedrenewableenergyfacilitiesprovideto theresidentsofCalifornia.

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