BILL ANALYSIS AB 1685 Page 1 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 Page 2 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 Page 3 None on file Analysis Prepared by : Kyra Emanuels Ross / NAT. RES. / (916) 319-2092