Energy

AB 2234 (Hill) – Request for Comments
As Introduced February 24, 2012

AB 2234, by Assembly Member Jerry Hill, would increase the eligible Net Energy Metering (NEM) system size limit from 1 MW to 5 MW for public agencies, including state and local agencies such as schools, water treatment plants, and universities. NEM is commonly known as the policy that allows a customer’s electric meter to spin backwards. NEM is a billing arrangement that ensures customers receive fair credit for electricity that they self-generate to offset their own electricity needs. NEM enables self-generation customers to receive credits on their utility bill for electricity that they generate in excess of their onsite demand during any given period of time. Those credits are then applied to offset charges that the customers incur at other times when they need more electricity than they can self-generate (similar to rollover minutes for a cell phone). CSAC supported a similar bill last year, AB 512 (Chapter Number 478, Statutes of 2011) that expanded the system size but did not include the NEM credits. This bill has not yet been set for a policy committee hearing.

Water

Trailer bill language (TBL) regarding the Governor’s proposal to revamp the Regional Water Quality Control Boards has been made on the Department of Finance website. In brief, the Governor’s budget proposal would reduce the number of RWQCBs from nine to eight, consolidating the Colorado River Basin Water Board into the San Diego region, reduce the number of members on the boards from nine to seven and allow the Governor to select the chair of each regional board. The TBL does not mention the Governor’s original proposal to also adjust board member conflict of interest rules and increase the per diem rates for board members.

While CSAC does not oppose the reduction in size of the regional boards, we do have serious concerns with the elimination of the county government seat. In addition, staff has concerns with the provision of the proposal that would allow the Governor to appoint the Chair of each RWQCB as well as concerns regarding the initial proposal to increase in per diem rates. CSAC has communicated our concerns to the Governor’s office and will continue to do so through the budget subcommittee process.

Energy 

AB 1073 (Fuentes) – Concerns
As Amended February 23, 2012

AB 1073, by Assembly Member Felipe Fuentes, proposes to amend Public Resources Code Section 25500.1, which was enacted in 2011 with the passage of SB 226. SB 226 amended Section 25500.1 in order to allow for a small number of utility scale solar projects, which were considering changing technology from solar thermal to solar photovoltaic (“PV”) to go back to the California Energy Commission (“CEC”) for permit approval rather than go through the local permitting process. The rationale provided for SB 226 was that the CEC did not have jurisdiction over PV projects and therefore, in order for projects to go back to the CEC for approval, there was need for legislation to allow for this exception. AB 1073 would add the Calico project, located in San Bernardino County to the list of projects that could take advantage of the SB 226 exemption from the local permitting process and go through the CEC. 

CSAC has concerns with the expansion of the CEC’s authority over PV projects. While we understand the administration’s push to site and permit renewable energy, we believe these bills set a dangerous precedent and could to more requests from developers attempting to circumvent the local process.