BILL ANALYSIS
AB 2924
Page 1
ASSEMBLY THIRD READING
AB 2924 (Wiggins)
As Amended April 13, 2004
Majority vote
NATURAL RESOURCES 7-3 APPROPRIATIONS 16-5
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|Ayes:|Jackson, Harman, Koretz, |Ayes:|Chu, Berg, Calderon, |
| |Laird, Lieber, Lowenthal, | |Corbett, Correa, |
| |Wolk | |Firebaugh, Goldberg, |
| | | |Leno, Nation, Negrete |
| | | |McLeod, Oropeza, Pavley, |
| | | |Ridley-Thomas, Wesson, |
| | | |Wiggins, Yee |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|La Malfa, Haynes, |Nays:|Runner, Bates, Daucher, |
| |Aghazarian | |Haynes, Keene |
| | | | |
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SUMMARY : 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.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor one-time costs, probably less than $75,000 in
fiscal year 2004-05, to CEC to develop recommendations and
report to the Legislature.
COMMENTS : The CEC's Program provides rebates to consumers who
install 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% is the standard rebate) plus the additional rebate of 25%
AB 2924
Page 2
affordable housing units are afforded, most builders would be
looking at about $7,000 per unit for solar panels. According to
CEC, most solar panel units will last about 30 years,
significantly lowering utility costs and will recoup their
up-front investment back in four to 12 years. The CEC 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 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.
Analysis Prepared by : Kyra Emanuels Ross / NAT. RES. /
(916) 319-2092 FN:
0005631