BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 48XX| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 AYES: Alpert, Battin, Bowen, Karnette, Murray, Poochigian, Speier 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 CONTINUED AB 48XX Page 2 laboratory. 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 AB 48XX Page 3 of technological advancements in the workplace, as well as due to foreign and domestic competition. 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 48XX Page 4 AB 549 (Longville), which is pending in the Senate Appropriations Committee, appropriates $500,000 to the CEC 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 9/14/01 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END ****