BILL NUMBER:  AB 1383
  VETOED	DATE: 10/07/2005




To the Members of the California State Assembly:

I am returning Assembly Bill 1383 without my signature.

Solar energy offers all Californians a great opportunity to increase
our peak energy production with safe reliable renewable energy.  This
is why I developed the Million Solar Roofs Initiative which is an
aggressive comprehensive solar plan that will result in the creation
of 3,000 mega watts of clean energy by the year 2018.  Recognizing
the initial capital investment for solar can be an impediment for
some Californians, my plan included several incentives for those
individuals i ncluding an exemption from the surcharge for all
customers that participate in the state and federal rate reduction
programs and a mandate that at least 10 percent of the funds spent
under that program go to affordable housing projects.  This is in
addition to existing law that provides an additional 25 percent
increase in the amount of incentive for qualified low wealth
applicants.

This bill creates the Low Income Housing Development Revolving Loan
Program to help finance solar systems on affordable housing projects.
  As demonstrated by inclusion in my comprehensive plan, this is a
concept I strongly support, however there are significant flaws with
this bill.  The funding sources identified as seed money for the
program are the Emerging Renewable Resources Account (ERRA) at the
California Energy Commission and the Self Generation Incentive
Program (SGIP) at the Californi a Public Utilities Commission.  The
ERRA has a zero balance and will not have any additional funding
through December 31, 2008 and the SGIP program is limited to
commercial and industrial projects.  Additionally, the SGIP program
is a reimbursement program for the Investor Owned Utilities; no
funding is ever collected making it unclear how any seed money would
be made available.

I encourage the Legislature to pass my Million Solar Roof Initiative
which guarantees access to affordable solar energy for all
Californians, including those with limited financial means.

Sincerely



Arnold Schwarzenegger