BILL ANALYSIS
SB 82 X2
Page 1
Date of Hearing: September 13, 2001
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Carole Migden, Chairwoman
SB 82 X2 (Murray) - As Amended: August 28, 2001
Policy Committee: E.C.&A.Vote:15-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill:
1)Requires the Department of General Services to install, where
feasible, solar energy systems on:
a) Existing state buildings and parking facilities, by
January 2007.
b) State buildings and parking facilities commencing
construction after December 2002.
2)Describes "feasible", for purposes of the above, as the
availability of sufficient unencumbered roof space receiving
sufficient sunshine, taking into account geographic location,
life-cycle cost analysis, and the availability of adequate
funding.
FISCAL EFFECT
The bill should not result in any additional costs. The
department indicates it has surveyed state facilities to assess
the feasibility of energy efficiency and alternative energy
measures and is implementing the most cost-effective measures to
the extent funds are available. Installing solar energy
equipment pursuant to the bill would be undertaken only with
available funds and in those locations where it is determined to
be feasible.
COMMENTS
1)Purpose . This measure seeks to make state buildings as
SB 82 X2
Page 2
accountable for reduced demand on the power grid as the
private sector and individuals through installation of solar
energy equipment. This measure specifies that where
sufficient, unobstructed roof space with reasonable sun
exposure exists, solar equipment should be installed to reduce
the state's reliance on the electric grid. The dual benefits
are that state buildings, enormous users of electricity, will
reduce their reliance on the grid while increasing clean,
distributed generation.
2)Amendments . The policy committee approved, but did not adopt,
an amendment deleting "life cycle cost analysis" from the
bill's description of feasibility. From a fiscal perspective,
however, it is not advisable to eliminate an assessment of
cost from the determination of whether placement of a solar
system is feasible. The author has worked with committee
staff to develop an amendment that maintains a
cost-effectiveness measurement within the feasibility
determination. The amendment is as follows:
On page 4, strike out lines 1 through 6 and insert: "(c) For
purposes of this section, 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. For the
purposes of this section, "cost effective" means that the
present value of the savings generated over the life of the
solar energy system, including consideration of the value of
the energy produced during peak and off-peak demand periods
and the value of a reliable energy supply not subject to price
volatility, shall exceed the present value cost of the solar
energy equipment by not less than 10 percent. The present
value cost of the solar energy equipment shall not include the
cost of unrelated building components. The Department of
General Services, in making the present value assessment,
shall obtain interest rates, discount rates, and consumer
price index figures from the Treasurer, and shall take into
consideration air emission reduction benefits."
Technical Amendment . On page 3, line 27, strike out "Subject
to subdivision (b), the" and insert "The".
Analysis Prepared by : Chuck Nicol / APPR. / (916)319-2081