BILL ANALYSIS
AB 1685
Page 1
Date of Hearing: April 21, 2003
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Sarah Reyes, Chair
AB 1685 (Leno) - As Amended: April 10, 2003
SUBJECT : Energy: self generation incentive program.
SUMMARY : Requires the California Public Utilities Commission
(PUC) in consultation with the State Energy Resources
Conservation and Development Commission to administer a
self-generation incentive program for solar electricity
generation until January 1, 2017. Specifically, this bill :
1)Requires PUC in consultation with the State Energy Resources
Conservation and Development Commission to administer a
self-generation incentive program for solar electricity
generation.
2)Requires the program to continue until January 1, 2017 in the
same form as it exists on January 1, 2004.
EXISTING LAW :
1)Requires PUC to develop an incentive program to encourage
customers of investor-owned utilities to install distributed
generation, which operates on renewable fuel or contributes to
system reliability.
2)Establishes the self generation incentive program to provide
incentives for customers of Pacific Gas and Electric (PG&E),
Southern California Edison (Edison), San Diego Gas & Electric
(SDG&E) and Southern California Gas Company (SoCalGas) to
install photovoltaics, wind turbines, fuel cells,
microturbines, small gas turbines, and internal combustion
engines to provide some or all of their electricity for onsite
use.
FISCAL EFFECT : Unknown.
COMMENTS :
The purpose of this bill : According to the author AB 1685
re-authorizes a very successful program that would otherwise
AB 1685
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expire at the end of 2004. California has everything to gain
from the continued growth of solar and other renewable energy
technologies - clean air, new jobs and increased energy
independence.
Self-Generation Incentive Program : AB 970, signed by the
Governor on September 6, 2000, required PUC to initiate certain
load control and distributed generation activities, including
providing financial incentives. PUC decision 01-03-073
authorizes the Self-Generation Inventive Program, and allocated
$125 million per year through 2004 for program administration
and customer incentives. Technologies eligible to receive
incentive payments under the program are photovoltaics, wind
turbines, fuel cells, internal combustion engines, small gas
turbines and microturbines.
The program has three categories of incentive payments and
maximum incentive and system size limits:
-----------------------------------------------------------------
|Incentiv|Incentiv| Maximum |Minimum | Maximum | Eligible |
| e | e |percentage| system | system | technologies |
|category|offered | of | size | size | |
| | | project | | | |
| | | cost | | | |
|--------+--------+----------+--------+---------+-----------------|
|Level 1 |$4.50/Wa|50 |30 kW |1 MW |Photovoltaics, |
| |tt |percent | | |fuel cells |
| | | | | |operating on |
| | | | | |renewable fuel, |
| | | | | |wind turbines |
|--------+--------+----------+--------+---------+-----------------|
|Level 2 |$2.50/Wa|40 |None |1 MW |Fuel cells |
| |tt |percent | | |operating on |
| | | | | |nonrenewable |
| | | | | |fuel and |
| | | | | |utilizing |
| | | | | |sufficient waste |
| | | | | |heat recovery |
|--------+--------+----------+--------+---------+-----------------|
|Level 3 |$1.00/Wa|30 |None |1 MW |Microturbines, |
| |tt |percent | | |internal |
| | | | | |combustion |
| | | | | |engines and |
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| | | | | |small gas |
| | | | | |turbines |
| | | | | |utilizing |
| | | | | |sufficient waste |
| | | | | |heat recovery |
| | | | | |and meeting |
| | | | | |reliability |
| | | | | |criteria |
-----------------------------------------------------------------
The Self-Generation Incentive Program provides incentive funding
to renewable and non-renewable self-generation unites up to 1 MW
in size. PG&E, SCE, SoCalGas, and the San Diego Regional Energy
Office (serving SDG&E customers) administer the program
throughout their respective service territories.
Most of the applicants seem to be in photovoltaics : The PUC
November 2002 status report on the Self-Generation Incentive
Program showed that there were 248 total applicants in 2002, of
which 145 applicants were in photovoltaics technology but
applicants in internal combustion engine technology produced
twice as many kilowatts with half as many applicants.
Committee recommendation on changing the sunset date : This bill
currently requires the program to continue until January 1,
2017. The committee recommendation is to instead have this bill
sunset on January 1, 2008 so that the incentive program can be
reviewed at that time to determine whether it is worthwhile to
continue with it or focus instead on other areas of technology.
REGISTERED SUPPORT / OPPOSITION :
Support
Shell Solar Industries
Light Energy Systems
POCO Solar Energy
Six Rivers Solar
SoCal Solar Energy
Performance Solar Inc.
AMECO
EcoEnergies
Opposition
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None on file.
Analysis Prepared by : Daniel Kim / U. & C. / (916) 319-2083