State Codes and Statutes

Statutes > California > Puc > 385-387.8

PUBLIC UTILITIES CODE
SECTION 385-387.8



385.  (a) Each local publicly owned electric utility shall establish
a nonbypassable, usage based charge on local distribution service of
not less than the lowest expenditure level of the three largest
electrical corporations in California on a percent of revenue basis,
calculated from each utility's total revenue requirement for the year
ended December 31, 1994, and each utility's total annual expenditure
under paragraphs (1), (2), and (3) of subdivision (c) of Section 381
and Section 382, to fund investments by the utility and other
parties in any or all of the following:
   (1) Cost-effective demand-side management services to promote
energy efficiency and energy conservation.
   (2) New investment in renewable energy resources and technologies
consistent with existing statutes and regulations which promote those
resources and technologies.
   (3) Research, development and demonstration programs for the
public interest to advance science or technology which is not
adequately provided by competitive and regulated markets.
   (4) Services provided for low-income electricity customers,
including, but not limited to, energy efficiency services, education,
weatherization, and rate discounts.
   (b) Each local publicly owned electric utility that has not
implemented programs for low-income electricity customers including
targeted energy efficiency services and rate discounts based upon the
income level of the customer, or completed an assessment of need for
those programs, on or before December 31, 2000, shall perform a
needs assessment for the programs described in paragraph (4) of
subdivision (a) and shall hold one or more public meetings, after
notice, to review the findings of the needs assessment. Following the
public meetings, the governing body of the local publicly owned
electric utility shall determine the amount of the total funds
collected pursuant to this section to be allocated to low-income
programs, including, but not limited to, targeted energy efficiency
services, education, weatherization, and rate discounts. In making
its decision on the need for the programs, the governing body shall
consider all of the following:
   (1) The number and income level of low-income customers that
reside in the service area of the utility.
   (2) The availability of home weatherization services to low-income
customers pursuant to Section 2790.
   (3) The availability of in-home energy efficiency education in the
utility's service area.
   (4) Other factors that may indicate a need for low-income
services.
   (c) Following a determination pursuant to subdivision (b) that
low-income services are needed, the local publicly owned utility
shall promptly implement or expand those programs. The local publicly
owned electric utility shall work with existing weatherization
providers to implement energy efficiency, education, and
weatherization programs.



385.2.  (a) Upon the completion and promulgation of regulations
pursuant to subdivision (a) of Section 25943 of the Public Resources
Code, each governing body of a local publicly owned electric utility,
as defined in Section 224.3, shall be responsible for implementing
an energy efficiency program that recognizes the intent of the
Legislature to encourage energy savings and greenhouse gas emission
reductions in existing residential and nonresidential buildings,
while taking into consideration the effect of the program on rates,
reliability, and financial resources.
   (b) In the report prepared pursuant to Section 9615, each local
publicly owned electric utility shall include both of the following:
   (1) The utility's status in implementing an energy efficiency
program pursuant to subdivision (a) and the utility's progress toward
attaining the goal of the program.
   (2) The net energy savings from energy efficiency improvements
installed pursuant to this section.



386.  (a) Each local publicly owned electric utility shall ensure
the following:
   (1) Low-income families within the utility's service territory
have access to affordable electricity.
   (2) The current level of assistance reflects the level of need.
   (3) Low-income families are afforded no-cost and low-cost energy
efficiency measures that reduce energy consumption.
   (b) The local publicly owned electric utility shall consider
increasing the level of the discount or raising the eligibility level
for any existing rate assistance program to be reflective of
customer need.
   (c) A publicly owned electric utility shall streamline enrollment
for low-income programs by collaborating with existing providers for
the Low-Income Home Energy Assistance Program (LIHEAP) and other
electric or gas providers within the same service territory.
   (d) A local publicly owned electric utility shall establish
participation goals for its rate assistance program participation.




387.  (a) Each governing body of a local publicly owned electric
utility shall be responsible for implementing and enforcing a
renewables portfolio standard that recognizes the intent of the
Legislature to encourage renewable resources, while taking into
consideration the effect of the standard on rates, reliability, and
financial resources and the goal of environmental improvement.
   (b) Each local publicly owned electric utility shall report, on an
annual basis, to its customers and to the State Energy Resources
Conservation and Development Commission, the following:
   (1) Expenditures of public goods funds collected pursuant to
Section 385 for eligible renewable energy resource development.
Reports shall contain a description of programs, expenditures, and
expected or actual results.
   (2) The resource mix used to serve its customers by fuel type.
Reports shall contain the contribution of each type of renewable
energy resource with separate categories for those fuels that are
eligible renewable energy resources as defined in Section 399.12,
except that the electricity is delivered to the local publicly owned
electric utility and not a retail seller. Electricity shall be
reported as having been delivered to the local publicly owned
electric utility from an eligible renewable energy resource when the
electricity would qualify for compliance with the renewables
portfolio standard if it were delivered to a retail seller.
   (3) The utility's status in implementing a renewables portfolio
standard pursuant to subdivision (a) and the utility's progress
toward attaining the standard following implementation.



387.5.  (a) In order to further the state goal of encouraging the
installation of 3,000 megawatts of photovoltaic solar energy in
California within 10 years, the governing body of a local publicly
owned electric utility that sells electricity at retail, shall adopt,
implement, and finance a solar initiative program, funded in
accordance with subdivision (b), for the purpose of investing in, and
encouraging the increased installation of, residential and
commercial solar energy systems.
   (b) On or before January 1, 2008, a local publicly owned electric
utility shall offer monetary incentives for the installation of solar
energy systems of at least two dollars and eighty cents ($2.80) per
installed watt, or for the electricity produced by the solar energy
system, measured in kilowatthours, as determined by the governing
board of a local publicly owned electric utility, for photovoltaic
solar energy systems. The incentive level shall decline each year
thereafter at a rate of no less than an average of 7 percent per
year.
   (c) A local publicly owned electric utility shall initiate a
public proceeding to fund a solar energy program to adequately
support the goal of installing 3,000 megawatts of photovoltaic solar
energy in California. The proceeding shall determine what additional
funding, if any, is necessary to provide the incentives pursuant to
subdivision (b). The public proceeding shall be completed and the
comprehensive solar energy program established by January 1, 2008.
   (d) The solar energy program of a local publicly owned electric
utility shall be consistent with all of the following:
   (1) That a solar energy system receiving monetary incentives
comply with the eligibility criteria, design, installation, and
electrical output standards or incentives established by the State
Energy Resources Conservation and Development Commission pursuant to
Section 25782 of the Public Resources Code.
   (2) That solar energy systems receiving monetary incentives are
intended primarily to offset part or all of the consumer's own
electricity demand.
   (3) That all components in the solar energy system are new and
unused, and have not previously been placed in service in any other
location or for any other application.
   (4) That the solar energy system has a warranty of not less than
10 years to protect against defects and undue degradation of
electrical generation output.
   (5) That the solar energy system be located on the same premises
of the end-use consumer where the consumer's own electricity demand
is located.
   (6) That the solar energy system be connected to the electric
utility's electrical distribution system within the state.
   (7) That the solar energy system has meters or other devices in
place to monitor and measure the system's performance and the
quantity of electricity generated by the system.
   (8) That the solar energy system be installed in conformance with
the manufacturer's specifications and in compliance with all
applicable electrical and building code standards.
   (e) A local publicly owned electric utility shall, on an annual
basis beginning June 1, 2008, make available to its customers, to the
Legislature, and to the State Energy Resources Conservation and
Development Commission, information relating to the utility's solar
initiative program established pursuant to this section, including,
but not limited to, the number of photovoltaic solar watts installed,
the total number of photovoltaic systems installed, the total number
of applicants, the amount of incentives awarded, and the
contribution toward the program goals.
   (f) In establishing the program required by this section, no
moneys shall be diverted from any existing programs for low-income
ratepayers, or from cost-effective energy efficiency or demand
response programs.
   (g) The statewide expenditures for solar programs adopted,
implemented, and financed by local publicly owned electric utilities
shall be seven hundred eighty-four million dollars ($784,000,000).
The expenditure level for each local publicly owned electric utility
shall be based on that utility's percentage of the total statewide
load served by all local publicly owned electric utilities.
Expenditures by a local publicly owned electric utility may be less
than the utility's cap amount, provided that funding is adequate to
provide the incentives required by subdivisions (a) and (b).




387.6.  (a) It is the policy of the state and the intent of the
Legislature to encourage electrical generation from eligible
renewable energy resources.
   (b) As used in this section, "electric generation facility" means
an electric generation facility located within the service territory
of, and developed to sell electricity to, a local publicly owned
electric utility, and that meets all of the following criteria:
   (1) Has an effective capacity of not more than three megawatts.
   (2) Is interconnected and operates in parallel with the electrical
transmission and distribution grid.
   (3) Is strategically located and interconnected to the electrical
transmission and distribution grid in a manner that optimizes the
deliverability of electricity generated at the facility to load
centers.
   (4) Is an eligible renewable energy resource pursuant to Article
16 (commencing with Section 399.11).
   (c) A local publicly owned electric utility that sells electricity
at retail to 75,000 or more customers shall adopt a standard tariff
for electricity purchased from an electric generation facility.
   (d) The governing board of the local publicly owned electric
utility shall ensure that the tariff adopted pursuant to subdivision
(c) reflects the value of every kilowatthour of electricity generated
on a time-of-delivery basis. The governing board may adjust this
value based on the other attributes of renewable generation. The
governing board shall ensure, with respect to rates and charges, that
ratepayers that do not receive service pursuant to the tariff are
indifferent to whether a ratepayer with an electric generation
facility receives service pursuant to the tariff.
   (e) A local publicly owned electric utility that sells electricity
at retail to 75,000 or more customers shall make the tariff
available to the owner or operator of an electric generation facility
within the service territory of the utility, upon request, on a
first-come-first-served basis, until the utility meets its
proportionate share of a statewide cap of 750 megawatts cumulative
rated generation capacity served under this section and Section
399.20. The proportionate share shall be calculated based on the
ratio of the utility's peak demand compared to the total statewide
peak demand.
   (f) The local publicly owned electric utility may make the terms
of the tariff available to owners and operators of an electric
generation facility in the form of a standard contract.
   (g) Every kilowatthour of electricity purchased from an electric
generation facility shall count toward meeting the local publicly
owned electric utility's renewables portfolio standard annual
procurement targets for purposes of Section 387.
   (h) (1) A local publicly owned electric utility may establish
performance standards for any electric generation facility that has a
capacity greater than one megawatt to ensure that those facilities
are constructed, operated, and maintained to generate the expected
annual net production of electricity and do not impact system
reliability.
   (2) A local publicly owned electric utility may reduce the three
megawatt capacity limitation of paragraph (1) of subdivision (b) if
the utility finds that a reduced capacity limitation is necessary.
   (i) Within 10 days of receipt of a request for a tariff pursuant
to this section from an owner or operator of an electric generation
facility, the local publicly owned electric utility that receives the
request shall post a copy of the request on its Internet Web site.
The information posted on the Internet Web site shall include the
name of the city in which the facility is located, but information
that is proprietary and confidential, including, but not limited to,
address information beyond the name of the city in which the facility
is located, shall be redacted.
   (j) A local publicly owned electric utility may deny a tariff
request pursuant to this section if the local publicly owned electric
utility makes any of the following findings:
   (1) The electric generation facility does not meet the
requirements of this section.
   (2) The transmission or distribution grid that would serve as the
point of interconnection is inadequate.
   (3) The electric generation facility does not meet all applicable
state and local laws and building standards, and utility
interconnection requirements.
   (4) The aggregate of all electric generating facilities on a
distribution circuit would adversely impact utility operation and
load restoration efforts of the distribution system.
   (k) Upon receiving a notice of denial from a local publicly owned
electric utility, the owner or operator of the electric generation
facility denied a tariff pursuant to this section shall have the
right to appeal that decision to the governing board of the local
publicly owned electric utility.
   (l) In order to ensure the safety and reliability of electric
generation facilities, the owner of an electric generation facility
receiving a tariff pursuant to this section shall provide an
inspection and maintenance report to the local publicly owned
electric utility at least once every other year. The inspection and
maintenance report shall be prepared at the owner's or operator's
expense by a California licensed contractor who is not the owner or
operator of the electric generation facility. A California licensed
electrician shall perform the inspection of the electrical portion of
the generation facility.
   (m) The contract between the electric generation facility
receiving the tariff and the local publicly owned electric utility
shall contain provisions that ensure that construction of the
electric generating facility complies with all applicable state and
local laws and building standards, and utility interconnection
requirements.
   (n) (1) All construction and installation of facilities of the
local publicly owned electric utility, including at the point of the
output meter or at the transmission or distribution grid, shall only
be performed by that local publicly owned electric utility.
   (2) All interconnection facilities installed on the local publicly
owned electric utility's side of the transfer point for electricity
between the local publicly owned electric utility and the electrical
conductors of the electric generation facility shall be owned,
operated, and maintained only by the local publicly owned electric
utility. The ownership, installation, operation, reading, and testing
of revenue metering equipment for electric generating facilities
shall only be performed by the local publicly owned electric utility.



387.8.  Notwithstanding paragraphs (2) and (5) of subdivision (d) of
Section 387.5, a local publicly owned electric utility may adopt,
implement, and finance a solar initiative program otherwise in
accordance with that section, using monetary incentives authorized by
subdivision (b) of Section 387.5, to residential and business
consumers where consumers offset part or all of their electricity
demand with electricity generated by a solar energy system not
located on the premises of the consumer, if all of the following
requirements are met:
   (a) The solar energy system meets all of the following conditions:
   (1) It is located within the service territory of the local
publicly owned electric utility.
   (2) It has a capacity of no more than five megawatts.
   (3) It is interconnected to the local publicly owned electric
utility's system at the distribution level.
   (b) The local publicly owned electric utility meets all of the
following conditions:
   (1) It provides monetary incentives authorized by Section 387.5
for not more than the first megawatt of generating capacity of each
solar energy system.
   (2) It has contracted to purchase the total electricity produced
by the solar energy system or owns the solar energy system.
   (3) It provides no greater incentive per watt for the solar energy
system than provided for by systems that participate in the
applicable solar initiative program established under Section 387.5.
   (4) It has received approval for the solar energy system from its
governing board at a publicly noticed and held meeting.
   (c) The total megawatt capacity of solar energy systems eligible
for a local publicly owned electric utility program under this
section is both of the following:
   (1) Not more than the total megawatt capacity of the combined
residential and commercial solar energy systems installed in the
service area of the local publicly owned electric utility after July
1, 2010, that participate in the applicable solar initiative programs
established under Section 387.5.
   (2) Not more than 20 percent of the proportionate amount for the
local publicly owned electric utility of the overall 3,000 megawatt
state goal set forth in Section 387.5, based on the percentage of the
total statewide load served by that entity.


State Codes and Statutes

Statutes > California > Puc > 385-387.8

PUBLIC UTILITIES CODE
SECTION 385-387.8



385.  (a) Each local publicly owned electric utility shall establish
a nonbypassable, usage based charge on local distribution service of
not less than the lowest expenditure level of the three largest
electrical corporations in California on a percent of revenue basis,
calculated from each utility's total revenue requirement for the year
ended December 31, 1994, and each utility's total annual expenditure
under paragraphs (1), (2), and (3) of subdivision (c) of Section 381
and Section 382, to fund investments by the utility and other
parties in any or all of the following:
   (1) Cost-effective demand-side management services to promote
energy efficiency and energy conservation.
   (2) New investment in renewable energy resources and technologies
consistent with existing statutes and regulations which promote those
resources and technologies.
   (3) Research, development and demonstration programs for the
public interest to advance science or technology which is not
adequately provided by competitive and regulated markets.
   (4) Services provided for low-income electricity customers,
including, but not limited to, energy efficiency services, education,
weatherization, and rate discounts.
   (b) Each local publicly owned electric utility that has not
implemented programs for low-income electricity customers including
targeted energy efficiency services and rate discounts based upon the
income level of the customer, or completed an assessment of need for
those programs, on or before December 31, 2000, shall perform a
needs assessment for the programs described in paragraph (4) of
subdivision (a) and shall hold one or more public meetings, after
notice, to review the findings of the needs assessment. Following the
public meetings, the governing body of the local publicly owned
electric utility shall determine the amount of the total funds
collected pursuant to this section to be allocated to low-income
programs, including, but not limited to, targeted energy efficiency
services, education, weatherization, and rate discounts. In making
its decision on the need for the programs, the governing body shall
consider all of the following:
   (1) The number and income level of low-income customers that
reside in the service area of the utility.
   (2) The availability of home weatherization services to low-income
customers pursuant to Section 2790.
   (3) The availability of in-home energy efficiency education in the
utility's service area.
   (4) Other factors that may indicate a need for low-income
services.
   (c) Following a determination pursuant to subdivision (b) that
low-income services are needed, the local publicly owned utility
shall promptly implement or expand those programs. The local publicly
owned electric utility shall work with existing weatherization
providers to implement energy efficiency, education, and
weatherization programs.



385.2.  (a) Upon the completion and promulgation of regulations
pursuant to subdivision (a) of Section 25943 of the Public Resources
Code, each governing body of a local publicly owned electric utility,
as defined in Section 224.3, shall be responsible for implementing
an energy efficiency program that recognizes the intent of the
Legislature to encourage energy savings and greenhouse gas emission
reductions in existing residential and nonresidential buildings,
while taking into consideration the effect of the program on rates,
reliability, and financial resources.
   (b) In the report prepared pursuant to Section 9615, each local
publicly owned electric utility shall include both of the following:
   (1) The utility's status in implementing an energy efficiency
program pursuant to subdivision (a) and the utility's progress toward
attaining the goal of the program.
   (2) The net energy savings from energy efficiency improvements
installed pursuant to this section.



386.  (a) Each local publicly owned electric utility shall ensure
the following:
   (1) Low-income families within the utility's service territory
have access to affordable electricity.
   (2) The current level of assistance reflects the level of need.
   (3) Low-income families are afforded no-cost and low-cost energy
efficiency measures that reduce energy consumption.
   (b) The local publicly owned electric utility shall consider
increasing the level of the discount or raising the eligibility level
for any existing rate assistance program to be reflective of
customer need.
   (c) A publicly owned electric utility shall streamline enrollment
for low-income programs by collaborating with existing providers for
the Low-Income Home Energy Assistance Program (LIHEAP) and other
electric or gas providers within the same service territory.
   (d) A local publicly owned electric utility shall establish
participation goals for its rate assistance program participation.




387.  (a) Each governing body of a local publicly owned electric
utility shall be responsible for implementing and enforcing a
renewables portfolio standard that recognizes the intent of the
Legislature to encourage renewable resources, while taking into
consideration the effect of the standard on rates, reliability, and
financial resources and the goal of environmental improvement.
   (b) Each local publicly owned electric utility shall report, on an
annual basis, to its customers and to the State Energy Resources
Conservation and Development Commission, the following:
   (1) Expenditures of public goods funds collected pursuant to
Section 385 for eligible renewable energy resource development.
Reports shall contain a description of programs, expenditures, and
expected or actual results.
   (2) The resource mix used to serve its customers by fuel type.
Reports shall contain the contribution of each type of renewable
energy resource with separate categories for those fuels that are
eligible renewable energy resources as defined in Section 399.12,
except that the electricity is delivered to the local publicly owned
electric utility and not a retail seller. Electricity shall be
reported as having been delivered to the local publicly owned
electric utility from an eligible renewable energy resource when the
electricity would qualify for compliance with the renewables
portfolio standard if it were delivered to a retail seller.
   (3) The utility's status in implementing a renewables portfolio
standard pursuant to subdivision (a) and the utility's progress
toward attaining the standard following implementation.



387.5.  (a) In order to further the state goal of encouraging the
installation of 3,000 megawatts of photovoltaic solar energy in
California within 10 years, the governing body of a local publicly
owned electric utility that sells electricity at retail, shall adopt,
implement, and finance a solar initiative program, funded in
accordance with subdivision (b), for the purpose of investing in, and
encouraging the increased installation of, residential and
commercial solar energy systems.
   (b) On or before January 1, 2008, a local publicly owned electric
utility shall offer monetary incentives for the installation of solar
energy systems of at least two dollars and eighty cents ($2.80) per
installed watt, or for the electricity produced by the solar energy
system, measured in kilowatthours, as determined by the governing
board of a local publicly owned electric utility, for photovoltaic
solar energy systems. The incentive level shall decline each year
thereafter at a rate of no less than an average of 7 percent per
year.
   (c) A local publicly owned electric utility shall initiate a
public proceeding to fund a solar energy program to adequately
support the goal of installing 3,000 megawatts of photovoltaic solar
energy in California. The proceeding shall determine what additional
funding, if any, is necessary to provide the incentives pursuant to
subdivision (b). The public proceeding shall be completed and the
comprehensive solar energy program established by January 1, 2008.
   (d) The solar energy program of a local publicly owned electric
utility shall be consistent with all of the following:
   (1) That a solar energy system receiving monetary incentives
comply with the eligibility criteria, design, installation, and
electrical output standards or incentives established by the State
Energy Resources Conservation and Development Commission pursuant to
Section 25782 of the Public Resources Code.
   (2) That solar energy systems receiving monetary incentives are
intended primarily to offset part or all of the consumer's own
electricity demand.
   (3) That all components in the solar energy system are new and
unused, and have not previously been placed in service in any other
location or for any other application.
   (4) That the solar energy system has a warranty of not less than
10 years to protect against defects and undue degradation of
electrical generation output.
   (5) That the solar energy system be located on the same premises
of the end-use consumer where the consumer's own electricity demand
is located.
   (6) That the solar energy system be connected to the electric
utility's electrical distribution system within the state.
   (7) That the solar energy system has meters or other devices in
place to monitor and measure the system's performance and the
quantity of electricity generated by the system.
   (8) That the solar energy system be installed in conformance with
the manufacturer's specifications and in compliance with all
applicable electrical and building code standards.
   (e) A local publicly owned electric utility shall, on an annual
basis beginning June 1, 2008, make available to its customers, to the
Legislature, and to the State Energy Resources Conservation and
Development Commission, information relating to the utility's solar
initiative program established pursuant to this section, including,
but not limited to, the number of photovoltaic solar watts installed,
the total number of photovoltaic systems installed, the total number
of applicants, the amount of incentives awarded, and the
contribution toward the program goals.
   (f) In establishing the program required by this section, no
moneys shall be diverted from any existing programs for low-income
ratepayers, or from cost-effective energy efficiency or demand
response programs.
   (g) The statewide expenditures for solar programs adopted,
implemented, and financed by local publicly owned electric utilities
shall be seven hundred eighty-four million dollars ($784,000,000).
The expenditure level for each local publicly owned electric utility
shall be based on that utility's percentage of the total statewide
load served by all local publicly owned electric utilities.
Expenditures by a local publicly owned electric utility may be less
than the utility's cap amount, provided that funding is adequate to
provide the incentives required by subdivisions (a) and (b).




387.6.  (a) It is the policy of the state and the intent of the
Legislature to encourage electrical generation from eligible
renewable energy resources.
   (b) As used in this section, "electric generation facility" means
an electric generation facility located within the service territory
of, and developed to sell electricity to, a local publicly owned
electric utility, and that meets all of the following criteria:
   (1) Has an effective capacity of not more than three megawatts.
   (2) Is interconnected and operates in parallel with the electrical
transmission and distribution grid.
   (3) Is strategically located and interconnected to the electrical
transmission and distribution grid in a manner that optimizes the
deliverability of electricity generated at the facility to load
centers.
   (4) Is an eligible renewable energy resource pursuant to Article
16 (commencing with Section 399.11).
   (c) A local publicly owned electric utility that sells electricity
at retail to 75,000 or more customers shall adopt a standard tariff
for electricity purchased from an electric generation facility.
   (d) The governing board of the local publicly owned electric
utility shall ensure that the tariff adopted pursuant to subdivision
(c) reflects the value of every kilowatthour of electricity generated
on a time-of-delivery basis. The governing board may adjust this
value based on the other attributes of renewable generation. The
governing board shall ensure, with respect to rates and charges, that
ratepayers that do not receive service pursuant to the tariff are
indifferent to whether a ratepayer with an electric generation
facility receives service pursuant to the tariff.
   (e) A local publicly owned electric utility that sells electricity
at retail to 75,000 or more customers shall make the tariff
available to the owner or operator of an electric generation facility
within the service territory of the utility, upon request, on a
first-come-first-served basis, until the utility meets its
proportionate share of a statewide cap of 750 megawatts cumulative
rated generation capacity served under this section and Section
399.20. The proportionate share shall be calculated based on the
ratio of the utility's peak demand compared to the total statewide
peak demand.
   (f) The local publicly owned electric utility may make the terms
of the tariff available to owners and operators of an electric
generation facility in the form of a standard contract.
   (g) Every kilowatthour of electricity purchased from an electric
generation facility shall count toward meeting the local publicly
owned electric utility's renewables portfolio standard annual
procurement targets for purposes of Section 387.
   (h) (1) A local publicly owned electric utility may establish
performance standards for any electric generation facility that has a
capacity greater than one megawatt to ensure that those facilities
are constructed, operated, and maintained to generate the expected
annual net production of electricity and do not impact system
reliability.
   (2) A local publicly owned electric utility may reduce the three
megawatt capacity limitation of paragraph (1) of subdivision (b) if
the utility finds that a reduced capacity limitation is necessary.
   (i) Within 10 days of receipt of a request for a tariff pursuant
to this section from an owner or operator of an electric generation
facility, the local publicly owned electric utility that receives the
request shall post a copy of the request on its Internet Web site.
The information posted on the Internet Web site shall include the
name of the city in which the facility is located, but information
that is proprietary and confidential, including, but not limited to,
address information beyond the name of the city in which the facility
is located, shall be redacted.
   (j) A local publicly owned electric utility may deny a tariff
request pursuant to this section if the local publicly owned electric
utility makes any of the following findings:
   (1) The electric generation facility does not meet the
requirements of this section.
   (2) The transmission or distribution grid that would serve as the
point of interconnection is inadequate.
   (3) The electric generation facility does not meet all applicable
state and local laws and building standards, and utility
interconnection requirements.
   (4) The aggregate of all electric generating facilities on a
distribution circuit would adversely impact utility operation and
load restoration efforts of the distribution system.
   (k) Upon receiving a notice of denial from a local publicly owned
electric utility, the owner or operator of the electric generation
facility denied a tariff pursuant to this section shall have the
right to appeal that decision to the governing board of the local
publicly owned electric utility.
   (l) In order to ensure the safety and reliability of electric
generation facilities, the owner of an electric generation facility
receiving a tariff pursuant to this section shall provide an
inspection and maintenance report to the local publicly owned
electric utility at least once every other year. The inspection and
maintenance report shall be prepared at the owner's or operator's
expense by a California licensed contractor who is not the owner or
operator of the electric generation facility. A California licensed
electrician shall perform the inspection of the electrical portion of
the generation facility.
   (m) The contract between the electric generation facility
receiving the tariff and the local publicly owned electric utility
shall contain provisions that ensure that construction of the
electric generating facility complies with all applicable state and
local laws and building standards, and utility interconnection
requirements.
   (n) (1) All construction and installation of facilities of the
local publicly owned electric utility, including at the point of the
output meter or at the transmission or distribution grid, shall only
be performed by that local publicly owned electric utility.
   (2) All interconnection facilities installed on the local publicly
owned electric utility's side of the transfer point for electricity
between the local publicly owned electric utility and the electrical
conductors of the electric generation facility shall be owned,
operated, and maintained only by the local publicly owned electric
utility. The ownership, installation, operation, reading, and testing
of revenue metering equipment for electric generating facilities
shall only be performed by the local publicly owned electric utility.



387.8.  Notwithstanding paragraphs (2) and (5) of subdivision (d) of
Section 387.5, a local publicly owned electric utility may adopt,
implement, and finance a solar initiative program otherwise in
accordance with that section, using monetary incentives authorized by
subdivision (b) of Section 387.5, to residential and business
consumers where consumers offset part or all of their electricity
demand with electricity generated by a solar energy system not
located on the premises of the consumer, if all of the following
requirements are met:
   (a) The solar energy system meets all of the following conditions:
   (1) It is located within the service territory of the local
publicly owned electric utility.
   (2) It has a capacity of no more than five megawatts.
   (3) It is interconnected to the local publicly owned electric
utility's system at the distribution level.
   (b) The local publicly owned electric utility meets all of the
following conditions:
   (1) It provides monetary incentives authorized by Section 387.5
for not more than the first megawatt of generating capacity of each
solar energy system.
   (2) It has contracted to purchase the total electricity produced
by the solar energy system or owns the solar energy system.
   (3) It provides no greater incentive per watt for the solar energy
system than provided for by systems that participate in the
applicable solar initiative program established under Section 387.5.
   (4) It has received approval for the solar energy system from its
governing board at a publicly noticed and held meeting.
   (c) The total megawatt capacity of solar energy systems eligible
for a local publicly owned electric utility program under this
section is both of the following:
   (1) Not more than the total megawatt capacity of the combined
residential and commercial solar energy systems installed in the
service area of the local publicly owned electric utility after July
1, 2010, that participate in the applicable solar initiative programs
established under Section 387.5.
   (2) Not more than 20 percent of the proportionate amount for the
local publicly owned electric utility of the overall 3,000 megawatt
state goal set forth in Section 387.5, based on the percentage of the
total statewide load served by that entity.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Puc > 385-387.8

PUBLIC UTILITIES CODE
SECTION 385-387.8



385.  (a) Each local publicly owned electric utility shall establish
a nonbypassable, usage based charge on local distribution service of
not less than the lowest expenditure level of the three largest
electrical corporations in California on a percent of revenue basis,
calculated from each utility's total revenue requirement for the year
ended December 31, 1994, and each utility's total annual expenditure
under paragraphs (1), (2), and (3) of subdivision (c) of Section 381
and Section 382, to fund investments by the utility and other
parties in any or all of the following:
   (1) Cost-effective demand-side management services to promote
energy efficiency and energy conservation.
   (2) New investment in renewable energy resources and technologies
consistent with existing statutes and regulations which promote those
resources and technologies.
   (3) Research, development and demonstration programs for the
public interest to advance science or technology which is not
adequately provided by competitive and regulated markets.
   (4) Services provided for low-income electricity customers,
including, but not limited to, energy efficiency services, education,
weatherization, and rate discounts.
   (b) Each local publicly owned electric utility that has not
implemented programs for low-income electricity customers including
targeted energy efficiency services and rate discounts based upon the
income level of the customer, or completed an assessment of need for
those programs, on or before December 31, 2000, shall perform a
needs assessment for the programs described in paragraph (4) of
subdivision (a) and shall hold one or more public meetings, after
notice, to review the findings of the needs assessment. Following the
public meetings, the governing body of the local publicly owned
electric utility shall determine the amount of the total funds
collected pursuant to this section to be allocated to low-income
programs, including, but not limited to, targeted energy efficiency
services, education, weatherization, and rate discounts. In making
its decision on the need for the programs, the governing body shall
consider all of the following:
   (1) The number and income level of low-income customers that
reside in the service area of the utility.
   (2) The availability of home weatherization services to low-income
customers pursuant to Section 2790.
   (3) The availability of in-home energy efficiency education in the
utility's service area.
   (4) Other factors that may indicate a need for low-income
services.
   (c) Following a determination pursuant to subdivision (b) that
low-income services are needed, the local publicly owned utility
shall promptly implement or expand those programs. The local publicly
owned electric utility shall work with existing weatherization
providers to implement energy efficiency, education, and
weatherization programs.



385.2.  (a) Upon the completion and promulgation of regulations
pursuant to subdivision (a) of Section 25943 of the Public Resources
Code, each governing body of a local publicly owned electric utility,
as defined in Section 224.3, shall be responsible for implementing
an energy efficiency program that recognizes the intent of the
Legislature to encourage energy savings and greenhouse gas emission
reductions in existing residential and nonresidential buildings,
while taking into consideration the effect of the program on rates,
reliability, and financial resources.
   (b) In the report prepared pursuant to Section 9615, each local
publicly owned electric utility shall include both of the following:
   (1) The utility's status in implementing an energy efficiency
program pursuant to subdivision (a) and the utility's progress toward
attaining the goal of the program.
   (2) The net energy savings from energy efficiency improvements
installed pursuant to this section.



386.  (a) Each local publicly owned electric utility shall ensure
the following:
   (1) Low-income families within the utility's service territory
have access to affordable electricity.
   (2) The current level of assistance reflects the level of need.
   (3) Low-income families are afforded no-cost and low-cost energy
efficiency measures that reduce energy consumption.
   (b) The local publicly owned electric utility shall consider
increasing the level of the discount or raising the eligibility level
for any existing rate assistance program to be reflective of
customer need.
   (c) A publicly owned electric utility shall streamline enrollment
for low-income programs by collaborating with existing providers for
the Low-Income Home Energy Assistance Program (LIHEAP) and other
electric or gas providers within the same service territory.
   (d) A local publicly owned electric utility shall establish
participation goals for its rate assistance program participation.




387.  (a) Each governing body of a local publicly owned electric
utility shall be responsible for implementing and enforcing a
renewables portfolio standard that recognizes the intent of the
Legislature to encourage renewable resources, while taking into
consideration the effect of the standard on rates, reliability, and
financial resources and the goal of environmental improvement.
   (b) Each local publicly owned electric utility shall report, on an
annual basis, to its customers and to the State Energy Resources
Conservation and Development Commission, the following:
   (1) Expenditures of public goods funds collected pursuant to
Section 385 for eligible renewable energy resource development.
Reports shall contain a description of programs, expenditures, and
expected or actual results.
   (2) The resource mix used to serve its customers by fuel type.
Reports shall contain the contribution of each type of renewable
energy resource with separate categories for those fuels that are
eligible renewable energy resources as defined in Section 399.12,
except that the electricity is delivered to the local publicly owned
electric utility and not a retail seller. Electricity shall be
reported as having been delivered to the local publicly owned
electric utility from an eligible renewable energy resource when the
electricity would qualify for compliance with the renewables
portfolio standard if it were delivered to a retail seller.
   (3) The utility's status in implementing a renewables portfolio
standard pursuant to subdivision (a) and the utility's progress
toward attaining the standard following implementation.



387.5.  (a) In order to further the state goal of encouraging the
installation of 3,000 megawatts of photovoltaic solar energy in
California within 10 years, the governing body of a local publicly
owned electric utility that sells electricity at retail, shall adopt,
implement, and finance a solar initiative program, funded in
accordance with subdivision (b), for the purpose of investing in, and
encouraging the increased installation of, residential and
commercial solar energy systems.
   (b) On or before January 1, 2008, a local publicly owned electric
utility shall offer monetary incentives for the installation of solar
energy systems of at least two dollars and eighty cents ($2.80) per
installed watt, or for the electricity produced by the solar energy
system, measured in kilowatthours, as determined by the governing
board of a local publicly owned electric utility, for photovoltaic
solar energy systems. The incentive level shall decline each year
thereafter at a rate of no less than an average of 7 percent per
year.
   (c) A local publicly owned electric utility shall initiate a
public proceeding to fund a solar energy program to adequately
support the goal of installing 3,000 megawatts of photovoltaic solar
energy in California. The proceeding shall determine what additional
funding, if any, is necessary to provide the incentives pursuant to
subdivision (b). The public proceeding shall be completed and the
comprehensive solar energy program established by January 1, 2008.
   (d) The solar energy program of a local publicly owned electric
utility shall be consistent with all of the following:
   (1) That a solar energy system receiving monetary incentives
comply with the eligibility criteria, design, installation, and
electrical output standards or incentives established by the State
Energy Resources Conservation and Development Commission pursuant to
Section 25782 of the Public Resources Code.
   (2) That solar energy systems receiving monetary incentives are
intended primarily to offset part or all of the consumer's own
electricity demand.
   (3) That all components in the solar energy system are new and
unused, and have not previously been placed in service in any other
location or for any other application.
   (4) That the solar energy system has a warranty of not less than
10 years to protect against defects and undue degradation of
electrical generation output.
   (5) That the solar energy system be located on the same premises
of the end-use consumer where the consumer's own electricity demand
is located.
   (6) That the solar energy system be connected to the electric
utility's electrical distribution system within the state.
   (7) That the solar energy system has meters or other devices in
place to monitor and measure the system's performance and the
quantity of electricity generated by the system.
   (8) That the solar energy system be installed in conformance with
the manufacturer's specifications and in compliance with all
applicable electrical and building code standards.
   (e) A local publicly owned electric utility shall, on an annual
basis beginning June 1, 2008, make available to its customers, to the
Legislature, and to the State Energy Resources Conservation and
Development Commission, information relating to the utility's solar
initiative program established pursuant to this section, including,
but not limited to, the number of photovoltaic solar watts installed,
the total number of photovoltaic systems installed, the total number
of applicants, the amount of incentives awarded, and the
contribution toward the program goals.
   (f) In establishing the program required by this section, no
moneys shall be diverted from any existing programs for low-income
ratepayers, or from cost-effective energy efficiency or demand
response programs.
   (g) The statewide expenditures for solar programs adopted,
implemented, and financed by local publicly owned electric utilities
shall be seven hundred eighty-four million dollars ($784,000,000).
The expenditure level for each local publicly owned electric utility
shall be based on that utility's percentage of the total statewide
load served by all local publicly owned electric utilities.
Expenditures by a local publicly owned electric utility may be less
than the utility's cap amount, provided that funding is adequate to
provide the incentives required by subdivisions (a) and (b).




387.6.  (a) It is the policy of the state and the intent of the
Legislature to encourage electrical generation from eligible
renewable energy resources.
   (b) As used in this section, "electric generation facility" means
an electric generation facility located within the service territory
of, and developed to sell electricity to, a local publicly owned
electric utility, and that meets all of the following criteria:
   (1) Has an effective capacity of not more than three megawatts.
   (2) Is interconnected and operates in parallel with the electrical
transmission and distribution grid.
   (3) Is strategically located and interconnected to the electrical
transmission and distribution grid in a manner that optimizes the
deliverability of electricity generated at the facility to load
centers.
   (4) Is an eligible renewable energy resource pursuant to Article
16 (commencing with Section 399.11).
   (c) A local publicly owned electric utility that sells electricity
at retail to 75,000 or more customers shall adopt a standard tariff
for electricity purchased from an electric generation facility.
   (d) The governing board of the local publicly owned electric
utility shall ensure that the tariff adopted pursuant to subdivision
(c) reflects the value of every kilowatthour of electricity generated
on a time-of-delivery basis. The governing board may adjust this
value based on the other attributes of renewable generation. The
governing board shall ensure, with respect to rates and charges, that
ratepayers that do not receive service pursuant to the tariff are
indifferent to whether a ratepayer with an electric generation
facility receives service pursuant to the tariff.
   (e) A local publicly owned electric utility that sells electricity
at retail to 75,000 or more customers shall make the tariff
available to the owner or operator of an electric generation facility
within the service territory of the utility, upon request, on a
first-come-first-served basis, until the utility meets its
proportionate share of a statewide cap of 750 megawatts cumulative
rated generation capacity served under this section and Section
399.20. The proportionate share shall be calculated based on the
ratio of the utility's peak demand compared to the total statewide
peak demand.
   (f) The local publicly owned electric utility may make the terms
of the tariff available to owners and operators of an electric
generation facility in the form of a standard contract.
   (g) Every kilowatthour of electricity purchased from an electric
generation facility shall count toward meeting the local publicly
owned electric utility's renewables portfolio standard annual
procurement targets for purposes of Section 387.
   (h) (1) A local publicly owned electric utility may establish
performance standards for any electric generation facility that has a
capacity greater than one megawatt to ensure that those facilities
are constructed, operated, and maintained to generate the expected
annual net production of electricity and do not impact system
reliability.
   (2) A local publicly owned electric utility may reduce the three
megawatt capacity limitation of paragraph (1) of subdivision (b) if
the utility finds that a reduced capacity limitation is necessary.
   (i) Within 10 days of receipt of a request for a tariff pursuant
to this section from an owner or operator of an electric generation
facility, the local publicly owned electric utility that receives the
request shall post a copy of the request on its Internet Web site.
The information posted on the Internet Web site shall include the
name of the city in which the facility is located, but information
that is proprietary and confidential, including, but not limited to,
address information beyond the name of the city in which the facility
is located, shall be redacted.
   (j) A local publicly owned electric utility may deny a tariff
request pursuant to this section if the local publicly owned electric
utility makes any of the following findings:
   (1) The electric generation facility does not meet the
requirements of this section.
   (2) The transmission or distribution grid that would serve as the
point of interconnection is inadequate.
   (3) The electric generation facility does not meet all applicable
state and local laws and building standards, and utility
interconnection requirements.
   (4) The aggregate of all electric generating facilities on a
distribution circuit would adversely impact utility operation and
load restoration efforts of the distribution system.
   (k) Upon receiving a notice of denial from a local publicly owned
electric utility, the owner or operator of the electric generation
facility denied a tariff pursuant to this section shall have the
right to appeal that decision to the governing board of the local
publicly owned electric utility.
   (l) In order to ensure the safety and reliability of electric
generation facilities, the owner of an electric generation facility
receiving a tariff pursuant to this section shall provide an
inspection and maintenance report to the local publicly owned
electric utility at least once every other year. The inspection and
maintenance report shall be prepared at the owner's or operator's
expense by a California licensed contractor who is not the owner or
operator of the electric generation facility. A California licensed
electrician shall perform the inspection of the electrical portion of
the generation facility.
   (m) The contract between the electric generation facility
receiving the tariff and the local publicly owned electric utility
shall contain provisions that ensure that construction of the
electric generating facility complies with all applicable state and
local laws and building standards, and utility interconnection
requirements.
   (n) (1) All construction and installation of facilities of the
local publicly owned electric utility, including at the point of the
output meter or at the transmission or distribution grid, shall only
be performed by that local publicly owned electric utility.
   (2) All interconnection facilities installed on the local publicly
owned electric utility's side of the transfer point for electricity
between the local publicly owned electric utility and the electrical
conductors of the electric generation facility shall be owned,
operated, and maintained only by the local publicly owned electric
utility. The ownership, installation, operation, reading, and testing
of revenue metering equipment for electric generating facilities
shall only be performed by the local publicly owned electric utility.



387.8.  Notwithstanding paragraphs (2) and (5) of subdivision (d) of
Section 387.5, a local publicly owned electric utility may adopt,
implement, and finance a solar initiative program otherwise in
accordance with that section, using monetary incentives authorized by
subdivision (b) of Section 387.5, to residential and business
consumers where consumers offset part or all of their electricity
demand with electricity generated by a solar energy system not
located on the premises of the consumer, if all of the following
requirements are met:
   (a) The solar energy system meets all of the following conditions:
   (1) It is located within the service territory of the local
publicly owned electric utility.
   (2) It has a capacity of no more than five megawatts.
   (3) It is interconnected to the local publicly owned electric
utility's system at the distribution level.
   (b) The local publicly owned electric utility meets all of the
following conditions:
   (1) It provides monetary incentives authorized by Section 387.5
for not more than the first megawatt of generating capacity of each
solar energy system.
   (2) It has contracted to purchase the total electricity produced
by the solar energy system or owns the solar energy system.
   (3) It provides no greater incentive per watt for the solar energy
system than provided for by systems that participate in the
applicable solar initiative program established under Section 387.5.
   (4) It has received approval for the solar energy system from its
governing board at a publicly noticed and held meeting.
   (c) The total megawatt capacity of solar energy systems eligible
for a local publicly owned electric utility program under this
section is both of the following:
   (1) Not more than the total megawatt capacity of the combined
residential and commercial solar energy systems installed in the
service area of the local publicly owned electric utility after July
1, 2010, that participate in the applicable solar initiative programs
established under Section 387.5.
   (2) Not more than 20 percent of the proportionate amount for the
local publicly owned electric utility of the overall 3,000 megawatt
state goal set forth in Section 387.5, based on the percentage of the
total statewide load served by that entity.