BILL NUMBER: AB 1881	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 21, 2002
	AMENDED IN SENATE  JUNE 28, 2002

INTRODUCED BY   Assembly Member Pescetti
   (Principal coauthor: Senator Murray)

                        FEBRUARY 4, 2002

    An act to amend Section 14684 of the Government Code, as
added by Chapter 10 of the Statutes of the 2001-02 Second
Extraordinary Session, and to amend Section 1 of Chapter 10 of the
Statutes of the 2001-02 Second Extraordinary Session  
An act to add Section 14684.1 to the Government Code  , relating
to solar energy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1881, as amended, Pescetti.  Solar energy systems  :
solar thermal energy  . 
   Chapter     10 of the Statutes of the
2001-02 Second Extraordinary Session (Chapter 10), which will become
operative 91 days following the adjournment of that session, will
require, upon the operative date of that chapter,  
Existing law requires  the Department of General Services, in
consultation with the State Energy Resources Conservation and
Development Commission  (Energy Commission)  , to ensure
that solar energy equipment,  as defined,   for
which the primary purpose is using solar energy for electricity
generation  is installed, no later than January 1, 2007, on all
state buildings and state parking facilities where feasible, as
defined.   Chapter 10   Existing law  also
 will require   requires  solar energy
equipment to be installed where feasible as part of the construction
of all state buildings and state parking facilities that commences
after December 31, 2002.  
   This bill would modify the definition of feasible to require
installation of solar energy equipment if there is adequate space
adjacent to a building in addition to on a building.
   The bill would require any solar energy equipment installed to
meet applicable standards and requirements imposed by state and local
permitting authorities, including certification by the Solar Rating
Certification Corporation and other applicable safety and performance
standards.
   The bill would clarify that funding would be required to be
available for the installation of energy equipment to be feasible.
   Chapter 10 will define cost-effective and requires the department
to take into consideration air emission reduction benefits in its
present value assessment for cost-effectiveness.
   This bill would also require the department to take into
consideration the value of stable energy costs for
cost-effectiveness.  
   Chapter 10 will define solar energy equipment as equipment whose
primary purpose is to provide for the collection, conversion,
storage, or control of solar energy for electricity generation.
   This bill would additionally include within the definition of
solar energy equipment, equipment whose primary purpose is to provide
for the collection, conversion, storage, or control of solar energy
for the purpose of heat production.  
   The bill would establish a program to require the Department of
General services in consultation with the Energy Commission to ensure
that solar energy equipment for which the primary purpose is using
solar energy for heat production be installed where feasible, as
defined, no later than January 1, 2007.  The bill requires such solar
energy equipment be installed where feasible as part of the
construction of all state buildings and state parking facilities for
which construction commences on or after January 1, 2003.  
   The bill would require any solar energy equipment installed
pursuant to the new program to meet specified standards and
requirements imposed by state and local permitting authorities,
including certification by the Solar Rating Certification Corporation
and other applicable safety and performance standards.
   This bill would subject any solar energy equipment that is
installed pursuant to the program to the California Solar Rights Act
of 1978. 
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  
  SECTION 1.  Section 1 of Chapter 10 of the Statutes of the
 
  SECTION 1.  Section 14684.1 is added to the Government Code, to
read:
   14684.1  (a) The department, in consultation with the State Energy
Resources Conservation and Development Commission, shall ensure that
solar energy equipment is installed, no later than January 1, 2007,
on all state buildings and state parking facilities, where feasible.
The department shall establish a schedule designating when solar
energy equipment will be installed on each building and facility,
with priority given to buildings and facilities where installation is
most feasible, both for state building and facility use and
consumption and local publicly owned electric utility use, where
feasible.
   (b) Solar energy equipment shall be installed, where feasible, as
part of the construction of all state buildings and state parking
facilities for which construction commences on or after January 1,
2003.
   (c) For purposes of this section, it is feasible to install solar
energy equipment if adequate space on or adjacent to a building is
available, if the solar energy equipment is cost-effective, and if
funding is available.
   (d)  Any solar energy equipment installed pursuant to this section
shall meet applicable standards and requirements imposed by state
and local permitting authorities, including, but not limited to, all
of the following:
   (1) Certification by the Solar Rating Certification Corporation,
which is a nonprofit third party supported by the Department of
Energy, or any other nationally recognized certification agency.
   (2) All applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories, such as
the Underwriters Laboratories.
   (3) Where applicable, the regulations adopted by the Public
Utilities Commission regarding safety and reliability.
   (e) This section does not exempt the state from the payment of any
applicable fee or requirement imposed by the Public Utilities
Commission.
   (f) The department may adopt regulations for the purposes of this
section as emergency regulations in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1.  For purposes of that
chapter, including, but not limited to, Section 11349.6, the adoption
of the regulations shall be considered by the Office of
Administrative Law to be necessary for the immediate preservation of
the public peace, health, safety, and general welfare.
Notwithstanding the 120-day limit specified in subdivision (e) of
Section 11346.1, the regulations shall be repealed 180 days after
their effective date, unless the department complies with Chapter 3.5
(commencing with Section 11340) of Part 1 as provided in subdivision
(e) of Section 11346.1.
   (g) Any solar energy equipment installed pursuant to this section
shall be subject to the provisions of the California Solar Rights Act
of 1978 (Chapter 1154 of the Statutes of 1978), as amended.
   (h) For purposes of this section, the following terms have the
following meanings:
   (1) "Cost-effective" means that the present value of the savings
generated over the life of the solar energy system, including
consideration of the value of the energy produced during peak and
off-peak demand periods and the value of a reliable energy supply not
subject to price volatility, shall exceed the present value cost of
the solar energy equipment by not less than 10 percent.  The present
value cost of the solar energy equipment does not include the cost of
unrelated building components.  The department, in making the
present value assessment, shall obtain interest rates, discount
rates, and consumer price index figures from the Treasurer, and shall
take into consideration air emission reduction benefits and the
value of stable energy costs.
   (2) "Local publicly owned electric utility" means a local publicly
owned electric utility as defined in subdivision (d) of Section 9604
of the Public Utilities Code.
   (3) "Solar energy equipment" means equipment whose primary purpose
is to provide for the collection, conversion, storage, or control of
solar energy for the purpose of heat production.  
2001-02 Second Extraordinary Session is amended to read:
  Sec. 1.  The Legislature finds and declares all of the following:
   (a) California is experiencing severe electrical shortages, which
endanger the health, safety, and economic development opportunity of
its citizens.  California is also experiencing natural gas shortages
and price volatility that adversely affect electricity price and
availability.
   (b) Immediate measures are needed to increase the electrical
generation capacity within California, including energy from solar
energy systems, and to reduce the consumption of natural gas for
purposes other than the generation of electricity within California.

   (c) California has been a leader in the development of solar
energy systems.
   (d) California must take all reasonable actions necessary to
encourage the use of solar energy systems at state buildings and
facilities.
  SEC. 2.  Section 14684 of the Government Code, as added by Chapter
10 of the Statutes of the 2001-02 Second Extraordinary Session, is
amended to read:
   14684.  (a) The department, in consultation with the State Energy
Resources Conservation and Development Commission, shall ensure that
solar energy equipment is installed, no later than January 1, 2007,
on all state buildings and state parking facilities, where feasible.
The department shall establish a schedule designating when solar
energy equipment will be installed on each building and facility,
with priority given to buildings and facilities where installation is
most feasible, both for state building and facility use and
consumption and local publicly owned electric utility use, where
feasible.
   (b) Solar energy equipment shall be installed where feasible as
part of the construction of all state buildings and state parking
facilities that commences after December 31, 2002.
   (c) For purposes of this section, it is feasible to install solar
energy equipment if adequate space on or adjacent to a building is
available, if the solar energy equipment is cost-effective, and if
funding is available.
   (d) Any solar energy equipment installed pursuant to this section
shall meet applicable standards and requirements imposed by state and
local permitting authorities, including, but not limited to, all of
the following:
   (1) Certification by the Solar Rating Certification Corporation,
which is a nonprofit third party supported by the Department of
Energy, or any other nationally recognized certification agency.
   (2) All applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories, such as
the Underwriters Laboratories.
   (3) Where applicable, the regulations adopted by the Public
Utilities Commission regarding safety and reliability.
   (e) No part of this section may be construed to exempt the state
from any applicable fee or requirement imposed by the Public
Utilities Commission.
   (f) The department may adopt regulations for the purposes of this
section as emergency regulations in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1.  For purposes of Chapter
3.5 (commencing with Section 11340) of Part 1, including, but not
limited to, Section 11349.6, the adoption of the regulations shall be
considered by the Office of Administrative Law to be necessary for
the immediate preservation of the public peace, health, safety, and
general welfare.  Notwithstanding the 120-day limit specified in
subdivision (e) of Section 11346.1, the regulations shall be repealed
180 days after their effective date, unless the department complies
with Chapter 3.5 (commencing with Section 11340) of Part 1 as
provided in subdivision (e) of Section 11346.1.
   (g) For purposes of this section, the following terms have the
following meanings:
   (1) "Cost-effective" means that the present value of the savings
generated over the life of the solar energy system, including
consideration of the value of the energy produced during peak and
off-peak demand periods and the value of a reliable energy supply not
subject to price volatility, shall exceed the present value cost of
the solar energy equipment by not less than 10 percent.  The present
value cost of the solar energy equipment does not include the cost of
unrelated building components.  The department, in making the
present value assessment, shall obtain interest rates, discount
rates, and consumer price index figures from the Treasurer, and shall
take into consideration air emission reduction benefits and the
value of stable energy costs.
   (2) "Local publicly owned electric utility" means a local publicly
owned electric utility as defined in subdivision (d) of Section 9604
of the Public Utilities Code.
   (3) "Solar energy equipment" means equipment whose primary purpose
is to provide for the collection, conversion, storage, or control of
solar energy for the purpose of heat production or electricity
generation.
  SEC. 3.  Sections 1 and 2 of this act shall become operative only
if Chapter 10 of the Statutes of the 2001-02 Second Extraordinary
Session becomes operative, in which case Sections 1 and 2 shall
become operative consistent with Section 8 of Article IV of the
California Constitution.