BILL ANALYSIS                                                                                                                                                                                                    






                                                       Bill No:  AB  
          1881
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                         Senator Edward Vincent, Chair
                           2001-2002 Regular Session
                                 Staff Analysis


          AB 1881  Author:  Pescetti
          As Introduced:  February 4, 2002 
          Hearing Date:  June 11, 2002
          Consultant:  Art Terzakis


                                     SUBJECT  
                  Solar Energy Systems:  solar thermal energy

                                  DESCRIPTION
           
          AB 1881 makes solar "thermal" technologies eligible for  
          certain requirements that mandate the installation of solar  
          energy equipment on all new state buildings and parking  
          facilities.  Specifically, this measure makes the following  
          changes to Chapter 10 of the Statutes of the 2001-02 Second  
          Extraordinary Session:

          1.  Modifies 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. 

          2.  Requires that the "value of stable energy costs" be  
            considered when evaluating cost effectiveness of proposed  
            projects.

          3.  Expands the definition of solar energy equipment to  
            include "solar thermal technologies."

          4.  Declares that this bill will not be operative until SB  
            82xx becomes operative, to avoid any chaptering out  
            issues. 

                                   EXISTING LAW
           
          Existing law, SB 82xx (Murray) Chapter 10 of the Statutes  




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          of the 2001-02 Second Extraordinary Session, which will  
          become operative 91 days following the adjournment of that  
          session (Adjournment  Sine Die  May 9, 2002), requires the  
          Department of General Services (DGS), in consultation with  
          the State Energy Commission, to ensure that solar equipment  
          (that produces electric energy) is installed, no later than  
          January 1, 2007, on all state buildings and state parking  
          facilities, where feasible.  
          Existing law also mandates that solar energy equipment be  
          installed where feasible as part of the construction of all  
          state buildings and state parking facilities that commences  
          after December 31, 2002.

          For purposes of Chapter 10, it is feasible to install solar  
          energy equipment if adequate space on a building is  
          available and if the solar energy equipment is  
          cost-effective.  Chapter 10 also defines "cost-effective,"  
          "local publicly owned electric utility," and "solar energy  
          equipment."  
                                         
                                   BACKGROUND
           
          The author's office indicates that in the past year,  
          California has been very aggressive in promoting renewable  
          energy through a number of energy programs administered by  
          the California Energy Commission.  Solar electric systems  
          have received special attention because of their clean  
          energy appeal with virtually no operating costs.

          SB 82xx (Murray), mandated that, where, feasible, solar  
          energy equipment must be installed on state buildings and  
          parking facilities beginning December 31, 2002.  According  
          to the author's office, SB 82xx failed to include "solar  
          thermal technologies" within the definition of solar energy  
          equipment.  This measure is intended to include solar  
          thermal technologies in the definition of eligible  
          technologies for use on state-owned buildings.  In  
          addition, this measure adds language to SB 82xx to allow  
          solar equipment to be installed "adjacent" to a state  
          building, not just "on" a state building.

          The author's office notes that solar technologies for  
          heating water and state-operated swimming pools are  
          cost-effective in virtually every application - frequently  
          returning the initial investment from energy savings in  
          from 2 to 4 years.  The author's office emphasis that this  




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          measure will ensure that state investment in solar energy  
          technologies can include highly cost-effective solar  
          thermal technologies in addition to photovoltaic (PV)  
          systems. 

           SUPPORT:   As of June 7, 2002:

          California Solar Energy Industries Association (sponsor)
          Sierra Club California
          Clean Power Campaign
          Offline Independent Energy Systems
          Gray Panthers California

           OPPOSE:  None on file as of June 7, 2002.
           DUAL REFERRAL:   Senate Energy Committee
           FISCAL COMMITTEE:   Senate Appropriations Committee 
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