BILL ANALYSIS
SB 1345
Page 1
SENATE THIRD READING
SB 1345 (Peace)
As Amended August 25, 2000
Majority vote
SENATE VOTE :39-0
NATURAL RESOURCES 11-0 UTILITIES AND COMMERCE 9-1
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|Ayes:|Wayne, Aanestad, |Ayes:|Wright, Pescetti, |
| |Dickerson, Jackson, | |Calderon, Cardenas, |
| |Keeley, Lowenthal, | |Frusetta, Mazzoni, Reyes, |
| |Machado, Migden, Oller, | |Vincent, Wesson |
| |Robert Pacheco, Steinberg | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Maddox |
| | | | |
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APPROPRIATIONS 20-0
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|Ayes:|Migden, Campbell, | | |
| |Ackerman, Alquist, | | |
| |Aroner, Ashburn, Brewer, | | |
| |Cedillo, Corbett, Davis, | | |
| |Kuehl, Maldonado, Papan, | | |
| |Romero, Shelley, Thomson, | | |
| |Wesson, Wiggins, Wright, | | |
| |Zettel | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Revises the definition of solar energy system and
implements a new grant program through the California Energy
Commission (CEC) to offset a portion of the costs of solar
energy systems and distributed generation (DG) systems.
Specifically, this bill :
1)Revises the definition of "solar energy system" to add DG to
the definition.
2)Defines "distributed generation" as any onsite generation
interconnected and operating in parallel with the electricity
grid, that is used solely to meet onsite electrical load.
SB 1345
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3)Creates a grant program through CEC to provide grants of up to
$750 to homebuilders or homeowners who install thermal solar
systems or specified photovoltaic solar systems in their
homes.
4)Creates a grant program through CEC for up to $2,000 to
homebuilders or homeowners who install DG systems in their
homes.
5)Requires the California Public Utilities Commission (CPUC) to
establish operational and safety standards for DG systems
installed under the grant program.
EXISTING LAW :
1)Pursuant to the Federal Internal Revenue Code, provides credit
equal to 10% of the cost of energy property placed in service
during a given tax year.
2)Pursuant to the California Constitution, provides that active
solar energy systems are not assessed as "new construction"
for purposes of assessing State property tax.
3)Defines solar energy system as any solar collector, other
solar energy device or structural design feature whose primary
purpose is to provide for the collection, storage, and
distribution of solar energy for space heating or cooling, or
for water heating.
4)Requires CEC to expand and accelerate development of alternate
sources of energy, including solar resources.
FISCAL EFFECT : According to the Assembly Appropriations
Committee analysis, one-time special fund costs of $180,000 to
develop performance standards for the various distributed
generation technologies and development and administrative costs
of up to $250,000 annually for three staff positions.
Additionally, the current Budget has $1.5 million in funding for
this program.
COMMENTS : According to the sponsors of this bill, existing law
enacted by the passage of AB 1890 (Brulte), Chapter 854,
Statutes of 1996 and SB 90 (Sher), Chapter 905, Statutes of
1997, established measures designed to increase the usage of
photovoltaic technologies through the Emerging Renewables
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program now being administered by CEC. However, small-scale
solar thermal technologies were not addressed in these bills.
This bill would establish parallel, but smaller incentives for
small-scale solar thermal technologies used in water heating
applications, with a focus on new residential construction.
This bill creates incentives for the instillation of thermal
solar systems by providing grants to homebuilders or homeowners
for up to $750 per grant. The grant program would also allow
for photovoltaic battery pack systems to be eligible under the
grant program.
In addition to thermal solar systems, AB 1890 also did not
provide incentives for DG systems. Unlike solar systems, DG
systems allow the user, through a variety of means (i.e.,
microgeneration, wind turbines, gas turbines, fuel cells, solar
dish stirling engines, and reciprocal internal combustion
engines) to provide short term energy that does not rely upon
traditional means of obtaining energy. Most often, DG systems
are used by facilities like hospitals, which cannot afford to be
without electricity even if the more traditional systems have a
break in service.
The DG systems eligible under this bill would be required to
meet the same emission standards as central station power
plants. In addition, this bill would require the CPUC to
establish operation and safety standards for DG systems.
This bill is similar to SB 655 (Peace) which was vetoed by the
Governor. In his veto message the Governor noted that while he
was supportive of efforts to promote emerging solar and
distributed generation technologies, the bill did not have any
funding attached to the programs.
Analysis Prepared by : Kyra Emanuels / NAT. RES. / (916)
319-2092
FN: 0006436