AB 1104: Net energy metering: construction of renewable electrical generation facilities: public works project requirements.

(1) Existing law requires each electrical utility or other entity that offers electrical service, except as specified, to develop a standard contract or tariff that provides for net energy metering (NEM), that, among other things, compensates each eligible customer-generator, as defined, for the electricity it generated, as provided. Existing law requires each electrical utility to make the contract or tariff, commonly known as NEM 1.0, available to eligible customer-generators, upon request, as specified. Existing law requires the Public Utilities Commission to develop an additional standard contract or tariff, and requires each large electrical corporation to offer that standard contract or tariff, commonly known as NEM 2.0, to its eligible customer-generators, as provided. Existing law authorizes the commission to revise the standard contract or tariff, as specified. Pursuant to its authority, the commission adopted Decision 22-12-056 (December 19, 2022), commonly known as the net billing tariff, which creates a successor tariff to NEM 1.0 and NEM 2.0 and includes specified elements.

Existing law requires that, except as specified, not less than the general prevailing rate of per diem wages, determined by the Director of Industrial Relations, be paid to workers employed on public works projects. Existing law defines “public works” for purposes of requirements regarding the payment of prevailing wages to include construction, alteration, demolition, installation, or repair work done under contract and paid for using public funds, except as specified. Existing law requires the awarding body, as defined, of a contract for public work to do specified things, including to withhold and retain all amounts required to satisfy any civil wage and penalty assessments issued by the Labor Commissioner from payments made to the contractor, as specified. Existing law requires an awarding body to provide notice, containing certain information, to the Department of Industrial Relations of any public works contract subject to the public works requirements, within 30 days of the award, as provided. Existing law constitutes, beginning December 31, 2023, the construction of any renewable electrical generation facility and any associated battery storage that receives service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff, except as specified, as a public works project.

This bill would specify that an entity that engaged a contractor for construction of a renewable electrical generation facility and associated battery storage, as described above, is not an awarding body and that certain public works project requirements do not apply to that entity. The bill would also specify that the contractor who enters into a contract with that entity for those construction services is the awarding body only for purposes of the above-described requirement to provide notice to the Department of Industrial Relations.

Existing law provides for various enforcement mechanisms related to ensuring a contractor pays each construction worker the prevailing rate of per diem wages, and provides that enforcement of a willful violation of any of these mechanisms against a contractor for the construction of a renewable electrical generation facility disqualifies that facility from being eligible to receive service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff.

This bill instead would specify that a renewable electrical generation facility remains eligible to receive service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff despite enforcement of a willful violation against a contractor for the construction of the facility, as described above, if restitution has been made to the affected workers and all associated penalties and fines have been paid.

(2) Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because the above-described provisions of this bill would be a part of the act and a violation of a commission action implementing the bill’s requirements would be a crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.