(a) The Legislature finds and declares that a program to provide net energy metering combined with net surplus compensation, co-energy metering, and wind energy co-metering for eligible customer-generators is one way to encourage substantial private investment in renewable energy resources, stimulate in-state economic growth, reduce demand for electricity during peak consumption periods, help stabilize Californiaâs energy supply infrastructure, enhance the continued diversification of Californiaâs energy resource mix, reduce interconnection and administrative costs for electricity suppliers, and encourage conservation and efficiency. (b) As used in this section, the following terms have the following meanings: (1) âCo-energy meteringâ means a program that is the same in all other respects as a net energy metering program, except that the local publicly owned electric utility has elected to apply a generation-to-generation energy and time-of-use credit formula as provided in subdivision (i). (2) âElectrical cooperativeâ means an electrical cooperative as defined in Section 2776. (3) âElectric utilityâ means an electrical corporation, a local publicly owned electric utility, or an electrical cooperative, or any other entity, except an electric service provider, that offers electrical service. This section shall not apply to a local publicly owned electric utility that serves more than 750,000 customers and that also conveys water to its customers. (4) (A) âEligible customer-generatorâ means a residential customer, small commercial customer as defined in subdivision (h) of Section 331, or commercial, industrial, or agricultural customer of an electric utility, who uses a renewable electrical generation facility, or a combination of those facilities, with a total capacity of not more than one megawatt, that is located on the customerâs owned, leased, or rented premises, and is interconnected and operates in parallel with the electrical grid, and is intended primarily to offset part or all of the customerâs own electrical requirements. (B) (i) Notwithstanding subparagraph (A), âeligible customer-generatorâ includes the Department of Corrections and Rehabilitation using a renewable electrical generation technology, or a combination of renewable electrical generation technologies, with a total capacity of not more than eight megawatts, that is located on the departmentâs owned, leased, or rented premises, and is interconnected and operates in parallel with the electrical grid, and is intended primarily to offset part or all of the facilityâs own electrical requirements. The amount of any wind generation exported to the electrical grid shall not exceed 1.35 megawatt at any time. (ii) Notwithstanding paragraph (2) of subdivision (e), an electrical corporation shall be afforded a prudent but necessary time, as determined by the executive director of the commission, to study the impacts of a request for interconnection of a renewable generator with a capacity of greater than one megawatt under this subparagraph. If the study reveals the need for upgrades to the transmission or distribution system arising solely from the interconnection, the electrical corporation shall be afforded the time necessary to complete those upgrades before the interconnection and those costs shall be borne by the customer-generator. Upgrade projects shall comply with applicable state and federal requirements, including requirements of the Federal Energy Regulatory Commission. (C) (i) For purposes of this subparagraph, a âUnited States Armed Forces base or facilityâ is an establishment under the jurisdiction of the United States Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard. (ii) Notwithstanding subparagraph (A), a United States Armed Forces base or facility is an âeligible customer-generatorâ if the base or facility uses a renewable electrical generation facility, or a combination of those facilities, t
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