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: |23-12|(September 8, 2003)  |
        |          |     |                |        |     |                     |
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        |COMMITTEE VOTE:  |8-4  |(September 10,      |RECOMMENDATION: |concur    |
        |                 |     |2003)               |                |          |
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        Original Committee Reference:   U. & C.  

         SUMMARY  :  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.








                                                                AB 1685
                                                                Page  2


        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.


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


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