BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2924
                                                                  Page  1

          Date of Hearing:   May 5, 2004 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                   AB 2924 (Wiggins) - As Amended:  April 13, 2004 

          Policy Committee:                              Natural Resources  
                       Vote:                            7-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the California Energy Commission (commission)  
          to make recommendations to the Legislature, by July 1, 2005, for  
          the establishment of a grant program to fund all costs of buying  
          and installing photovoltaic electrical generating (solar) panels  
          on appropriate publicly-subsidized residential housing units.

           FISCAL EFFECT  

          Minor one-time costs, probably less than $75,000 in FY 2004-05,  
          to the commission to develop recommendations and report to the  
          Legislature.  (Renewable Resource Trust Fund or the State Energy  
          Conservation Assistance Account.)

           COMMENTS  

           1)Rationale  .  The author believes that, while affordable housing  
            construction represents a small percentage of total annual  
            residential housing construction in California, encouraging  
            the purchase and installation of solar panels by affordable  
            housing operators could provide significant financial benefits  
            to tenants.  Since the cost of utilities ranks just behind the  
            cost of rent for the average affordable housing tenant, use of  
            solar panels could benefit these tenants by substantially  
            reducing their gas or electric utility bills.
           
          2)Current Financial Incentives .  The commission's Emerging  
            Renewables Program provides affordable housing projects with  
            up a 75% rebate on the cost of solar panel systems.  

           Analysis Prepared by  :    Steve Archibald / APPR. / (916)  








                                                                  AB 2924
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          319-2081