BILL NUMBER: SB 655 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Peace
FEBRUARY 24, 1999
An act to add and repeal Sections 25619 and 25620.91 of the Public
Resources Code, relating to energy programs.
LEGISLATIVE COUNSEL'S DIGEST
SB 655, as introduced, Peace. State Energy Resources Conservation
and Development Commission: grant program: solar energy systems.
Existing law requires the State Energy Resources Conservation and
Development Commission to expand and accelerate development of
alternative sources of energy including solar resources.
This bill, until January 1, 2007, would require the commission, to
the extent that funds are appropriated for that purpose in the
annual Budget Act, to implement a grant program to accomplish
specified goals including making solar energy systems cost
competitive with alternate forms of energy. The bill would require
the grants to be based on either the performance of, or the type of,
the solar energy system, as determined by the commission, and would
prohibit duplicate grants from other grant programs administered by
the commission for solar systems that produce electricity, as
specified. The bill would require the commission to develop and
adopt guidelines, as specified. The bill would authorize the
commission to use up to 3% of the funds appropriated for the program
to fund the commission's costs in administering the program.
The bill, until January 1, 2007, would also require the
commission, to the extent that funds are appropriated for that
purpose in the annual Budget Act, to develop and implement a grant
program to offset a portion of the costs of eligible distributed
generation systems, as prescribed. The bill would authorize the
commission to use up to 3% of the funds appropriated for the program
to fund the commission's costs in administering the program.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares both of the
following:
(a) Solar technologies produce clean, renewable energy while
reducing California's energy deficit, creating in-state businesses
and jobs in the manufacturing, contracting, and distribution
industries, and preserving California's preeminent role as home to
the world's largest concentration of solar energy companies.
(b) High-efficiency, low polluting distributed generation
resources, installed on customer sites, can reduce customer costs of
energy, reduce environmental pollution associated with central
station power plants, and provide customers with improved reliability
in the event of an electricity outage.
SEC. 2. Section 25619 is added to the Public Resources Code, to
read:
25619. (a) The commission shall develop a grant program to offset
a portion of the cost of eligible solar energy systems. The goals
of the program are all of the following:
(1) To make solar energy systems cost competitive with alternate
forms of energy.
(2) To reduce the cost of solar energy systems so that after four
years these systems will not need state support to be cost
competitive.
(3) To provide support for electricity storage capabilities in
solar electric applications to facilitate enhanced reliability in the
event of a power outage.
(4) To encourage the purchase by California residents of
California-made solar systems.
(b) (1) The grant for an eligible solar energy system shall be
based on either the performance of, or the type of, the solar energy
system, as the commission determines, and the amount of the grant
shall not exceed seven hundred fifty dollars ($750). Except as
provided in paragraph (2), if a grant is awarded pursuant to this
section for an eligible solar energy system that produces
electricity, no grant shall be made for that system from any other
grant program administered by the commission.
(2) An applicant who receives a grant for a photovoltaic solar
energy system from another program administered by the commission,
may also receive a grant for that system pursuant to this section, if
all of the following conditions are met:
(A) The system will accomplish the purpose specified in paragraph
(3) of subdivision (a).
(B) The system is an eligible solar energy system.
(C) The system includes adequate battery storage, as determined by
the commission.
(c) Only the owner of the solar energy system may apply for a
grant under this section. An owner-builder or owner-developer of a
new single-family dwelling on which a system is installed may elect
not to apply for a grant on a solar energy system installed on a new
single-family dwelling. If an owner-builder or owner-developer of a
new single-family dwelling on which a system is installed irrevocably
elects not to apply for the grant for a solar energy system, the
original purchaser of the dwelling may apply for the grant if a
written document conveying entitlement to the grant is provided by
the owner-builder or owner-developer to the original purchaser of the
dwelling.
(d) The commission shall develop and adopt guidelines to provide
appropriate consumer protection under the grant program and to govern
other aspects of the grant program. The guidelines shall be adopted
at a publicly noticed meeting and all interested parties shall be
provided an opportunity to comment either orally or in writing. Not
less than 30 days notice shall be provided for the public meeting.
Subsequent substantive changes to adopted guidelines shall be adopted
by the commission at a public meeting upon written notice to the
public of not less than 10 days. The guidelines adopted pursuant to
this subdivision are not subject to the requirements of Chapter 3.5
(commencing with Section 11340) of Division 3 of Title 2 of the
Government Code.
(e) The person who provides the solar energy system shall be
properly licensed to do so by the Contractors' State License Board.
(f) The award of a grant pursuant to this section is subject to
appeal to the commission upon a showing that factors other than those
described in the guidelines adopted by the commission were applied
in making the award. Any action taken by an applicant to apply for,
or become or remain eligible to receive an award, including
satisfying conditions specified by the commission, does not
constitute the rendering of goods, services, or a direct benefit to
the commission. Awards made pursuant to this section are not subject
to any repayment requirements of Chapter 7.4 (commencing with
Section 25645).
(g) The commission shall only implement this section to the extent
that moneys are appropriated for the purposes of this section in the
annual Budget Act. The commission may expend up to 3 percent of the
funds available for this program each year to fund the commission's
costs of administering the program.
(h) For the purposes of this section, the following terms have the
following meanings:
(1) "Cost" includes equipment, installation charges, and all
components necessary to carry out the intended use of the system if
those components are an integral part of the system. In the case of
a system that is leased, "cost" means the principal recovery portion
of all lease payments scheduled to be made during the full term of
the lease, which is the cost incurred by the taxpayer in acquiring
the solar energy system, excluding interest charges and maintenance
expenses.
(2) (A) "Eligible solar energy system" means any new, previously
unused solar energy device whose primary purpose is to provide for
the collection, conversion, transfer, distribution, storage, or
control of solar energy for water heating or electricity generation,
and that meets applicable standards and requirements imposed by state
and local permitting authorities, including, but not limited to, the
National Electric Code. Eligible solar energy systems for water
heating purposes shall be certified by the Solar Rating and
Certification Corporation (SRCC) or any other nationally recognized
certification agency that certifies complete systems. Major
components of eligible solar energy systems for electricity
generation shall be listed by a certified testing agency, such as the
Underwriters Laboratory.
(B) "Eligible solar energy system" does not include any of the
following:
(i) Wind energy devices that produce electricity or provide
mechanical work.
(ii) Additions to or augmentation of existing solar energy
systems.
(iii) A device that produces electricity for a structure unless
the device is interconnected and operates in parallel with the
electric grid.
(C) Eligible solar energy systems shall have a warranty of not
less than three years.
(3) "Installed" means placed in a functionally operative state.
(j) This section shall remain in effect only until January 1,
2007, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2007, deletes or extends
that date.
SEC. 3. Section 25620.91 is added to the Public Resources Code, to
read:
25620.91. (a) The commission shall develop and implement a grant
program to offset a portion of the costs of eligible distributed
generation systems.
(b) A grant for an eligible distributed generation system shall be
based on either the performance or type of distributed generation
system, as determined by the commission. The amount of the grant
shall not exceed seven hundred fifty dollars ($750).
(c) An applicant who receives a grant for a distributed generation
system from another program administered by the commission, may also
receive a grant for that system pursuant to this section if the
system possesses adequate black-start capability, as determined by
the commission.
(d) Only the owner of the distributed generation system may apply
for a grant under this section. If the owner-developer or
owner-builder of the property on which a system is installed
irrevocably elects to not apply for a grant under this section, the
purchaser of the property may apply if the original owner-developer
or owner-builder conveys entitlement to the grant in a written
document.
(e) The commission shall develop and adopt guidelines to provide
appropriate consumer protection under the grant program and to govern
other aspects of the grant program, which shall be made available to
the public. Not less than 30 days' notice shall be provided for a
public meeting to adopt the guidelines. Public meetings to adopt
subsequent substantive guideline changes require written public
notice of not less than 10 days. The guidelines adopted pursuant to
this subdivision are not subject to the requirements of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.
(f) The person who provides the distributed generation system
shall be properly licensed to do so by the Contractors' State License
Board.
(g) The award of a grant pursuant to this section is subject to
appeal to the commission upon a showing that factors other than those
adopted by the commission were applied in making the award.
(h) The commission shall only implement this section to the extent
that moneys are appropriated for the purposes of this section in the
annual Budget Act. The commission may expend up to 3 percent of the
funds available for this program to fund the commission's cost of
administering this program.
(i) The commission shall develop appropriate safety and
interconnection standards for distributed generation systems.
(j) For purposes of this section, the following terms have the
following meanings:
(1) "Black-start capability" means the capability to provide
electricity to the customer in the event of an outage.
(2) "Cost" includes equipment, installation charges and all
components necessary to carry out the intended use of the system if
those components are an integral part of the system. In the case of
a system that is leased, "cost" means the principal recovery portion
of all lease payments scheduled to be made during the full term of
the lease, which is the costs incurred by the customer in acquiring
the distributed generation system, excluding interest charges and
maintenance expenses.
(3) "Eligible distributed generation system" means any new,
previously unused distributed generation system, interconnected and
operating in parallel with the electricity grid, certified by the
commission to provide environmental and system reliability benefits
greater than those achievable from commercially available, natural
gas fueled central state power plants. Potentially certifiable
technologies include all of the following:
(A) Microcogeneration.
(B) Gas turbines.
(C) Fuel cells.
(D) Wind turbines.
(E) Electricity storage technologies in systems not eligible for
grants under Section 25619.
(F) Solar Dish Stirling Engine.
(G) Reciprocating internal combustion engines.
(4) "Installed" means placed in a functionally operative state.
(k) Eligible distributed generation systems shall have a warranty
of not less than three years.
(l) This section shall remain in effect only until January 1,
2007, and as of that date is repealed unless a later enacted statute,
that is enacted before January 1, 2007, deletes or extends that
date.