BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 82 X2
                                                                  Page  1

          Date of Hearing:  September 12, 2001

                 ASSEMBLY COMMITTEE ON ENERGY COSTS AND AVAILABILITY
                              Roderick D. Wright, Chair
                   SB 82 X2 (Murray) - As Amended:  August 28, 2001

           SENATE VOTE  :  38-1
           
          SUBJECT  :  Solar energy systems.

           SUMMARY  :  This bill requires Department of General Services  
          (DGS), in consultation with California Energy Commission (CEC),  
          to ensure that solar energy equipment is installed, where  
          feasible, on all state building no later than January 1, 2007.

           EXISTING LAW  :

          1)Establishes DGS in state government with various  
            responsibilities related to planning, acquisition,  
            construction and maintenance of state buildings and property.

          2)Establishes CEC, which has various responsibilities related to  
            energy conservation.

           FISCAL EFFECT  :  Unknown.

           COMMENTS  :   

           Proactive Demand Side Solutions to the Power Crisis
           
          This measure requires that DGS ensure that all state buildings,  
          as is feasible, have solar energy equipment installed not later  
          than January 1, 2007.  Included in the measure's charter of  
          increased energy efficiency for state buildings is the  
          requirement that all state buildings and parking structures,  
          again, as feasible, for which construction commences after  
          December 31, 2002 must have solar energy equipment installed in  
          the building process.

          The author contends that this measure seeks to make state  
          buildings as accountable for reduced demand on the power grid as  
          the private sector and individuals are, through construction  
          standards and improvement standards that accommodate  
          installation of solar energy equipment.  This measure specifies  
          that where sufficient, unobstructed roof space with reasonable  








                                                                  SB 82 X2
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          sun exposure exists, solar equipment should be installed to  
          reduce the state's reliance on the electric grid, as is also  
          economically feasible.  The dual benefits are that state  
          buildings, enormous users of electricity, will reduce their  
          reliance on the grid and increase the proliferation of clean,  
          distributed generation.

          Initially contemplated as a small business loan measure with the  
          same purpose, this bill now puts the state and state facilities,  
          as administered by DGS, into the driver's seat with regard to  
          clean, distributed generation to partially offset the state's  
          reliance on the currently overburdened electric grid.  This  
          measure specifies that state buildings and solar facilities  
          shall not be exempt from any fees or requirements imposed by  
          California Public Utilities Commission (CPUC), which reduces any  
          concern that increased self-reliance on the part of state  
          facilities might create a cost shift onto other electric service  
          customers.

           Staff recommends:

          This measure requires no specific appropriation to accomplish  
          the goals of increased solar generation at state buildings and  
          structures and will result in reduced reliance on the state's  
          power grid.  The going forward construction standards requiring  
          state buildings and structures to incorporate solar equipment is  
          a positive, cost-effective measure to reduce consumption and  
          adverse environmental impacts.  Ultimately this measure  
          represents the state taking affirmative, responsible steps to  
          accommodate the reality that reduced reliance on the power grid  
          and use of cleaner energy resources can be achieved on the  
          demand side of the power equation in a cost-effective manner. 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Solar Industries Association
          Clean Power Campaign
          Sierra Club
           
            Opposition 
           
          None on file.









                                                                  SB 82 X2
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           Analysis Prepared by  :    Kelly Boyd / E. C. & A. / (916)  
          319-2083