BILL ANALYSIS AB 1881 Page 1 Date of Hearing: April 8, 2002 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Howard Wayne, Chair AB 1881 (Pescetti) - As Introduced: February 4, 2002 SUBJECT : Solar thermal energy systems. SUMMARY : This bill amends Section 14684 of the Government Code, which was added by SB 82xx (Murray), Chapter 10, Statutes of 2001, Second Extraordinary Session, that will become operative 91 days after the close of the second extraordinary session to make solar thermal and heating technologies eligible for installation on, or adjacent to, new state buildings and parking facilities. EXISTING LAW : Pursuant to SB 82xx, requires the Department of General Services and the California Energy Commission (CEC) to ensure that solar equipment that produces electric energy be installed, where feasible, as part of the construction of all state buildings and parking lots after December 31, 2002. THIS BILL : 1)Makes solar thermal and heating technologies eligible for installation on, or adjacent to, new state buildings and parking facilities. 2)Declares it feasible to install solar energy equipment on state buildings when adequate space exists adjacent to a building, or on a building. 3)Clarifies that funding is required to be available for the installation of energy equipment to be feasible. 4)Requires the value of stable energy costs to be considered when evaluating cost effectiveness of proposed projects. 5)Qualifies solar technologies using solar energy to produce heat for installation on, or adjacent to, new state buildings and parking lots. FISCAL EFFECT : Unknown. COMMENTS : AB 1881 Page 2 1)Background In the last year, California has been aggressive in promoting renewable energy through a number of renewable energy programs administered by the CEC. Solar electric systems have received special attention because of their clean energy appeal with virtually no operating cost. SB 82xx, mandated that, where feasible, solar energy equipment will be installed on state buildings beginning December 31, 2002. According to the author's office, SB 82xx, did not include in the definition of solar energy equipment, "solar thermal technologies" (pool heaters, water heaters). This bill is intended to include solar thermal technologies in addition to solar electric technologies, which may be utilized to reduce consumption of electricity and fossil fuels on state owned buildings. In addition, this bill adds language to allow solar equipment to be installed adjacent to a state building, not just on a state building. 2)This Bill Requires SB 82xx to Become Operative First . This bill amends a section of the Government Code that is not currently operative. SB 82xx, was signed by the Governor last fall and chaptered, but because the second extraordinary session has not officially been shut down, SB 82xx and the section of law this bill amends, are not operative until 91 days after the second extraordinary session ends. To that end, this bill contains language stating that this bill will not be operative until SB 82xx becomes operative, to avoid any chaptering out issues. REGISTERED SUPPORT / OPPOSITION : Support California Solar Energy Industries Association Clean Power Campaign. Sierra Club California Opposition None on file AB 1881 Page 3 Analysis Prepared by : Kyra Emanuels Ross / NAT. RES. / (916) 319-2092