BILL ANALYSIS �
AB 217
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Date of Hearing: May 1, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 217 (Bradford) - As Amended: April 16, 2013
Policy Committee: Utilities and
Commerce Vote: 12-3
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill creates a program to provide rebates for solar
installations made by qualified low-income single and
multi-family households. Specifically, this bill:
1)Continues a portion of the surcharge collected by
investor-owned utilities for the California Solar Initiative
(CSI) to provide $108 million for the existing Single-family
Affordable Solar Homes program (SASH) and Multi-family
Affordable Solar Housing (MASH) program. This surcharge is
set to expire in 2015.
2)Requires eligible participants to enroll in the utility Energy
Savings Assistance Program (ESAP).
3)Requires the California Public Utilities Commission (PUC) to
determine program elements to maximize overall benefit to
ratepayers, including job training and employment
opportunities in the solar energy and energy efficiency
sectors of the economy.
4)Allows each IOU to request permission from the PUC to transfer
any unused general market California Solar Initiative funds
that remain at the close of the program to reduce a portion of
the $108 million that would otherwise be collected from
customers.
5)Sunsets the program December 31, 2021.
FISCAL EFFECT
AB 217
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1)By extending the surcharge, investor-owned utility customers
will pay increased rates of up to $108 million to fund the
low-income rebate programs.
2)Increased administrative costs of approximately $120,000 to
the PUC.
COMMENTS
1)Rationale. An important goal of the CSI was to create a
sustainable solar market for general market customers through
lower solar prices and increased financing opportunities.
Solar pricing has decreased, but the upfront costs are still a
barrier for low-income families who require additional price
support to access solar for their homes. Existing low-income
programs sunset in 2015. This bill establishes a new program
to fund SASH and MASH programs designed to provide rebates for
up to 50 megawatts until 2021.
2)Background. SB 1 (Murray, Chapter 132, Statutes of 2006)
established a statewide goal to install solar energy systems
in homes and businesses with a capacity of 3,000 megawatts
over 10 years.
As part of the statewide effort, the CSI Program,
administered by the PUC, offers a $2.2 billion ratepayer
funded solar rebate program with the goal to install 1,940
megawatts of new solar electric systems on existing homes
in investor-owned utility service territory by 2015.
AB 2723 (Pavley, Chapter 864, Statutes of 2006) required
the PUC to ensure that not less than 10% of the CSI funds
are used for the installation of solar energy systems on
low-income residential housing and authorized the PUC to
incorporate a revolving loan or loan guarantee program for
this purpose.
The SASH and MASH programs provide higher incentives for
low-income single family and multi-family residences. Both
programs were implemented in 2009 with a combined budget of
$216 million designed to provide incentives sufficient to
allow low-income homeowners and multi-family tenants to
benefit from California's growing solar economy.
AB 217
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Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081