BILL ANALYSIS �
AB 217
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 217 (Bradford)
As Amended September 6, 2013
Majority vote
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|ASSEMBLY: |54-23|(May 30, 2013) |SENATE: |27-11|(September 11, |
| | | | | |2013) |
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Original Committee Reference: U. & C.
SUMMARY : Creates a new program that provides rebates for solar
installations made by qualified low-income households.
Specifically, this bill :
1)Creates a program to make up to 50 megawatts of rebates available
to qualified single-family and multi-family affordable housing.
2)Funds the program up to $108 million collected from customers of
investor-owned utilities (IOU).
3)Requires eligible participants to enroll in the utility Energy
Savings Assistance Program (ESAP).
4)Requires the California Public Utilities Commission (PUC) to
determine program elements to maximize overall benefit to
ratepayers.
5)Sunsets the program December 31, 2021.
The Senate amendments :
1)Specify that the additional collection shall not occur until
existing funds available for low-income housing programs are
exhausted in that IOU's territory.
2)Require PUC to ensure the program is designed to maximize the
overall benefit to taxpayers instead of ensuring the program is a
cost-effective investment for ratepayers.
3)Add language to avoid chaptering out issues with AB 102 (Budget
Committee), SB 72 (Budget and Fiscal Review Committee), SB 84
(Budget and Fiscal Review Committee), and SB 96 (Budget and Fiscal
Review Committee) of the current legislative session.
AB 217
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FISCAL EFFECT : According to the Senate Appropriations Committee,
annual costs of $50,000 from the Public Utilities Reimbursement
Account through 2021 for the administration of the low-income
programs of the California Solar Initiative (CSI). In addition,
annual costs of approximately $260,000 from General Fund and various
special funds for CSI surcharges paid by the state as an IOU
customer.
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 PUC.
COMMENTS :
1)Background : Pursuant to SB 1 (Murray), Chapter 132, Statutes of
2006, a statewide goal to
install solar energy systems, with a generation capacity of 3,000
megawatts, to make solar energy systems a viable mainstream option
for both homes and businesses in 10 years. This is known as the
Go Solar California Campaign and there is a statewide budget of
$3.5 billion. The statewide effort also includes CSI Program
which is administered by PUC. The purpose of CSI is to offer a
$2.2 billion ratepayer funded solar rebate program with a goal to
install 1,940 megawatts of new solar electric systems on existing
homes in investor-owned utility (IOU) service territory by 2015.
AB 2723 (Pavley), Chapter 864, Statutes of 2006, required 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.
Single-family Affordable Solar Home (SASH) Program provides higher
incentives for low-income single family homeowners. SASH is
currently implemented by GRID Alternatives (GRID), a non-profit
solar contractor.
Multi-family Affordable Solar Housing (MASH) Program provides
higher incentives for low-income multifamily low-income residences
and is implemented by the respective IOUs - Pacific Gas and
Electric (PG&E), Southern California Edison (SCE), and California
Center for Sustainable Energy in San Diego Gas and Electric
AB 217
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territory (SDG&E).
SASH and MASH Programs began in 2009 and each has a total budget
of $108 million.
Both programs were specifically designed to provide appropriate
incentives that allowed low-income homeowners and multi-family
tenants to benefit from California's growing solar economy.
2)Continuing investments in low-income solar programs : This bill
establishes a low-income
solar program to continue providing the widespread benefits of the
existing programs to families and communities who otherwise would
not have access to solar. The proposed program will be funded at
$108 million- which is 50% less than the existing program budget-
over seven years. One of the goals of CSI was to create a
sustainable solar market, and this has been occurring for general
market customers through lower solar prices and the rise of
innovative financing models (lease and power purchase agreements
(PPAs)), which have allowed more middle-income folks to invest in
solar. Though solar pricing has decreased since CSI began, the
upfront cost of solar will remain a barrier for low-income
families and will require additional price support to maintain
their access to solar.
According to PUC, SASH and MASH Programs have installed
approximately 25 megawatts to low-income residences. As of
February 2013, 2,500 single-family homes and over 280 multifamily
residences have received solar energy systems through SASH and
MASH Programs, respectively. SASH and MASH Programs sunset in
2015. In some territories, the programs anticipate their
incentive budgets will be fully reserved well before the programs'
sunset date in 2015. In some areas, the programs may end as early
as late 2013.
Analysis Prepared by : DaVina Flemings / U. & C. / (916) 319-2083
FN: 0002715