BILL ANALYSIS
SB 1345
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Date of Hearing: August 9, 2000
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Carole Migden, Chairwoman
SB 1345 (Peace) - As Amended: July 6, 2000
Policy Committee: Natural
ResourcesVote:11-0 (Consent)
Utilities and Commerce 9-1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill:
1)Requires the California Energy Commission (CEC) to develop
grant programs that provide:
a) Grants of up to $750 for solar energy systems that
produce energy for water heating or electricity generation.
b) Grants of up to $2,000 for distributed generation
systems.
2) Requires the CEC to implement the grant programs, which
would be authorized through January 2006, to the extent that
funds are appropriated in the annual Budget Act.
3) Limits the CEC's administrative costs for the programs to
$250,000 annually from any amounts included in the budget.
4) Requires the Public Utilities Commission (PUC) to establish
operational and safety standards for distributed generation
systems.
FISCAL EFFECT
1)One-time special fund cost of $180,000 to develop performance
standards for the various distributed generation technologies.
2)Development and administration of the grant programs will cost
up to $250,000 annually for three staff positions.
SB 1345
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(The 2000-01 Budget Act includes provisional language
allocating up to $1 million from the Energy Resource Program
Account to fund the grant programs.)
1)Future special fund pressure of several million dollars to
continue the grant programs through January 2006.
2)Minor absorbable costs to the PUC.
COMMENTS
1)Background and Purpose . Distributed generation is small scale
production of electricity at or near the point of use.
Distributed generation systems range from photovoltaics and
fuel cells to gas turbines and diesel engines in residential,
commercial, and industrial applications.
This bill is designed to encourage installation of
residential, small commercial and industrial solar and
distributed generation systems. This bill is also intended to
encourage end-users to install environmentally superior
generation systems to meet onsite loads, thus improving both
system reliability and environmental quality by reducing
system load and reducing the need for new distribution system
investments.
1)Prior Legislation . This bill is substantially similar to SB
655 (Peace), which was vetoed by the Governor in 1999. The
Governor maintained that bill established a new grant program
without establishing the source or amount of funding and
believed that the program should compete with other priorities
in the annual budget process.
Analysis Prepared by : Chuck Nicol / APPR. / (916)319-2081