Vetoed by Governor Gavin Newsom

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that amends solar energy tax credits and restores the ability for utility customers with on-site solar generation to be credited for self-consuming that electricity in the same way as single family homeowners, even when the solar generation and electricity consumption are split between separate meters on the same property in California.

Highlights:

• Establishes the creation of a standard contract or tariff by commissions, that may include net energy metering, for customers with renewable energy facilities who use a larger electrical corporation by December 31, 2015. Large electrical corporations must create a standard contract or tariff by July 1, 2017. Authorizes commission to revise contracts to fit section objectives. When developing a standard contract, the commission should do the following (Sec. 1): 

• A contract ensures sustainable growth and specifies alternatives that cause growth among residential customers in disadvantaged communities; 

• Specify terms of service and billing; 

• Creation of contracts to be based on the cost and benefits of the renewable electrical generation facility; 

• The benefits of the contract are equal to the costs; 

• Authorize construction of projects greater than one megawatt that does not significantly impact the power grid that they require if they follow charges set by other rules and requirements; 

• Customer charges by commissions are set during rulemaking proceedings. Fixed charges that differ from established charges by subdivision e of Section 739.9 are authorized only in rulemaking proceedings involving all corporations. The Commission should ensure rates are just and reasonable.  

• Requires all customers to follow the standard contract, unless specified by the commission due to capacity limitations, by July 1, 2017, prohibits limitation of eligible customers of new standard contract after date, and authorizes eligible customers who received service under net energy metering standard contract to switch to the new standard if they can not receive service (Sec. 1).  

• Requires commissions that serve multiple customers to ensure standard contracts meet the following (Sec. 1):

• An account’s portion generation be subtracted from its consumption every 15 minutes for billing; 

• Customers will be compensated at least for avoided cost that exceeds consumption; and 

• Customers will be subject to any non-bypassable charges, flat rates, or minimum bills specified within the customer’s applicable rates.

• Exempt customers are eligible for the Multifamily Affordable Solar Housing program and the Solar on Multifamily Affordable Housing program (Sec. 1). 

• Specifies subdivision’s applicability to a contract entered on or after November 1, 2023 (Sec. 1). 

• Requires the commission to ensure that any contract that services multiple meters of a single customer on a public school property or set of contiguous public school properties owned, leased, or rented by the public school customer, meets the following criteria (Sec. 1): 

• Requires customer to determine the percentage of total generation to be appropriate to each meter of a set of properties serving the public school; 

• Requires a portion of generation to be subtracted from consumption every 15 minutes for billing;

• Establishes only public schools as eligible customers; and 

• Customers will be subject to any non-bypassable charges, flat rates, or minimum bills specified within the customer’s applicable rates.

• Establishes public school as a school operated by a school district, county office of education, a charter school, or a community college (Sec. 1) 

• Specifies subdivision’s applicability to a contract entered on or after November 1, 2023. 

• Requires commission’s contracts following Decision Addressing Remaining Proceeding Issues  (Decision 23-11-068) by Judy 1, 2026, meet the following criteria (Sec. 1):

• Requires the commission to set criteria for determining sufficiently close proximity between meters and renewable electrical generation facilities to be considered onsite operations.

• Requires the commission to set criteria that allow account-level netting while ensuring a limited amount of involvement of utility infrastructure when delivering electricity; and 

• Establishes meters on public school campuses or apartment building(s) on a single property to be eligible for tariffs unless prohibited otherwise. 

• Customers will be subject to any non-bypassable charges, flat rates, or minimum bills specified within the customer’s applicable rates (Sec. 1).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that amends solar energy tax credits and restores the ability for utility customers with on-site solar generation to be credited for self-consuming that electricity in the same way as single family homeowners, even when the solar generation and electricity consumption are split between separate meters on the same property in California.

Highlights:

• Establishes the creation of a standard contract or tariff by commissions, that may include net energy metering, for customers with renewable energy facilities who use a larger electrical corporation by December 31, 2015. Large electrical corporations must create a standard contract or tariff by July 1, 2017. Authorizes commission to revise contracts to fit section objectives. When developing a standard contract, the commission should do the following (Sec. 1): 

• A contract ensures sustainable growth and specifies alternatives that cause growth among residential customers in disadvantaged communities; 

• Specify terms of service and billing; 

• Creation of contracts to be based on the cost and benefits of the renewable electrical generation facility; 

• The benefits of the contract are equal to the costs; 

• Authorize construction of projects greater than one megawatt that does not significantly impact the power grid that they require if they follow charges set by other rules and requirements; 

• Customer charges by commissions are set during rulemaking proceedings. Fixed charges that differ from established charges by subdivision e of Section 739.9 are authorized only in rulemaking proceedings involving all corporations. The Commission should ensure rates are just and reasonable.  

• Requires all customers to follow the standard contract, unless specified by the commission due to capacity limitations, by July 1, 2017, prohibits limitation of eligible customers of new standard contract after date, and authorizes eligible customers who received service under net energy metering standard contract to switch to the new standard if they can not receive service (Sec. 1).  

• Requires commissions that serve multiple customers to ensure standard contracts meet the following (Sec. 1):

• An account’s portion generation be subtracted from its consumption every 15 minutes for billing; 

• Customers will be compensated at least for avoided cost that exceeds consumption; and 

• Customers will be subject to any non-bypassable charges, flat rates, or minimum bills specified within the customer’s applicable rates.

• Exempt customers are eligible for the Multifamily Affordable Solar Housing program and the Solar on Multifamily Affordable Housing program (Sec. 1). 

• Specifies subdivision’s applicability to a contract entered on or after November 1, 2023 (Sec. 1). 

• Requires the commission to ensure that any contract that services multiple meters of a single customer on a public school property or set of contiguous public school properties owned, leased, or rented by the public school customer, meets the following criteria (Sec. 1): 

• Requires customer to determine the percentage of total generation to be appropriate to each meter of a set of properties serving the public school; 

• Requires a portion of generation to be subtracted from consumption every 15 minutes for billing;

• Establishes only public schools as eligible customers; and 

• Customers will be subject to any non-bypassable charges, flat rates, or minimum bills specified within the customer’s applicable rates.

• Establishes public school as a school operated by a school district, county office of education, a charter school, or a community college (Sec. 1) 

• Specifies subdivision’s applicability to a contract entered on or after November 1, 2023. 

• Requires commission’s contracts following Decision Addressing Remaining Proceeding Issues  (Decision 23-11-068) by Judy 1, 2026, meet the following criteria (Sec. 1):

• Requires the commission to set criteria for determining sufficiently close proximity between meters and renewable electrical generation facilities to be considered onsite operations.

• Requires the commission to set criteria that allow account-level netting while ensuring a limited amount of involvement of utility infrastructure when delivering electricity; and 

• Establishes meters on public school campuses or apartment building(s) on a single property to be eligible for tariffs unless prohibited otherwise. 

• Customers will be subject to any non-bypassable charges, flat rates, or minimum bills specified within the customer’s applicable rates (Sec. 1).

Full Bill Text