BILL ANALYSIS
AB 1685
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Date of Hearing: May 8, 2003
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Hannah-Beth Jackson, Chair
AB 1685 (Leno) - As Amended: April 24, 2003
SUBJECT : Energy: self generation incentive program.
SUMMARY : This bill extends the sunset on the existing Self
Generation Incentive Program within the California Public
Utilities Commission (CPUC) until January 1, 2006.
EXISTING LAW :
1)Requires the CPUC to develop an incentive program to encourage
customers of investor-owned utilities to install distributed
generation that operates on renewable fuel or contributes to
system reliability.
2)Establishes the Self Generation Incentive Program (Program) to
provides incentives for the customers of Pacific Gas &
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.
3)Through the California Energy Commission (CEC), provides the
Emerging Renewables Program that provides rebates to consumers
who install qualifying renewable energy systems.
THIS BILL extends the sunset on the Program until 2006.
FISCAL EFFECT : Unknown
COMMENTS :
1)Background
According to the author's office, this bill re-authorizes a very
successful program that would otherwise expire at the end of
2004. California has everything to gain from the continued
growth of solar and other renewable energy technologies. The
benefits are vast and include clean air, new jobs, and increased
AB 1685
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energy independence.
Assembly Bill 970 (Ducheny), Chapter 329, Statutes of 2000,
required the CPUC to initiate certain load control and
distributed generation activities, including providing financial
incentives. The Program provides incentives for customers of
PG&E, Edison, SDG&E, and 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. Greater Incentives are provided for
generation using renewable fuel. No incentives are provided for
diesel-powered or back-up generation.
The Program provides incentive funding to renewable and
non-renewable self-generation units up to 1 Megawatt (MW) in
size. PG&E, Edison, SoCalGas, and the San Diego Regional Energy
Office (serving SDG&E customers) administer the program
throughout their respective service territories.
According to the author's office, this Program has a record of
positive results. This bill extends the sunset on the Program
until January 1, 2006.
2)Assembly Utilities and Commerce Committee Amendment
The Assembly Utilities and Commerce Committee heard this bill on
April 21, 2003. In committee, the author accepted an amendment
to change the sunset date on the bill to 2008. That Committee
passed the bill as amended. However, the set of committee
amendments that changed the final sunset date of the program was
incorrect. To correct the date of the sunset in the bill, the
Committee may wish to consider the following amendment:
On page 2, line 26, delete "2006" and insert " 2008" .
REGISTERED SUPPORT / OPPOSITION :
Support
California Solar Energy Industries Association
RealEnergy
Sacramento Municipal Utilities District
Opposition
AB 1685
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None on file
Analysis Prepared by : Kyra Emanuels Ross / NAT. RES. / (916)
319-2092