BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 118|
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UNFINISHED BUSINESS
Bill No: SB 118
Author: Bowen (D)
Amended: 8/23/04
Vote: 21
ALL PRIOR SENATE VOTES NOT RELEVANT
ASSEMBLY FLOOR : Not available
SUBJECT : Solar energy generation
SOURCE : Author
DIGEST : This bill establishes a Solar Energy Peak
Procurement Program in the California Public Utilities
Commission and a Solar Rebate program within the California
Energy Commission for the installation of grid connected
solar energy systems as specified and requires the
development of a Solar Peak Energy Affordable Housing
Revolving Fund in the State Treasury.
Assembly amendments delete the prior version. As it left
the Senate, the bill clarified that a California Public
Utilities Commission (PUC) commissioner shall forfeit that
office in cases where they voluntarily obtain a financial
interest, as defined, in a PUC-regulated company.
ANALYSIS : Existing law:
1.Specifies the development of a public goods surcharge to
fund energy efficiency, renewable energy, and research,
CONTINUED
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development and demonstration programs from January 1,
2002 to January 1, 2012. The surcharge is a
nonbypassable element of the local distribution service
and collected on the basis of usage.
2.Establishes a program of assistance to low income
electric and gas customers called the California
Alternate Rates for Energy (CARE) program that
establishes a discount on electric and gas bills for
eligible customers.
3.Establishes a net metering program whereby residential
and other customers can receive credits to their monthly
electricity bills for up to 12 months for producing and
placing electricity on the grid via photovoltaic or other
renewable generation as specified in statute. Larger net
metering programs require the customer to calculate how
much electricity has been placed and taken off the grid
via customer generation in order to calculate the
appropriate generation charge to credit and collect
public goods charges.
4.Establishes incentive programs for photovoltaic
technologies within the California Energy Commission
(CEC) and the California Public Utilities Commission
(PUC). These programs offer varying degrees of incentive
payments per kilowatthour for residential or commercial
customers purchasing certain types of renewable
technology like photovoltaic cells.
5.Establishes tax exemptions for property tax, interest on
loans or personal or corporate income tax credits for
customers as a result of increasing energy efficiency or
purchasing renewable technology like solar or wind.
This bill establishes a Solar Energy Peak Procurement
Program in the PUC and a Solar Rebate program within the
CEC for the installation of grid connected solar energy
systems as specified and requires the development of a
Solar Peak Energy Affordable Housing Revolving Fund in the
State Treasury. Specifically, this bill:
1. Requires CEC to create a solar energy rebate program by
no later than July 1, 2005 to support the installation
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of grid connected solar energy systems and to adopt a
schedule of declining rebates.
2. Requires PUC to establish the Solar Energy Peak
Procurement Program to be funded by reducing purchases
of electricity during peak demand periods, spending
unallocated funds previously authorized for demand
management and interruptible programs, and substituting
a photovoltaic incentive program for less cost effective
demand management and interruptible programs.
3. Specifies that the maximum rebate in year one to be no
more than three dollars per watt and decline annually to
the goal of zero by January 1, 2015. The intent of the
program being that it would only last for ten years.
4. Specifies that the intent of the Legislature is to fund
the program at a level of $100,000,000 annually without
raising rates or fees.
5. Specifies that five percent of funding in the solar
energy system rebate program go towards supporting the
installation of grid connected solar energy systems for
affordable housing.
6. Defines affordable housing to mean owner occupied
housing or rental housing development for extremely low
income households, very low income households, lower
income and moderate income households.
7. Requires PUC by June 30, 2005 to develop a zero interest
revolving loan program to finance grid connected solar
energy systems for affordable housing projects funded
out of the Solar Peak Energy Affordable Housing
Revolving Fund in the State Treasury.
8. Allows electricity generated from net metered solar
energy systems to be counted towards meeting renewable
portfolio standard (RPS) targets.
9. Increases the cap on net metering from one half of one
percent to three percent of electric service provider's
aggregate customer peak demand.
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10.Establishes the Solar Peak Energy Procurement Fund in
the State Treasury.
11.Adds double joining language with AB 2006 (Nunez).
Comments
For a detailed discussion of the bill's provisions and
consequences, please refer to the Assembly Utilities and
Commerce Committee analysis.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/24/04)
Southern California Edison
The Utility Reform Network (TURN)
OPPOSITION : (Verified 8/24/04)
Pacific Gas and Electric (unless amended)
San Diego Gas and Electric (unless amended)
Golbal Green (unless amended)
Sempra Energy (unless amended)
NC:nl 8/26/04 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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