BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 542|
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                                 THIRD READING


          Bill No:  SB 542
          Author:   Wiggins (D) and Strickland (R)
          Amended:  5/28/09
          Vote:     21

           
           SENATE ENERGY, U. & C. COMMITTEE  :  10-1, 4/21/09
          AYES:  Padilla, Calderon, Corbett, Cox, Kehoe, Lowenthal,  
            Simitian, Strickland, Wiggins, Wright
          NOES:  Benoit

           SENATE APPROPRIATIONS COMMITTEE  :  8-4, 5/28/09
          AYES:  Kehoe, Cox, Corbett, DeSaulnier, Hancock, Leno,  
            Oropeza, Yee
          NOES:  Denham, Runner, Walters, Wyland
          NO VOTE RECORDED:  Wolk


           SUBJECT  :    Solar energy and energy efficiency programs

           SOURCE  :     Author


           DIGEST  :    This bill requires the California Energy  
          Commission to inform solar energy system installers of  
          existing statutory requirements.  This bill requires the  
          Public Utilities Commission to develop and implement a  
          strategy to expand participation of multi-unit residential  
          and commercial rental properties in existing energy  
          efficiency and solar energy programs.

           ANALYSIS  :    Under existing law, the Public Utilities  
          Commission (PUC) has regulatory authority over public  
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          utilities, including electrical corporations, as defined.   
          A decision of the PUC adopted the California Solar  
          Initiative.  Existing law requires the PUC to undertake  
          certain steps in implementing the California Solar  
          Initiative.  Existing law establishes a surcharge on all  
          natural gas consumed in the state and upon electricity  
          distributed by the state's three largest electrical  
          corporations, to fund certain low-income assistance  
          programs, cost-effective energy efficiency and conservation  
          activities, and public interest research and development.

          This bill requires the PUC, by July 1, 2010, to develop and  
          implement a strategy to expand the participation of  
          multiunit residential and commercial rental properties in  
          utility energy efficiency and solar energy programs and to  
          prepare and submit a report on the program to the  
          Legislature by that date. This bill requires the PUC to  
          ensure that the strategy implemented does not result in any  
          additional ratepayer surcharges, is funded through existing  
          programs or the American Recovery and Reinvestment Act of  
          2009, and is cost effective for utility customers.  This  
          bill requires the PUC to consider, in developing the  
          strategy, whether synergies exist between its energy  
          efficiency programs and the solar energy programs of the  
          California Solar Initiative, that, in the determination of  
          the PUC, can make energy efficiency and solar investments  
          cost effective for utility customers in multiunit  
          commercial and residential rental properties.  This bill  
          requires the PUC, in implementing the California Solar  
          Initiative, to ensure that solar energy system installers  
          are informed that if the solar energy system is to be  
          installed on a manufactured home, that the installation is  
          required to comply with certain statutory and regulatory  
          requirements pertaining to the alteration of manufactured  
          housing.

          Existing law requires the California Energy Commission  
          (CEC), in consultation with the PUC, local publicly owned  
          electric utilities, and interested members of the public,  
          to establish and thereafter revise eligibility criteria for  
          solar energy systems and to establish conditions for  
          ratepayer funded incentives that are applicable to the  
          California Solar Initiative.








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          This bill requires the CEC to ensure that solar energy  
          system installers are informed that, if the solar energy  
          system is to be installed on a manufactured home, the  
          installation is required to comply with certain statutory  
          and regulatory requirements pertaining to the alteration of  
          manufactured housing.  This bill requires the CEC to inform  
          installers about the permitting processes in its next  
          update of the California Solar Initiative Program Handbook.

           Background  
          
          Since the 2000-01 energy crisis, California policy has  
          elevated energy efficiency measures as the highest priority  
          activity for meeting California's energy needs.  Energy  
          efficiency is often cost effective, cheap, clean, and  
          relatively quick to implement.  The PUC authorized  
          substantial energy efficiency programs for the major  
          investor-owned utilities for the period 2006-08.  This  
          program is expected to produce $2.7 billion in net  
          benefits, reducing customer bills.  Moreover, these savings  
          are the equivalent of avoiding three large powerplants over  
          the next three years, eliminating 3.4 million tons of  
          carbon dioxide in 2008, equivalent to taking 650,000 cars  
          off the road.  For the 2009-2011 period, the PUC has  
          adopted slightly more ambitious goals.  For the longer  
          term, the PUC has adopted an energy efficiency strategic  
          plan which dovetails with our AB 32 greenhouse gas  
          reduction goals.  This plan has at its cornerstone four  
          "Big and Bold" initiatives:  

          1. All new residential construction will be zero net energy  
             by 2020.

          2. All new commercial construction will be zero net energy  
             by 2030.

          3. Air conditioning and heating systems will be performance  
             optimized for California's climate.

          4. All low-income customers will be provided an opportunity  
             to participate in California's low income energy  
             efficiency programs by 2020.

          The energy efficiency programs take many forms and target  







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          all customer classes, from residential to commercial.  One  
          group of customers who gets relatively little attention is  
          renters.  The difficulty of reaching out to renters is that  
          while the renter pays the energy bill, the landlord owns  
          the structure and, often, the appliances.  It therefore  
          makes little sense for a landlord to install energy-saving  
          double-paned windows when the cost savings accrue to the  
          tenant.  Alternatively, a renter would not bother paying  
          for a new, energy-efficient air conditioner if he had to  
          leave the unit behind once he moved on.

          Renters are a large portion of Californians, comprising 43  
          percent of California households.  While there are a few  
          programs targeted at renters, and a special energy  
          efficiency program for low-income households, renters are,  
          in the words of one of California's large investor-owned  
          utilities, "a very large and largely unserved market."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  5/28/09)

          R?colte Energy
          Western Center on Law and Poverty


           ARGUMENTS IN SUPPORT  :    The author has had constituents  
          who have wanted to install photovoltaic systems on their  
          manufactured homes, but have run into a government  
          bureaucracy which is unsure of which agency has  
          jurisdiction and what rules apply.  The provisions in  
          Sections 1 and 2 of the bill are intended to remove the  
          uncertainty by citing the specific applicable code sections  
          and regulations.  The author is also concerned that a  
          substantial portion of customers pay for the state's energy  
          efficiency programs and the California Solar Initiative,  
          but because of their housing status cannot participate in  
          either.  This bill is an attempt to focus the PUC's effort  
          in this area.


          DLW:mw  5/29/09   Senate Floor Analyses 








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                         SUPPORT/OPPOSITION:  SEE ABOVE

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