BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1685
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 1685 (Leno)
          As Amended May 13, 2003
          Majority vote 

           UTILITIES AND COMMERCE     11-0                         NATURAL  
          RESOURCES              9-1
           
           ----------------------------------------------------------------- 
          |Ayes:|Reyes, Richman, Calderon, |Ayes:|Jackson, La Malfa,        |
          |     |Campbell, Canciamilla,    |     |Hancock, Koretz, Laird,   |
          |     |Diaz,                     |     |Lieber, Lowenthal,        |
          |     |Jerome Horton, La Malfa,  |     |Montanez, Wolk            |
          |     |Levine, Nunez,            |     |                          |
          |     |Ridley-Thomas             |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|                          |Nays:|Keene                     |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      17-7                                        
                         (vote not available)

           SUMMARY  :  Establishes a statutory sunset date of January 1,  
          2008, on the Public Utilities Commission's (PUC's) Self  
          Generation Incentive Program (Incentive Program), which  
          currently has an administrative sunset date of 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, Southern  
            California Edison, San Diego Gas & Electric and Southern  
            California Gas Company 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  :  According to the Assembly Appropriations  
          Committee, continues for three more years the annual $125  








                                                                  AB 1685
                                                                  Page  2

          million in financial incentives provided by the utilities for  
          the program.

           COMMENTS  :  According to the author, 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 (i.e.,  
          clean air, new jobs and increased energy independence).


           Analysis Prepared by  :    Daniel Kim / U. & C. / (916) 319-2083    
                                   FN: 0001497