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 AB 1881 (Pescetti) continued Page 2 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 AB 1881 (Pescetti) continued Page 3 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 **********