BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1348| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1348 Author: Sharon Runner (R) Amended: 5/2/05 in Assembly Vote: 21 SENATE ENERGY, U.&C. COMMITTEE : 6-3, 6/30/05 AYES: Morrow, Alarcon, Battin, Cox, Murray, Simitian NOES: Escutia, Bowen, Kehoe NO VOTE RECORDED: Campbell, Dunn SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 78-0, 5/26/05 (Passed on Consent) - See last page for vote SUBJECT : Antelope Valley Fairgrounds EE and PV Synergy SOURCE : Antelope Valley Fairgrounds DIGEST : This bill authorizes the Antelope Valley Fairgrounds EEE and PV Synergy Demonstration Project (Project). The project includes the installation of energy-efficient equipment and fixtures, including a photovoltaic solar energy system. The bill requires the fairground's electricity service provider to establish a tariff providing an incentive rate for the investment and durability testing of the fairground's solar energy system. ANALYSIS : Current law provides for discounts for large-scale photovoltaic (PV) installations through the CONTINUED AB 1348 Page 2 Public Utilities Commission (PUC). Current law allows large-scale PV installations to net meter, a mechanism that permits the PV customers to run their electric meter backwards when the PV installation is generating electricity. Current law allows large-scale PV installations to avoid stand-by charges. This bill requires the PUC to approve a special rate for electric service offered to the Antelope Valley Fairgrounds (AVF) which, in combination with the discount for PV installations and other PV benefits, will result in a 10-year payback for the PV system. This bill requires biennial reporting on the actual electricity usage and electrical production by AVF. Background PV systems have benefited from state and federal ratepayer and taxpayer subsidies for many years. (See the Senate Energy, Utilities and Communications Committee analysis of SB 1 [Murray and Campbell] for a complete discussion.) Large commercial-sized PV installations, such as that envisioned by this bill, are eligible for a subsidy of $3.50/watt from the Self-Generation Incentive Program (SGIP) administered by the PUC. This subsidy is 40 - 50 percent of the system cost. In addition, PV systems benefit from subsidies created by net metering and avoidance of stand-by charges. This bill authorizes the AVF Energy Efficiency and PV Synergy Demonstration project. The purpose of this project is to examine the potential synergies between energy efficiency projects and PV installations. AVF is a 235 acre complex with several buildings and an RV park. The buildings include two 4,000 square foot pavilions that are available for rent and a Turf Club for watching and wagering on horse races. Numerous events are held at the AVF, including the fair, garden shows, demolition derbies and rodeos. AVF is located in AB 1348 Page 3 Lancaster. AVF would like to install a 630 kilowatt PV system. This is a very large system; an average residential PV system is three kilowatts. AVF has applied for the PUC's SGIP rebate which, if approved, will reduce the PV project costs by more than $2.2 million. To further reduce the cost of the project, this bill also requires Southern California Edison (SCE) to provide the AVF with discounted electric service so that the combination of the electric discount and PV rebate makes the PV system pay for itself in 10 years. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes SUPPORT : (Verified 8/17/05) Antelope Valley Fairgrounds (source) Southern California Edison ASSEMBLY FLOOR : AYES: Aghazarian, Arambula, Baca, Bass, Benoit, Berg, Bermudez, Blakeslee, Bogh, Calderon, Canciamilla, Chan, Chavez, Chu, Cogdill, Cohn, Coto, Daucher, De La Torre, DeVore, Dymally, Emmerson, Evans, Frommer, Garcia, Goldberg, Hancock, Harman, Haynes, Jerome Horton, Shirley Horton, Houston, Huff, Jones, Karnette, Keene, Klehs, Koretz, La Malfa, La Suer, Laird, Leno, Leslie, Levine, Lieber, Liu, Matthews, Maze, McCarthy, Montanez, Mountjoy, Mullin, Nation, Nava, Negrete McLeod, Niello, Oropeza, Parra, Pavley, Plescia, Richman, Ridley-Thomas, Sharon Runner, Ruskin, Saldana, Salinas, Spitzer, Strickland, Torrico, Tran, Umberg, Vargas, Villines, Walters, Wolk, Wyland, Yee, Nunez NO VOTE RECORDED: Gordon, Nakanishi NC:cm 8/17/05 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****