BILL ANALYSIS
AB 1348
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Date of Hearing: April 25, 2005
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Lloyd E. Levine, Chair
AB 1348 (Runner) - As Amended: April 19, 2005
SUBJECT : Antelope Valley Fairgrounds EE and PV Synergy
Demonstration Project.
SUMMARY : Creates the Antelope Valley Fairgrounds Energy
Efficiency (EE) and photovoltaic (PV) Synergy Demonstration
Project (project), which would be used to evaluate synergies
between energy efficiency and solar technologies. Specifically,
this bill :
Requires that the California Public Utilities Commission (PUC)
to establish a project that would require:
a) The calibration of energy management systems, the
installation of variable speed drives on exhaust fans,
the relocation of compressor-condenser units, the
installation of occupancy sensors for lighting controls
and the installation of cost effective energy efficient
equipment in future expansions of Antelope Valley fair
facilities.
b) The installation of an onsite 630kW photovoltaic
(PV) solar system on the fair grounds.
c) The establishment of incentive rates that provide
rate stability and certainty over a 10-yar period in an
amount that would support investment in and test the
durability of the PV system.
d) An annual audit conducted by the electrical
corporation providing electrical service of the
demonstration project.
FISCAL EFFECT : Unknown.
COMMENTS : According to the author the purpose of this bill is
to create a demonstration project that would allow the Antelope
Valley Fairgrounds to install new energy efficiency systems and
a new PV energy system under a specially designed tariff that
will allow the fairgrounds to recoup the costs of the solar
AB 1348
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energy system. The demonstration project will be used to test
the durability of the systems and the effectiveness of combining
large PV systems with modern energy efficiency technologies.
1) Cost Shifts : The specially designed tariff that will allow
the Antelope Valley Fairgrounds to install the PV energy system
likely will allow the fairgrounds to avoid paying charges
related to the utility's fixed costs for maintaining the
transmission and distribution system and for maintaining
adequate reserves. Since the utility will still be allowed to
recover these costs there is a risk that this bill could result
in a cost shift from the fairgrounds to other customers. While
the cost shift may be small, in order to assure that this bill
does ultimately lead to costs shifts from to other customer
classes, the committee may wish to consider amending the bill to
provide that the no tariff required under this act can result in
a cost shift to other customer classes .
2) Parameters for a pilot project : Under the committee rules,
any bill that proposes the create of a pilot project must
contain the following specific requirements:
(a) The proposed pilot project's statement of purpose
that specifies the goals or objectives of the project.
(b) Precise cost projections, where the funding for the
project will be derived, and methods by which savings, if
any, may be calculated.
(c) A definitive mechanism by which the value and success,
if any, of the project may be quantified. This mechanism
shall include specific numerical objectives that must be met
or exceeded if a project is to be judged successful.
(d) A date by which the project will be completed and
evaluated.
(e) Provisions for the submission of a report to this
committee evaluating the effectiveness of the project.
(f) A sunset date for the provisions creating the pilot
project.
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The purpose of the pilot project created in this bill is not
clear and the bill does not contain provisions specifying how
the success of the project will be measured, a date by which the
project will be completed, a provision for submitting a report
to the committee, or a sunset date. To comply with committee
rules, this bill should be amended to contain these provisions .
REGISTERED SUPPORT / OPPOSITION :
Support
Kyocera Solar, Inc.
Planning and Conservation League
Powerlight Solar Electric Systems
Southern California Edison (SCE) (as amended)
Vote Solar
Opposition
Pacific Gas & Electric (PG&E)
Sempra Energy
Analysis Prepared by : Edward Randolph / U. & C. / (916)
319-2083