BILL ANALYSIS
AB 2924
Page 1
Date of Hearing: April 19, 2004
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Hannah-Beth Jackson, Chair
AB 2924 (Wiggins) - As Amended: April 13, 2004
SUBJECT : Energy: photovoltaic energy grant program.
SUMMARY : This bill requires the California Energy Commission
(CEC) to report to the Legislature, not later than July 1, 2005,
with recommendations for the establishment of a program to
provide grants to fund all expenses for the purchase and
instillation of solar panels on publicly subsidized residential
housing units.
EXISTING LAW :
1)Requires the CEC to prescribe building design and construction
standards as well as energy conservation design standards that
increase energy efficiency for new residential and
non-residential buildings.
2)Establishes the Emerging Renewables Program (Program) within
the CEC to assist in developing markets for renewable
technologies.
a) Establishes higher and additional renewable energy
rebates for affordable housing under the Program.
b) Provides affordable housing projects an additional 25%
rebate, above the standard rebate, not to exceed 75% of the
cost of the system for renewable technologies (solar, wind,
and fuel cells.)
THIS BILL : Requires the CEC to report to the Legislature, not
later than July 1, 2005, with recommendations for the
establishment of a program to provide grants to fund all
expenses for the purchase and installation of solar panels on
affordable housing.
FISCAL EFFECT : Unknown.
COMMENTS :
The CEC's Program provides rebates to consumers who install
AB 2924
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qualifying renewable energy systems on their homes. Affordable
housing projects can qualify for an extra 25% rebate above the
standard rebate, not to exceed 75% of the system cost based on
meeting additional eligibility criteria.
To be eligible, each unit of the project must be rented or
purchased by low or moderate income people, each unit must have
its own electric utility meter, and the applicant for the rebate
must show that each unit will reduce its energy use by at least
10%. Solar units on residential housing often cost in the range
of $20,000 for purchase and installation. With the CEC rebate,
(50 percent is the standard rebate) plus the additional rebate
of 25 percent affordable housing units are afforded, most
builders would be looking at about $7, 000 per unit for solar
panels. According to the CEC, most solar panel units will last
about 30 years, significantly lowering utility costs and will
recoup their up-front investment back in 4 to 12 years. The
Program, as a number of effective programs in state government
are right now, is heavily oversubscribed. Currently there are
101 projects either paid for or in reserve, totaling just over
$1.1 million in rebates to consumers.
According to the author's office, additional recommendations
from the CEC on providing 100% funding for solar panels on
affordable housing units will be important in providing the
ground work for future endeavors in affordable housing.
Affordable units comprise a small portion of the annual
residential construction in California (about 5,000 units or
roughly 5%). With utilities second only to rent in expenses for
low income housing residents, lowering utility bills can
significantly impact a low-income family's finances.
REGISTERED SUPPORT / OPPOSITION :
Support
California Housing Partnership Corporation
City of Oakland
City of San Jose
Enterprise Foundation
First Community Housing
Global Green
Global Possibilities
Mercy Housing California
Simon & Associates, Inc.
AB 2924
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The Non-Profit Housing Association of California
Vote Solar
2 Individuals
Opposition
None on file
Analysis Prepared by : Kyra Emanuels Ross / NAT. RES. / (916)
319-2092