BILL ANALYSIS 1
1
SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
DEBRA BOWEN, CHAIRWOMAN
AB 1881 - Pescetti Hearing Date:
June 25, 2002 A
As Introduced: February 4, 2002 FISCAL B
1
8
8
1
DESCRIPTION
Current law requires the Department of General Services (DGS) to
ensure that solar energy equipment used to make electricity is
installed on all state buildings and parking facilities by
January 1, 2007 where feasible. Feasibility is defined as the
solar installation must be cost effective and funding must be
made available.
This bill expands that law to include solar heating equipment.
This bill finds that California is experiencing natural gas
shortages and price volatility, and that therefore immediate
measures are necessary to reduce the consumption of natural gas
for purposes other than electricity generation.
BACKGROUND
Last year, the Legislature approved SB 82XX (Murray), Chapter
10, Statutes of the Second Extraordinary Session of 2001, to
require solar electric installations on state buildings.
Specifically, the new law requires DGS, in consultation with the
California Energy Commission, to ensure that solar energy
equipment is installed, no later than January 1, 2007, on all
state buildings and state parking facilities where feasible. It
also requires solar energy equipment to be installed as part of
the construction of all state buildings and state parking
facilities that begins after December 31, 2002 where feasible.
The author hopes to use this bill to expand the reach of SB 82XX
by requiring DGS to employ the use of solar thermal technologies
where feasible and appropriate.
COMMENTS
1)Similar Provisions Removed From Bill Last Year . In its
consideration of SB 82XX last year, this committee
specifically removed solar thermal provisions similar to those
contained in this bill. SB 82XX was being considered during
the depths of California's electricity crisis and the primary
focus at that time was the (real or perceived) shortage of
electricity at the time. Solar thermal installations are
primarily for water heating purposes, making solar thermal
installations a substitute for natural gas, not electricity.
2)Findings & Declarations . Page 2, Lines 6-7 of this bill
declares that "California is also experiencing natural gas
shortages and price volatility that adversely affect
electricity price and availability." However, this finding is
not supported by a November 2001 report by the California
Public Utilities Commission (CPUC) that found California's
natural gas infrastructure is adequate to provide seasonally
reliable amounts of natural gas through at least 2006. The
report finds the restricted supplies and sky high prices
California experienced in mid-2000 through mid-2001 were due
to anti-competitive actions by one of the major interstate
pipeline owners, low rainfall leading to extraordinary demands
on natural gas-fueled generators, and insufficient storage of
natural gas by California's largest natural gas users. Recent
gas prices have returned to near historic levels.
Despite the current relatively positive outlook for natural
gas supplies and prices, conservation of fossil fuels has
always been a cost effective way to ensure adequate supplies.
One of the lessons from California's energy crisis is a
recognition that having adequate energy supplies is absolutely
essential and the consequences of shortages - both real and
artificially created - can be disastrous.
3)Heat or Light? Because funding for state solar energy
projects will be limited, including solar thermal projects in
the list of funding requirements will likely draw funding away
from solar electric projects. For every dollar spent on a
solar project to heat water, one dollar less will be spent on
a solar project to generate electricity. The author and
committee may wish to consider whether it's appropriate to
make solar thermal projects eligible for funding at the
expense of solar electric projects.
4)Only Certified Projects Need Apply . Other statutes dealing
with solar applications establish minimum technical and safety
requirements. For example, the net metering statutes require
that only solar electric projects which meet the minimum
standards of the Solar Rating and Certification Corporation, a
non-profit industry group, Underwriters Laboratory, and CPUC
standards. The author and committee may wish to consider
amending the bill to include similar language to assure that
only safe, effective, and certified solar energy systems are
installed.
PRIOR VOTES
Senate Governmental Organization Committee
(12-0)
Assembly Floor (67-0)
Assembly Appropriations Committee (23-0)
Assembly Natural Resources Committee
(11-0)
Assembly Utilities and Commerce Committee
(16-0)
POSITIONS
Sponsor:
California Solar Energy Industries Association
Support:
Clean Power Campaign
Gray Panthers California
Offline Independent Energy Systems
Sacramento Municipal Utility District
Sierra Club
Oppose:
None on file
Randy Chinn
AB 1881 Analysis
Hearing Date: June 25, 2002