BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1685
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1685 (Leno)
          As Amended September 4, 2003
          Majority vote
           
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          |ASSEMBLY:  |54-25|(June 2, 2003)  |SENATE: |23-13|(September 8,  |
          |           |     |                |        |     |2003)          |
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           Original Committee Reference:   U. & C.  

           SUMMARY  :  This bill extends the Self-Generation Incentive  
          Program (SGIP) until January 1, 2008, and requires that  
          combustion-operated distributed generation projects meet  
          specific emissions targets in order to qualify for SGIP rebates.  


           The Senate amendments  require that beginning on January 1, 2005,  
          combustion operated distributed generation projects using fossil  
          fuels to meet oxides of nitrogen (NOx) emissions rate standards  
          as specified, and beginning on January 1, 2007, requires them to  
          meet ultra clean and low emission standards as specified.

           AS PASSED BY THE ASSEMBLY  , this bill established a statutory  
          sunset date of 
          January 1, 2008 on the California Public Utilities Commission's  
          (PUC's) SGIP, which currently has an administrative sunset date  
          of January 1, 2004.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, PUC's costs to continue this program are  
          approximately $300,000 to $500,000 annually, for five positions.

           COMMENTS  :  This bill extends SGIP until January 1, 2008, by  
          requiring PUC, in consultation with the California Energy  
          Commission, to administer, until January 1, 2008, the incentive  
          program in the same form that exists on January 1, 2004.

          This bill revises the definition of "ultra-clean" and  
          "low-emission distributed generation" to include electric  
          generation technologies that commence operation prior to  
          December 31, 2008.  This bill gives PUC flexibility to include  
          other technologies, and to consider public policy interests,  
          such as environmental impacts.








                                                                  AB 1685
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           Analysis Prepared by  :    Daniel Kim / U. & C. / (916) 319-2083 


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