BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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                                 THIRD READING


          Bill No:  AB 48XX
          Author:   Wright (D)
          Amended:  9/5/01 in Senate
          Vote:     21

           
           SENATE ENERGY, U.&C. COMMITTEE  :  9-0, 8/29/01
          AYES:  Bowen, Morrow, Alarcon, Battin, Dunn, Murray,  
            Poochigian, Sher, Vincent

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 9/10/01

           ASSEMBLY FLOOR  :  78-0, 5/31/01 -  See last page for vote


           SUBJECT  :    Energy conservation

           SOURCE  :     Author


           DIGEST  :    This bill enacts the Solar Training, Education  
          and Certification Act of 2001.

           ANALYSIS  :    Current law establishes a grant program to  
          help homeowners and businesses subsidize the cost of solar  
          energy systems, the major electrical components of which  
          are required to be listed by a certified testing agency,  
          such as the Underwriters Laboratory (UL).  
           
           This bill allows the California Energy Commission (CEC) to  
          adopt specifications for the major electrical components in  
          the absence of certification by a certified testing  
          laboratory.

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          This bill authorizes local governments to develop a program  
          to encourage the construction of buildings that use solar  
          thermal and photovoltaic systems that are certified by  
          nationally recognized certification agencies or the CEC.

          The program shall recognize owners and builders who  
          participate in the program by awarding a "Sunny Homes  
          Seal." 
           
           This bill requires the Employment Development Department  
          (EDD), in coordination with the Contractors' State License  
          Board and the Division of Apprenticeship Standards, to  
          administer s solar training program, with specified program  
          elements, to ensure that solar energy products and service  
          providers have and maintain the necessary skills, training,  
          and certification.

          The bill provides that the solar training program shall be  
          funded by available job training funds in existence on the  
          effective date of the bill.
           
          Background  

          Among its many duties, EDD provides referral to various  
          state and federal job training services in One-Stop Career  
          Centers created by the federal Workforce Investment Act  
          (WIA) of 1998.  Local WIA Boards receive federal funds to  
          award training projects to serve various training needs of  
          economically disadvantaged, youth, and displaced workers.   
          The Governor has the authority to award 15 percent of the  
          federal funds to projects through the state WIA Board.

          EDD's  Employment Training Panel (ETP) funds training  
          projects through a competitive grant process that meets the  
          needs of employers for skilled workers and the need of  
          workers for good, long-term jobs.  Projects are funded by a  
          .001 percent Unemployment Insurance (UI) state tax on  
          private and non-profit employers, in addition to the  
          employers' UI tax rate (which averages 2.9 percent of the  
          first $7,000 of earnings).  ETP project training seeks to  
          improve the economic climate by training new workers and  
          retraining workers in danger of being laid off as a result  
          of technological advancements in the workplace, as well as  
          due to foreign and domestic competition. 







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          While EDD has oversight responsibilities over training  
          grant recipients to ensure adherence to fiscal and  
          programatic training requirements, it doesn't establish,  
          administer, or conduct job training programs.

           Comments  

           Certification Issue  .  SB 1345 (Peace), Chapter 537,  
          Statutes of 2000, established a grant program for the  
          installation of solar energy systems.  The bill barred a  
          solar energy system from obtaining a grant from that  
          program if it was also getting grants from other CEC  
          programs, but an exception was made for solar electric  
          systems with a certified battery storage component.   
          Certification helps assure that the solar energy system is  
          safe, reliable, and functional, however no major  
          certification entity certifies battery storage systems,  
          making solar electric systems with battery storage  
          components ineligible for funding under the bill.  

          This bill rectifies that problem by allowing for the CEC to  
          specify appropriate standards in the absence of a  
          certification process by a certified testing agency.  This  
          language has been recommended by the CEC.

           Related Legislation

           AB 29X (Kehoe), Chapter 8, Statutes of 2001, expanded net  
          metering for solar electric applications to more and larger  
          customers and provided $30 million in grants to subsidize  
          the installation of solar electric applications.

          SB 82XX (Murray), which is pending in the Senate  
          Appropriations Committee, requires solar energy  
          applications to be installed on all state buildings if  
          practicable, feasible, and cost-effective.

          SB 17XX (Brulte), which is pending in the Assembly Revenue  
          and Taxation Committee, creates a new state tax credit for  
          solar energy installations.

          AB 549 (Longville), which is pending in the Senate  
          Appropriations Committee, appropriates $500,000 to the CEC  







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          to develop a plan to reduce wasteful peak load energy  
          consumption.

          AB 1574 (Lowenthal), which is pending in the Senate  
          Appropriations Committee, permits the CEC to develop and  
          disseminate measures to enhance energy efficiency for  
          single-family residential dwellings that were built prior  
          to the development of the current  energy efficiency  
          standards.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          Costs to EDD are probably at least $500,000 annually.   The  
          provisions of the bill related to CEC result in no  
          increased costs.  Because the provisions of the bill  
          related to local governments are permissive, any increased  
          costs would be nonreimbursable.


           ASSEMBLY FLOOR 
          AYES:  Aanestad, Alquist, Aroner, Ashburn, Bates, Bogh,  
            Briggs, Calderon, Bill Campbell, John Campbell,  
            Canciamilla, Cardenas, Cardoza, Cedillo, Chan, Chavez,  
            Chu, Cogdill, Cohn, Corbett, Correa, Cox, Daucher, Diaz,  
            Dickerson, Dutra, Firebaugh, Florez, Frommer, Goldberg,  
            Havice, Hollingsworth, Horton, Jackson, Keeley, Kehoe,  
            Kelley, Koretz, La Suer, Leach, Leonard, Liu, Longville,  
            Lowenthal, Maddox, Maldonado, Matthews, Migden, Mountjoy,  
            Nakano, Nation, Negrete McLeod, Oropeza, Robert Pacheco,  
            Rod Pacheco, Papan, Pavley, Pescetti, Reyes, Richman,  
            Runner, Salinas, Shelley, Simitian, Steinberg,  
            Strickland, Strom-Martin, Thomson, Vargas, Washington,  
            Wayne, Wesson, Wiggins, Wright, Wyland, Wyman, Zettel,  
            Hertzberg


          NC:kb  9/12/01   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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