BILL ANALYSIS
SB 412
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SENATE THIRD READING
SB 412 (Kehoe)
As Amended September 1, 2009
Majority vote
SENATE VOTE : 37-0
UTILITIES & COMMERCE 13-0 NATURAL
RESOURCES 9-0
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|Ayes:|Fuentes, Tom Berryhill, |Ayes:|Skinner, Gilmore, |
| |Buchanan, Carter, Fong, | |Brownley, Chesbro, De |
| |Fuller, Huffman, | |Leon, Hill, Huffman, |
| |Krekorian, Skinner, | |Knight, Logue |
| |Smyth, Swanson, | | |
| |Caballero, Villines | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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APPROPRIATIONS 15-0
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|Ayes:|De Leon, Conway, Ammiano, | | |
| |Charles Calderon, Coto, | | |
| |Davis, Fuentes, Hall, | | |
| |Miller, John A. Perez, | | |
| |Skinner, Solorio, Audra | | |
| |Strickland, Torlakson, | | |
| |Hill | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Extends the sunset date of the self-generation
incentive program (SGIP) through January 1, 2016, restricts the
amount the California Public Utilities Commission (PUC) can
direct the utilities to collect, and expands the eligible
resources to include all self-generation technologies PUC
determines will support the state's goals for the reduction of
emissions of greenhouse gases, that meet specified efficiency
standards.
EXISTING LAW :
SB 412
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1)Authorizes PUC to administer SGIP to provide rebates for fuel
cells and wind distributed generation (DG) technologies
through 2012.
2)Restricts SGIP-eligible technologies to wind and fuel cell DG
technologies that meet or exceed specific emissions standards.
FISCAL EFFECT : Continued annual costs for PUC to disburse
collected funds and administer the SGIP for up to four years
beyond the current January 1, 2012 sunset date. PUC indicates
that annual administrative costs are currently $125,000 for the
equivalent of 1.25 positions. [Public Utilities Reimbursement
Account]
COMMENTS : As a result of the energy crisis in an effort to
expedite generation and fend off rolling blackouts, the
Legislature passed AB 970 (Ducheny), Chapter 329, Statutes of
2000, to encourage investment in new, environmentally superior
electricity generation. As a result, the PUC established SGIP to
provide subsidies for up to 50% of the project cost for the
installation of specified DG technologies that generate
electricity on a utility customer's premises. Last year, SB
1012 (Kehoe) was substantially similar to this bill except that
it extended the SGIP through 2012. SB 1012 failed passage in
the Assembly.
The Legislature has been cautious about expanding eligible
technologies until they are satisfied that the program renders
cost-effective benefits. AB 2778 required CEC, in consultation
with PUC and ARB, to perform a cost-benefit evaluation of
providing ratepayer funded subsidies to natural gas and
fossil-fuel fired DG through SGIP, and to include
recommendations for certain program changes by November 1, 2008.
This report concluded that photovoltaics rendered the greatest
greenhouse gas reductions. It also concludes that, "The Energy
Commission believes that ultra-clean and low-emission DG
technologies using non-renewable and renewable fuels should be
reinstated, especially those technologies used in CHP
applications." In addition, CEC states, "Eligibility for SGIP
should be based on the overall efficiency and performance of
systems, regardless of fuel type." To follow up with the
recommendation, it concludes with, "CPUC should develop an
incentive structure for SGIP projects that meet specific targets
for environmental, transmission and distribution, and economic
benefits."
SB 412
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Analysis Prepared by : Gina Adams / U. & C. / (916) 319-2083
FN: 0002698