BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 542
                                                                  Page  1

          Date of Hearing:   August 19, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    SB 542 (Wiggins) - As Amended:  May 28, 2009 

          Policy Committee:                              UtilitiesVote:9-5

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the Public Utilities Commission (PUC) to:

          1)Develop and implement a strategy, by July 1, 2010, to expand  
            the participation of multi-unit residential and commercial  
            rental properties in energy efficiency and solar energy  
            programs, and to report to the Legislature on this effort.   
            The strategy is to use the same strategy adopted for  
            addressing the Multifamily Affordable Solar Housing program.

          2)Ensure that the strategy does not result in additional  
            ratepayer surcharges and is funded from existing energy  
            efficiency programs, the California Solar Initiative (CSI),  
            and/or American Recovery and Reinvestment Act (ARRA) funds.

           FISCAL EFFECT  

          Annual special fund costs of $190,000 for two staff to develop  
          and oversee implementation of the strategy within the CSI and  
          energy efficiency programs. [Public Utilities Reimbursement  
          Account] 

           COMMENTS  

           1)Purpose  . While renters help fund the CSI and the state's  
            energy efficiency programs through their utility bills, they  
            have little opportunity to participate in these programs.  
            Generally, renters are unable to make energy related  
            improvements since they do not own the property, and landlords  
            are unwilling to make such investments since they will not  
            directly benefit from the energy savings.  According to the  
            author's office, the purpose of this bill is to encourage the  








                                                                  SB 542
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            use of solar energy and energy efficiency measures in  
            apartments, multi-unit residential and commercial buildings,  
            and manufactured homes.

           2)Prior Legislation .  Last year, SB 1460 (Wiggins), which was  
            very similar to this bill, was held on this committee's  
            Suspense file.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081