BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 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  
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          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  







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          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

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