AB 527

This bill authorizes the establishment of community solar programs through

which retail electric customers may subscribe to a community solar facility and

receive credits to their electric bills for electricity produced by the facility. Under the

bill, entities called subscriber organizations may own or operate community solar

facilities, which use solar energy to produce electricity and are connected to the

electric distribution grid. Retail electric customers may enter into a contract

(subscription) with a subscriber organization through which the customers receive

credits towards their electric bill based on their subscriptions. A subscriber and the

community solar facility to which the subscriber subscribes must be located within

the service territory of the same electric utility. In addition, a subscriber may not

receive an annual value of bill credits that exceeds the subscriber's average annual

electric bill. Also, under the bill, subscribers may not receive any state subsidy for

which generating electricity from a renewable energy resource is a criteria for

eligibility nor may subscribers receive any payment or other benefit from a tax

incremental district.

The bill requires an electric utility whose service territory includes subscribers

to a community solar facility to credit the electric bills of the subscribers based on

their subscriptions. Also, under the bill, at the time that an electric utility files tariffs

with the Public Service Commission, the electric utility must include options in the

tariffs that allow subscribers to receive bill credits for subscriptions to community

solar facilities. The PSC must promulgate rules allowing for establishment of

community solar facilities and for subscribers to receive electric bill credits for their

subscriptions. The PSC must also establish a rate used to calculate the amount of

bill credits that subscribers receive, and the rate must be set at a level that results

in robust community solar facility development and all customer classes having

access to subscriptions to community solar facilities. Under the bill, the PSC's

community solar program rules must also satisfy various other requirements,

including that the rules must modify existing interconnection standards, fees, and

processes to facilitate interconnection of community solar facilities with the electric

distribution grid and allow electric utilities to recover costs of applying credits to

subscribers' bills. The bill also provides that new community solar facilities may not

be established after June 30, 2031.

The bill also specifies that community solar facilities are subject to the zoning

ordinances applicable to the parcels on which they are located. Also under the bill,

a municipality may not grant an exception to its zoning ordinance if the exception

would authorize the installation of a community solar facility unless the exception

is approved by a two-thirds vote of the governing body of the municipality.